India Specialty Drug Distribution Market generated a revenue of US$ 2,045.35 million in 2022 and is estimated to reach a valuation of US$ 5,997.7 million by 2031 at a CAGR of 12.93% during the forecast period 2023–2031.

Over the next few years, the specialty drug market will witness growth due to new specialist products, rising patient population, and increasing drug prices. Indian healthcare systems should develop strategies to manage the growing number of outpatient specialty medications; integrated specialty pharmacies are effective in enhancing patient outcomes and reducing medical costs. It is becoming increasingly common for health systems to use integrated specialty programs as their exclusive or preferred pharmacy option.

Specialty therapies currently make up over one-third of the market, with greater growth rates than that of the general market. This includes medications for both chronic and acute conditions. In order to sustain this growth, players of mass therapies must strategically target lower levels of the physician pyramid in order to balance scale with short-term profits. Players in the field must also learn new skills, such as working with payors and providers to lower overall treatment costs.

Big data and AI are increasingly important for managing specialty drug distribution. Big data helps collect and analyze a detailed information about patients, treatments, and outcomes. AI can be used to identify potential problems and provide real-time insights into the supply chain process. Healthcare systems should invest in data analytics and AI solutions to stay up-to-date with developments in the specialty drug market.

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Key Dynamics of Specialty Drug Distribution Market

Drivers

Increasing Prevalence of Chronic Diseases has Boosted the Demand For Specialty Pharmaceutical Drugs

The pharmaceutical industry is expected to experience dynamic growth in the hospital sector across India specialty drug distribution market due to the increasing number of hospitals in India. This rise in growth potential is primarily driven by the significant increase of non-communicable diseases and the subsequent burden on healthcare costs across Indian states. Non-communicable diseases such as cancer, diabetes, and a range of cardiovascular illnesses have become more common, resulting in an increased demand for specialty drugs, which in turn has propelled the market for hospital pharmaceuticals. Alongside this, the rising prevalence of parasitic infections has also contributed to pharmaceutical demand, as anti-parasitic medications are required to successfully treat these conditions.

Restraint

Less Availability of Cold Chains Hampers the India Specialty Drug Distribution Market

In India, average annual temperature is 30°C, with summertime reaching 45°C or higher. This requires a well-designed cold chain infrastructure for the efficient distribution and storage of medical supplies, vaccines, and food. The large land area, challenging geography, and heavy reliance on road freight add to the complexity. However, 20% of temperature-sensitive healthcare supplies in India arrive damaged due to faulty or insufficient cold chains.

The COVID-19 pandemic highlighted the vulnerability of Indian businesses to supply chain disruptions caused by cold chain weaknesses. This issue extends to the entire Indian Subcontinent, including Pakistan, Bangladesh, and Sri Lanka, which face similar climates and infrastructure challenges.

Trend

Embracing Digital and Advanced Analytics for Accelerated Growth

The rapid development of advanced analytics in the specialty drug distribution market, which allows businesses to uncover insights even from complicated and unstructured data sets, has been sparked by the recent technological change. Globally, the pharmaceuticals value chain, comprising R&D, manufacturing, supply chain, sales, etc., has seen application cases of advanced analytics boosting growth and productivity. In 2017, a few Indian pharmaceutical businesses conducted pilot-scale test cases using advanced analytics, with encouraging outcomes. In the upcoming years, it is expected that the agenda for digital and advanced analytics will expand significantly.

Market Segmentation

Type Analysis:

The specialty drug distribution market is divided into Full Line Wholesalers and Specialty Distributors. Changing lifestyles and increased stress have led to a shift towards rare diseases. These diseases require special medications, classified as Orphan Drugs, Unlicensed Drugs, or Special Drugs by the World Health Organization. The high demand for these drugs creates a market gap that needs to be filled.

Full Line Wholesalers have stepped up to meet this demand, as there are few WHO GDP-approved wholesalers in India. They have the resources and infrastructure to source and distribute these medications globally, while adhering to established criteria and ensuring timely delivery. Their goal is to become one of the top wholesale pharmacy online and pharmaceutical export companies in the world.

