GDHC003PLR Top 10 Pharmaceutical Companies sample · Top 10 Pharmaceutical Companies in India...

REFERENCE CODE GDHC003PLR | PUBLICATION DATE JULY 2013

TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF

THE LEADING PLAYERS IN 2013

Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 2 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.



Executive Summary

Boom in the Indian Pharmaceutical Industry

The Indian pharmaceutical industry is in a period of

rapid growth. This is evidenced by the significant

increase in the attention being received by the

market from multinational pharmaceutical

companies seeking to improve their financial

performance. Indeed, various factors, including

financial austerity measures in Europe, slowed

economic growth in the US, a growing aging

population and an associated increase in the

demand for healthcare in countries such as Japan,

are forcing governments to drastically reduce their

healthcare expenditures. Pharmaceutical

companies are often the parties on the receiving

end of these austerity measures, while generic

manufacturers reap the noteworthy benefits, as

their products enjoy improved sales. Consequently,

the India pharmaceutical market, which is primarily

a generics market characterized by a significantly

low cost of production, has recently risen to global

prominence.

The Indian pharmaceutical industry was worth

approximately $6.3 billion in 2005 and increased to

$14.9 billion in 2011. The market is expected to

continue growing at a Compound Annual Growth

Rate (CAGR) of 15.4% to reach $54.1 billion by

2020. Some of the key drivers of this growth are

government initiatives, increased access to

healthcare, and a shift in the country’s disease

profile towards “lifestyle” diseases such as

diabetes, obesity, and cardiovascular diseases.

The figure below shows the forecast growth in the

Indian pharmaceutical market through 2020.

Forecast Growth in the Indian Pharmaceutical Market, 2013–2020 ($bn)

0

10

20

30

40

50

60

2013 2014 2016 2018 2020

Mar

ket S

ize

($bn

)

Market Size

CAGR of 15.4% through 2020

Source: GlobalData, 2012

India-Based Pharmaceutical Companies Picking Big Pharma’s Deep Pockets

Generic pharmaceutical manufacturers, including

those based in India, have been quick to capitalize

on the misfortunes of their branded pharmaceutical

counterparts by increasing their Abbreviated New

Drug Application (ANDA) filings in a bid to capture

market share in the highly competitive global

pharmaceuticals space. In 2012, the top 10 India-

based pharmaceutical companies covered in this

report collectively witnessed an average year-to-

year (YTY) growth of 25.5%, from almost $1.1

billion in 2011 to about $1.4 billion in 2012.




Executive Summary

While many multinational branded pharmaceutical

companies, including Novartis, Eli Lilly, and Pfizer,

recorded declines in 2012 sales, most generics

manufacturers witnessed surges in their revenues

during the year. In India, the trio of Sun

Pharmaceuticals, Lupin, and Glenmark led the

pack in terms of YTY revenue growth in 2012,

posting increases of 47.6%, 34.1%, and 26.5%,

respectively, from 2011 sales.

The figure below presents an illustration of the

competitive landscape of the top 10 Indian

pharmaceutical companies in 2012, based on

corporate revenue YTY growth versus operating

income growth.

Competitive Landscape of the Top 10 Pharmaceutical Companies in India, 2012

Torrent

Aurobindo

Cipla

Zydus Cadila

Dr. Reddy's

Wockhardt

Glenmark

Ranbaxy

Lupin

Sun

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0% 10% 20% 30% 40% 50% 60%2012

Ope

ratin

g In

com

e Y

TY G

row

th

2012 Revenue YTY Growth

Torrent Aurobindo Cipla Zydus Cadila Dr. Reddy's

Wockhardt Glenmark Ranbaxy Lupin Sun

Average 2012 YTY Operating Income Growth = 35.7%

Average 2012 Revenue YTY Growth = 25.5%

Source: Company data Note: Sphere size depicts size of revenue

The Biosimilars Opportunity in India

Pharmaceutical companies in India have

recognized the emerging opportunity in the

biosimilars market and are taking steps to capture

a significant portion of it. For instance, Cipla has

been acquiring facilities in India and China to

develop biosimilars. In August 2012, the company

rejigged some of its investments in China to divert

more funds towards biosimilars by reducing its

49% stake in Desano Holdings, its Chinese

partner, and reinvesting the funds in three of the

Desano Group’s business units involved in

manufacturing biosimilars and active

pharmaceutical ingredients (APIs). Already,

companies such as Dr. Reddy’s, Reliance Life

Sciences, Biocon, and Wockhardt market various

biosimilars, including filgrastim, rituximab, and

darbepoetin, in India and other emerging markets.

