India's pharmaceutical exports have experienced robust growth, with a year-on-year increase of 8.1% during April-October in the current financial year. The total value of pharma exports reached $15,785 million, compared to $14,598 million in the same period last year. In October alone, pharma exports saw a significant growth of 29.3% to $2,424 million. The projections for pharma exports for the full year are $27 billion, but based on the current run rate, it is likely to surpass the $28 billion mark. Drug formulations and biologicals accounted for 73.5% of total exports, bringing in $11,598 million. The major regions for pharma exports are NAFTA (USA, Canada, and Mexico), Europe, and Africa, which together account for almost 69% of total exports. The top five countries for pharma exports from India are the USA, Netherlands, UK, Brazil, and South Africa.
The Pakistan pharmaceutical industry also has the potential to earn foreign exchange through drug exports. The Pharmaceutical Manufacturers Association (PPMA) in Pakistan is emphasizing the need for a growth strategy, regulatory reforms, deregulation of drug prices, and strengthening of intellectual property rights to tap into the global pharmaceutical export market. The industry aims to increase Pakistani drug exports to $1 billion in three years and $5 billion in five to ten years. The chairman of PPMA, Mian Khalid Misbah-ur-Rehman, highlighted the importance of local manufacturing of active pharmaceutical ingredients (APIs) to reduce dependence on imports and align with international standards. He called for government support and incentives to facilitate industry growth. The chairman also urged the timely revision of prices of essential drugs to provide realistic profit margins to manufacturers, dealers, wholesalers, and retailers. He emphasized the need for the government to implement the drug pricing policy and resolve pending cases related to drug pricing.
India and Pakistan, both major players in the pharmaceutical industry, are focusing on expanding their drug exports and implementing reforms to enhance growth and competitiveness.
Iran has also been making significant contributions to the global pharmaceutical export market. The country has exported $100 million worth of drugs and medicines since March 21, 2023. Iran currently has about 50 trade and commercial units tasked with exporting drugs overseas. It has multiple trade centers in some countries and plans to boost trade relations through the exchange of trade-economic delegations, B2B meetings, and participation in specialized exhibitions. Poland is a lucrative market for importing and exporting medicines, importing $8.5 billion worth of medicines annually and exporting $4.5 billion worth of medicines to other countries. Iran exports $100 million worth of medicines abroad annually, with half of it going to European countries.
In 2023, Iran exported about $1 billion worth of non-oil products to Pakistan, a 13% growth compared to the previous year. Pakistan imported $994 million worth of goods from Iran in 2023. Pakistan's official exports to Iran in 2023 were only $155,000. Pakistan's export of products to Iran has not exceeded $200 million in recent years and has declined since 2020.
The market for pharmaceutical chemicals is projected to reach $339.3 billion by 2031, growing at a compound annual growth rate (CAGR) of 5.8%. The growth is driven by the increasing popularity of biopharmaceuticals and technological advancements such as 3D printing and ongoing manufacturing. Environmental concerns and regulatory changes are also expected to impact the industry. Key players in the market include Merck, Pfizer, and Viatris. The rise of biopharmaceuticals, technological advancements, and changes in environmental and regulatory landscapes are driving the expansion of the pharmaceutical chemicals market.
Pharmaniaga, one of the largest pharmaceutical distributors in Malaysia, is facing financial trouble. Despite earning $730 million in revenue in 2022, the company posted a net loss of $126 million, causing liabilities to exceed assets and turning the company's equity negative. The main cause of the financial woes is the procurement and stockpiling of too many COVID-19 vaccines during the pandemic, which the company was unable to sell, resulting in a write-down of about $115 million. Pharmaniaga is majority-owned by Boustead Holdings, a conglomerate owned by a military pension fund controlled by the government. The majority of Pharmaniaga's business comes from government contracts, with about 66 percent of revenue coming from the state. Despite the financial difficulties, Pharmaniaga has a special relationship with the government and recently had its concession agreement extended for a further seven years, ensuring continued revenue from providing medical supplies to government hospitals and facilities until at least 2030.
In a new development, French pharmaceutical giant Sanofi and US rival Novavax have announced an alliance to sell a Covid vaccine and develop a combination flu-Covid shot. Under a licensing deal worth up to $1.2 billion, the companies will co-commercialize Novavax's Covid-19 vaccine worldwide, except in some countries. Novavax will receive an upfront payment of $500 million and up to $700 million if certain milestones are reached, while Sanofi will take a five percent stake in the US company. Sanofi will also be able to develop a combination flu-Covid vaccine using its own flu shots with Novavax's Covid jab. [a72308bb]
The global pharmaceutical excipients market size was valued at US$ 8.39 billion in 2023 and is expected to reach US$ 14.80 billion by 2033, growing at a CAGR of 5.84% from 2024 to 2033. The North America pharmaceutical excipients market held a market share of 39% in 2023. [a89403b3]