Application Analysis:

The Specialty Drug Distribution market is segmented by application, including Immunology, Hematology, Neurology, Multiple Sclerosis, Oncology, Gastroenterology, Orthopedic, Cardiology, Nephrology, Dermatology, Urology, Radiology, and Pulmonology. Of these, oncology medications are expected to grow at the fastest CAGR over the forecast period of 2023-2031. This is due to increasing cancer cases and demand for specialized treatments. For example, the Drug Controller General of India (DCGI) recently approved Glenmark Pharmaceuticals to begin phase 1 clinical trials of a new chemical for advanced solid tumor patients in India.

The Specialty Drug Distribution Market Share is also expected to rise over the forecast period, buoyed by the FDA's continued approval of drugs for cancer treatment. Additionally, two chronic disorders that account for most cases are hypertension and diabetes. With an ageing population, degenerative stress and man-made diseases further driving up the prevalence of chronic diseases such as cardiovascular disorders and diabetes. Moreover, the rising prevalence of obesity in India, especially in the southern region, is of concern for policymakers.

Distribution Channel Analysis

By distribution channel, the market can be further divided into online stores, hospitals and care providers, independent pharmacies, large chain pharmacies, and specialty pharmacies. In 2022, the hospitals & care providers industry maintained a commanding market share. This is brought on by an increase in hospitalizations and chronic disease cases. Hospital therapy is essential for the treatment of severe acute illness. However, majority of elderly hospitalized patients also have number of chronic illnesses unrelated to the initial diagnosis. The rise in chronic disease cases and the demand for specialty medications are the main factors driving the India specialty drug distribution market Share.

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Location Analysis

By location, the market is segmented into tire I, tire II, tire III, and others. About 30% of the Indian pharmaceuticals business is divided between metro and Tier-I markets. Majority of this sector is made up of mass therapies. Metro and Tier-I markets have risen at a rate of 14 to 15% over the past five years, in line with the overall market. 

Three elements will be the main drivers of the India specialty drug distribution market in metro and Tier-I areas. First, due to the world's fast urbanization, 250 million people will relocate from rural areas to urban centers over the course of the next 20 years, with the bulk of them going to the top 70 cities. The scale and scope of the medical infrastructure will also grow. In the top 70 cities, corporate hospital chains will expand their hospital network. In Tier-I markets, innovative formats will fill healthcare delivery gaps. And in the top 200 to 250 cities, hub and spoke delivery models will become more prevalent, opening access to more advanced secondary care procedures. Third, through organized initiatives, compliance may increase significantly. While diagnostic and treatment rates are 30 to 40% higher in metro areas and Tier I markets than in rural areas, compliance rates are about the same.

Top Players in the Specialty Drug Distribution Market 

The India Specialty Drug Distribution market is currently highly competitive, with the top 10 players accounting for approximately 22% of the market in 2022. Ikris Pharma, D.Vijay Pharma, Meher Distributors Pvt. Ltd, Aark Pharmaceuticals, and Feron Healthcare among others are some of the major players in the India Specialty Drug Distribution market.

This market is expected to become increasingly fragmented in the coming years. To stay competitive in this market, biopharma businesses must collaborate effectively with their specialty channel partners to develop next-generation analytics and automated and secure data systems. Doing so can help them gain a better understanding of the patient journey, receive feedback on their commercial efforts, and learn about patient outcomes, accessibility, and affordability.

Developing better benefit designs and clinical guidelines is essential for achieving operational efficiencies and generating real-world evidence on health-economic outcomes, which can then be shared with payers and providers. As the pharmaceutical industry continues to evolve and expand, biopharma businesses must invest in innovation and technology to remain relevant in the specialty drug distribution market.