For Indian pharmaceutical companies, particularly

the relatively larger ones with significant

manufacturing scale and technological capabilities,

the biosimilars market offers a natural route of

diversification. However, the development of

biosimilars is a relatively more expensive and time-

consuming endeavor than the development of

small-molecule generics.




Executive Summary

The Indian government is currently taking steps to

create a fully-regulated market for biosimilars in the

country, as well as upgrade and maintain the

quality of biosimilar products that are manufactured

in India. In July 2012, the Department of

Biotechnology (DBT) published India’s guidelines

on biosimilars, outlining specific requirements for

pre-marketing and post-marketing data, as well as

data requirements for preclinical and clinical trials.

However, the effects of the country’s establishment

of biosimilar guidelines will be somewhat

dampened in the EU because previously-approved

biosimilars in India were not subjected to the same

rigorous controls, nor did they undergo direct

comparison to the reference product through

clinical trials, as demanded in Europe by the

European Medicines Agency (EMA).

Consequently, according to the EMA’s definition of

a biosimilar, these products are not biosimilars.

GlobalData’s Top 10 Pharmaceutical Companies in India Benchmark Report Leader: Sun Pharmaceuticals

The market leader in GlobalData’s Top 10

Pharmaceutical Companies in India Benchmark

Report is Sun Pharmaceuticals, with a score of

7.07. The company led the pack due to an

impressive performance across the financial

management (FM) and capital management (CM)

metrics utilized in this report. The company’s

aggregated CM composite score was 8.58,

significantly greater than the peer group average of

5.0. Furthermore, Sun Pharmaceuticals’ FM

composite score was 8.81, higher than the peer

average of 5.06. However, Aurobindo rounded up

the list of the top 10 companies with a score of

4.10, which was attributable to the company’s

relatively poor CM and FM when benchmarked

against its peers.

The table below shows the benchmark rankings for

GlobalData’s top 10 India-based pharmaceutical

companies in 2012 and their composite scores.




Executive Summary

GlobalData’s Benchmark Rankings, Top 10 Pharmaceutical Companies in India, 2012

Rank Company Financial Management

Expenses Management

Capital Management

Resource Management

Overall Score

1 Sun Pharmaceuticals 8.81 5.45 8.58 5.46 7.07

2 Wockhardt 6.00 6.98 5.95 5.29 6.06

3 Cipla 5.21 5.04 6.79 5.00 5.51

4 Lupin Pharmaceuticals 5.60 4.51 4.76 4.94 4.95

5 Zydus Cadila 4.52 5.30 4.24 4.94 4.75

6 Glenmark 4.48 5.08 4.16 4.94 4.66

7 Ranbaxy 4.72 4.59 3.48 4.81 4.40

8 Torrent 3.21 4.93 4.36 4.92 4.36

9 Dr. Reddy’s Laboratories

4.82 2.91 4.44 4.94 4.28

10 Aurobindo 3.19 5.22 3.24 4.77 4.10

Source: GlobalData, 2013 Green represents an area that significantly boosted the company’s overall score. Red represents an area that significantly reduced the company’s overall score. Note: Scale = 1.00 – 10.00, Average Score = 5.00

The table below displays GlobalData’s benchmark

rankings of the top 10 India-based pharmaceutical

companies in 2012 and their overall scores.

