New Delhi: The Indian pharmaceutical market is set to grow over medium-term. The compound annual growth rate (CAGR) over the past three years had been 12.4 per cent, but it is expected to grow at 15.3 per cent from 2011-12 to 2013-14, according to a Barclays Capital Equity Research report on India Healthcare & Pharmaceuticals.
The growth is expected due to factors like new product launches, focus on improving the effectiveness of field force additions and favourable pricing environment, the report highlighted. The Indian market has been a favourable one for pricing with 2-4 per cent annual increase in prices.
Pricing of essential medicines in the Indian market is monitored and controlled by the National Pharmaceutical Pricing Authority (NPPA), through the Drug Price Control Order (DPCO). The current pricing mechanism is cost-based. About 25-30 per cent of the pharma market is currently controlled by the DPCO. Over the next 2-3 years, number of pharmaceutical companies will continue with product launches in India.
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