Indian Pharma Leaders Aim for Greater Share in $145 Billion US Cancer Drug Market

Synopsis

Indian pharmaceutical companies are making significant strides to capture a larger share of the $145 billion US oncology generics market, which is growing at 11% annually. With FDA approvals for complex generics and biosimilars, Indian firms are well-positioned to leverage their manufacturing strengths and technical expertise.

Key Takeaways

Indian pharma companies are expanding in the US oncology market.
The market is valued at $145 billion with 11% annual growth.
FDA approvals for complex generics are on the rise.
Foreign investment in the sector is increasing.
The PLI Scheme is boosting domestic manufacturing.

New Delhi, April 18 (NationPress) Indian pharmaceutical firms are intensifying their initiatives to gain a larger foothold in the highly profitable US oncology generics market, currently estimated at $145 billion and expanding at an impressive rate of 11 percent annually, based on a recent report.

Recently, numerous Indian drug manufacturers have obtained approvals from the US Food and Drug Administration (FDA) for generic variants of cancer medications, indicating a consistent rise in the introduction of sophisticated generics and biosimilars into the US market.

As oncology continues to emerge as one of the fastest-growing therapeutic segments worldwide, Indian companies are strategically positioning themselves to capitalize on this valuable sector by utilizing their capabilities in cost-effective manufacturing, technical proficiency, and increasing regulatory approvals, according to the report.

Experts in the industry assert that this signifies a transition from conventional generics to more intricate formulations, showcasing the advancing skills of Indian pharmaceutical companies.

This escalating international focus aligns with strong foreign investment trends within the domestic industry.

The Department of Pharmaceuticals reports that India's pharmaceutical and medical devices sector attracted a foreign direct investment (FDI) of Rs 11,888 crore from April to December 2024.

Moreover, during FY25, 13 FDI proposals worth Rs 7,246.40 crore for brownfield projects received approval, raising the total FDI to Rs 19,134.4 crore.

A significant portion of this growth is fueled by the central government's Production Linked Incentive (PLI) Scheme, aimed at enhancing domestic manufacturing, minimizing import reliance, and boosting exports.

Launched in 2021 with a financial commitment of Rs 15,000 crore for pharmaceuticals, the scheme prioritizes high-value products such as complex generics, biopharmaceuticals, and anti-cancer medications.

One remarkable achievement of the scheme is surpassing the initial investment goal. While the original target was set at Rs 3,938.57 crore, actual investments reached Rs 4,253.92 crore by the conclusion of 2024.

Projects like the Penicillin G unit in Andhra Pradesh and the Clavulanic Acid facility in Himachal Pradesh are among the primary beneficiaries, expected to markedly decrease import expenses.