Indian pharmaceutical companies are ramping up efforts to expand their footprint in the lucrative US oncology generics market, currently valued at $145 billion and growing at a robust annual rate of 11 per cent, according to a new report.
In recent months, several Indian drugmakers have secured approvals from the US Food and Drug Administration (FDA) for generic versions of cancer drugs, marking a steady increase in the entry of complex generics and biosimilars into the American market.
With oncology emerging as one of the fastest-growing therapeutic segments globally, Indian firms are positioning themselves to tap into this high-value space by leveraging their strengths in affordable manufacturing, technical expertise, and increasing regulatory approvals, the report said.
Industry experts say this marks a shift from traditional generics to more complex formulations—reflecting the evolving capabilities of Indian pharmaceutical companies.
This growing global push coincides with robust foreign investment trends in the domestic sector.
According to the Department of Pharmaceuticals, India’s pharmaceutical and medical devices sector received foreign direct investment (FDI) inflows of Rs 11,888 crore between April and December 2024.
Additionally, 13 FDI proposals worth Rs 7,246.40 crore for brownfield projects were approved during FY25, bringing the total FDI to Rs 19,134.4 crore.
Much of this momentum is driven by the central government’s Production Linked Incentive (PLI) Scheme, which aims to boost domestic manufacturing, reduce import dependency, and enhance exports.
Launched in 2021 with a financial outlay of Rs 15,000 crore for pharmaceuticals, the scheme focuses on high-value products such as complex generics, biopharmaceuticals, and anti-cancer drugs.
One of the scheme’s notable outcomes is the exceeding of its initial investment target. While the original commitment stood at Rs 3,938.57 crore, actual investments reached Rs 4,253.92 crore by the end of 2024.
Projects like the Penicillin G unit in Andhra Pradesh and the Clavulanic Acid facility in Himachal Pradesh are among the key beneficiaries, expected to significantly reduce import costs.
IANS