Regional Market Outlook on APIs in India
Increasing pricing pressure and competition can be attributed to the dip in bulk drug and drug intermediates export from India in 2017 compared to previous years, where a continuous hike was witnessed in the export from India since 2013 until 2016.
- The export of bulk drug and drug intermediates has decreased in the fiscal year 2016–2017 compared to 2015–2016, with a negative change rate of -5.47 percent
- The fall in exports from India can be attributed to the increasing price burden and rapidly increasing competition from other countries, including China
- Another reason contributing to the fall in exports of bulk drug is continuous investment of Indian companies in setting up their manufacturing plants in other countries in view of the global exposure, which is also contributing to the export drop
- The export growth in the coming years is likely to be driven by fully operational USFDA facilities, thereby increasing the export to the US and other developed markets
- Cost advantage is another factor, which might prove to be a contributing factor in the growth of API export from India in the coming years, as India’s cost of production is almost 60 percent lower than that of the US and near to half of that of Europe
Top Destinations for Indian API Export
Key Takeaway: The US is the top export destination, followed by South Africa and Europe. Export to regulated markets was near to 80 percent and export to non-regulated market had decreased in the recent years
- The US is leading the charts, when it comes to the top destinations for Indian API export, followed by the UK, as it accounts for major chunk of the export taking place from India in various industries, pharmaceutical industry being one of th
- For 2015–2016, export to regulated markets accounted 76.9 percent of the market share, whereas the export to non-regulated market was only 23 percent. For the next fiscal year, i.e. 2016–2017, there was a slight increment in export to regulated markets, with a market share of 77.47 percent, but there was a dip in the export to non-regulated market, with a share of 22.5 percent of the total exports for 2016–2017
The Top APIs in Indian Market Based on Volume (tons)
There are around 25 APIs, which are exported in volume of more than 500 tons, out of which Metformin is the one, which is exported in highest volume of about 16,000 tons. Paracetamol is the second highest exported API, with a volume of more than 13,000 tons. Some of the prominent manufacturers of Metformin includes Wanbury Limited and Harman Finochem Limited, and some top notch manufacturers of Paracetamol are Granules India Limited and Sri Krishna Pharmaceuticals Limited
The Top APIs in India Market Based on Value ($ million)
Cefuroxime has the highest export value of about $94 million, and it is manufactured on large scale by Aurobindo Pharma Limited and Nectar Lifesciences Limited. The second rank in value is grabbed by Omeprazole, which constitutes to around $85 million, and it is manufactured and exported majorly by Hetero Labs Limited and Cadila Healthcare Limited.