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The API Industry
The backbone of India pharma industry is the bulk drug industry
India has highest no. of US FDA approved plants (665) outside of the US
India has 44% of global abbreviated new drug applications (ANDA)
India needs to proactively boost the API Industry
The backbone of India pharma industry is the bulk drug industry India has highest no. of US FDA approved plants (665) outside of the US India has 44% of global abbreviated new drug applications (ANDA) India needs to proactively boost the API Industry
The Indian pharma industry is the world's 3rd largest in terms of vol India's API industry is ranked the 3rd largest in the world India fulfils 20% of global demand for generic medicines in terms of Vol & supplies over 60% of global demand of various vaccines & ARV drugs
Indian bulk drug industry has grown at CAGR of 8.6% over 2016-2020. It is further expeacted to grow at similar CAGR during 2020-2024 The import of APIs has risen at a CAGR of 8.3% from 2012-2019 Bulk drug import reached a value of INR ~249 billion in 2019@Harrshit1
Imports from China have been on a steady rise over the yrs (Frm 62% in FY12 to 68% in FY19) India imported 169 Bn worth of APIs from China in FY19 High import dependancy is largely attributed to lack of cost-effective options in domestic API mfging as compared to imports
Contribution to Economy
Provides Employment to 2.7 Mn Ppl
Generates $11Bn trade surplus every yr
Amongst the top 5 sectors contributing to the reduction of trade deficit
2 Bn FDI inflows over the last 3 yrs
Dominated by MSMEs which are primary employment generators
Provides Employment to 2.7 Mn Ppl Generates $11Bn trade surplus every yr Amongst the top 5 sectors contributing to the reduction of trade deficit 2 Bn FDI inflows over the last 3 yrs Dominated by MSMEs which are primary employment generators
The Indian generics industry can benefit substiantially from the patent cliff as patents for branded molecules with cumulative global sales of over $251 billion are expected to expire b/w 2018 & 2024, opening new opportunities for the industry#Bulkdrug
@unseenvalue
#API
India is expected to export bulk drugs worth 303 Bn in FY20 India accounts for 17.5% of the world's population & bears 20% of the global diseases burden 1 in every 3 pills consumed in the US is produced by an Indian generics manufacturer@unseenvalue
#Pharmaceutical
The bulk drug industry is highly fragmented with around 1500 plants that manufacture APIs. In FY18, top 14-16 players (including large formulation companies) comprised just 16-17 percent of total market share. Current market is largely dependent on China for many APIs
High Imports
Low cost Imports have a gradual erosion of india's mfging capacity of many APIs
Dependancy on imports can be reduced if India is able to manufacture the APIs in a cost efficient manner
China is a single supplier for many of the critical intermediates & APIs
Low cost Imports have a gradual erosion of india's mfging capacity of many APIs Dependancy on imports can be reduced if India is able to manufacture the APIs in a cost efficient manner China is a single supplier for many of the critical intermediates & APIs
Challanges face by Indian API Industry
Limited government support in the past
Inadequate infrastructure
Environemental clearnace issues
Price control regime (NLEM/DPCO/NPPA)
Price volatility due to high import dependancy
Increased Scrutiny of quality compliance
Limited government support in the past Inadequate infrastructure Environemental clearnace issues Price control regime (NLEM/DPCO/NPPA) Price volatility due to high import dependancy Increased Scrutiny of quality compliance
India and China
China enjoys cost advantage of around 20%-30% over India
Chinese API market has now over 2000 APIs molecules
China has more than 7000 APIs manufacturers with annual production capacity exceeding 2 Mn tonnes
Indin has around 1500 APIs mfging plants
China enjoys cost advantage of around 20%-30% over India Chinese API market has now over 2000 APIs molecules China has more than 7000 APIs manufacturers with annual production capacity exceeding 2 Mn tonnes Indin has around 1500 APIs mfging plants
China's dominant position in the mkt is a result of infrastructure investment, large-scale mfging capacities, cost effieciency, technical capabilities and supportive govt policies China implemented a greater no of reforms to improve its business climate in FY19 than India
Cost Comparison India v China
RM costs in China are 25%-30% lower than India
Power cost in China is 20% cheaper than India
Logistics costs in China are lesser than India
Borrowing cost in China is lesser than India
@npal20 @_N_U_P_K_Y @DIALWEALTH_IN
RM costs in China are 25%-30% lower than India Power cost in China is 20% cheaper than India Logistics costs in China are lesser than India Borrowing cost in China is lesser than India@npal20 @_N_U_P_K_Y @DIALWEALTH_IN
Manpower cost in India is 1.8 times lower than China Capacity Utilization rate in China 30%-40% higher than India Set-up & production costs in China are 15%-20% lower than in India Cost of Chinese bulk drug is 20%-30% lower than in India#Pharmaceuticals
#API
#China
Boosting API Industry
Recently GOI approved Bulk drug park & Production linked Incentive Scheme for promotion of domestic mfging of 53 critical APIs
Ease of doing business
Incentives and subsidies
Infrastructure development
Innovation and technical capabilities
Recently GOI approved Bulk drug park & Production linked Incentive Scheme for promotion of domestic mfging of 53 critical APIs Ease of doing business Incentives and subsidies Infrastructure development Innovation and technical capabilities