Following are the significant developments that have taken place in the pharmaceutical industry insofar as investments are concerned:
- The government has allowed 100% Foreign Direct Investment (FDI) under the automatic route for Greenfield pharmaceuticals. 100% FDI has also been allowed in brownfield pharma; 74% under the automatic route and thereafter through government approval route.
- The drugs and pharmaceuticals sector attracted cumulative FDI inflow worth US$ 16.50 billion between April 2000 and March 2020.
- Dr Reddy’s Laboratories, Zydus Cadila, Glenmark Pharmaceuticals, Torrent Pharmaceuticals, Hetero Drugs and Ackerman Pharma have signed a deal with Hidalgo state of Mexico to set up a large pharmaceutical cluster for production and logistics.
- India’s biotechnology industry comprising biopharmaceuticals, bio-services, bio-agriculture, bio-industry, and bioinformatics is expected to grow at an average annual rate of 30% to US$ 100 billion by 2025.
- The healthcare sector in India has witnessed private equity of a total US$ 1.1 billion with 27 deals in the first financial half of 2019.
- The government has plans to set up a US$ 1.3 billion fund by 2023, to boost domestic manufacture of pharmaceutical ingredients.
Startups like Pharmeasy have raised millions of dollars worth of funding and have simplified door-step delivery of medicines. Aggregation and delivery aside, some innovators are working to provide solutions of a more human-centric nature. The total addressable market potential for e-pharmacies is expected to be US$ 18.1 billion by 2023.
The Indian Pharmaceutical Industry with its sheer size, unmatched production capacity, institutional support and cutting-edge R&D is at the forefront of the global market. And it intends to stay put for a long time to come.