Recent patent expirations on key drugs by multinational pharmaceutical companies have facilitated higher growth rates for Indian pharma firms, particularly in the chronic and sub-chronic therapy segments, according to data from market research firm PharmaTrac. Notably, several cardiac and diabetes drugs, such as Vildagliptin and Sacubitril-Valsartan, have lost their patents in recent years, leading to the swift introduction of generic versions by various Indian companies. However, the trend poses challenges for smaller corporate entities.
In the chronic therapy segment, Indian pharma companies have outpaced their multinational counterparts, recording a robust 9% five-year Compound Annual Growth Rate (CAGR), compared to the 5% CAGR reported by MNCs. Despite this growth, both Indian and MNCs continue to focus on similar top therapies, with anti-infectives, gastroenterology, and pain ranking high in acute therapies. In the chronic therapy category, cardiac, diabetes, and neurology maintain their positions at the forefront. Among sub-chronic therapies, nutritionals, gastro, and gynaecology emerge as the top segments.
A concerning trend revealed by the data is the decline in the number of smaller corporate entities over the years. The pharmaceutical landscape has witnessed a reduction in the count of smaller corporates, highlighting the challenges they face in this evolving market. Additionally, the data indicates that 45% of MNCs operate with a turnover of Rs 10 crore, whereas the corresponding figure for Indian companies is around 20%.
The shifting dynamics in the pharmaceutical sector underscore the impact of patent expirations on market competitiveness. While larger Indian companies capitalize on the opportunities presented by generic drug launches, smaller corporates grapple with challenges that may impact their sustainability in the evolving pharmaceutical landscape.