GlobalData’s Benchmark Rankings, Top 10 Indian Pharmaceutical Companies, 2012

Rank Company Overall Score

1 Sun Pharmaceuticals 7.07

2 Wockhardt 6.06

3 Cipla 5.51

4 Lupin Pharmaceuticals 4.95

5 Zydus Cadila 4.75

6 Glenmark 4.66

7 Ranbaxy 4.40

8 Torrent 4.36

9 Dr. Reddy’s Laboratories 4.28

10 Aurobindo 4.10

Source: GlobalData, 2013 Note: Scale = 1.00–10.00, Average Score = 5.00




Table of Contents

1 Table of Contents

1 Table of Contents ......................................................................................................................... 6

1.1 List of Tables ........................................................................................................................ 12

1.2 List of Figures ....................................................................................................................... 14

2 Introduction ................................................................................................................................ 16

2.1 Report Scope ....................................................................................................................... 16

2.2 Upcoming Related Reports ................................................................................................... 18

2.3 Recently Published Reports ................................................................................................. 18

2.4 GlobalData’s Benchmarking Methodology ............................................................................ 19

3 India’s Pharmaceutical Industry Dynamics ................................................................................. 20

3.1 Overview .............................................................................................................................. 20

3.2 Intellectual Property Rights in India ...................................................................................... 20

3.3 Quality Manufacturing Facilities Create an Ideal Environment for Pharmaceuticals to Thrive ...

....................................................................................................................................... 22

3.4 Inter-Firm Competition Enables Capabilities Development ................................................... 24

3.5 Government Policies and Initiatives Drive Demand .............................................................. 24

3.6 Increased ANDA Filings by Indian Drug Companies ............................................................. 25

3.7 Cost Effect of GDUFA on Indian Drug Companies................................................................ 30

3.8 A Budding Biosimilars Market ............................................................................................... 31

3.8.1 Gradual Transition from a Semi-Regulated to a Regulated Market ................................. 31

3.8.2 Marketed Biosimilars in India .......................................................................................... 32

4 Company Analysis...................................................................................................................... 34

4.1 Sun Pharmaceuticals: The Benchmark Leader ..................................................................... 34




Table of Contents

4.1.1 Business Overview ......................................................................................................... 34

4.1.2 SWOT Analysis .............................................................................................................. 35

4.2 Wockhardt ............................................................................................................................ 39


4.2.2 SWOT Analysis .............................................................................................................. 40

4.3 Cipla ..................................................................................................................................... 43


4.3.2 SWOT Analysis .............................................................................................................. 44

4.4 Ranbaxy ............................................................................................................................... 47


4.4.2 SWOT Analysis .............................................................................................................. 48

4.5 Lupin Pharmaceuticals ......................................................................................................... 52


4.5.2 SWOT Analysis .............................................................................................................. 53

4.6 Zydus Cadila ........................................................................................................................ 56


4.6.2 SWOT Analysis .............................................................................................................. 57

4.7 Glenmark .............................................................................................................................. 60


4.7.2 SWOT Analysis .............................................................................................................. 61

4.8 Torrent Pharmaceuticals....................................................................................................... 65


4.8.2 SWOT Analysis .............................................................................................................. 66




Table of Contents

4.9 Dr. Reddy’s........................................................................................................................... 70


4.9.2 SWOT Analysis .............................................................................................................. 71

4.10 Aurobindo Pharmaceuticals .................................................................................................. 75


4.10.2 SWOT Analysis .............................................................................................................. 76

5 GlobalData’s Benchmark Rankings ............................................................................................ 78

5.1 Sun Pharmaceuticals: India’s Leading Pharmaceutical Company ......................................... 78

6 Financial Management ............................................................................................................... 80

6.1 Competitive Framework ........................................................................................................ 80

6.2 Overview .............................................................................................................................. 80

6.3 Financial Management: Heat Map ........................................................................................ 82

6.4 Financial Metrics .................................................................................................................. 83

6.4.1 Revenue Leaders ........................................................................................................... 83

6.4.2 Revenue Laggards ......................................................................................................... 85

6.4.3 Revenue Growth Leaders ............................................................................................... 86

6.4.4 Revenue Growth Laggards ............................................................................................. 88

6.4.5 Operating Income Leaders ............................................................................................. 90

6.4.6 Operating Income Laggards ........................................................................................... 91

6.4.7 Operating Income YTY Growth Leaders ......................................................................... 93

6.4.8 Operating Income YTY Growth Laggards ....................................................................... 94

6.4.9 Operating Margin Leaders .............................................................................................. 95

6.4.10 Operating Margin Laggards ............................................................................................ 97




Table of Contents

7 Expense Management ............................................................................................................... 99

7.1 Competitive Framework ........................................................................................................ 99

