INDIAN BIOSERVICES INDUSTRY HITS RS 29,000 CR WITH 12% GROWTH IN 2019-20
Indian BioServices industry comprising over 1000 players in the field of clinical research, contract research, contract development and manufacturing has seen significant growth in the recent past and witnessed a 12 per cent growth in 2019-20 by reaching Rs 29,120 crore as against 19 per cent growth recorded in 2018-19. Contract research, development and manufacturing are contributing the most in BioServices industry with less than 10 per cent coming from clinical research organisations.
Indian BioServices industry comprising over 1000 players in the field of clinical research, contract research, contract development and manufacturing has seen significant growth in the recent past and witnessed a 12 per cent growth in 2019-20 by reaching Rs 29,120 crore as against 19 per cent growth recorded in 2018-19. Contract research, development and manufacturing are contributing the most in BioServices industry with less than 10 per cent coming from clinical research organisations.
The Indian clinical research market is dominated by multinational organisations, followed by Indian companies, multinational pharmaceutical companies, and Indian pharmaceutical companies. Among these, the Indian pharmaceutical companies are mainly engaged in conducting local trials. On the flip side, Indian companies are dominating the contract research, contract development and manufacturing activities.
The western and southern regions of India hold a strong position in the clinical research market due to availability of better infrastructure, education and a salubrious climate. This holds true for the contract manufacturing and research services as well. However, the northern region has started growing and catching up due to larger and more diverse genetic pool and the concentration of regulatory bodies in northern India. The faster growth of hospitals in northern India is favouring the clinical research market and has led to this shift. The growth of diseases needing specialised care and treatments such as cancer is booming the clinical research market of this segment at a faster pace than other segments. Support from the regulatory authorities such as Department of Biotechnology (DBT), Director Controller General of India (DCGI), Directorate General of Foreign Trade (DGFT), and the Indian Council of Medical Research (ICMR), has also supported the growth of the market.
However, Market Research Future has noted that the market is facing constraints that can hamper the growth of the Indian clinical research market. There is a growing concern regarding security, especially data security and patient security and the lack of collaboration between universities and industry, etc. Sometimes, some unethical Indian clinical research organisations make dishonest comprises which creates trust issues among potential clients and in turn, hurts the market.
BlueWeave Consulting, in its May 2020 report, observed that the presence of diverse climatic conditions and acceptance of international guidelines and intellectual property rights are the key factors that fuel the market. Availability of largest pool of patients and large number of hospitals, educated and accessible human resources, and low operational cost due to cheap human resources are some of the other factors that boost the market to reach its target during the forecast period.
Grand View Research, in its 2018 Indian clinical trials market forecast, reported that the market size value in 2020 was $2,064.30 million and it is expected to hit $3,125.16 million by 2025 with a CAGR of 8.7 per cent from 2017 to 2025.
An article published in December 2020 by ProRelix Research, observed that the India Contract Research Organization Market is projected to grow at a CAGR of 20.4 per cent and is expected to reach $ 6,310.5 million by 2022.
However, Mordor Intelligence revealed, in its latest report on the Indian Contract Manufacturing Organisations (CMOs) market, that it was valued at $ 10.51 billion for 2020, and it is expected to reach $27.80 billion by 2026, at a CAGR of 17.6 per cent, during the period of 2021 - 2026. The rise in demand for injectable drugs, especially in cancer research, will provide an upward trend to the Indian pharmaceutical contract manufacturing market. Injectable drugs offer higher returns as compared to other drug formulation types. Therefore, higher ROI and therapeutic efficiency are expected to fuel the growth of the injectable formulation segment in the country. Increasing outsourcing volume by big pharma companies is driving this market.
The Indian Drug Manufacturers Association (IDMA) mentioned the rising costs and regulatory pressure in developed markets as a major driver, forcing many global pharmaceutical companies to reduce their internal capacities in research and development. Besides, ageing manufacturing facilities in Europe have forced companies to outsource their research and manufacturing to India, which can expect a significant growth in contract research, development and manufacturing the coming years.