Argentina welcomes India's pharma industry
August 25, 2014: Argentina has fully opened its US$ 6 billion drug market to the Indian pharma industry, increasing the potential to finished pharmaceutical products. It may be noted here that the scope was earlier limited to raw materials. The Latin American country has recently included India on the list of countries that can supply medicines to it.
According to estimates, Argentina's pharma market is expected to cross US$ 15 billion by 2020. Around eight key markets in the Latin American region are valued at US$ 30 billion, reporting a compound annual growth rate (CAGR) of over 10 per cent.
In terms of India's total pharmaceutical exports (which stood at US$ 15 billion in 2013-14), close to 8 per cent are to the Latin American nations. India exported bulk drugs worth US$ 44.85 billion to Argentina in 2012-13. India companies have the capability to supply generic drugs to Argentina at half the price.
The move is expected is expected to help the Indian pharma industry in gaining increased access to the largest pharma market in the Latin American region. In addition, the competent and competitive Indian pharma industry is expected to benefit from this opportunity with its globally manufacturing facilities.
More clarity will emerge with the Latin American nation coming out with its regulations which could throw light on the amount of time required for product registrations. Indian companies like Torrent Pharma, Glenmark Pharma and Cadila Healthcare already have a strong base in Brazil and the opening up of Argentina’s drug market is expected to translate into a strong growth opportunity for Indian pharma companies.