NEW DELHI: India’s pharmaceutical export of bulk drugs and formulations has witnessed a loss of dollar 197 million, a 1.96 per cent negative growth during first half of the financial year from April-October 2016. During the last 6 months, pharma export has recorded a value of US dollar 9,848.2 million compared to US dollar 10,045.17 million during the same period last year. Whereas, export of Ayush products has grown by 16 per cent when compared to the corresponding period of 2015. The two major categories, bulk drugs and formulations constituting 95.66 per cent of pharma exports, are negatively growing by 9.47 per cent and 0.54 per cent respectively compared to last year. The exports of bulk drugs has negatively grown due to continuous fall in prices after the patent cliff and increased competition from China.
Whereas, exports of formulations has negatively grown for the first time since 2004-05. India’s formulation exports suffered as there is no block buster product going off patent in the current year and next year. The India’s formulation exports has enjoyed the privilege of exporting two blockbuster products going off patent between April-November 2015 namely aripiprazole and esomeprazole. For the first time there has been a sort of price control on generics in USA imposed last September and is further being modified this year.
Dr P V Appaji, director general of Pharmaceuticals Export Promotion Council of India (Pharmexcil) says, “Export to US market has fallen for the first time due to patent cliff, 33 per cent of our export is to US market. We are growing in volumes but not in value. At present we want to sustain and maintain the position in regulated market and utilize the opportunity in Latin market.”
Exports to USA which has grown by 32 per cent during April-October 2015-16 has recorded a negative growth for the first time of 0.72 per cent. In USA the off patented products (Innovator brands after patent expiry) are being marketed and has substantially gained market share of this segment. They are able to take on the competition from International Nonproprietary Name (INN) generics by pricing them almost at par with the lowest INN generic. This has resulted in sizable amount of market share going to the innovator brands. Exports of surgicals and herbal products have grown by 12 per cent while Ayush category has grown by 16 per cent. However these three categories together contribute only 428 million constituting 4.34 per cent of the pharma exports.
