Delegation set to promote generics in Hungary, Czech Republic and Romania
The Indian pharmaceutical sector is spreading its wings. As part of an initiative to promote the industry in teastern European countries, the Pharmaceuticals Export Promotion Council of India (Pharmexcil), with the support of ministry of commerce, is taking a business delegation to Hungary, Czech Republic and Romania under the marketing development assistance (MDA) scheme and is expected to organie buyer seller meetings in these important countries.
According to P V Appaji, Director General of Pharmexcil, as eastern European countries have huge potential, the Council is mounting a trade delegation to three important countries initially, with the aim of promoting Indian pharmaceutical industry in these unexplored regions. 'As there is a huge ageing population, the demand for affordable generics is very high in this part of the world,' he said.
Currently, the generic markets in Czech Republic represents 34% of the total market with a value of US$1.23bn. In Romania, generic drugs account for 75% of its market by volume, amounting to $983m in value terms. Furthering India’s networking with Romania, this figure is expected to grow at a compounded annual growth rate of 7% up to 2018.
Foreign direct investments are also encouraged by the Romanian Government. Acquiring local units would help in getting easy access to other European markets. Currently, India's exports are less than 3% of the generics market in Romania.
Similarly, the generics market in Hungary in 2013 was worth $863m, comprising of 34% of the total market. Due to heavy price cuts imposed by the Hungarian government, local companies are looking for business outside Hungary, leaving scope for Indian generics given the price advantage. The Hungarian government is also keen to come to an understanding on regularisation of traditional medicines, officials added.