India Financial Assistance Programs Market Analysis

India Financial Assistance Programs Market Executive Summary

The India Financial Assistance Programs Market is at around $515.4 Mn in 2023 and is projected to reach $1,603.2 Mn in 2030, exhibiting a CAGR of 17.6% during the forecast period 2023-2030.

The goal of pharmaceutical companies' patient financial assistance is to reduce or eliminate out-of-pocket expenses as a barrier to prescription selection, allowing patients to continue taking name-brand prescriptions for extended periods of time. Among the often-utilized financial aid programs under patient assistance programs include co-pay help, free drug trials, bridge programs, sliding scale programs, coupons, bulk purchase programs, etc. Patients' out-of-pocket drug cost sharing is determined by their health plans or pharmacy benefit manager's (PBM's) formulary--a list of preferred and nonpreferred prescription drugs. Preferred status is based on a drug's effectiveness, price, and the level of rebate the payer receives from the manufacturer for giving the drug preference over its competitors. Generics and preferred brand drugs are generally assigned lower patient cost sharing than nonpreferred brand drugs. As drug prices have increased, so has patient cost sharing, causing some patients to stretch, forgo, or discontinue medication that is too expensive. Drug manufacturers often seek to mitigate these effects by providing or funding various forms of patient financial support.

In India, there are estimated 77 Mn people above the age of 18 years are suffering from diabetes (type 2) and nearly 25 Mn are prediabetics (at a higher risk of developing diabetes in near future). More than 50% of people are unaware of their diabetic status which leads to health complications if not detected and treated early. Therefore, the market is predominately driven by factors such as increasing prevalence of chronic diseases and rising healthcare costs whereas limited awareness in the population, insufficient resources and budgetary concerns restrict market growth.

Market Dynamics

Market Drivers

Chronic disease prevalence: In India, there are estimated 77 Mn people above the age of 18 years are suffering from diabetes (type 2) and nearly 25 Mn are prediabetics (at a higher risk of developing diabetes in near future). More than 50% of people are unaware of their diabetic status which leads to health complications if not detected and treated early. The increasing number of patients with chronic conditions necessitates long-term, often expensive treatments. This creates a sustained need for financial assistance over extended periods. Chronic disease management is a priority in healthcare, driving support for assistance programs.

Rising healthcare costs: The increasing cost of healthcare services, medications, and treatments has made it difficult for many individuals and families to afford necessary medical care. Patients often bear a substantial portion of healthcare costs out-of-pocket, leading to financial hardship which boosts the demand for financial assistance in the population.

Market Restraints

Limited awareness: Many individuals and businesses are unaware of the various financial assistance programs available to them, leading to underutilization. Accessibility to these programs varies significantly across different regions of India, with rural areas often facing greater challenges

Limited Funding and Resources: Many financial assistance programs suffer from insufficient funding, limiting their ability to reach a wider population and provide adequate support. In some cases, funds are not allocated efficiently, leading to delays in disbursement and reduced impact.

Budgetary pressures: Pharmaceutical companies must balance the cost of assistance programs with maintaining profit margins. Economic downturns or changes in company strategy could lead to reduced funding for these programs. This pressure might result in more selective or limited assistance offerings.

Regulatory Landscape and Reimbursement Scenario

The Central Drugs Standard Control Organization (CDSCO) under the Ministry of Health and Family Welfare (MoHFW) is the key pharmaceutical regulatory body in India. The CDSCO is responsible for approving drugs, conducting clinical trials, laying down standards for drugs, controlling the quality of imported drugs, and coordinating with State Drug Control Organisations to enforce the Drugs and Cosmetics Act and Rules.

India does not have a specific regulatory framework for drug reimbursement. The main sources of healthcare financing are out-of-pocket expenditure, government schemes like the Central Government Health Scheme (CGHS) and Employees' State Insurance (ESI) Scheme, private insurance, and non-governmental organizations (NGOs). However, there is no overarching reimbursement policy or mechanism for drugs, including biologics and biosimilars, in India. The Drugs Prices Control Order 2013 governs pricing of scheduled drugs, including some biologics, by the National Pharmaceutical Pricing Authority (NPPA).

Competitive Landscape

Key Players

Here are some of the major key players in the India Financial Assistance Programs Market:

• Cipla
• Dr Reddy
• Roche
• Pfizer
• Bayer
• Sanofi
• Novartis
• Merck
• GSK
• Johnson & Johnson