Published on June 16, 2014

In the recent year the Indian pharmaceutical industry has been witnessing phenomenal growth which is driven by rising consumption levels in the country and strong demand from export markets and according to researched report over last five years, the Indian pharma industries have been mounting at a CAGR of more than 15% and also have significant growth opportunities.

However the pharma industries will have to rethink their business strategy as it will sustain this robust growth rate till 2020 and most of the industries will have to adopt new business models and think of innovative ideas to service their evolving customers faster and better. As per the industry experts, through alliances and partnerships the Pharma companies will continue to grow both organically and inorganically.

Furthermore, despite upcoming industry consolidation pharma industries are more optimistic about future and in the year 2014 more than 69% of senior players within the pan-world anticipate pharma industry to see a year-on-year boost in profits whereas due to consolidation nearly 89% of them look forward to see further reduction in the sector.

According to the industry experts, in near terms higher spends in research and development may impact margins of many pharma companies and as per the industry analyst, most pharma companies are increasing their R&D spends as generics will continue to coerce growth especially in the US and Europe markets and are nowadays looking for a portfolio of innovative products as future growth are expected to come from innovation. In the near term few stresses on the margins are projected to see as most companies wanted to develop their own intellectual properties.