Surge in Generic Medicine Sales Disrupting Indian Pharma Market

A UBS report highlights the rise in demand for generic medicines in India, driven by the expansion of Jan Aushadhi stores. This trend is impacting the sales of branded drugs. The government aims to double the number of Jan Aushadhi stores, further promoting affordable healthcare options through unbranded generics.

According to a recent UBS report, the demand for generic medicines in India is witnessing a rapid increase, while sales of branded drugs are seeing a decline. This shift is attributed to the proliferating Jan Aushadhi stores, which offer affordable generic medications across the nation.

The report elaborates on the slowdown of the Indian pharma market, noting a significant rise in unbranded generics. It attributes this trend to the government's efforts to expand Jan Aushadhi stores, providing accessible and economical healthcare alternatives.

Currently, unbranded generics account for over 25% of urban markets and 35% of non-urban markets, as highlighted by the report. Jan Aushadhi stores alone contribute to 5% of the generic medicines market share, which now comprises over 20% of the entire market.

The government is set to double the number of Jan Aushadhi stores within the next two years by easing loan approvals and offering capital expenditure reimbursements. This initiative has already led to increased store openings over the past 18 months.

The report indicates that this expansion could impact the annual market growth by 1-2% on an 8% CAGR base. The rising number of Jan Aushadhi stores enhances the accessibility of affordable medicines, posing a challenge to branded drug manufacturers.

The profitability of unbranded generics is less than half of that of branded versions, raising concerns among manufacturers. However, as the government continues to support these initiatives, the Indian pharmaceutical market is likely to shift towards more affordable generic options, benefiting consumers significantly.

(With inputs from agencies.)