Indian Pharma Focusing on New Geographies
Indian Pharma companies are focusing on gaining market access in new geographies that include countries such as Russia, Kazakhstan, Mexico, Brazil, Venezuela, Japan and those forming a part of the ASEAN bloc. European countries such as Spain, Greece, Germany, France and Italy are also on this focus list.
The market diversification plan has been presented by the department of pharmaceuticals in a deposition to the Parliamentary Standing Committee on chemicals and fertilizers. This market diversification plan also includes other nontraditional markets such as South Africa, Nigeria, Kenya, Saudi Arabia and the UAE. This proposal has been put forth due to increased regulatory pressure by US regulators on Indian drug exports who are continuously struggling with quality problems repeatedly being highlighted by USFDA.
Another problem which Indian drug companies are witnessing is that of severe pressure of price in the lucrative US market which is evident from the Morgan Stanley analysis showing that about 86 per cent of 582 drugs sold in the US by six leading Indian pharmaceutical companies did not register any change in price during calendar years 2013 and 2014.Several other problems include Intellectual property rights issues and regulatory reverses in the market.
Indian Pharmaceutical companies have witnessed slowest growth in the year 2013-2014 and are the slowest growth observed in past 15 years. According to a government strategy paper issued earlier this year, Indian pharma exports are likely to miss the target of $25 billion set for 2014-15.