MARKET ANALYSIS

REPORT FOR MEDICINES

SEGMENT OF
HEALTHCARE INDUSTRY

Submitted by,
Jithin Tom Philip
Batch 2015-2017
IMI-Kolkata

The Indian pharmaceuticals market has grown to about US $ 20 bn by

2015 with an annual growth rate of over 12%, which is higher than the
national growth rate. Increase of disposable incomes and the number of
middle-class households, expansion of medical infrastructure, greater
penetration of health infrastructure, greater penetration of health
insurance, rising prevalence of chronic diseases, adoption of product
patents and market penetrations are some of the reasons for such high
levels of growth by the Indian pharmaceuticals.

MEDICINE SEGMENTS AND MARKET ANALYSIS :

(1)Neurology - The central nervous system (CNS) market in India is
estimated to be around Rs 1,200 crore ($275 million), with major players
in this segment being Sun Pharmaceuticals, Torrent Pharma, Abbot India,
and Lundbeck India. Other players which are making major inroads into
this market are Intas Pharmaceuticals, Micro and Sanofi-Synthelabo India,
USV and Elder Pharmaceuticals. Common neurological disorders include
epilepsy, Alzheimer's disease and other dementias, Parkinson's disease,
multiple sclerosis, insomnia, cerebrovascular diseases including stroke,
migraine and other headache disorders, neuroinfections, brain tumours,
traumatic disorders of the nervous system such as brain trauma, and
neurological disorders as a result of malnutrition. A new trend that is
surfacing is the overlap of neurology and psychiatry, because of which
there may be a dual approach required/implemented soon to deal with
neurological disorders.
(2)Cardiology : Cardiac drugs recorded 15% value growth in the last 1
year. One of the key factors contributing to this market growth is the
increasing incidence of cardiovascular diseases.
(3)Ophthalmology : the ophthalmic drugs market is witnessing
significant growth due to increasing prevalence of eye disorders such as
diabetic retinopathy and macular degeneration. As a result, this market is
expected to grow at a CAGR of about 5.2% in the coming years.
(4)Therapy segment : Acute or short-term therapies continues to
dominate the market accounting for 68.6% of the market with a growth of
11.1% and chronic therapies registered higher growth of 16% in 2014.
(5)Lifestyle segment : An increase in launches of drugs for lifestylerelated ailments is expected. Changing lifestyles of the working
population, higher stress levels and unhealthy eating habits will continue
to lead to a higher incidence of lifestyle-related ailments such as diabetes,
obesity and cardiovascular diseases, especially in urban areas, fuelling the

sales for drugs catering to these segments. Anti-diabetic drugs recorded

20% value growth during the last 12 months. The fact that anti-diabetes
medication is one of the fastest growing markets should not come as a
surprise, as we add about a million new patients every year.
(6)Anti-Asthma drugs : Indias asthma drug market has grown to $403
million in 2014, representing an annual growth rate of 10%, according to a
new study. This increase will be fueled by improved access to medical
care, a growing drug-treated population and a rising number of higherincome, brand-conscious asthma patients demanding more efficacious
agents.
(7)Oral Contraceptives : Population Council of India with the
government compiled a data that reveals that sale of ECP in last five years
has increased almost four times, from 4.9 million to 18 million. As many
as 71 per cent of total sales are in urban areas, which constitute only 29.8
per cent of the national population. The 18 large metro cities contribute
29 per cent of the total sales while Delhi NCR alone accounts for 8.6 per
cent, followed by Mumbai and Kolkata. However, access to the pill is low in
smaller towns and in rural areas.
(8)Dermatology : the Indian dermatology market was estimated at $513
milion in 2010. The dermatology market is quite vast, ranging from
prescription to over the counter medicines. This includes both treatment
for skin disorders, including burns, fungal infections,wounds, and
conditions like eczema, psoriasis etc, to cosmetic dermatology with
products like Botox, Latisse, Juvederm, etc. The potential for both the
streams is massive.
(9)Anti-cancer drugs : The pace of change in cancer care is
accelerating. A cluster of innovative treatments, often combined with
other new or existing medicines, and frequently associated with
biomarkers, are emerging from the research and development pipeline.
Many are for tumor types associated with low survival rates and where
patients have limited options. The landscape is shifting rapidly, bringing
new complexity to oncologists, payers and governments who all look
to provide appropriate care to patients while ensuring the sustainability of
healthcare systems. Earlier diagnosis, longer treatment duration and
increased effectiveness of drug therapies are contributing to rising levels
of spending on medicines for cancer care.
(10)Anti-infection drugs : Anti-infection drugs constitutes the biggest
therapy segment, with a market share of 13.3%. Poor hygiene and
sanitary conditions in India are likely to keep the demand for anti-

infectives steady, while rural penetration will supplement the growth in

sales volumes.