Series 94 – India’s Pharmaceutical Market and ITUS Portfolio

Further breaking down our Annual letter, this week we would like to highlight a key sector that we are overweight on. Today as we write to you, 19-20% exposure in the portfolio has been towards Pharma. Looking at top-down view of the sector- India is a significant player in the global pharmaceutical industry, ranking 13th by value and 3rd by volume. Key highlights including:

• Exports: $25.3 billion (FY 2022-2023) producing 60,000 generic drugs across 60 therapeutic categories.
• Global Contributions:

• • Supplies 20% of the world’s generic drugs.
  • Produces 50% of global vaccines.
  • Fulfils 40% of the U.S. demand for generic drugs and 25% for the UK

Below is a chart on India’s contribution to the Pharmaceutical Market. ITUS has prioritized investments in India’s pharmaceutical sector due to its strong growth outlook, driven by:

1. Low-Cost Manufacturing: India’s ability to produce affordable pharmaceuticals at scale supports global demand.
2. Low Price Erosion in the U.S. Market: Stable pricing conditions in the U.S. ensure better returns on generic drugs and biosimilars.

Find our Annual Letter for your ready reference in this link – Itus Capital Annual Letter 2024