'Emerging markets double their share in global pharma market'
Monday, 29 October 2007
NEW DELHI, Oct 28 (PTI): Driven by robust growth in India and China, share of emerging markets in the global pharmaceutical industry has more than doubled to 32 billion dollar in 2006 from 15 billion dollar in 2001, a report said.
The total share of emerging markets in the global pharmaceutical market has increased from 13 per cent in 2001 to 27 per cent in 2006, global research firm KPMG said in its report on 'New and Emerging markets'.
KPMG said India presently contributes more than 20 per cent to the 60-billion dollar global generic medicine market in terms of value and provides content to around 40 per cent of this market.
Although India is regarded as the hub of global generic medicines, Indian companies are also exploring the opportunity in new drug discovery and innovative products, the study pointed out.
"India in particular is trying to move away from its traditional image as a general drug or copycat workshop of the global pharmaceutical industry," the research firm said.
Indian companies have recognised that industry is low on innovative drug and there is a fear that this bottleneck could retard the future growth of the pharmaceutical industry.
Rather than copying the drugs produced by western companies, Indian companies are now grasping the nettle and developing their own products. The research and development budget of six top Indian pharma companies have risen by 20 per cent between 2003 and 2005 alone and more than a dozen firms now operate their own research programmes, KPMG revealed.
In view of the immense cost-explosion in the development of new drugs, companies from developed countries are looking for more cost-effective methods to reduce the expenses on discovering newer drugs. This has provided a big opportunity for Indian pharmaceutical companies as they gear up to make use of the opportunity.
Indian companies have taken over the research stage of drug development and this outsourcing process has been labelled as contract research and manufacturing services, (CRAMS). The CRAMS market in India has crossed 900 million dollars and is expected to grow faster in near future.
"The expansion of new R&D capacities has developed the Indian market into a cost-effective outsourcing destinations, including high quality corporate processes in the international pharmaceutical industry," KPMG new and emerging market, Chairman Ian Gomes said.
The total share of emerging markets in the global pharmaceutical market has increased from 13 per cent in 2001 to 27 per cent in 2006, global research firm KPMG said in its report on 'New and Emerging markets'.
KPMG said India presently contributes more than 20 per cent to the 60-billion dollar global generic medicine market in terms of value and provides content to around 40 per cent of this market.
Although India is regarded as the hub of global generic medicines, Indian companies are also exploring the opportunity in new drug discovery and innovative products, the study pointed out.
"India in particular is trying to move away from its traditional image as a general drug or copycat workshop of the global pharmaceutical industry," the research firm said.
Indian companies have recognised that industry is low on innovative drug and there is a fear that this bottleneck could retard the future growth of the pharmaceutical industry.
Rather than copying the drugs produced by western companies, Indian companies are now grasping the nettle and developing their own products. The research and development budget of six top Indian pharma companies have risen by 20 per cent between 2003 and 2005 alone and more than a dozen firms now operate their own research programmes, KPMG revealed.
In view of the immense cost-explosion in the development of new drugs, companies from developed countries are looking for more cost-effective methods to reduce the expenses on discovering newer drugs. This has provided a big opportunity for Indian pharmaceutical companies as they gear up to make use of the opportunity.
Indian companies have taken over the research stage of drug development and this outsourcing process has been labelled as contract research and manufacturing services, (CRAMS). The CRAMS market in India has crossed 900 million dollars and is expected to grow faster in near future.
"The expansion of new R&D capacities has developed the Indian market into a cost-effective outsourcing destinations, including high quality corporate processes in the international pharmaceutical industry," KPMG new and emerging market, Chairman Ian Gomes said.