Domestic formulations biz expected to grow 9-10 pc over next decade: Glenmark

The drug formulations market in India is expected to grow at a CAGR of 9-10 per cent 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 per cent over the past two decades. "It is projected that the domestic formulations market will maintain a compound annual growth rate (CAGR) of 9-10 per cent 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 per cent 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 per cent 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 per cent of the market by value and anticipated to grow at a CAGR of over 8 per cent 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 PMBJP (Pradhan Mantri Bhartiya Janaushadhi Pariyojana ) comprises 1,963 medicines and 293 surgical devices covering all major therapeutic groups.