Cardiovascular Drugs Lead Indian Sales Growth

According to a new market survey, cardiovascular drugs are the fastest-growing therapeutic segment in India, with sales rising 14% to INR21.76bn (US$498.11mn) in 2004. The products were closely followed in the sales rankings by diabetes treatments, with sales of INR9.30bn (US$212.89mn). In volume terms, the two segments respectively grew 12.8% and 14% in the year.

Regarding the overall market, growth was 6.4% in 2004, a rate broadly in line with GDP growth. However, the prominence of cardiovascular and diabetes drugs indicates that lifestyle-related conditions are on the increase in India as the population -- or at least those with access to the pharmaceuticals market -- adopt a more Western-style epidemiological profile.

While undoubtedly a positive trend for producers of high-end drugs for lifestyle-related disorders, solid market growth partly conceals the impact of harsh price controls. India has recently reformed its pricing regulation, moving to a tariff structure based on the government-sanctioned Maximum Retail Price.

Industry sources estimate that the changes could cost wholesalers at least 1% of annual margins, as the tax threshold has now been hiked to 60% of the factory price. Faced with potential industry-wide losses of INR1bn (US$23mn), a number of India's roughly 500 contract manufacturers have already relocated to low-tax zones.