India’s pharmaceutical industry is on a steady growth trajectory, with a projected valuation of $57 billion by fiscal year 2024-25, according to a report by CareEdge Ratings. Over the past five years, the sector has demonstrated a compound annual growth rate (CAGR) of 6%-8%, driven by both domestic and export markets. In this evolving landscape, companies like Digital Vision Pharma are playing a vital role in ensuring compliance, quality, and sustainable growth.
Despite facing challenges such as geopolitical conflicts and foreign currency shortages in some African countries, the Indian pharma industry witnessed an 8% growth in exports over the past five years. Digital Vision Pharma has played a pivotal role in this success story. The company has capitalized on increased access to healthcare in emerging markets through strategic market expansion and a focus on launching specialty and niche products. Notably, it has successfully positioned itself as a trusted supplier in international markets, where formulation exports contribute significantly to the industry’s total exports.
While the industry demonstrates positive growth, challenges persist. The evolving regulatory landscape and market dynamics require proactive measures to ensure compliance and maintain high-quality standards. However, Indian pharmaceutical companies have sustained stable credit profiles due to their strong profitability and lower reliance on debt, which is expected to continue. Adapting to regulatory changes, enhancing quality control measures, and promoting transparency will further strengthen the industry’s credit profile.
Digital Vision Pharma is well-positioned to leverage the growth drivers in India’s pharmaceutical industry. The company recognizes that structural factors such as an aging population, increasing prevalence of chronic diseases, rising healthcare awareness, insurance penetration, and government spending on healthcare schemes create a favorable environment for sustained growth. With its portfolio of complex and specialty generic products, Digital Vision Pharma aims to drive export growth and capture a larger market share. Furthermore, the impending patent cliff, where drugs worth $188 billion are set to go off-patent between 2023 and 2026, presents a significant opportunity for the company to expand its reach and reinforce its market presence.
In fiscal year 2023, the Indian pharma market witnessed a 5% year-on-year growth, reaching a cumulative value of $49.78 billion. The domestic market expanded by 7% during the same period, while exports grew modestly at 3%, impacted by geopolitical conflicts and foreign currency shortages. Within the market, the pain segment reported the highest growth at 10%, followed by the cardiac and neurological segments at 8%. The respiratory and dermatological segments experienced a growth rate of approximately 7%, while gynaecological products grew by 6%.
In addition to the factors driving the growth of India’s pharmaceutical industry, the ongoing digitization and adoption of technology are poised to play a pivotal role. Companies like Digital Vision Pharma are embracing digitalization to streamline operations, enhance research and development capabilities, and optimize supply chain management. This technological transformation not only improves efficiency but also positions these firms to respond swiftly to market changes and regulatory requirements. By harnessing the power of data analytics and artificial intelligence, Indian pharmaceutical companies are better equipped to innovate, produce high-quality drugs, and meet the evolving healthcare needs of a dynamic global landscape.
The industry’s growth in June 2023 fell below expectations due to volume declines, primarily in the domestic market. However, overall market growth for fiscal year 2024 is projected to range between 10% and 11% year-on-year. As the industry innovates and addresses emerging demands, India’s pharmaceutical sector is poised to make a significant impact on healthcare both domestically and globally.