HYDERABAD: After nearly three years of flat growth, Indian pharma exports grew at 11 per cent in FY19. This, however, is lower than the healthy 20-25 per cent growth seen in FY13. According to trade body Pharmexcil, exports stood at $19.14 billion, lower than the perceived $20-billion mark, compared to $17.28 billion in FY18.
The growth in exports could have fired up, but for uncertainty in UK (Brexit) and other European regions. North American market remained the largest market for Indian companies, accounting for over 38 per cent of the total generic exports, but margins were under pressure. The good news though is, according to Pharmexcil, price erosion was beginning to plateau and recovery in margins was seen in the US market. It means that the FY20 growth outlook appears better than the just concluded financial year.
Among the product categories, exports of drug formulations and biologicals comprise 71 per cent and grew at 12 per cent in FY19, while bulk drugs and intermediaries (accounting for about 20 per cent) grew over 11 per cent. Export of vaccines and surgicals, which account for a small component, grew 1.31 per cent and 3.19 per cent respectively. However, exports of herbal products saw a de-growth and stood at $299 million as against $312 million a year before.
Meanwhile, of the total 1,638 market product approvals granted by the US Food and Drug Administration (US FDA) in 2018, Indian companies managed to get 538 product approvals competing against six or more companies. “Indian companies need to file complex generic applications and also of bio-similars to steer away from intense competition and look for higher margins.
Biocon has already made a beginning in bio-similars,” Pharmexcil said in a report. Over 55 per cent of India’s exports go to highly regulated markets, but besides US, the other important destinations include South Africa, Russia, Nigeria, Brazil and Germany.