The Indian pharma sector is all set to bounce back after a lacklustre FY05 during which the implementation of VAT added misery to the already sluggish domestic sales. Most Indian companies are bullish on the US generics market and the domestic pharma space.

About $45-billion of patent expiries are expected over 2006-08 and Indian players are well placed to leverage the opportunity. Multinational pharma companies are likely to be key winners in the domestic market due to the onset of the patent regime.

The contract research manufacturing space is another area that is anticipated to drive growth in the medium term. Indian pharmaceutical companies are increasingly capitalising on outsourcing opportunities, offering manufacturing, drug development (clinical research) and customised chemistry services. The Indian pharma industry is on course to achieve 11% growth to touch about $13 billion in 2007-08.

( http://dnaindia.com)