Insulin companies expect demand surge

The Indian insulin market is set to grow by two to five per cent in the next two years, feels the management of Wanbury Ltd.

The Indian insulin industry has been growing by 20 per cent as on September, 2008 and with the number of diabetic cases on the rise, from 40 million to touch the projected figure of 70 million in the coming years.

The industry will experience rapid growth, claimed sources in Wanbury .

The Indian insulin market pegged at Rs 517 crore with a growth rate of 20 per cent. It is expected to increase to 22-25 per cent in the coming two to three years, with the launch and introduction of newer and effective molecules.

Ashok Shinkar, director of corporate finance of Wanbury Private Limted, said, "The Indian insulin market appears poised to grow from the current growth rate of 20 per cent. It may grow faster than the current growth rate in the coming two years. However with the rise in the number of diabetic patients, the sales are likely to surge."

The current financial downturn has not hit the market directly yet but slower offtake of credit. But some booking orders from overseas may have been hampered.

These problems are expected to be short lived, claimed Shinkar.

Wanbury has around eight molecules in this segment as of now, led by its brand Metformin.

The company expects to rake sales of close to Rs 120 crore, from this particular molecule, added Shinkar.

Ram Shelat, director of domestic business of Shreya Life Sciences Private Limited, said, "With the number of diabetic patients on the rise, this market will definitely increase from 20 to 22 per cent, but it might increase further."

The company is already in talks with some companies in Europe and USA for developing, marketing and distributing its foreign molecules, added Shelat.

Currently it markets and distributes about 10 molecules in this segment Anand Kakkar, zonal business manager of Novartis India Limited said, "With newer and far more researched drugs in the market, the insulin market is likely to grow by five per cent in the coming years buoyed by the increase in the number of diabetic patients."

The research and development(R&D) team of the company is already undertaking projects for further introduction of two to three molecules in this segment, within the next two to three years. The company reinvests about 17 per cent of its total net sales on R&D and has another 140 molecules in the offing in the coming years under various categories for which research and development is already under progress, informed Kakkar.