PHARMACEUTICALS

INDUSTRIES
Introduction:-

India is the largest provider of generic drugs globally. Indian

pharmaceutical sector supplies over 50% of global demand for
various vaccines, 40% of generic demand in the US and 25% of
all medicine in the UK. Globally, India ranks 3rd in terms of
pharmaceutical production by volume and 14th by value. The
domestic pharmaceutical industry includes a network of 3,000
drug companies and ~10,500 manufacturing units.

India enjoys an important position in the global

pharmaceuticals sector. The country also has a large pool of
scientists and engineers with a potential to steer the industry
ahead to greater heights. Presently, over 80% of the
antiretroviral drugs used globally to combat AIDS (Acquired
Immune Deficiency Syndrome) are supplied by Indian
pharmaceutical firms.
 GROWTH DRIVERS

Hello, and thank you for your question about the drivers of market growth in the pharmaceutical
industry. The short answer is that we have compiled a list of ten drivers of market growth in the
pharmaceutical industry. Below you will find a deep dive into my findings in the form of a short,
ordered list.

1. BRANDED DRUGS and SPECIALTY MEDICINE

 73 new branded drugs were introduced to market in 2015. The market for branded drugs is
expected to reach $91 billion by 2020. Within branded drugs, 75% of spending is on specialty
drugs (initiated by specialists and requiring physician oversight, often high-cost). Of total drug
spending, specialty brands represent 36%.

2. OFF-PATENT DRUGS
Several drugs went off-patent in 2015, which allowed the US generic drug market size to reach
$70 billion. Healthcare reforms have helped increase the use of generic medicine as well, helping
to add to the increased market size.

3. OTC GROWTH
Over the counter medications are also seeing a growth in sales. This has been linked to the aging
population requiring more OTC medications and consumer behaviors that encourage self-
medication instead of visiting a doctor.

4. HEALTHCARE REFORM
The healthcare legislation passed in 2010 elevated patient demand for pharmaceuticals, although
pharmaceutical companies also saw increased taxes tied to rebate programs. These companies
passed the cost on to buyers in the form of higher drug prices.

5. HIGHER DRUG PRICES

When companies passed the taxes onto to customers, some medications saw a large increase in
price. The Epipen, for example, raised in price by 400% since 2009. While this has raised a host
of other challenges, it has played a role in the increasing market size of the pharmaceutical
industry.
6. CHANGING DRUG STATUS
Another factor leading to the rise in OTC medications is that many drugs are becoming re-
classified, shifting from a prescription-only medication to an over the counter medication. As
that happens, there is an increase in the market size of generic medication that correlates. New
medications coming onto the market make up the difference in prescription medication market
size.

7. HEALTHCARE and TECHNOLOGY CONVERGENCE

Technology is increasingly becoming a part of healthcare. Apps that help users take their health
in their own hands, so to speak, have flooded the market, as well as other digital innovations in
health, that are increasing consumer awareness and growing the pharmaceutical market.

8. INNOVATIONS IN ONCOLOGY, AUTOIMMUNE, and DIABETES TREATMENTS

Innovations in the fields of oncology, autoimmune, and diabetes treatment will fuel both the US
and international pharmaceutical market. Emerging markets will see a steady rise is people
seeking treatment for these diseases, while the US is expected to remain on the forefront of
technology. Advancements in treatments and prevention will drive market growth.

9. CHRONIC AILMENTS and RARE DISEASES

There is an increasing number of Americans who experience chronic ailments or pain. Chronic
illness such as hypertension and mental health issues are a leading driver of the growth in
prescription drugs in the US. There is also an increasing market size for pharmaceuticals that
treat rare diseases as advancements in pharmaceuticals offer more solutions and advancements in
medicine uncover more problems.

10. AGING POPULATION

As our population ages, they are in need of more medical care. Government health programs like
Medicaid and Medicare allow a wider range of seniors to be covered. As more of the population
ages into the "senior" bracket, they require an increased number of medical services.
Additionally, advancements in health means that people are living longer and requiring services
for a longer period of time.

CONCLUSION
To wrap it up, ten drivers of market growth in the pharmaceutical industry are branded drugs,
off-patent drugs, OTC growth, healthcare reform, higher drug prices, changing drug status, the
convergence of healthcare and technology, innovations in medical treatment, chronic ailments,
and an aging population.