Outsourcing Opportunities
Contract Research and Manufacturing Services (CRAMS)
The Contract Research and Manufacturing Services (CRAMS) segment is gaining traction worldwide and Indian CRAMS industry has witnessed commen-dable growth in the last few years. Given strong growth prospects, inherent competencies and conducive regulatory environment India has, by 2020, India will have successfully managed to capture a principal slice of global demand for outsourcing and the number of international companies off-shoring their global R&D and manufacturing operations to India and setting up low cost facilities here will increase substantially. India will become one of the most important constituents of the drug discovery and manufacturing value chain of the global pharma industry. This segment will be driven by India's ability to compete and preserve its inherent competencies supported by the expected improvement in IP infrastructure and the compliance with international standards.
From no where in late nineties to approximately 50 molecules under various stages of development, at present, Indian pharma industry is rapidly scaling up its presence in the innovative R&D space. Though there is a long way to go for Indian pharma companies to achieve a vital position in the global R & D landscape, companies are adopting collaborative research strategies such as in-licensing, out-licensing and joint development with international companies to ramp up their NCE/NDDS pipelines. By 2020 Indian Pharma would have gained substantial experience and expertise in the area of new drug discovery and development and certainly would have launched some of its molecules globally.
Indian Pharma Industry
The Indian pharmaceutical industry now ranks 3rd worldwide by volume of production thereby accounting for around 10% of world's total pharmaceutical output in terms of volume.
Indian pharma market which is now estimated to value over to Rs. 1,00,000 crores (US $ 20 billion), has shown tremendous progress in terms of infrastructure development, technology base creation and a wide range of products.
Indian pharma market, which is currently valued at USD 20 billion, could see the figure almost double in next 5 years majorly propelled by the steady growth in the domestic egment. Related story: Indian pharma market sales up despite recession.
Increase in drug prices in India account for 3-4% growth in the domestic formulation industry, according to RNCOS study titled "Booming Pharma Sector in India".
The Indian pharmaceutical industry has been witnessing prodigious growth over the last few years. The industry is projected to continue growing further at a CAGR of around 13% during FY 2011-FY 2013.
Scope of Indian Pharma industry
The Indian pharmaceutical market shows immense growth potential due to the growth of the pharma outsourcing industry and the bioinformatics industry.
Further, various factors such as growing healthcare spending and growth in the obligatory and voluntary insurance schemes have been resulting into the increasing usage of high-priced drugs in the country.
While growth oriented and inclusive policy regime will help sustain strong underlying growth drivers, the further strengthening of IP regime by policy makers and a forward looking regulatory regime will play a very important role in determining the success of Indian pharma industry.
2020 will definitely witness India's rightful place under the sun-being that of an important producer and consumer in the global pharma sweepstakes.