List of Key Companies Profiled:

• Aark Pharmaceuticals
• Astellas Pharma India Pvt. Ltd.
• Aurobindo Pharmaceuticals
• Arlak Biotech
• Bharat Serums and Vaccines Limited
• Biotic Healthcare
• Cipla
• D.Vijay Pharma
• Dr. Reddy’s Laboratories Ltd
• Divis Laboratories
• Feron Healthcare
• Gaia Pharmaceutical Trade
• Glenmark Pharmaceuticals
• GNova Biotech
• Ikris Pharma
• IMS Medi
• Jay-Pharma
• Lupin
• Meher Distributors Pvt. Ltd.
• Merck & Co., Inc.
• Novartis AG
• Novacare
• Pax Healthcare
• Prime Health
• Sanify Healthcare
• Serum Institute of India Pvt. Ltd.
• Sun Pharmaceutical Industries Ltd.
• Servocare Lifesciences
• Shubham Pharmaceutical
• Swisschem Healthcare
• Torrent Pharmaceuticals
• Vardhman Health Specialities Pvt. Ltd.
• Zydus Lifesciences Limited
• Intas Pharmaceuticals Ltd.
• 3S Corporation
• Other Prominent Players

Key Developments in the India Specialty Drug Distribution Market

• November 2022: Amneal stakes in a significant amount on the India formulation market. Amneal Pharmaceuticals, a pharmaceutical company established in New Jersey and the newest player in the Indian domestic formulation industry, is expanding its workforce in preparation for upcoming launches. To expand its India portfolio, Amneal is also interested in potential acquisitions. Even more innovative medicines based on biosimilars, specialised pharmaceuticals, and revolutionary drug delivery methods are planned by the pharmaceutical company. Founded by NRI business brothers Chirag and Chintu Patel, the $2 billion company started operating commercially in India in August with the introduction of a hospital or critical care segment with 120 employees and 30 items. Critical cardiac, ICU anti-infectives, and anaesthesia are among the available products. Amneal introduced the first single port closed IV (intravenous) bag of its kind in India, which decreased the risk of microbial contamination.
• May 2021: TLC, a clinical-stage specialty pharmaceutical company focused on the development of cutting-edge nanomedicines to address unmet medical needs, and Zydus Healthcare Limited, a cutting-edge, international pharmaceutical company that discovers, develops, produces, and distributes a wide range of healthcare products, announced the signing of a licence supply and commercialization agreement to market Amphotericin B Liposome for Injection 50mg in India. According to the contract, TLC will develop and deliver Zydus with AmphoTLC on a non-exclusive basis, and Zydus will market AmphoTLC in India. With the aid of Zydus, TLC was able to get the required AmphoTLC regulatory clearances from the Indian regulatory bodies, including a fresh drug registration with the Central Drugs Standard Control Organization.

Segmental Overview

(Note*: We also provide granular level reports, made to sub-segment level or only for niche segments. Contact us, if you require more details.)

By Type

• Full line Wholesalers
• Specialty Distributors

By Application

• Immunology
• Haematology
  • Transplant
• Neurology
  • Multiple Sclerosis
• Oncology
• Gastroenterology
• Orthopedic
• Cardiology
• Nephrology
• Dermatology
• Urology
• Radiology
• Pulmonology
• Otorhinolaryngology
• Others

By Distribution Channel

• Hospital Pharmacies
• Stockists/Wholesalers
• Retailers
• D2C
• Pharmacies
  • Large Chain
  • Independent
• Online

By Location (Region)

• Tier 1
• Tier 2
• Tier 3
• Others

By Region

• North India
  • Uttar Pradesh
  • Delhi
  • Haryana
  • Punjab
  • Rajasthan
  • Himachal
  • J&K
• South India
  • Tamil Nadu
  • Karnataka
  • Kerala
  • Andhra Pradesh
  • Telangana
• West India
  • Gujarat
  • Goa
  • Madhya Pradesh
  • Maharashtra
  • Chhattisgarh
• East India
  • West Bengal
  • Bihar
  • Assam
  • Jharkhand
  • Odisha
  • Rest of East India