Big pharma firms shift tack, look to bet on trade generics as volumes dip

It is the fastest growing segment in IPM with a 25% CAGR

Trade generic drugs (medicines that are sold directly through distributors) are fast becoming a key segment for domestic pharma firms as volume growth slows in the overall market.

Big companies like Cipla and Alkem have a significant presence in the segment but recently, players like Torrent Pharmaceuticals and Dr Reddy’s Laboratories (DRL) have also entered this market. What is driving big pharma’s focus on trade generics?

The volume growth in the Indian Pharma Market (IPM) has come down from 5.6 per cent in FY16 to 0.1 per cent in FY23. The Centre, too, is focusing on trade generics as it