# India Remains a Magnet for Pharmaceutical Investments Despite Regulatory Challenges

- Link: https://www.thailand-business-news.com/health/190189-india-remains-a-magnet-for-pharmaceutical-investments-despite-regulatory-challenges
- Published: 2025-01-21T07:57:00+07:00
- Author: Akanksha Singh

**Bayer plans to expand its therapy portfolio in India, enhancing growth despite
regulatory challenges. New products and strategic pricing aim to boost pharmaceutical
sales, targeting a market growth from INR2.5trn to INR3.7trn by 2029.**
 **Key View**

 * Clinical developments and expanded therapies portfolio will drive future growth
   of Bayer in India. 
 * We anticipate that the introduction of high-value pharmaceutical products will
   support India’s upward pharmaceutical sales trajectory. 
 * However, navigating the complex regulatory environment in India will pose challenges,
   including delays in approvals for clinical trials, limitations in intellectual
   property (IP) protection and medicine pricing pressures. 

**Multinational drugmakers will leverage clinical trial partnerships and bespoke
pricing strategies to facilitate growth in India’s pharmaceutical market.** On January
6 2025, Bayer announced plans to strengthen its presence in India by expanding its
portfolio of therapies and enhancing collaborations across the healthcare ecosystem.
Bayer has introduced several therapies to address specific health challenges in 
these areas. Recent product launches include Kerendia (finerenone), Verquvo (vericiguat)
and Nubeqa (darolutamide). Kerendia helps prevent or delay kidney failure in diabetic
patients, while Verquvo is designed to reduce hospitalisation rates in patients 
with worsening heart failure. Bayer has conducted 17 clinical trials in India, spanning
phase II, III and IV, with nearly 4,000 participants to ensure that the treatments
are both effective and safe for the local population.

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India plays a significant role in Bayer’s global operations, particularly in R&D.
The company’s Global Capability Centre in Hyderabad contributes to R&D, data science
and AI-driven healthcare solutions, supporting global Phase II and III studies. 
To increase accessibility, Bayer has also implemented a tiered pricing strategy 
and patient support programs in India. For instance, Kerendia and Verquvo are priced
in India at one-fifteenth and one-twentieth of their US prices, respectively. Additionally,
in May 2024, Zydus Lifesciences exited a joint venture with Bayer after selling 
its 25% stake. Bayer now fully owns Bayer Zydus Pharma, allowing the company to 
align its health solutions more closely with local market needs in India. This strategic
move further strengthens Bayer’s operations in India’s pharmaceutical market. 

**We anticipate that the introduction of high-value pharmaceutical products will
support India’s upward pharmaceutical sales trajectory. ** The expansion of Bayer’s
product portfolio in India will boost pharmaceutical market sales. This will support
our growth forecasts for the market, whereby we expect the market will grow from
INR2.5trn (USD31.0bn) in 2024 to INR3.7trn (USD41.7bn) in 2029, representing a compound
annual growth rate (CAGR) of 5.7% in euro terms and 4.2% in US dollar terms.

India’s pharmaceutical sector has consistently garnered global attention, thanks
in part to its robust infrastructure, skilled workforce, and cost-efficiency. Despite
facing regulatory risks, including increasing scrutiny from international health
organizations and shifting compliance standards, the country remains a lucrative
destination for pharmaceutical investments. India accounts for a significant portion
of the world’s generic drug supply, contributing to the growing demand for affordable
medications, which is a critical factor driving investment.

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Investors see potential in the Indian pharmaceutical market not only for its existing
capabilities but also for its ability to innovate and adapt. The increasing focus
on biotechnology and advanced drug delivery systems promises promising opportunities
for growth. Furthermore, government initiatives aimed at boosting the health sector,
such as the Production Linked Incentive (PLI) scheme, reinforce investors’ confidence
and provide a conducive environment for development.

While regulatory challenges persist, they also present opportunities for companies
willing to navigate them. By aligning with global standards and investing in compliance,
firms can mitigate risks. India’s resilient market and progressive policies indicate
that, despite these hurdles, the pharmaceutical sector will continue attracting 
investments and maintain its status as a key player in the global healthcare landscape.

[Read More](https://www.fitchsolutions.com/bmi/pharmaceuticals/india-will-continue-attract-investments-pharmaceutical-sector-despite-regulatory-risks-16-01-2025)
