as of financial year 2020.

 

 

 

6687
India Average: INR 5,518
5208 4778
LU L
South West North East

 

Source: National Health Accounts, Ministry of Health & Welfare
Source: Technopak Research

DOMESTIC PHARMACEUTICAL MARKET BY TYPE OF DRUGS

The domestic pharmaceutical market in India can be segmented based on the type of drugs sold, which includes prescription
drugs and OTC drugs. Prescription drugs further comprise of generic drugs (including branded generics and ordinary generics)
and branded patented drugs. Branded generics attach proprietary names to generic drug molecules whereas ordinary generic
drugs are known by their chemical names. During financial year 2020, generic drugs accounted for 75% of the total domestic
market, with over-the-counter (“OTC”) drugs and branded patented drugs accounting 18% and 7%, respectively.

=Generics = OTC = Patented

Source: Technopak Research

Prescription drugs can be sold only through a valid medical prescription from a registered doctor whereas OTC drugs can be
dispensed without any prescription and can be sold at regular retail stores as well. The pricing for only a select number of
prescription drugs listed in the national list of essential medicine (NELM) is regulated by the Government of India through the
National Pharmaceutical Pricing Authority. As per NELM 2015, there are 376 formulations under essential list that account for
~15-17% of total Indian domestic pharmaceutical market. OTC drugs are free from any prescription or pricing regulation.

Domestic market by therapy

Pharmaceutical market is also segmented by therapy including acute therapy and chronic therapy. Acute conditions are
generally severe and sudden in onset and therefore patients require medications urgently. This could describe ailments ranging
from a broken bone to an asthma attack. The major acute therapies are anti-infectives, gastrointestinal, dermatology and
vitamin/Nutrient.

A chronic condition, by contrast is a long-developing syndrome, such as osteoporosis or diabetes. Chronic therapies are
dominated by cardiac, anti-diabetic and Neuro/CNS therapies. The contribution of chronic therapy is likely to increase as
lifestyle diseases show higher prevalence and the age profile of the population moves to higher side. As shown in the chart
below, during financial year 2020, Acute therapies account for 63% of the domestic pharmaceutical market.

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