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Unlocking The Potential Of Indian Life Sciences Industry

 
Under changing market dynamics the road ahead for the industry is challenging

FICCI lays roadmap to  J P Nadda releases knowledge paper ‘Indian Life Sciences: Vision 2030, expanding global relevance and driving domestic access’ New Delhi, 5 June 2015:

 

 

The Indian life sciences industry is now the third-largest contributor to reducing India’s merchandise trade deficit. The industry generates around USD 10 billion of trade surplus every year, allowing it to neutralize around 4 to 5 per cent of total energy imports for India In addition, it also generates jobs and self-employment for around 2.5 million people.

 In pharmaceuticals, India is now the eighth largest country by value globally with one of the highest growth rates. It is strongly positioned in key overseas markets like USA. In clinical trials, India continues to be one of the top 15 destinations globally.

Significantly, Indian drugs are available at affordable prices as compared to global markets. Further, India is the primary supplier of essential medicines for numerous diseases, helping save millions of lives globally. Indian medicine industry has also built strong value chain capabilities.

In manufacturing, India continues to have the highest number of FDA-approved formulation plants outside the US. In R&D and regulatory, Indian industry has accounted for 32 per cent of the ANDA filings last year, second only to the US at 44%.

However, under changing market dynamics the road ahead for the industry is challenging. Margins continue to be under pressure, driven by customer consolidation in developed markets and evolving regulations in few emerging markets.

Cost position is under threat with new entrants in and Indian players are facing an increasing number of quality issues, affecting its supply reliability. Gaps in the industry’s competitive ability have a considerable impact on the industry’s ability to sustain its future growth. India’s position in the innovation space continues to be nascent given that innovation could represent the next wave of growth for the industry.

 FICCI’s estimates indicate that failing to address these issues could pull the growth rate down to 8 to 10 per cent over the coming years, also impacting the ability to serve the local market and maintaining its global position. It is, therefore, important for the industry and the government to come together and align on a common vision to help the industry unlocking its full potential.

Union Health & Family Welfare Minister Shri J P Nadda released the FICCI knowledge paper titled “Indian Life Sciences: Vision 20130, Expanding Global Relevance and Driving Domestic Access” at Lifesciences Conference 2015, organized by FICCI in New Delhi today. Vision 2030 builds on the successful trajectory of the Indian life sciences industry. It lays out the path forward to unlock the industry’s true potential. This can become a reality if all the stakeholders collaborate and build on the strengths.

FICCI believes that by achieving this Vision 2030, the industry will continue making significant contribution to the economy and healthcare outcomes:

 · Industry will sustain its growth trajectory of 11 to 12 per cent and grow 7 to 8 times to a size of USD 190 billion to 200 billion, driving 5 to 6 times growth in trade balance contribution to around USD 55 billion to 60 billion, reduction in energy imports and will also create nearly four million new jobs for the country over the next 15 years by the year 2030.

 · Will help India becoming the world’s largest and most reliable drug

 · Providing every Indian access to high-quality, affordable drugs by adopting innovative models and government support, the industry can aspire to drive a 3–4 times increase in the number of treated patients across disease areas.

· Building a global position for India in the innovation space and driving significant economic upside (exports of around USD 16 billion to 18 billion by 2030). How to realize Vision 2030? Six Imperatives for the Industry: FICCI believes that the industry could focus on six imperatives to enhance its competitiveness, deepen penetration and drive a common agenda to sustain growth under Vision 2030:

1. Building new techno-commercial capabilities: Drive innovation at scale by making “smart” choices on the portfolio, building new technocommercial capabilities, and revamping the operating model by using new approaches such as adaptive trial design to optimise approach for development.

2. Expand presence in emerging markets: Through a focused approach and by building a “global” supply chain and organisation

3. Adopt innovative business models: Enabling deeper penetration and access to drugs even in rural India, using technology to drive access and lower cost, providing integrated care for patients.

4. Upgrade quality systems and infrastructure By enhancing capabilities to maintain India’s image of a reliable, high-quality pharmaceuticals supplier through preventative care culture and capability building in the front-line.

5. Build new-age capabilities to sustain cost: By speed-to-market advantage even across the newly emerging market segments, using automation and new technology to lower costs and ensuring “first time right” dossiers.

6. Collaborate more meaningfully: To support growth the industry has to enhance capability building of quality teams across players. The government, on its part could consider supporting this vision by creating a conducive environment for the industry to undertake the above actions.