7.2 Overview ............................................................................................................................ 100

7.3 Expense Management: Heat Map ...................................................................................... 103

7.4 Expense Metrics ................................................................................................................. 104

7.4.1 SG&A Spending Leaders .............................................................................................. 104

7.4.2 SG&A Spending Laggards ............................................................................................ 105

7.4.3 SG&A Expenditures as a Percentage of Revenue Leaders .......................................... 106

7.4.4 SG&A Expenditures as a Percentage of Revenue Laggards ........................................ 108

7.4.5 SG&A Spending YTY Change Leaders ......................................................................... 110

7.4.6 SG&A YTY Spending Change Laggards ....................................................................... 111

7.4.7 Operating Expenses as a Percentage of Revenue Leaders .......................................... 113

7.4.8 Operating Expenses Laggards...................................................................................... 114

8 Capital Management ................................................................................................................ 116

8.1 Competitive Framework ...................................................................................................... 116

8.2 Overview ............................................................................................................................ 116

8.3 Competitive Framework: Heat Map .................................................................................... 118

8.4 Capital Management Metrics .............................................................................................. 119

8.4.1 Debt Ratio Leaders ....................................................................................................... 119

8.4.2 Debt Ratio Laggards ..................................................................................................... 120

8.4.3 Cash Ratio Leaders ...................................................................................................... 121

8.4.4 Cash Ratio Laggards .................................................................................................... 124

8.4.5 Quick Ratio Leaders ..................................................................................................... 125




Table of Contents

8.4.6 Quick Ratio Laggards ................................................................................................... 126

8.4.7 ROI Leaders ................................................................................................................. 127

8.4.8 ROI Laggards ............................................................................................................... 128

9 Resource Management ............................................................................................................ 130

9.1 Competitive Framework ...................................................................................................... 130

9.2 Overview ............................................................................................................................ 130

9.3 Resource Management: Heat Map ..................................................................................... 133

9.4 Financial Metrics ................................................................................................................ 134

9.4.1 Revenue per Employee Leaders ................................................................................... 134

9.4.2 Revenue per Employee Laggards ................................................................................. 135

9.4.3 Expenditure per Employee Leaders .............................................................................. 137

9.4.4 Expenditure per Employee Laggards ............................................................................ 138

10 Geographical Segmentation ..................................................................................................... 140

10.1 India ................................................................................................................................... 140

10.2 Europe, Middle East, and Africa ......................................................................................... 142

10.3 North America .................................................................................................................... 144

10.4 Rest of World...................................................................................................................... 146

11 Strategic Outlook ...................................................................................................................... 147

11.1 Current Growth in the Indian Pharmaceutical Industry Expected to Continue ..................... 147

11.2 Increased Focus on R&D.................................................................................................... 148

11.3 Government’s Pricing Revision Will Further Reduce Margins ............................................. 148

11.4 Stiff Competition from Multinationals May Stymie Development of Smaller Domestic Players ..

..................................................................................................................................... 149




Table of Contents

11.5 Growing Pressures on Indian Patent Laws Could Challenge Domestic Companies............ 150

12 Appendix .................................................................................................................................. 151

12.1 Bibliography........................................................................................................................ 151

12.2 Abbreviations...................................................................................................................... 153

12.3 Research Methodology ....................................................................................................... 158

12.3.1 Coverage ...................................................................................................................... 158

12.3.2 Secondary Research .................................................................................................... 158

12.3.3 Expert Panel Validation................................................................................................. 159

12.4 About the Authors ............................................................................................................... 160

12.4.1 Analyst .......................................................................................................................... 160

12.4.2 Director of Healthcare Industry Dynamics ..................................................................... 160

12.4.3 Global Head of Healthcare Research and Consulting ................................................... 161

12.5 About the Industry Dynamics Team .................................................................................... 162

12.6 About GlobalData ............................................................................................................... 162

12.7 Disclosure Information ........................................................................................................ 162

12.8 Disclaimer .......................................................................................................................... 163




Table of Contents

1.1 List of Tables

Table 1: First-Time Generic Drug Approvals, 2012 - Part 1 ......................................................................... 26

Table 2: First-Time Generic Drug Approvals, 2012 – Part 2 ........................................................................ 27



