A study by ICRA suggests that the Indian pharmaceutical industry will grow by 10 percent to 12 percent in the 2013-2014 fiscal year, primarily driven by US sales, Business Standard reported Thursday.
The study indicated that Indian drugmakers will continue to experience strong growth in the near term, but the trajectory of growth will decline to some extent.
An estimated $80 billion worth of drugs will lose patent protection over the next four or five years, and Indian drug companies have submitted a number of generics for FDA approval.
"Acquisitions by Indian companies to add technical capabilities and focus on strengthening branded business (albeit on a small scale) are also likely to drive growth going forward as companies feel the need to diversify, ICRA said.
The study added that the new drug price control order should have a limited effect on revenue growth, and its impact could be negated by volume expansion and industry efforts to increase prices on drugs not affected by the order.
The study mentioned that revenues and profitability in Europe were low compared to the US and other markets, while emerging markets represent one of the best growth opportunities for Indian firms.