Price drives Indian pharmaceutical market growth to five-year high in FY20

Ipca's Zerodol brand and its multiple variants used in treating pain and inflammation are an example of how this trend is playing out

For the first time in at least five years, price is the key factor driving the Rs 1.4-trillion Indian pharmaceutical market (IPM). During FY20, price accounted for over 55 per cent of growth in the sector.

In the last five years, it ranged from -15 per cent to 36 per cent, according to data from pharma market research firm AIOCD-AWACS. The other two components of IPM growth are volume and new product launches, which accounted for 20-25 per cent each.

Sector experts and analysts pointed to factors like premiumisation, growth of trade generics, and product rationalisation for the higher contribution