The global pharma market is going through a significant transformation, especially for us in the Indian sector. As the developed markets face a slowdown, it is the emerging markets that are emerging as a viable alternative. This is good news for Indian companies that are uniquely poised to take the lead position in the decade to come.
Closely linked with the success story of the bigger companies is the role of other smaller players, such as pharma pcd franchises. In this growth story it is part of other emerging markets like Brazil, Russia and China. But there are reasons why many investors are upbeat over India's chances against its competitors. This is because Indian firms offer certain unique advantages.
The factors behind the Indian phrama sector's growth lies in the organic nature of its development.
Presence of branded drugs: Although Indian is seen as the leader in generic drugs worldwide, the Indian market is today dominated by branded drugs. According to the latest McKinsey report, 70-80 percent of the market is dominated by this sector. This is great news because even through generic drugs drive our volumes, it is the branded drugs that get the big revenue.
This also gives us an edge internationally. It exhibits Indian companies', including the pharma pcd franchises', ability to lead in both sectors. It shows that unlike its competitors Indian firms' expertise does not lie solely in creating cheaper knock-off of more expensive drugs.
Strong local companies: When we closely look at the rise of the pharma sector in many other countries, we find one rather unwelcome data. The rise of pharma in emerging market is actually fueled by the top international firms who were creating their second base away front the slowly declining developed market. So, even though we were seeing an emergence of these markets, much of the benefit was going to the already established players.
This is where India differs significantly. Unlike many other developing nation, India has a core set of strong business houses, entrepreneurs and a history in pharma research and industry. There are industry leaders who have coped with daunting odds of government red tape and low investment, while trying to develop and sell medicines to a fairly low value market. What this has given us is a strong backbone of local investments, workforce and market rules. It has also reduced our dependence on international firms, keeping the growth and revenues within the local industry.
Cost benefit: Like a lot of emerging markets the Indian pharma sector has also benefitted from the surging costs of drugs and medical care in developed countries. The truth is that many drugs are overcharged by massive margins in these countries. Even accounting for their R&D investment, the drugs, many of which are lifesaving, are too steeply priced.
Indian drugs, on the other hand, are significantly cheaper. Local and inter nation competition has further kept the costs fairly low. In many pooper countries like many of the African countries, Indian companies are the leaders. The result is that Indian drug sales lead in volume with a dominance over international markets.
Strong medical infrastructure: Unlike many of the emerging markets, the Indian pharma pcd franchise success is also backed by a strong medical infrastructure. This includes leading hospital, patient care facilities, accomplished doctors, R&D facilities and established medical colleges that ensure a professional backbone to the medical industry.
In other words, the Indian pharma story has not grown in isolation. It has grown as a response to rising health consciousness, local demand for better medicines and competition. This infrastructure gives the industry a much needed foundation and an organic growth pattern one that is essential to ensure sustainable growth and development.
Rising demand: The strongest factor in the growth of the Indian pharma sector is its organic nature. It has grown because of local demands and requirement. As the prevalence of chronic diseases becomes more common, the demand for treatment and cure has also gone up. This has fueled investment and R&D - the two essential factors in the growth of any pharma industry.
While the global slowdown may have given it a fillip, the Indian pharma pcd franchise story no flash in the pan. Its current leading position is the result of a strong local demand, infrastructure and emerging competitors. Add paragraph text here.
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