Mumbai: The Jan Aushadhi scheme, providing quality medicines at affordable prices, is expected to disrupt nearly 20 percent of Indian pharmaceutical market sales, suggests a report.

The report by Edelweiss expects that around Rs 6,000 crore of the Bureau of Pharma PSUs of India (BPPI) drugs could adversely affect nearly Rs 25,000-30,000 crore branded sales, estimating an average price differential of five times.

India has more than 5,000 Jan Aushadhi stores covering a list of over 800 drugs, both chronic and acute, across therapies including anti-cancer, anti-infective, reproductive and gastrointestinal medicines. By 2020, the government intends to open 2,500 more stores.

BPPI posted around Rs 120 crore sales in FY18 at maximum retail price, corresponding to around Rs 600 crore of branded products, compared to Rs 33 crore in FY17 and Rs 12.4 crore in FY16.

The report stated that the BPPI could expand to over 10,000 stores by FY21. With each store attaining monthly sales of around Rs 5 lakh, the scheme is set to top Rs 6,000 crore by FY21.

It further stated that as unbranded generics and Jan Aushadhi gain momentum, further pressure on volume would result in lower revenue growth for branded market. It said that branded revenue growth will become a challenge in the coming years as generics market share will continue to increase. (PTI)