Overview of the Industry

Life Sciences

Pharmaceuticals

BioTechnology

Medical
Technology

Drivers for Growth

Aging Population (Long term growth driver)

Rising incidence of Chronic Diseases
Technological advancement and Product Innovation
Impact from health care provisions including increased govt funding
Opportunities in emerging markets

Pharmaceuticals

Oncology is the leading therapeutic class

Other Focus areas Pain management, Hypertension, Diabetes, Mental Health, Respiratory

Figure 1: Global Pharmaceutical Sales by Region -2012 Data

Bio-Technology Segment

$232.5 Billion Revenues in 2012, representing an increase of 9.6% over the previous year
Focus therapeutic areas Oncology, Immune disorders, Infectious diseases
Majority of biotech revenue is generated in the U.S. and Europe
R&D expenditure set to see an increase although regulations are increasing

Medical Technology Segment

Out of scope

Outlook

Global pharmaceutical sales to grow by an annual average of 5.3 percent between 2012 and
2017
Sales growth would continue to come from USA, UK, BRICS
Global Biotechnology segment revenue is forecast to reach $407.3 Billion in 2018, with
annual growth over the next five years projected at 9.2 percent
Emerging markets increased govt expenditure to fuel growth in coming years. India, China,
Indonesia, Russia, Mexico are pegged as main growth engines.(Companies looking to expand
in these region to compensate for the slow growth rates in the mature markets of USA and
Europe)
o The US would see would see its aging population growth rate to be higher than the
global rate
o US-Rising incidence of chronic diseases to lead to increased demand for life science
products
o Asia Region Health Care spending to increase at a steady rate of 7.6 percent on an
average through 2013-2017
o China has identified bio technology as the one of the strategic industries in its 5 year
plan

Issues

Navigating Health care reforms

Delivering Innovation and Value
o Cost of commercialization has increased by 18 percent from $1094 million in 2010
to $1290 in 2013
o Over the same period the forecasted peak sales of an asset has decreased by over
40 percent

Targar Pharmaceuticals

Revenue
Generics

Speciality

Rest(OTC & Dist Business)

10%
50%
40%