The prevalent gaps in the global pharmaceuticals markets are prospective areas to tap and within the next few decades, the BRIC countries shall be the biggest contributors in bridging them up. The four BRIC partners are Brazil, Russia, India and China.
The Partner at McKinsey & Company, Palash Mitra sounds confident about it - "The magnitude and intricacy of the market is intensifying as India is reaching for the global top tier”. Mitra; however, stresses heavily on the ineptitude of orthodox business models to bring that; healthcare and drugs need fresher ideas and approaches to reach the mark. As the Leader of the Pharmaceuticals & Medical Products Practice in India, his observations on swift urbanization and development of medical infrastructure has made it clear that technology and production must become simple and inexpensive to help the Indian pharmaceutical market grow.
As evidence to this claim, a recent McKinsey & Company report (India Pharma 2020: Propelling access and acceptance; realizing true potential) has been published. It is a fortifying data collective of every piece of information essential for estimating the highest position the Indian pharmaceuticals market can reach within 2020 with its current potential. It amounts to a $55 billion industry, which is, apparently, four times from now.
The pharmaceutical industry in India has been expanding at between 13% and 14% since 2007. Between 2000 and 2005, it was around 9%. By 2020, it shall cover around 45% of the global market if it can grab the five new opportunities. That’s a $14 to $18 billion worth industry we’re talking about; from the $3-billion of what it is today. Indian pharmaceuticals need to stress heavily on patented products, consumer healthcare, biologics, vaccines and public health to get ahead.
The report stops at $70 billion, beyond which, it will require some aggressive and innovative strategies that are not too practical. On the contrary, rural markets, representing 25% of the 2020 global chunk, which is but a small step taken up from the present 20% of the market share.
A closer watch on the Indian pharmaceutical market shows around 60% of it is metro and tier-1 that have expanded steadily at 14% to 15% growth rates. These sectors will bring in $33 billion by 2020 despite tier-2 markets regressing from their present growth rate by 5%.
This is due to a surge in general income levels shall pull in around 73 million people within the middle and the upper classes by 2020, which is also 650 million people with health insurances! For private insurances, it will be in the lowest tiers of society; the 15% growth because of government-sponsored insurance schemes. But Mitra cautions about pushing it the proper way - "While expansion in the pharmaceuticals market has so far been powered by increasing affordability, the industry is required to take a more proactive approach in bettering accessibility and acceptance of modern medicine".