The pharmaceutical and health sector is omnipresent in our lives. Right from the birth of a child to old-age death; and everything in between – healthcare is encountered at each stage.
The Indian pharmaceutical sector was valued at USD 33bn in 2017. India houses over 3,000 pharma companies with a strong network of over 10,500 manufacturing facilities. Globally as well the Indian pharma and healthcare sector holds a pivotal position – being the largest producer of generic drugs globally.
The Indian pharma sector is expected to grow at compounded annual growth rate (CAGR) in excess of 14% to reach USD 55bn by 2020.1 The Indian healthcare sector is also expected to grow at a CAGR of more than 16% to reach USD 372bn by 2022.2
Aditya Birla Sun Life Pharma & Healthcare Fund (An open ended equity scheme investing in Pharma and Healthcare Services Sector) aims to help the retail investor to capitalise in this emerging and fast-growing sector by investing in pharma and healthcare companies which are well diversified business models with an optimal business mix across all main geographies – India, US & Emerging Markets.
The focus areas include pharmaceuticals and formulations, speciality chemicals, hospitals and diagnostics, insurance providers, wellness product and service providers and other ancillary healthcare segments.
Allows investors to invest money at pre-defined regular intervals
Apart from SIPs, lumpsum money can also be invested from time to time in this fund
Allows investors to transfer/switch money periodically from any of our funds into this fund
Allows the investors an option to withdraw their money from this fund at regular intervals
This fund is suitable for investors who are keen to foray into companies in the pharma and healthcare sector in India and who are looking for long term capital appreciation of their investment. Investors with high risk appetite and long-term investing goals (atleast 5 years) can consider investing a part of their portfolio in this fund.
India is the world’s largest provider of generic medicines - accounting for 20% of global generic drug exports. Indian drugs are exported to more than 200 countries in the world, with the US as the key market. India’s pharmaceutical export market expected to reach USD 20 billion by 2020.3
India supplies 50 to 60 percent of global demand for many vaccines, 40 percent of generics consumed in the US and 25 percent of all the medicines dispensed in the UK.4 Two-thirds of the global AIDS treatments drugs are supplied by India.5
India is also emerging as a preferred destination for global patients for a wide ambit of medical treatments. India pharma companies have a considerable and growing footprint in this largest global market
India has the advantage of low cost of production, approximately 33% lower than US6, making it well on its way to becoming a global supply destination for pharmaceuticals.
Rabid urbanisation, growing per capita income and increase in lifestyle diseases paves the way for high growth in the domestic pharma and healthcare sector. India is expected to be 9th largest country in pharma spending by 2023.7
Favourable government schemes such as “Ayushman Bharat” scheme aimed at providing health insurance cover to low income families, makes the reach of Indian pharma and healthcare sector more extensive.
Increasing need and affordability in the average Indian household is boosting the domestic industry. Rising healthcare spends by the government especially on infrastructure and distribution in previously untapped rural areas will drive domestic pharma and healthcare spending.
Globally, India is foraying into niche, high margin areas such as injectables, dermatology, respiratory, biosimilars and complex generics. Global demand for cheaper generics will further augment its pivotal position in the global generics market.
(An open ended equity scheme investing in Pharma and Healthcare Services Sector)