US had the highest healthcare expenditure in 2010





High healthcare expenditure in the developed countries is a goldmine for Indian pharma companies. Given that most of these countries are saddled with rising deficits, many of them are keen to bring the overall cost of healthcare down. And one way to do this is allowing the launch of generic versions of patented drugs. Today's chart of the day shows that US had the highest healthcare expenditure as a percentage of GDP in 2010. And with many branded drugs scheduled to see patents expire, the US generics market is expected to grow at a faster rate than the overall pharma industry in the US. And given that Indian pharma companies are well entrenched in this market, most of them are looking to capitalise on this opportunity.

*in 2009
Data Source: The Economist
source;Equitymaster