Pharma exports may return to double digit-growth rate: Pharmexcil

Drug shortages in US and EU, revival in Africa key drivers

Owing to drug shortages in the US and Europe and revival in demand in Africa, pharmaceutical exports from India are likely to touch $28 billion in 2023-24, registering 10.2 per cent growth, said a senior official at the Pharmaceutical Export Promotion Council (Pharmexcil).
 

India’s pharma exports grew 3.2 per cent in FY23 to $25.4 billion, led primarily by Europe and the US.

Exports to countries such as Zambia, Nigeria, Zimbabwe, and Burkina Faso dipped, bringing down shipments to the African region by 5.4 per cent.
 

However, between April and October this year pharma exports grew 8.13 per cent to about $15.8 billion, according to the data from Pharmexcil.
 

In October, exports grew 29.3 per cent to touch about $2.5 billion, the highest ever growth in October.
 

In the April-October period of 2022-23, exports had posted 3.8 per cent growth.
 

Speaking to Business Standard, Uday Bhaskar, director general, Pharmexcil, said: “Drug shortages in the US and European countries continue. This has boosted exports from here. Moreover, the African region is witnessing a revival in demand. In April-October, exports to Africa grew 6 per cent year-on-year.”
 

Bhaskar said while exports to North America were up 8.85 per cent during April-October, those to the US increased 9.58 per cent.

Exports to Europe are up by almost 16 per cent so far.
 

North America, Europe, and Africa are India’s three major pharma importers, accounting for almost 69 per cent.
 

“The only region which registered negative growth during April-October FY24 was the Commonwealth of Independent States (which come under the erstwhile Soviet Russia), which declined 9.66 per cent. There has been a continuous fall in the exports largely due to the ongoing crisis and Russia being the largest market has also been in constant decline,” Pharmexcil said.
 

Insiders in the pharma industry pointed out both the US and Europe had been grappling with acute drug shortages.
 

“Despite efforts, drug shortages are persisting and affecting a range of medicines, such as those used to manage body weight, cancer drugs, drugs that treat attention deficit/hyperactivity disorder (ADHD), antibiotics and cardiac medications. The latest to join this list is the recently approved therapy for respiratory syncytial virus (RSV) from AstraZeneca and Sanofi — Beyfortus (nirsevimab),” said an industry expert.
 

Oncologists in the US have deemed the shortage of cancer drugs a national emergency.
 

“The US Food and Drug Administration’s (USFDA’s) drug shortage database indicates that as of November 18, the shortage of cancer drugs persists in the US. The drugs in short supply include cisplatin, carboplatin, methotrexate, capecitabine, clofarabine, leucovorin calcium, and azacitidine,” the person quoted above said.
 

Shortages in Europe are due to fuel scarcity in manufacturing units. Buying from other sources is costly and companies are unable to get a commensurate increase in their prices for generics. A significant number of generics companies have scaled down or even withdrawn their products. This has affected not only Europe but the US too because these companies have USFDA market authorisations.
 

In the case of vaccines, Europe has shown the highest growth rate. Non-government organisations purchased usual “immunisation schedule” vaccines and these have been shipped to their offices in Europe.

Some Covid-19 vaccines have been purchased by the US and some European countries.