Pharma Funds: A brief description

As the name suggests, mutual funds that invest across the pharmaceutical industry are known as pharma fund. The term pharmaceutical industry includes hospitals and drugs manufacturing companies which also include specialized drug companies which are related to research and development.

From a mere turnover of U.S. $0.3 billion in the year 1980, the Indian pharma industry has grown to about U.S. $21.73 billion in 2009-10. Indian Pharma industry ranks fourteenth in terms of value which is 1.5 percent of the global value. Separately, from the point of production volumes, Indian pharma industry stands to be world's third largest with a production volume of 10 percent of the total global production (Source: ITP Division, Ministry of External Affairs, Government of India).

Industry Outlook

Industry research solutions provider, RNCOS in their latest research report states, that it is estimated that the Indian Pharma space has generated revenue of U.S. $13.1 billion during 2011. The huge growth is primarily because of the growing middle class population of the country, fast and rapid urbanization coupled with an increased number of lifestyle related diseases.