The World’s Pharma Factory Is Eyeing A Bigger Share Of Global Markets

India’s low-cost generic drug makers are on an M&A drive to carve out new niches and new markets.

India’s low-cost generic drug makers are on an M&A drive to carve out new niches and new markets. This story appears in the October 2024 issue of Forbes Asia. Subscribe to Forbes Asia Ramesh (left) and Rajeev Juneja. This story is part of Forbes’ coverage of India’s Richest 2024. See the full list here. India’s pharma tycoons are on an expansion tear to carve out new niches beyond generic medicines and grow their global reach. A leader in low-cost drugs, India supplies 20% of the worldwide total by volume. ss Now, as companies move further into next-generation therapeutics, the country’s pharmaceutical industry is likely to double to $130 billion by 2030 and more than triple to $450 billion by 2047, according to global consultancy EY-Parthenon. Mankind Pharma, controlled by billionaire brothers Ramesh and Rajeev Juneja, announced in July plans to buy Mumbai-based Bharat Serums and Vaccines for $1.6 billion from Advent International, a U.S. private equity firm. The deal, expected to be completed soon, will position Mankind as a market leader in women’s health and fertility treatments, according to Mumbai-based HSIE Research analyst Mehul Sheth in a July report. It will also expand the Delhi-based firm’s presence to more than 70 countries compared with over 20 in the year ended in March. The acquisition “represents a pivotal milestone in Mankind’s journey,” said vice chairman Rajeev, who, together with older brother Ramesh, the group’s chairman, built the generics drug maker over three decades into one of India’s largest pharma firms by domestic sales (fiscal 2024 revenue: $1.2 billion). The Reddy family’s Dr Reddy’s Laboratories is also bulking up its global consumer healthcare business. In June, the Hyderabad-based drugmaker agreed to buy Northstar Switzerland, part of the U.K.-based healthcare group Haleon for $656 million. Reddy’s will acquire Haleon’s nicotine replacement therapy business outside of the U.S., which includes top-selling Nicotinell gum and patches, and strengthen Reddy’s footprint in Europe. G. V. Prasad. Co-chairs Satish Reddy and G.V. Prasad, the son and son-in-law of late founder K. Anji Reddy, respectively, have in recent years parlayed their successes in generics and over-the-counter medications to create new growth drivers like health and wellness. Revenue is expected to hit $3.6 billion in the year ending March 2025, HSIE’s Sheth wrote in June. Hiren Patel, son of detergents-to-cement tycoon Karsanbhai Patel, founder and chairman of Nirma, is turbocharging the family’s ambitions in the pharma space. In March, the younger Patel, who is managing director at the group, led the acquisition of a 75% stake in Glenmark Life Sciences, which specializes in treatments for chronic conditions like cardiovascular disease and diabetes, from listedGlenmark Pharmaceuticals. The $680 million deal follows Nirma’s earlier purchase of an eye drops maker to bolster its small portfolio of health products ranging from IV fluids to injectables. Meanwhile, Mayank Singhal, son of PI Industries chairman emeritus Salil Singhal, is diversifying beyond the family’s agrochemicals business into pharmaceuticals. In the past 18 months, PI Health Sciences, helmed by Mayank, has made two pharma acquisitions—one in the U.S. and another in Italy, and set up its third R&D center in Hyderabad. Last year, PI Health Sciences completed its purchase of Alabama-headquartered Therachem Research Medilab, which specializes in drug development for rare diseases, for $75 million. This followed the purchase of Italian active pharmaceutical ingredients manufacturer Archimica from Germany’s Plahoma Twelve for $38 million. The investments marked an “accelerated beginning” in pharma, leveraging the group’s “capabilities across complex chemistries in the value chain,” the younger Singhal said in a statement. India’s pharma sector will see 8% to 10% compound annual sales growth over the next few years, propelled partly by higher volumes and new products, HSIE Research’s Sheth wrote in March. “Similarly, leading companies are poised to surpass the IPM [India pharma market] through strategies like M&As, expanding field forces [sales teams], and new launches,” he noted. Forbes Asia

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