India's Biologics Sector Faces Challenges from China's Rapid Growth
China pulls ahead in biologics race, forcing Indian drugmakers to rethink strategy
The Economic Times
Image: The Economic Times
Indian pharmaceutical companies are struggling to compete in the burgeoning global biologics market as China strengthens its dominance. With Chinese firms securing over half of recent US biotech project mandates, Indian companies must evolve their strategies to maintain relevance in this competitive landscape.
- 01China has rapidly advanced in the biologics sector, capturing over half of recent US biotech contracts.
- 02Biologics accounted for 42% of China's new drug approvals in 2023, a significant increase from 9% in 2015.
- 03India's biosimilar exports are projected to grow from $0.8 billion to $4.2 billion by 2030.
- 04Indian firms need to shift from cost efficiency to capability leadership to compete effectively.
- 05Structural gaps in advanced capabilities and market access must be addressed for India to succeed.
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The Indian pharmaceutical industry is facing increasing pressure as China's dominance in the global biologics market grows. Chinese companies have recently secured over 50% of project mandates from US biotech firms, highlighting their operational scale and cost competitiveness. In 2023, biologics represented 42% of new drug approvals in China, a significant increase from just 9% in 2015. This shift underscores the need for Indian drugmakers to enhance their capabilities beyond cost efficiency. Currently, India's biosimilar exports stand at approximately $0.8 billion, with projections suggesting growth to $4.2 billion by 2030. However, to thrive, Indian companies must overcome structural gaps in advanced manufacturing, intellectual property strategy, and market access, particularly in the US. As the biologics race intensifies, the Indian pharmaceutical sector faces a crucial decision: innovate and move up the value chain or risk falling behind in global drug development.
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The growth of the biologics market presents opportunities for Indian pharmaceutical companies but requires significant investment in capabilities to compete with Chinese firms.
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