Table 5: Biosimilars Currently Marketed in India ......................................................................................... 33

Table 6: Wockhardt’s Product Pipeline ....................................................................................................... 41

Table 7: Lupin’s Product Pipeline ............................................................................................................... 54

Table 8: Glenmark: Novel Drugs Pipeline ................................................................................................... 63

Table 9: Torrent Pharmaceuticals’ Current Discovery Portfolio ................................................................... 66

Table 10: Dr. Reddy’s Currently Marketed Biosimilars .................................................................................. 73

Table 11: GlobalData’s Benchmark Rankings, Top 10 Pharmaceutical Companies in India, 2012 ................. 79

Table 12: Top 10 Indian Pharmaceutical Companies’ FM Composite Scores and Overall FM Scores, 2012.. 82

Table 13: Revenue-Leading Companies’ FM Composite Scores and Overall FM Scores, 2012 .................... 83

Table 14: Top Three Revenue Laggards in 2012 .......................................................................................... 85

Table 15: Top Three Revenue Growth Leaders in 2012 ............................................................................... 86

Table 16: Top Three Revenue Growth Laggards in 2012.............................................................................. 89

Table 17: Top Three Operating Income Leaders in 2012 .............................................................................. 90

Table 18: Top Three Operating Income Laggards in 2012 ............................................................................ 91

Table 19: Top Three YTY Operating Income Growth Leaders in 2012 .......................................................... 93

Table 20: Top Three YTY Operating Income Growth Laggards in 2012 ........................................................ 94

Table 21: Top Three Operating Margin Leaders in 2012 ............................................................................... 95

Table 22: Top Three Operating Margin Laggards in 2012 ............................................................................. 97

Table 23: Top 10 Indian Pharmaceutical Companies’ Composite and Overall EM Scores, 2012 ................. 103




Table of Contents

Table 24: Top SG&A Spending Leaders in 2012 ........................................................................................ 104

Table 25: Top SG&A Spending Laggards in 2012 ...................................................................................... 105

Table 26: Top SG&A Spending as a Percentage of Revenue Leaders, 2012 .............................................. 107

Table 27: Top SG&A Spending as a Percentage of Revenue Laggards, 2012 ............................................ 108

Table 28: Top SG&A Spending YTY Change Leaders ................................................................................ 110

Table 29: Top SG&A Spending YTY Change Leaders ................................................................................ 111

Table 30: Top Operating Expenses as a Percentage of Revenue Leaders ................................................. 113

Table 31: Top Operating Expenses Laggards as a Percentage of Revenue................................................ 114

Table 32: Top 10 Indian Pharmaceutical Companies’ Composite and Overall CM Scores, 2012 ................. 118

Table 33: Top Debt-to-Assets Leaders in 2012 ........................................................................................... 119

Table 34: Debt-to-Assets Laggards in 2012 ................................................................................................ 120

Table 35: Cash Ratio Leaders in 2012 ....................................................................................................... 122

Table 36: Cash Ratio Laggards in 2012 ..................................................................................................... 124

Table 37: Quick Ratio Leaders in 2012....................................................................................................... 125

Table 38: Quick Ratio Laggards in 2012 ..................................................................................................... 126

Table 39: ROI Leaders in 2012 .................................................................................................................. 127

Table 40: ROI Laggards in 2012 ................................................................................................................ 128

Table 41: Top 10 Indian Pharmaceutical Companies’ Composite and Overall RM Scores, 2012 ................. 133

Table 42: Top Three Revenue per Employee Leaders in 2012 ................................................................... 134

Table 43: Top Three Revenue per Employee Laggards in 2012 ................................................................. 135

Table 44: Top Three Expenditure per Employee Leaders in 2012 ............................................................... 137

Table 45: Top Three Expenditure per Revenue Laggards in 2012 .............................................................. 138




Table of Contents

1.2 List of Figures

Figure 1: Value of Pharmaceutical Exports from India, 2002–2012 ............................................................. 23

Figure 2: Sun Pharmaceuticals: SWOT Analysis ........................................................................................ 35

Figure 3: Wockhardt: SWOT Analysis ........................................................................................................ 40

Figure 4: Cipla: SWOT Analysis ................................................................................................................. 44

