Getting under the skin means smooth growth for drug cos

Drugmakers are chanting a new mantra: get under the skin.

With the lifestyle segment galloping at over 25% per year, drugmakers are cashing in on a hitherto dormant area of dermatology.

Increased focus on wellness and high disposable incomes are pressing for a perceptional shift, making dermatology, or skincare, as imperative an area as obesity or diabetes or respiratory disorders.

Says Nina Madnani, dermatologist, Hinduja Hospital in Mumbai, “The demand for dermatology related conditions has increased tremendously over the last few years due to high stress and poor nutritional levels, which reduce an individual’s immunity and activate various disease causing genes.”

Derma segment consists of either conventional dermatology dealing with chronic skin disorders such as psoriasis, eczema, vitiligo, or the newer practice of cosmetic dermatology, says Abhijit Desai, managing director of Evolve Med Spa, a chain of medical clinics.

Vitiligo is the depigmentation of the skin in patches, while eczema is the inflammation of the outer layer of skin characterised by rashes, bleeding. Psoriasis, on the other hand, is a skin condition characterised by red scaly patches.

“Cosmetic dermatology has also picked up immensely in the last decade owing to rise in aspirational value and awareness of the technology that aids in enhancing appearances,” says Desai.

According to Ajit Mahadevan, partner, health sciences advisory practice, Ernst &Young, though not as large as cardiology or cancer, the dermatology segment is getting increasing interest from pharma companies as it is an under penetrated area with a huge potential for growth.

Estimates peg the derma market in India at approximately Rs 2,500 crore showing a 15% per annum growth rate. As derma products are mainly specialty products with a high over-the-counter (OTC) presence, apart from some being prescribed products, they are a fast growth area, says Sujay Shetty, associate director, PricewaterhouseCoopers.

Drugmakers are thus pouncing on the opportunity through both licensing agreements with international partners to market the products in India, and by endeavouring to bring to the market novel compounds in the segment.

Mumbai-based Glenmark Pharma recently in-licensed a product for treatment of scars from Swiss firm Stratpharma AG to market and distribute it in India.

According to A S Mohanty, director, formulations, the entry into the scar management therapy area will strengthen Glenmark’s position in the derma space as scar management has so far not been a focus area for pharma companies.

Hyderabad-based Dr Reddy’s Laboratories has also inked licensing deals with the likes of US based derma companies like Cosmederm Technologies for distributing skincare products in India.

Players like Piramal Healthcare and Lupin, on the other hand, have novel molecules for psoriasis under development. A Lupin spokesperson says the company is betting heavily on the novel anti-psoriasis compound called desoris. “We are also likely to enter niche segments like cosmetology.”