India Pharmaceuticals & Healthcare Report Q3 2016 - New Study Released

The tough operating environment for multinational drugmakers in India will see little improvement over the medium term. Designated as a 'Priority Watch List Country' for PhRMA's Special 301 submission for 2016, the issues raised largely mirrored those touched upon in the 2015 submission, such as low levels of intellectual property and challenges in market access. As a result of these factors, innovative firms will adopt a cautious approach to India, which remains attractive due to its large medicine market size.

Headline Expenditure Projections

Pharmaceuticals: INR1,065bn (USD16bn) in 2015 to INR1,191bn (17bn) by 2016; +11.8% in local currency terms and 5.1% in US dollar terms. Forecast unchanged from last quarter.
Healthcare: INR6,695bn (USD104bn) in 2015 to INR7,561bn (USD110bn) by 2016; +12.9% in local currency terms and 6.2% in US dollar terms. Forecast revised upwards from last quarter.

Full Report Details at
- http://www.fastmr.com/prod/1170536_india_pharmaceuticals.aspx?afid=301

Risk/Reward Index

India's pharmaceutical market ranks as the tenth most attractive amongst 19 other countries in the Asia Pacific region. Scoring 50.8 out of 100.0 for our BMI Pharmaceutical Risk/Reward Index in Q316, the country's high market expenditure is weighed down by the low spending per capita as well as the high risks involved, including low patent respect.

Latest Updates

The Indian state government of Maharashtra noted in January 2016 that it will be setting up 12 high-capacity cluster vaccine storage centres in six tribal districts. Being set up at the cost of INR21mn (USD315,115), this will allow the state to carry out immunization drives smoothly.

The month of February 2016 saw the government release its budget for FY2016/17. Among the initiatives for healthcare include a new health protection scheme that will provide health coverage up to INR100,000 (USD1,463) per family living under in poverty and a drive to open 3,000 Jan Aushadi stores within the year.

In March 2015, the Delhi High Court extended its interim order lifting a government ban on fixed dose combinations pharmaceuticals. Initiated that month, the ban targets 344 drugs and affects a wide array of multinational pharmaceutical firms such as Pfizer and Sanofi.

BMI Economic View

India's real GDP expanded by 7.4% y-o-y in Q2FY2015/16, accelerating from a rate of 7.0% y-o-y in the previous quarter, as the manufacturing and power sectors registered strong growth. Although we maintain our FY2015/16 (April-March) real GDP growth forecast of 7.3%, the sluggish growth prints of the agriculture and construction sectors suggest that the Indian economy continues to face multiple challenges.

BMI Political View

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