Figure 5: Ranbaxy: SWOT Analysis ........................................................................................................... 48

Figure 6: Lupin Pharmaceuticals: SWOT Analysis ..................................................................................... 53

Figure 7: Zydus Cadila: SWOT Analysis .................................................................................................... 57

Figure 8: Glenmark: SWOT Analysis.......................................................................................................... 61

Figure 9: Torrent Pharma: SWOT Analysis ................................................................................................ 66

Figure 10: Dr. Reddy’s: SWOT Analysis ...................................................................................................... 71

Figure 11: Aurobindo Pharmaceuticals: SWOT Analysis .............................................................................. 76

Figure 12: Competitive Assessment of the Top 10 Pharmaceutical Companies in India, 2012 ...................... 81

Figure 13: Leading Pharmaceutical Companies in India by Revenue in 2011 and 2012................................ 86

Figure 14: Leading Pharmaceutical Companies in India by YTY Revenue Growth in 2012 ........................... 89

Figure 15: Leading Pharmaceutical Companies in India by Operating Income ($m), 2011 and 2012 ............ 92

Figure 16: Leading Pharmaceutical Companies in India by YTY Operating Income Growth .......................... 95

Figure 17: Leading Pharmaceutical Companies in India by Operating Margin in 2011 and 2012 ................... 98

Figure 18: Competitive Landscape of the Top 10 Pharmaceutical Companies in India in 2012 – SG&A Expenses as a Percentage of Revenue vs. Operating Expenses as a Percentage of Revenue .. 101

Figure 19: Leading Pharmaceutical Companies in India by SG&A Spending as a Percentage of Revenue, 2011 and 2012 .......................................................................................................................... 102

Figure 20: Leading Pharmaceutical Companies in India by SG&A Spending, 2011 and 2012 ..................... 106

Figure 21: Leading Pharmaceutical Companies in India by SG&A Spending as a Percentage of Revenue, 2012 ......................................................................................................................................... 109

Figure 22: Leading Pharmaceutical Companies in India by SG&A Expenditures YTY Change, 2012 .......... 112




Table of Contents

Figure 23: Leading Pharmaceutical Companies in India by Operating Expenses as a Percentage of Revenue, 2011 and 2012 .......................................................................................................... 115

Figure 24: Competitive Landscape of the Top 10 Players in the Indian Pharmaceutical Industry — Debt Ratio vs. Cash Ratio, 2012 ....................................................................................................... 117

Figure 25: Leading Pharmaceutical Companies in India by Debt Ratio, 2011 and 2012 .............................. 121

Figure 26: Leading Pharmaceutical Companies in India by Cash Ratio, 2011 and 2012 ............................. 124

Figure 27: Leading Pharmaceutical Companies in India by Quick Ratio, 2011 and 2012 ............................ 127

Figure 28: Leading Pharmaceutical Companies in India by ROI, 2011 and 2012 ........................................ 129

Figure 29: Global Headcount of the Top 10 Players in the Indian Pharmaceutical Industry ......................... 131

Figure 30: Competitive Landscape of the Top 10 Players in the Indian Pharmaceutical Industry ................ 132

Figure 31: Leading Pharmaceutical Companies in India by Revenue per Employee, 2011 and 2012 .......... 136

Figure 32: Leading Pharmaceutical Companies in India by Expenditure per Employee, 2012 ..................... 139

Figure 33: Forecast Growth in the Indian Pharmaceutical Market, 2013–2020 ($bn) .................................. 140

Figure 34: Competitive Landscape of the Top 10 Domestic Pharmaceutical Companies in India, 2012 ...... 141

Figure 35: Competitive Landscape of the Leading India-based Pharmaceutical Companies in the EMEA Region, 2012 ............................................................................................................................ 144

Figure 36: Competitive Landscape of the Leading Indian Pharmaceutical Companies in North America, 2012 ......................................................................................................................................... 145

Figure 37: Competitive Landscape of the Leading Indian Pharmaceutical Companies in the ROW, 2012 ... 146

Figure 38: Forecast Growth in the Indian Pharmaceutical Market, 2013–2020 ($bn) .................................. 147




Introduction

2 Introduction

2.1 Report Scope

GlobalData’s Top 10 Pharmaceutical Companies in India Benchmark Report – Competitive

Analysis of the Leading Players in 2013, is an essential source of information and analysis on the

Indian pharmaceutical industry. Using detailed company data, financial analysis, corporate

strategy, and market trends analysis, GlobalData has highlighted 10 companies in the Indian

pharmaceuticals space, forming a basis for in-depth analysis of the current and future growth

drivers of the domestic pharmaceuticals market. The report discusses the key factors shaping and

driving the Indian pharmaceutical industry, and provides insight on the competitive landscape and

emerging strategies that are expected to significantly alter the market position of the industry

leaders.

