India's OTC drug market boom

Figures released by Datamonitor indicate that India's over-the-counter drug market has shown a cumulative annual growth rate of 8.3% in the period 2002-2006, reaching about $2.5 billion in turnover last year. The market is forecast to expand at a yearly rate of 6.3% until 2011 when it could approach $3.4 billion, outpacing the economy as a whole.

Sumita Nag, an analyst at investment advisor group IndusView, noted that proposed changes to the Schedule K of India's Drugs and Cosmetic Act could generate more growth by deregulating the sales of some health care products. She told the Express Pharma, an India-based fortnightly trade publication, that "the legislation is expected to bolster sales for aspirin, acetaminophen, analgesic balms, antacids, oral dehydration solution, gripe water, cough and cold treatments including inhalers, tetracycline-based ophtalmic ointments and low-dose hormonal contraceptives through non-pharmacy channels." Ms Nag also said that a number of categories that are not part of the OTC market in India, such as low-dose statins, could generate greater sales growth in the sector, if these became deregulated.