The inorganic growth strategy of Sun Pharma is driven by a rising health spend in US and other emerging markets. According to the US-based IMS Institute, global health spend is expected to touch $ 1.1 trillion mark by 2015, growing at 3-6% per annum.
“Globally, market share for branded medicines, which fell from 70% in 2005 to 64% in 2010, is expected to decline further through 2015, to 53%,” the IMS analysis said. This means 47% of the total drugs sold in 2015 would be generics or off-patent versions of the original drug.
No wonder then, Sun Pharmaceutical, a generics player, is excited about the opportunity in the US. The ageing population in the developed markets is expected to drive incremental spending on drugs, both branded and generics.
“Globally, market share for branded medicines, which fell from 70% in 2005 to 64% in 2010, is expected to decline further through 2015, to 53%,” the IMS analysis said. This means 47% of the total drugs sold in 2015 would be generics or off-patent versions of the original drug.
No wonder then, Sun Pharmaceutical, a generics player, is excited about the opportunity in the US. The ageing population in the developed markets is expected to drive incremental spending on drugs, both branded and generics.
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