This report applies GlobalData’s proprietary ranking methodology to compare the competitive

position of 10 India-based pharmaceutical companies on 15 financial metrics. The performance of

each of these companies is analyzed based on their financial performance, cost-containment,

capital structure, and efficiency to illustrate the different strategies these companies are using to

increase shareholder value and capture market share from branded pharmaceuticals

manufacturers. In addition to the financial metrics, this report presents competitive landscapes of

the various markets in which these companies operate, as well as detailed company profiles,

including SWOT analyses, of these major players. It also describes the operations strategies of

these companies.

Throughout the report, GlobalData’s analysts provide you with expert insight, expanding on each

strategy and factor discussed, with the aim of providing you with the tools you need to make

informed business decisions.

Key Questions Answered

What are the drivers of the Indian pharmaceutical industry?

What is the forecast for the Indian pharmaceutical market to 2020?

What specific strategies are pharmaceutical companies in India employing to capture market

share from branded and generic pharmaceutical companies worldwide?

How are these companies dealing with cost-containment to increase their margin?




Introduction

How does my assets utilization and overall manufacturing efficiency match up with theirs?

How are these pharmaceutical companies maximizing their capital spending to attain a

competitive advantage?

Key Benefits

This report will enable you to:

Understand the key factors driving the substantial growth being witnessed in the Indian

pharmaceutical industry and the market’s outlook through 2020

Benchmark your company’s performance against other pharmaceutical companies in India to

identify strengths that can be leveraged and/or areas of possible improvement

Plan your entry and/or expansion activities involving the Indian pharmaceutical market by

understanding the market dynamics and identifying possible partners and/or acquisition targets

Analyze and track the strategies that successful pharmaceutical companies in India are using

to gain share in the increasingly competitive market

Understand the underlying financial metrics that differentiate certain companies from the pack

in terms of growth and profitability, spending, asset structure, and efficiency

Use this information as an independent source for your due diligence and transaction strategy

GlobalData Selection Criteria

After extensive exploratory research, GlobalData identified 10 pharmaceutical companies in India,

primarily based on their revenue size. GlobalData believes these 10 companies comprise a

representative cross-section of the pharmaceutical companies that are headquartered in India and

vary by market focus and corporate strategy, thereby providing a foundation for strategic

discussion and analysis. GlobalData’s coverage examines these drug makers through a unique

company-centric lens, combining financial performance, leverage, and efficiency with M&A activity

to assess each company’s overall strategy. This type of coverage is unlike any other analysis

currently available and will deliver a consistent view into the evolution of these companies’

corporate growth. Moving forward, GlobalData plans to update this list of 10 India-based

companies based on market dynamics and customer feedback to provide our clients with the most

current information and analysis on the major players in the rapidly growing Indian market.




Introduction

The 10 companies covered in this report are: Aurobindo, Cipla, Dr. Reddy’s, Glenmark, Lupin,

Ranbaxy, Sun, Torrent, Wockhardt, and Zydus Cadila.

If there is a specific company you would like GlobalData to cover and include in our next report,

kindly contact GlobalData’s Industry Dynamics Team directly, and we will make every attempt to

add it to our coverage.

