Published Date : Dec 24, 2015
The health care sector in India has witnessed yet another year of steady growth as drug makers attracted many private investors and made bold bets abroad despite the drug regulator riling them.
The health care industry in India is known for its counter-cyclical characteristics and this year was no different with drug makers gaining strong demand from overseas as well as domestic markets. This was possible even as the global economy seems to be in a slump.
Here’s a recap of how the Indian health care industry performed over the year.
Drug Makers Push for Overseas Growth: Indian generic drug makers have constantly been under the scanner of the US Food and Drug Administration and 2015 was no exception as two of the top Indian drug makers – Dr Reddy’s Labs and Sun Pharma – came under fire. This, however, did not discourage Indian pharma companies who were looking for an overseas boost. A number of global mergers and acquisitions made the news this year: Lupin’s buying of US-based GAVIS, major transactions by Cipla, and Pfizer buying Allergan.
Tapping into Public Markets: A distinct trend that took over the Indian health care industry was tapping into the public markets. Major companies ventured into the IPO market, whether it was Narayana Health – the third biggest hospital firm in terms of number of beds, Syngene – a biotech research company, Dr Lal PathLabs – a major diagnostics firm, or Alkem – a leading mid-sized drug maker. The increase in active equity investment over the last 10 years has strengthened the size, profitability, and brand or several health care companies.
Medical Devices Sector on a Positive Stride: The medical devices industry in India witnessed a rather positive year on the whole. The Indian government gave permission for up to 100 percent FDI in the country with effect from January 21 this year. The demand to delink the medical devices industry from the pharmaceutical sector was finally accepted, which paved the way for improved investments and research and development in the sector.