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Pharmaceutical exports poised to grow 3-5 per cent this year: Pharmexcil
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A Raju, Hyderabad
September 28 , 2017
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The Pharmaceuticals Export Promotion Council of India (Pharmexcil)
during its 13th annual general body meeting held in Hyderabad expressed
optimism and predicted a positive growth of 3-5 per cent in exports by
end of this year.
According to Madan Mohan Reddy, Chairman of
Pharmexcil, the industry which showed a slight negative growth during
the 1st four months period had done a remarkable turnaround in the
second quarter and had exhibited 4 per cent positive growth in August.
“Last year during this period the pharmaceutical exports were slowed
down and at one stage it also even touched a slight negative growth.
However, this year industry has performed remarkably well. In August we
have witnessed 4 per cent growth and we are hopeful that the industry
will sustain this growth and will further pick up by next year,” Madan
Mohan Reddy, who is also Director of Aurobindo Pharma, expressed hope.
In
fact during the months of April-June last year, the industry had
slumped down to 7.9 per cent decline in exports; however the industry
had performed remarkably well and could manage to reduce the same to 4.2
per cent this year.
The experts from the council attributed the
newly introduced Goods and Services Tax (GST) regime as the main reason
for the slow down. “The newly introduced GST had created some hiccups
in the procurement of raw material for the industry. However, over time
all these hurdles have been overcome and now the industry is looking to
move in the positive direction of growth,” said Udaya Bhaskar, Director
General of Pharmexcil.
Apart from GST other issues that slowed
the growth of pharma exports was due to fast changing regulatory
environment in pharma sector across the globe. Adding to this, there are
also new and emerging markets that are competing with the Indian pharma
players. But all this is only shortlived. The Indian pharmaceutical
sector is exploring newer and unexplored markets in Africa and Latin
America, which are quite potential markets to be tapped.
Further
giving a boost to export growth is the huge potential created post
patent regime. Moving in this direction many Indian pharma companies are
expected to get approvals from the USFDA for new products. “Because of
price pressure particularly in US markets, the pharma exports slightly
declined in 2016-17 and recorded an export of $16.84 billion as against
over $ 17 billion earlier,” informed Uday Bhaskar.
Post patent
regime, some of the Indian companies have clinched the advantage of
first to file norms. This norm gives exclusivity to the companies which
have filed first. Moreover, the leading blockbuster drugs going off
patient is also expected to give advantage for the Indian players.
Keeping all this in view, the council is expecting 3-4 per cent overall
growth in the pharma exports by end of this year.
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