The huge Chinese drug market, which remained elusive to Indian pharmaceutical companies till now, seems to be near at hand.
If the figures quoted by the Pharmaceutical Export Promotion Council are any indication, export to China has shown a healthy growth of 39 per cent during the last financial year.
According to the Pharmexcil figures, drug exports to China during the financial year 2005-06 were worth $169.45 million against $121.05 million in 2004-05.
The figures also indicate that exports picking up from $99.78 million in 2002-03 to $104.42 million in 2003-04.
The sudden interest in China is owing to changing government norms, which encourage retail trade of medicines. Till recently, China was known to distribute 90 per cent of its medicines through public sector hospitals.
The domestic pharma industry's attempts to earn a share of this growing market was, however, did not reach their end.
The drug majors such Ranbaxy and Dr Reddys are yet to find their Chinese operations "as huge successes." "China is not among our major thrust markets. It may not be as lucrative as it seems," Satish Reddy, managing director, Dr Reddys, said.
However, the recent surge in exports has emboldened domestic pharmaceutical companies to have a greater role in that market.
For instance, the Chinese exports of Jubilant Organosys was approximately worth Rs 124 crore (Rs 1.24 billion) in 2005-06 compared with Rs 59 crore (Rs 590 million) in the previous year.
According to a senior company official, China will remain a major export destination for Jubilant. Sources from Ranbaxy and Lupin also felt China as a growing market.
A recent study by the Ficci had highlighted the need for a pharma committee within the Indo-China Joint Working Group for easing the procedural hurdles which hinter faster export growth to China.
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