Pharma exports to cross Rs 21,000 cr in 2005-06

Domestic pharmaceutical exports are all set to touch a new high at Rs 21,685 crore this financial year, growing at30 per cent over last year.

The Pharmaceutical Export Promotion Council (Pharmexcil) recorded exports worth Rs 9,416 crore in the first six months (April to September) of the current financial year registering a growth of about 14 per cent over the corresponding period last year.

The current year exports of over Rs 21,000 crore will also push the drug sector's contribution to India's forex earnings to 7.75 per cent from the current 5 per cent.

The growth in drug exports, despite the pressing generic competition in the global markets, is attributed to increased Anda approvals in the US market and contribution from uncoventional markets in Latin America, Australia and the emerging markets in the Middle East and African region.

During 2004-05, the India's pharma exports were valued at Rs 17,052 crore which was about 18 per cent up from the previous year.

Dinesh B Mody, chairman, Pharmexcil, said that the country's pharmaceutical industry has gained global recognition as a producer of low cost high quality bulk drugs and formulations.

"Thrust on the emerging global markets, increased generic approvals in the regulated markets and the proposed South Asian Free Trade Agreement (Safta) would trigger a multifold jump in pharma exports," he added.

Pharmexcil has set an overall target of pharma exports at Rs 63,000 crore by 2010. Some of the Indian companies have gone global with presence in over 70 countries, including the regulated and semi-regulated markets. India is one of the top 10 producers of bulk drugs in the world and 60 per cent of the country's bulk drugs production is exported.

The country has also got the distinction of having the highest number of annual bulk drugs filings (120) with US FDA, accounting for one-fifth of the total. The filings have now turned broad-based, involving more than 22 Indian companies.

The country is also known for having the largest number of US Food and Drug Administration (FDA) approved pharmaceutical plants (73) outside US.

On the basis of applications filed with the USFDA by Indian companies, it is estimated that over the next 8-10 years, Indian companies have the potential to target "180-day exclusivity" filings for drugs worth $33 billion in the US market alone. The country's drug sector is expected to generate revenues of $2.17 billion by 2008 in the US generics market.