The Indian pharmaceutical players have the potential to corner about 25 per cent of the generic market amounting to $3.75 billion by 2007-08 through leveraging their low cost and technology advantage, according to Rabo India Finance report.
"With drugs worth $100 billion losing patents by 2005, the explosion in the global generics market will provide a significant growth opportunity to quality Indian players," Alok Gupta, director-head of life sciences and biotech, Rabo India Finance, said in Mumbai on Tuesday.
The total market of generics between 2000 and 2005 would be about $27 billion. This was against the Indian industry size of only $4 million and hence would provide an attractive opportunity for low-cost players to gain market share in the price-sensitive generics market, he added.
In the United States alone, patents on drugs with revenues of more than $40 billion were expected to expire in next five years and the market size was conservatively estimated to be $15 billion after taking into account the fall in prices, he said.
On the domestic scene, Gupta said the Indian market has low penetration level and more so in rural parts, whose share in medical expenditure was only 33 per cent despite comprising 75 per cent of total population.
Referring to the mergers and acquisitions, the director said it would be seen more in areas of products but even good quality units would be in demand.