Currently, the pharmaceutical industry is facing issues due to the price cuts and regulatory issues in India. However multinational companies are growing faster than the domestic business due to a better product mix, says a recent study.
The Indian companies control around 80% of the market that is close to 1 lakh crore pharma market in India. The launch of the patented drugs in the country is mainly helping the multinationals grow faster in India according to the report released by a marketing research firm AWACS said.
Ameesh Masurekar, CEO AWACS said, “MNCs though still have a smaller base compared to Indian peers. However, we have seen that in the last few months launch of patented products has helped these companies.”
The anti-infective segment is the core strength of the Indian drug makers and it has reported an 8% fall in sales in the month of August when compared to the other segments. The niche segments like anti-diabetic and cardiac disease drugs which are generally considered as predominantly big domains are growing in double digits.
According to the reports, the overall pharma market fell due to GST in the month of July whereas, the companies like Eli Lily, Novartis and Boehringer Ingelheim has seen higher sales. Companies like Teva and Mylan lost half of their market capitalization due to the massive inorganic expansions.
Indian companies like Intas and Aurobindo are pursuing global portfolio parts that are disposed of by the Big Pharma Industry players. These Indian players are also planning for their exports and enter into the developed markets of US, Europe and Japan with their main speciality products.
Ranjit Shahani, vice-president at Novartis Pharma said, “The growth of MNCs might still be insignificant considering the huge influence of Indian drug makers in this segment. India’s pharma industry has been under pressure due to regulatory issues like the ban on fixed dose combination drugs and periodic price cuts.”