Ministry of Commerce and Industry, GoI, urges Indian pharma cos to explore non-regulated markets
Usha Sharma – Mumbai
In order to boost Indian pharmaceutical exports to markets like Japan, Latin America, South East Asia, China and CIS, the Ministry of Commerce and Industry, Government of India has recommended the pharma industry to target these markets.
In 2010, the Indian pharma export business reached $10.3 billion and grew to touch a level of $ 13.3 billion in 2011. It is targeted that by 2015, Indian pharma exports will touch $25 billion.
On the sidelines of the CPhI Worldwide 2012 in Madrid, in an exclusive interaction with Express Pharma, Rajeev Kher, Additional Secretary, Ministry of Commerce and Industry Government of India said, “Today, almost 55 – 60 per cent of our generic drugs are being supplied to the regulated markets. After the recession, I believe that we need to explore other markets as well as the non-regulated markets. It is a tough time to survive in the regulated markets. There are huge non-tariff barriers which need to be considered carefully. Japan is the next emerging market followed by other countries namely Latin America, South East Asia, China and CIS.”
Today, Japan has a clear data and guidelines in a place. Apart from the US and Europe, Japan has recently opened its door for generic drugs. At present the consumption of generic drugs in Japan is around 20-25 per cent which is targeted to touch 30-32 per cent. The pharma market in Japan has been targeted to increase its existing generic consumption. It has also made appropriate laws for the usage of generics. India has signed the CEPA (Comprehensive Economic Partnership Agreement) with Japan which agrees to treat India at par with other countries.
Dr PV Appaji, Director General, Pharmexcil said, “The Government has given the direction that Pharmexcil should concentrate more on promoting Indian pharma companies in Japan. This has been defined in various directives to Pharmexcil.”
Appaji further said that the Latin American market also holds potential for Indian generic drugs as it has a better price availability.
JS Deepak, Additional Secretary, Ministry of Commerce and Industry, Government of India mentioned, “Most of the Indian production is in exports and we have the capacity to export in all the countries.” He continued that through the ‘Brand India Pharma’ Campaign, we would like to spread the message that Indian drugs are affordable and without compromising same quality. Also, we have a presence in a wide therapeutic area.”
Monica Joshi, AVP – Equity Research, Avendus Capital said, “Japan could emerge as the next generic hub for the Indian pharma companies. Since the Government is interested, we see an immense opportunity.”
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