Pharma sector to touch \ bln by 2015

New Delhi, Aug 22 (UNI) The pharma sector is likely to reach 20 billion dollars by 2015, a study has said.

A study by consultancy firm, McKinsey and Company said at a compounded annual growth rate of 12.3 per cent, the absolute growth of 14 billion dollars will be next to the growth potential of the US and China, and in the same league as the growth in Japan and Canada and the UK.

It said mass therapies will remain important despite a shift towards specialty therapies that will account for 45 per cent of the market by 2015.

Generics will dominate with the share of patented products rising to a sizeable 10 per cent from current nominal level and tier II markets including rural India, will contribute to almost half of the pharma growth till 2015, the study claimed.

Besides, the study said doubling of disposable incomes and increase in numbers of middle-class household will account for nearly 40 per cent of the projected growth as both affordability and access will increase dramatically.

''Significant expansion of medical infrastructure will make-up another 20 per cent and greater penetration of health insurance will add another 15 per cent,'' said Palash Mitra, Partner, McKinsey and Company and co-leader of the Pharmaceuticals and Medical Products Practice.

Meanwhile, the study said the strategic implications for pharmaceutical companies will be to focus on not just ensuring product access, and building robust sales and marketing capabilities but also creating new markets and crafting differentiated business strategies to service these markets.

''Multinationals need to raise their game in India, and accordingly customise their business models, and invest in their India operations,'' the study added.

UNI