Indian Pharma abroad

view and US journey

Submitted to:Prof. Vinita Srivastava
By: Subhajit Mitra 08587046188
2013129
PGDM 13-15

Special thanks:Mayukh Jana
Objective of Study
i) To observe the opportunity as India puts an
iconic model for world in this sector
ii) Obstacles created by USFDA:Analysis &
Solution
iii) Understanding US attitudes towards INDIA
market in this sector with SWOT
iv) Scope in global market
Sector statistics

4.8 % of worlds Pharma Market

4th ranking in production(1.04L cr market domstc+intrl)

400 bulk drugs and around 60,000finished medicines

Around 3 % of countrys FDI

Growth Rate about 9 12%

USD 10 Billion market estimated to reach USD 40 Billion
by 2020

CII pharma summit 2012

Domestic Key Players
20%
14%
13%
9%
10%
7%
16%
11%
Market share
sun ranbaxy cipla lupin gsk cadilla drl others
Pharmabiz.com
Indias Robust growth
0
50,000
100,000
150,000
200,000
250,000
2005 2008 2015 2020
market value(Cr)
http://profit.ndtv.com/news/pharma
Global Scenario

31 new molecular entities introduced 2013.
Spending on medcn expected to $1,100 billion by2015

17 high growth emerging markets including China, India, Brazil, Russia and
Mexico will contribute 28 per cent of total spending by 2015, up from only
12 per cent in 2005
Pfizer is at the top with $ 50 billion sales.
Expand market by 17% each year.
India holds 60% export.
More than 200 mfg unit in India approved by USFDA,WHO-GMP,UK-MCA
On the other hand, share of patented brands which accounted for nearly 70 per
cent of global pharmaceutical spending in 2010 are expected to decline to 53 per
cent in 2015






Global pharma summit 2013,hyderabad. Gmpsummit.com
Contd...Spending by segment
70%
20%
10%
2005 605$ billion
brand
generic
other
53%
39%
8%
2015(estimated) 1025$
billion
brand
generic
other

IMS Market Prognosis, April 2013

Key drivering of change


Global spending on diabetes is increase by 47% over the five
years
Global oncology spending will reach $ 75 bn by 2015
Annual spending growth through 2015 will slow to 25% for
asthma and COPD medicines compared to nine per cent
growth over the past five years
** Some innovative research products to be launched are
expected to drive markets (especially in the developed
markets) in the next few years which will span disease areas
like arrhythmia, autoimmune diseases, diabetes, hepatitis
C,Prostate cancer


Opportunities for entry route
Pharmabiz.com

Top 5 World Market by 2015

Name of country

Estimate
market($billion)

Incremental growth
point(100)
USA 444 96
CHINA 150 23
GERMANY 82 14
ITALY 38 13
BRAZIL 20 17
http://www.mckinsey.com/insights/globalization/global_flows_in_a_digital_age
Foreign chasers
8%
7%
9%
5%
4%
3%
3%
5%
8%
48%
world export
pfizer Astra zeneca Abott Gsk
Sanofi aventis Daichii sankyo Novartis Roche
J&J Others
www.pharmexcil.org
Export to Abroad
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
export drug & pharma
DGCIS,KOLKATA
Patent War:foreign vs domestic
2013-14
Cipla vs Novartis on Glivec
Cipla,Natco vs Bayer on Nexavar
Sun vs J&J on psychological disorder drug
Risperdal
Cipla vs Roche cancer drug Erlocip
Glenmark vs Merck on diabetes drug
Sitagliptin



http://in.reuters.com/article/india-drugs-patent
Disease & Dose Gambol rate in
USA11
3.31
6.91
2.8
4.7
2.5
3.8
6.08
14.6
2005 2015(estimated)
Chart Title
Coronary Heart Disease Diabates CNS / Neuro Cancer
Disease chronical by SCRIBD.COM
0
1000
2000
3000
4000
5000
cr
Major export to US from
India
Indias pharma gigantic grasp in
US
Sun acquired US Caraco pharma
Bafna pharma take over j&j Rarecap(J&j
company
Zydus cadilla acquired Acquire Nesche
pharma
Surya pharma take over ActivOn of US
https://www.youtube.com/watch?v=p-QU5H2fxpY/2013













USFDA TUSSLE
USFDA chief Mrs.Margaret A.
Hamburg; bitter smile !

Indian Drug Giants US Stigma
Some reports which slaps domestic major
.Sun pharma recalls Cephalexin unit 3,40,553 in june for
contamination
.Lupin pulls 9,000 bottles of anti infective Suprex in mid june
.DRL recalls 13,000 bottles of hypertention drug Metoprolol
wrong product of mg. In july
.Wockhard reshipment 840 capsule of Buproprion in june
.Ranbaxy mohali plant is totally banned for export to USA in
June
http://profit.ndtv.com/news/pharma/march-june/14

The bitter pill!
BT:March14,jp morgan estimate
Hamburgers Harrashment
Swot Analysis in US market
Strength:



1)$444 billion estimated growth
2)Increase of cns/chd/diabetes alomost double
3)280 USFDA plant approved indian drug major.
4)Manufacturers are one of the lowest cost
producers of drugs in the world.














Contd...
Weekness:



1) The industry witnesses price competition, which
reduces the growth of the industry in value term
2)Us global players are strong in NME.

Contd...
Opportunity:



Since generic drugs are necessary commodities by nature,
Indian producers have the competitive advantage, as they are
the lowest cost producers of drugs in the world.
.Large number of drugs going off-patent in the US during 2005
- 2009 offers a big opportunity for the Indian companies to
capture this market
Contd...
Threat:



1) Threats from other low cost countries like China and Israel
exist. However, on the qualityfront, India is better placed
relative to China
2)USFDA norms
Conclusion
1)Robust growth in global market
2)Avoid infringement or contamination
problem
3)Need USFDA like mock test in domestic
plant
4)Medicine is necessity ,here brand image is
secondary issue,India have to capture this
opportunity