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Pharmaceuticals March 220313 PDF
Pharmaceuticals March 220313 PDF
MARCH
2013
Pharmaceuticals
MARCH
2013
Contents
Advantage India
Market overview and trends
Growth drivers
Opportunities
Success story: Sun Pharma
Useful information
Pharmaceuticals
MARCH
2013
Advantage India
Economic Drivers
Cost Efficiency
Economic prosperity to
improve affordability of drugs
Increasing penetration of
health insurance
2016F
Market size:
USD35.9
billion
Advantage
India
Policy Support
Diversified Portfolio
2011
Market size:
USD15.6
billion
Pharmaceuticals
MARCH
2013
Contents
Advantage India
Market overview and trends
Growth drivers
Opportunities
Success story: Sun Pharma
Useful information
Pharmaceuticals
MARCH
2013
1990-2005
1970-1990
Before 1970
Market
dominated by
foreign
companies, with
little domestic
participation
Liberalised market
Domestic players
expand
aggressively
Increased
propensity for
R&D
Indian companies
increasingly
launch operations
in foreign
countries
India a major
destination for
generic drug
manufacture
Higher spending
on R&D due to the
introduction of
product patents
Pharmaceuticals
MARCH
2013
Pharmaceutical
industry
Formulations
Biosimilars
Pharmaceuticals
MARCH
2013
35.9
2015F
30.0
2014F
25.0
2013F
20.8
2012F
17.4
2011
15.6
2010
CAGR:
17.8%
13.8
2009
11.2
2008
9.7
0.0
10.0
20.0
30.0
40.0
Pharmaceuticals
MARCH
2013
14.7
13.3
4.9
4.9
3.9
4.1
6.0
7.0
5.1
6.1
8.0
7.0
12.0
10.7
9.8
8.6
Net exports
Pharmaceuticals
MARCH
2013
Other therapeutic
purposes
6% 3%
Alimentary/metabolism
9%
Cardiovascular
10%
59%
13%
Respiratory
Central Nervous
System
Oncology
Pharmaceuticals
MARCH
2013
Japan
10%
9%
10%
China
52%
India
South Korea
19%
Rest of Asia-Pacific
10
Pharmaceuticals
MARCH
2013
Cipla has the largest share (5.2 per cent) in the Indian
pharma market with revenues of USD643 million
during the year ending January 2011
During January 2011-January 2012, Sun Pharma posted
the highest growth in revenue among the major
players
Ranbaxy, with a revenue base of USD559 million,
ranks fourth in the market
The top four firms account for less than one-fifth of
the market share
26%
24%
Revenue growth (Jan11-Jan12)
560
22%
Cipla
GSK
20%
Sun
372
18%
Ranbaxy
402
16%
478
14%
10%
2.5%
3.5%
Zydus Cadila
509
563
12%
Piramal
559
4.5%
Market share
Mankind
643
5.5%
Lupin
6.5%
11
Pharmaceuticals
MARCH
2013
Indian pharma companies spend 2 per cent of their total turnover on R&D
Expenditure on R&D is likely to increase due to the introduction of product patents;
Clinical trials
Export revenue
space
Several multinational companies are collaborating with Indian pharma firms to develop
Joint ventures
new drugs
Pfizer partnered with Aurobindo Pharma to develop generic medicines
The introduction of product patents in India in 2005 has boosted the discovery of new
Product patents
drugs
India has reiterated its commitment to IP protection following the introduction of product
patents
12
Pharmaceuticals
MARCH
2013
13
Pharmaceuticals
MARCH
2013
Contents
Advantage India
Market overview and trends
Growth drivers
Opportunities
Success story: Sun Pharma
Useful information
14
Pharmaceuticals
MARCH
2013
Demandside drivers
Accessibility of drugs to
greatly improve
Increasing penetration of
health insurance
Growth
drivers
Supply-side
drivers
Policy
support
Cost advantage
GROWTH DRIVERS
15
Pharmaceuticals
MARCH
2013
Launch of patented
drugs
Scope in generics
market
Medical
infrastructure
OTC drugs
GROWTH DRIVERS
16
Pharmaceuticals
MARCH
2013
Taiwan
Spain
China
Italy
India
5
8
10
25
27
55
120
GROWTH DRIVERS
17
Pharmaceuticals
MARCH
2013
India
Europe
US
40
85
100
GROWTH DRIVERS
18
Pharmaceuticals
MARCH
2013
Acceptability
Affordability
Demand
drivers
Epidemiological factors
GROWTH DRIVERS
19
Pharmaceuticals
MARCH
2013
18.9
20.9
21.2
21.8
23.6
24.7
25.8 27.0
22.6
GROWTH DRIVERS
