LONDON, April 14, 2016 /PRNewswire/ -- 2016 will be a crucial for drug makers and consumers. During 'Make-in-India' week in Mumbai, Govt. highlighted many amendments or introduction of new policies with an aim to make India as a major hub for end to end drug discovery. To boost drug discovery, to promote manufacturing of certain drugs against life threatening diseases like AIDS, and to reduce our dependence on China, the Govt. has promised to offer many incentives (exemption from excise duty or tax) and also plans to setup venture capital funds, cluster developments to strengthen pharma infrastructure / business. Other developments or initiatives include, i) The voluntary Uniform code of Pharma marketing practice will be replaced with a mandatory code by June.
This will stop the promotion of drug prior to receipt of the marketing approval and also the practice of drug makers offering gifts to doctors upon prescribing their products; ii) Concept of the 'Online pharmacies' is also expected to be implemented during this year; iii) Change in FDI rule where investor now invest thru Automatic route rather taking any prior regulatory approval; iv) Growth in Medical Infrastructure which will increase accessibility to drug market to improve in Tier-II towns and rural areas.
Declined growth in bulk drugs due to regulatory scrutiny and rising competition & market factors from other Asian competing nations will be compensated by geographies expansion (e.g., Lupin, Cipla, Sun pharma) and sustainable growth from Domestic formulation (e.g. Alkem, Cipla, Sun pharma, Dr Reddy), mainly from Chronic diseases' segment, due to growth in urban population, better awareness on healthcare, and greater penetration of services. India pharma has started expanding in other regulated markets (Japan, Germany, France, Canada) and Tier-II countries (Brazil, Mexico, Venezuela, Russia, etc.). To explore further opportunities of growth, Indian pharma companies have started developing complex generics/ biosimilars. Almost all companies, among Top-20 list, have robust pipeline in this value chain, targeting primarily emerging markets; however, they are also capitalizing on their competitiveness and capabilities to enter into the regulated market.
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