Indian generic drug market to cross US$27.9bn by 2020

The study valued the domestic pharma market at US$15.4bn in 2014 and expects it to expand at a CAGR of 13.3% to US$32.7bn by 2020.

The domestic generic pharmaceutical market will grow at a compound annual growth rate (CAGR) of ~16.3% to surpass US$27.9bn by 2020 from the current level of US$13.1bn, says a joint study by industry chamber ASSOCHAM and market research firm RNCOS.

The study valued the domestic pharma market at US$15.4bn in 2014 and expects it to expand at a CAGR of 13.3% to US$32.7bn by 2020.

“Generics would account for 85% share in the domestic pharma market by 2020, fuelled by cheap labour, patent cliff of blockbuster drugs and prevalence of lifestyle diseases,” says the study.

The study has based its assessment on approvals accorded by the USFDA and on assumption that 21 drugs will lose their patents by 2019.

The study also noted that consumption of unbranded generics in India was limited because of the influence of physicians (who prefer to prescribe branded medicines), and lack of drug pricing control laws.