Pharma to grow by 13%: Boston Analytics study
posted in Outsourcing News and Top Outsourcing deals, Outsourcing to India |Source: www.business-standard.com
The Indian pharmaceutical industry is set to grow by 13.5% in the next three years and the booming Indian pharmaceutical outsourcing market is expected to see a compound annual growth rate (CAGR) of 37.5%, according to a new study released by US-based research firm Boston Analytics.
The study also forecasts the domestic market to reach $10.3 billion by 2010. Factors crucial to the growth will be internal demand for drugs due the country’s increasing population, an ever-expanding consumer base in the middle and upper income brackets, the need for improved healthcare infrastructure and Indian companies’ reverse-engineering skills.
India also possesses 75 FDA-approved pharmaceutical plants – the largest number located in any country outside the United States. The report, titled “An Introduction to the Indian Pharmaceutical Industry, “estimates India’s pharmaceutical outsourcing market will hit $3.3 billion in the next two years, said the report.
“In the last few years, a lot of attention has been paid to the rapid growth of the software and manufacturing sectors in India. However, other industries are taking off in the region,” said Rashid Bilimoria, CEO & co-founder, Boston Analytics.
A recent CII-KPMG report had estimated the Indian industry to grow at a CAGR of 16% over 2007-11. According to a McKinsey report, the Indian pharmaceutical market is set to grow from $6.3 billion in 2005 to $20 billion by 2015, with a growth rate of 12.3%.
