Gujarat has contributed significantly through acquisitions of foreign assets and by having export-led business models which has reflected in rising share in Indias pharma exports as well as industry turnover, reveals the ASSOCHAM.
While inaugurating the ASSOCHAM conference on Generic Drug, Clinical Trials & Technology Shri Parbatbhai Patel, Hon’ble Health Minister (State) Gujarat said, this year Gujarat Medical Services Corporation Limited (GMSCL) has raised procurement budget of Rs. 200 crore from last year budget of Rs. 150 cr which will greatly benefit the Gujarat based generic drugs makers.
[Shri Parbatbhai S. Patel, Hon’ble Health Minister(S) of Gujarat, releasing white paper on GCT: Generic Drugs, Clinical Truials & technology jointly with Ms. Bhagyesh Soneji, Chairperson, ASSOCHAM Gujarat Council, Shri Jay Ruparel, Co-Chairperson, ASSOCHAM Gujarat Council and CEO, Azure Knowledge Corporation and Shri Kamlesh Patel, Ex-Chairman, Indian Drug Manufacturer Association (IDMA) and CEO, West Cost Pharma]
He further added that as the State consist Conducive Business Environment, Modern and well-developed infrastructure, Adequate Talent Pool and supportive mechanism like Centre of Excellence, Global Competitiveness, Well-established Allied Industries it has become the most preferred investment destinations for pharma majors, Indian or MNC.
According to the ASSOCHAM recent paper on Generic Drug, Clinical Trials & Technology highlights that Gujarat’s contribution in the growth of India’s pharmaceutical industry has been significant. The Gujarat's share in total exports grew from eight percent in 2002-03 to 22 percent. Bulk drugs constituted 40 percent while formulations accounted for 60 percent of the total exports whereas the state has successfully captured a share of over 42 percent of India’s total turnover, highlights the ASSOCHAM paper.
The paper further reveals that nearly 52,000 people are employed in Gujarat’s pharmaceutical sector, which has witnessed 54% compound annual growth rate (CAGR) in capital investments over the last three years. There are currently 3,500 drug manufacturing units in Gujarat. The state houses several established companies such as Torrent Pharma, Zydus Cadila, Alembic, Sun Pharma, Claris, Intas Pharmaceuticals which have operations in the world’s major pharma markets.
Ms. Bhagyesh Soneji, Chairperson, ASSOCHAM Gujarat Council said, “Gujarat’s pharma industry is good example of a well-developed ecosystem with strong building blocks that have helped the industry grow at such a phenomenal pace like proactive government policies and an investor friendly regime is one of the main building blocks for the growth of the pharmaceutical as well as any other industry. The other reasons include modern and well-developed infrastructure, Gujarat boasts one of the best infrastructure facilities in the country be it roads, ports, power or other logistical facilities, Gujarat ranks much higher than other competing states.
Also adequate Talent Pool, globalization of Gujarat’s pharmaceutical industry and the enhanced role of markets could offer greater opportunities and well-established allied Industries with strong linkages with the chemicals sector, a well established machinery and engineering sector, large number of Contract Research Organizations (CROs) and a booming healthcare sector has played an important role in the growth of Gujarat’s pharmaceutical industry.
“The state offers high quality and specialized healthcare services and infrastructure at very low costs, thus making it a preferred destination for medical tourism. Gujarat has highly qualified specialists particularly in the ophthalmology, urology, embryology, orthodontics, oncology and orthopedics therapeutic areas”, adds the ASSOCHAM paper.
[Shri Parbatbhai S. Patel, Honble Health Minister(S) of Gujarat addressing the GCT 2013 conference at Ahmedabad]
Gujarat is hub approx. 40% of Contract Research Organizations (CROs) in the country. Its well established healthcare sector, strong infrastructure facilities and relatively low real estate costs has lured many global and local CROs to set up shop in the state.
There is also a strong local and global opportunity for Gujarat in the manufacturing of pharmaceutical machinery, given its strong and well established engineering sector. According to industry estimates, approximately 35-40 percent of India’s pharmaceutical machinery is produced in Gujarat.
The value of the global pharmaceutical market expected to grow by 7–8% in 2014 to USD 900 billion, compared with a 4–5% pace in 2010. The Indian pharmaceutical industry is growing at an annual rate of 11 % while the clinical research industry is growing at an annual rate of 84%.
According to ASSOCHAM analysis 2014, the current clinical research industries of Rs 8,000 crore may touch USD 1.5bn (USD 1500m) and generate 50,000 professionals employment in the next five years.
Market value for clinical trials outsourced to India is estimated at around USD 300 million, increased by 65% in 2006, it is expected to touch USD 1.5-2.5 billion by 2014. By 2014, the industry will spend USD 450M on clinical trials in India, said Ms Bhagyesh Soneji, chairperson of the ASSOCHAM Gujarat Council while releasing the chamber’s analysis.
According to ASSOCHAM analysis, between 5 -10% of the global contract research outsourced market (all services including chemistry, toxicology and clinical research) over next 5 years.
Market value for clinical trials outsourced to India is estimated at around USD 300 million, having increased by 65% in 2006, it is expected to touch USD 1.5-2.5 billion by 2014. By 2014, the industry will spend USD 450 M on clinical trials in India.
There are several pharma clusters around Ahmedabad, Vadodara, Ankleshwar and Vapi. There are also dedicated SEZs like JB, Phamez and Dishman.
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