Glenmark Expects Domestic Formulations Business To Grow 9-10% Over Next Decade

The drug formulations market in India is expected to grow at a CAGR of 9-10% over the next decade, with Jan Aushadhi outlets anticipated to emerge as a much stronger player in the country, according to Glenmark Pharmaceuticals.

The domestic formulations market is estimated to be at Rs 2 lakh crore, with a growth rate of 11% over the past two decades.

"It is projected that the domestic formulations market will maintain a compound annual growth rate of 9-10% over the next decade," the Mumbai-based drug maker said in its Annual Report for 2023-24.

As the Trade Generics and Jan Aushadhi channels expand, it is anticipated that these channels could collectively contribute 30% to the market volume in ten years, it stated.

The Jan Aushadhi initiative aims to enhance access to cost-effective, unbranded generics by scaling up to 25,000 franchise pharmacies by 2026, it said.

"It is estimated that Jan Aushadhi procurement could account for 3-5% of the market share by volume and around Rs 40-50 billion (Rs 4,000-5,000 crore) in value over the next decade," it added.

Glenmark stated that despite the increasing influence of Trade Generics and Jan Aushadhi, branded generics are expected to remain dominant, comprising 65-70% of the market by value and anticipated to grow at a CAGR of over 8% during this period.

There are more than 10,000 functional Jan Aushadhi Kendras across the country. The government has set a target to open 25,000 such outlets across the country by March 2026.

The product basket of Pradhan Mantri Bhartiya Janaushadhi Pariyojana comprises 1,963 medicines and 293 surgical devices covering all major therapeutic groups.

The company noted that facing challenges in competing with the robust sales and marketing strategies of domestic firms, coupled with lower price realisations compared to their home markets, most multinational corporations have gradually scaled back their operations in the Indian market.

Informing its shareholders, the company said it has 52 product applications pending for approval in North America. As on March 31, 2024, it has 193 generic products authorised for distribution in the US market.

"Our company currently has 52 applications pending in various stages of the approval process with the US FDA, of which 21 are Paragraph IV applications," it stated.

In Europe, the company is awaiting approval of four respiratory products which were filed in fourth quarter of financial year 2023.

"We will continue to leverage key growth drivers such as sustained growth in base business, continued market share gains in the key branded respiratory products, new launches in the respiratory segment and venturing into untapped markets," it said.

With a view to driving further market expansion, the company has already established presence in the Italian market and will be further widening reach across the region in the upcoming quarters, it added.