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Domestic formulations biz expected to grow 9-10 pc over next decade: Glenmark

Glenmark predicts that branded generics will maintain a dominant position, making up 65-70% of the market by value and growing at a CAGR of over 8%.

• By Newsdesk
• New Delhi
• Sep 17, 2024

News

India's drug formulations market is projected to grow at a compound annual growth rate (CAGR) of 9-10% over the next decade, with Jan Aushadhi outlets poised to become key players, according to Glenmark Pharmaceuticals' Annual Report for 2023-24. The domestic formulations market, currently valued at ₹2 lakh crore, has grown at an 11% rate over the past two decades.

Glenmark anticipates that the Trade Generics and Jan Aushadhi channels could together account for 30% of the market volume within ten years. The Jan Aushadhi initiative, which focuses on increasing access to affordable, unbranded generics, aims to expand to 25,000 franchise pharmacies by 2026. Jan Aushadhi procurement is expected to represent 3-5% of market share by volume and contribute ₹4,000-5,000 crore in value over the next decade.

Despite the rise of these channels, Glenmark predicts that branded generics will maintain a dominant position, making up 65-70% of the market by value and growing at a CAGR of over 8%. Currently, there are over 10,000 functional Jan Aushadhi Kendras across India, with a target of 25,000 by March 2026. The PMBJP (Pradhan Mantri Bhartiya Janaushadhi Pariyojana) offers 1,963 medicines and 293 surgical devices, covering a wide range of therapeutic groups.

Glenmark also highlighted challenges faced by multinational corporations in competing with the aggressive sales strategies of domestic firms, leading to a gradual scaling back of their operations in India. 

In terms of international business, Glenmark has 52 product applications awaiting approval in North America, with 193 generic products already approved for distribution in the U.S. market. The company also has four respiratory products pending approval in Europe, filed in Q4 FY 2023, and is expanding its reach in the Italian market as part of its strategy to drive growth in the region.