Business

Multinational Pharma Firms Continue to Lose Ground in Indian Market

Patent expiries of key blockbuster drugs have opened the door for widespread generic competition, with Indian companies stepping in to offer equivalent formulations at a fraction of the cost. In many cases, these generics are priced at just one-fifth or even one-tenth of the original patented medication.

• By Newsdesk
• New Delhi
• Jun 08, 2025

Business

Multinational pharmaceutical companies are steadily losing their foothold in India’s drug market, as their share of the domestic pharmaceutical formulations segment dipped further in May 2025. The latest data shows their market share declining to 14.5%, down from 14.8% in May last year — a continuation of a downward trend that began after peaking at 22% in 2013.

Several structural shifts within the Indian pharmaceutical ecosystem are contributing to this long-term erosion. Patent expiries of key blockbuster drugs have opened the door for widespread generic competition, with Indian companies stepping in to offer equivalent formulations at a fraction of the cost. In many cases, these generics are priced at just one-fifth or even one-tenth of the original patented medication.

The branded generics segment, a major driver of volume in India, has seen limited interest from multinational firms. Instead, global players are increasingly pivoting towards super-specialised therapies such as oncology and transplants. However, these niche categories have relatively low patient volumes and limited commercial scale in the Indian context.

Another major factor behind this shift is the rising quality standards of Indian pharmaceutical firms. Many domestic companies now adhere to stringent global norms, including those of the USFDA, bringing them on par with international standards. This has enhanced the credibility of Indian players, making them formidable competitors not only in generics but also in segments previously dominated by multinationals.

Currently, around 30 multinational pharma companies continue to operate in India, though many are reducing their direct exposure. Some, like Sanofi, have exited core operations and retained only their consumer healthcare businesses, transferring branded portfolios to Indian firms such as Emcure, Encube Ethicals, and Universal NutriScience. Similarly, Eli Lilly has handed over marketing rights of its India portfolio to Cipla.

Beyond market forces, regulatory challenges have also played a role in weakening multinational presence. India’s intellectual property framework is often seen as unfavourable to global drugmakers. Ongoing legal disputes, such as the one involving Novo Nordisk, Dr. Reddy’s Laboratories, and OneSource Specialty Pharma over the diabetes drug semaglutide, underscore the patent-related hurdles faced by MNCs.

In addition, provisions like compulsory licensing — which enable the Indian government to authorize third-party production of patented drugs under specific conditions — further discourage MNCs from aggressive participation in the Indian market.

As the Indian pharmaceutical landscape evolves, domestic players continue to gain strength, while multinationals reassess their strategies and footprint in one of the world’s largest and most competitive drug markets.