McKinsey Sees Indian Drug Industry at US$20bn By 2015 (India)
This article was originally published in PharmAsia News
Executive Summary
Global consulting firm McKinsey forecasts the Indian pharmaceutical market tripling by 2015, from the current $6.5 billion to $20 billion. According to McKinsey's latest report, titled, "India Pharma 2015: Unlocking the Potential of the Indian Pharmaceuticals Market," the sector will grow by 12% annually for the next few years. One key driver for the expected market growth in India is the doubling of disposable income and an increase in the number of middle-class households. Several other factors will play a key role in the growth of the pharmaceutical market, including large private sector investments in health infrastructure, an increase in the number of physicians, greater penetration of health insurance, the rising prevalence of chronic diseases, and aggressive market penetration by smaller companies. However, concerns over drug pricing policies and product patent regulations could threaten the expected growth. McKinsey's report suggests that while the present generics industry will continue to dominate the Indian pharmaceutical market, patented products will constitute close to 10 percent of the market in the next ten years. (Click here for more