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Global Pharmaceutical Market

Global spending on medicines will reach $1.4 trillion by 2020. Spending on
medicines in the U.S is estimated to reach $560-590 billion by 2020, which,
based on invoice price, is an increase of about 35% from 2015. Medicinal
spending of the top 5 European markets in 2020 is estimated to be $170-200
billion, which would be an increase by nearly $40-45 billion from current levels.

Indian Pharmaceutical Market:
The Indian pharmaceutical sector holds about 2.4% of the total global market
share in terms of value and 10% in terms of volume. It is currently the sixth
largest Pharma market in the world in terms of size. From a figure of USD 6 billion
in 2005, the Indian Pharma sector has gone through Compound Annual Growth
Rate (CAGR) of 17.46% to become a USD 20 billion industry, as on January 2016.
It is projected that the industry would grow at a CAGR of 15.92% to reach US $
55 billion mark by FY2020
About 70% of the total revenue collected by the Indian pharmaceutical industry
is generated by generic drugs, followed by OTC (Over-the-counter) medicines,
which generates 21% of the total revenue. The remaining 9% is occupied by
patented drug sales. About 20% of the global generic orders are supplied by the
Indian Pharma sector. This makes the country, world’s largest generic medicine
provider. India exports its quality products to over 200 countries across the
globe, with the USA as its main market.