2.2 Upcoming Related Reports

Report titles are subject to change:

GlobalData (2013). PharmaLeaders: Contract Research Organizations Benchmark Report –

Financial Benchmarking & Competitive Assessment of Leading CROs, July 2013,

GDHC004PLR

GlobalData (2013). PharmaSphere (2013): Global Deal-making Trends and Operations

Strategies in the CRO Market, August 2013, GDHC005PSR

GlobalData (2013). US Healthcare Policy Update, August 2013, GDHC003PSR

GlobalData (2013). Deal-making Trends in the APAC, August 2013, GDHC004PSR

GlobalData (2013). Benchmarking the Top 10 Domestic Players in the BRICS Markets,

September 2013, GDHC004PLR

GlobalData (2013). Early-Stage Biotech Funding and Strategy, November 2013,

GDHC005PSR

2.3 Recently Published Reports

GlobalData (2013). PharmaSphere: Global Biosimilars Strategy – Regulatory Landscape, Key

Drivers, Markets and Trends in 2013, May 2013, GDHC002PSR

GlobalData (2013). PharmaSphere: Early-Stage Technology Transfer Collaborations, April

2013, GDHC003PSR

GlobalData (2013). PharmaSphere: Global Generics Strategy – Key Drivers, Markets and

Trends in 2013, March 2013, GDHC001PSR




Introduction

GlobalData (2013). PharmaLeaders: Generic Manufacturers Benchmark Report – Financial

Benchmarking & Competitive Analysis of the Leading Players in 2013, March 2013,

GDHC001PLR

GlobalData (2013). PharmaLeaders: Innovative Mid-Cap Biotechnology Benchmark Report –

Financial Benchmarking, Pipeline Assessment & Competitive Analysis of Innovative Biotechs,

January 2013, GDHC001SAC

2.4 GlobalData’s Benchmarking Methodology

GlobalData’s Top 10 Pharmaceutical Companies in India Benchmark Report – Competitive

Analysis of the Leading Players in 2013 report ranks 10 India-based pharmaceutical companies on

15 financial metrics. These metrics include company-specific data such as revenues, margins,

expenses, and balance sheet ratios, which are weighted and combined into an aggregate

composite score that leads to a rank of each company’s overall financial performance. The ranking

scale ranges from 1.00 to 10.00, with the average being 5.00, and higher rankings representing

better overall performance. Please note that GlobalData placed more emphasis on company

growth and efficiency. Consequently, revenue size — one of the financial metrics utilized in this

report — was weighted less than revenue growth, thereby rewarding companies that are more

efficient in their operations and growing faster than their peers in the industry.

GlobalData believes that one of the many strengths of our proprietary ranking methodology is that

company rankings are data-driven and empirical, not subjective or whimsical. It is important to note

that these rankings are retrospective and are intended to help illustrate the strategies that

companies are using to succeed financially, and should not be considered as an endorsement by

GlobalData, or as a recommendation to purchase any securities. It is essential to recognize that

there are many factors that determine the success of any company, not just financial performance,

such as clinical pipeline, management leadership, and organizational structure, which are not

accounted for directly in our methodology. The rankings are primarily intended to serve as an

impetus for analytical discussion and for examining a company’s relative competitive position in a

very dynamic industry.




Appendix

12.5 About the Industry Dynamics Team

GlobalData’s Industry Dynamics Team specializes in tracking and analyzing the pharmaceutical

healthcare industry and all its sectors globally. GlobalData’s Pharma eTrack database provides

insightful analytical reports covering market, trends, companies, pipelines, diseases, technologies,

and real-time updates of key global events impacting the industry.

12.6 About GlobalData

GlobalData is a leading global provider of business intelligence in the healthcare industry.

GlobalData provides its clients with up-to-date information and analysis on the latest developments

in drug research, disease analysis, and clinical research and development. Our integrated business

intelligence solutions include a range of interactive online databases, analytical tools, reports, and

forecasts. Our analysis is supported by a 24/7 client support and analyst team.

GlobalData has offices in New York, Boston, London, India, and Singapore.

12.7 Disclosure Information

GlobalData is a product of GlobalData Ltd, a UK-registered company. GlobalData Ltd has no

current or intended investment banking or corporate finance relationships or operations. The

material presented in this report is provided for information purposes only and is not to be used or

considered as a recommendation to buy, hold, or sell any securities or other financial instruments.

No GlobalData Ltd directors, officers, or employees are on the Board of Directors of a covered

company, and no one at a covered company is on the Board of Directors of GlobalData Ltd.




Appendix

12.8 Disclaimer

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any

form by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior

permission of the publisher, GlobalData.

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