20
Pharmaceuticals
MARCH
2013
12.6
9.3
8.1
GROWTH DRIVERS
21
Pharmaceuticals
MARCH
2013
Collaborations
MOUs with USFDA, WHO, Health Canada, etc. to boost growth of the Indian
Support for
technology upgrades
and FDIs
Zero duty for technology upgrades in the pharmaceutical sector through the
Industry
infrastructure
GROWTH DRIVERS
22
Pharmaceuticals
MARCH
2013
CAGR:
18.0%
3.3
2.8
1.8
4.9
Share ofFY06
0.84%
GDP
2.1
5.6
FY07
0.84%
State
6.4
FY08
0.88%
8.4
FY09
0.93%
Central
GROWTH DRIVERS
23
Pharmaceuticals
MARCH
2013
130
35
2010
Government-sponsored Insurance
2020F
Private Insurance
GROWTH DRIVERS
24
Pharmaceuticals
MARCH
2013
Essentiality
of drugs
Essentiality of drugs is
determined by inclusion of
the drug in the National List
of Essential Medicines
(NEDL)
National
Pharma
Pricing
Policy 2011
Marketbased
pricing
Price control
of finished
medicines
only
GROWTH DRIVERS
25
Pharmaceuticals
MARCH
2013
In recent years, several foreign players have made acquisitions in India to get a foothold in the countrys pharma
market and leverage on the technical and cost efficiency of Indian companies
Increasing number of companies are forming JVs to benefit from research and development; large firms from
developed markets are venturing with Indian majors to develop new medicines
Notes: JV is joint venture
Indian company
Foreign Company
Type
Aurobindo
OJSC DIOD
NA
JV
Dosh Phamaceuticals
Sanofi
NA
GlaxoSmithkLine Consumer
GlaxoSmithkLine Plc.
1088
Acquisition
Natco Pharma
Glenmark
Litha
Sanofi
NA
615
JV
JV
Dr. Reddys
Iso Ray
NA
Licensing rights
Sun Pharma
Merck
NA
Marketing
Piramal
Abbot
3720
Business buyout
Orchid Chemicals
Hospira
400
Business buyout
Aurobindo Pharma
Pfizer
Not disclosed
Shantha Biotech
Sanofi Aventis
783
Acquisition
Ranbaxy Labs
Daiichi Sankyo
4600
Acquisition
Dabur Pharma
Fresenius Kabi
219
Acquisition
Source: BMI, Aranca Research
GROWTH DRIVERS
26
Pharmaceuticals
MARCH
2013
Contents
Advantage India
Market overview and trends
Growth drivers
Opportunities
Success story: Sun Pharma
Useful information
27
Pharmaceuticals
MARCH
2013
High-end drugs
OPPORTUNITIES
28
Pharmaceuticals
MARCH
2013
26.1
21.8
18.1
15.1
6.9
8.1
0.8
0.9
10.0
1.1
11.3
1.3
12.6
1.5
1.8
2.2
2.7
3.3
OPPORTUNITIES
29
Pharmaceuticals
MARCH
2013
6.6
2015F
5.5
2014F
4.7
2013F
3.9
2012F
3.3
2011
3.0
2010
2009
2008
2.7
2.2
2.0
OPPORTUNITIES
30
Pharmaceuticals
MARCH
2013
Contents
Advantage India
Market overview and trends
Growth drivers
Opportunities
Success story: Sun Pharma
Useful information
31
Pharmaceuticals
MARCH
2013
256 approved
products and 391
filed for approval
Acquisitions across
the globe
USD1.7 billion
Focus on R&D
Market capitalisation of
USD15.1 billion
23 manufacturing
sites worldwide
Organic growth
phase
All-India operations
begin
Strong presence in
generics market
Commenced
operations in
Calcutta
Nationwide
marketing
operations rolled
out
1983
1987
1995
First
international
acquisition:
Niche Brand in
the US
2004
Acquired
controlling stake
in Taro and full
control on
Caraco.
2012
Source: Sun Pharma website
32
Pharmaceuticals
MARCH
2013
Contents
Advantage India
Market overview and trends
Growth drivers
Opportunities
Success story: Sun Pharma
Useful information
33
Pharmaceuticals
MARCH
2013
Industry Associations
The Indian Pharmaceutical Association
Kalina, Santacruz (E),
Mumbai - 400 098
Phone: 91-22-2667 1072
Fax: 91 22 2667 0744
E-mail: ipacentre@ipapharma.org
www.ipapharma.org
Indian Drug Manufacturers' Association
102-B, Poonam Chambers, Dr A.B. Road
Worli, Mumbai - 400 018
Phone: 91-22-2494 4624/2497 4308
Fax: 9122 24950723
E-mail: idma1@idmaindia.com
www.idma-assn.org
USEFUL INFORMATION
34
Pharmaceuticals
MARCH
2013
Glossary
USD: US Dollar
Wherever applicable, numbers have been rounded off to the nearest whole number
USEFUL INFORMATION
35
Pharmaceuticals
MARCH
2013
Disclaimer
DISCLAIMER
36