Price reduction, rising Re triggers pharma slowdown
Faced with price reduction and rupee appreciation, the growth of the Indian drug industry has slowed down this year. Gujarat Pharma industry celebrates
By Khomba Singh, TNN |
NEW DELHI: Faced with price reduction and rupee appreciation, the growth of the Indian drug industry has slowed down this year. The domestic retail market for the 12-month period ended November 2007 grew by 12.3% compared to growth of over 15% last year.
According to market research firm ORG IMS, the market size of the domestic retail market at the end of 12-month period-ended November stood at Rs 30,598 crore. Sales from the overseas market is expected be around Rs 31,000 crore for the year, a growth of 20% over last year. In addition, the industry’s institutional sales are estimated to be over Rs 7,000 crore.
Industry body Indian Pharmaceutical Alliance (IPA) secretary general D G Shah attributes the slowdown to regulatory changes. “The prices of a large number of drugs have been reduced during the year by the government. Also, fixed dose combination (FDC) drugs which accounts for about 10% of the total retail market are also going off shelf,“ Mr Shah said.
According to market research firm ORG IMS, the market size of the domestic retail market at the end of 12-month period-ended November stood at Rs 30,598 crore. Sales from the overseas market is expected be around Rs 31,000 crore for the year, a growth of 20% over last year. In addition, the industry’s institutional sales are estimated to be over Rs 7,000 crore.
Industry body Indian Pharmaceutical Alliance (IPA) secretary general D G Shah attributes the slowdown to regulatory changes. “The prices of a large number of drugs have been reduced during the year by the government. Also, fixed dose combination (FDC) drugs which accounts for about 10% of the total retail market are also going off shelf,“ Mr Shah said.
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Drug regulator national pharmaceutical pricing authority (NPPA) has brought under price control the prices of 23 non-scheduled drugs by using a special provision in the drug price control order to cap prices of drugs in public interest. The government already has 74 scheduled drugs under price control. However, the industry will maintain a growth of 15-16% over the next 5-6 years, he added. The industry is already facing the problem of 12% appreciation of rupee against the dollar which has affected the revenue of many Indian drug makers. Some industry officials also say that the outbreak of dengue last year had resulted in a higher than normal growth rate last year.
Meanwhile, for November, Cipla extended its lead in the top position in the sales figures with 5.42% market share, followed by Ranbaxy Laboratories which has 5.09%. GlaxoSmithKline still holds on to the third slot with 4.94%. The three companies also hold the same position for the 12-month period in the same order.
For the 12-month period-ended November, Corex is the highest selling brand in the country followed by pain killer Voveran and Himalaya’s liver tonic Liv 52, respectively.
Meanwhile, for November, Cipla extended its lead in the top position in the sales figures with 5.42% market share, followed by Ranbaxy Laboratories which has 5.09%. GlaxoSmithKline still holds on to the third slot with 4.94%. The three companies also hold the same position for the 12-month period in the same order.
For the 12-month period-ended November, Corex is the highest selling brand in the country followed by pain killer Voveran and Himalaya’s liver tonic Liv 52, respectively.
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