Pharma Industry Trends Ppt2

8/2/2019 Pharma Industry Trends Ppt2

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Pharma Industry Trends

IVth Year B. Pharm. + MBA Pharmtech

Lecture 2 : March 2012

Indian Healthcare Market


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Total Pharma 53,803 100.00 +15

Rank CompanyValue

(Rs cr.) M.S. %Growth

+/-%1 Abbott 3,855 7.16 +20

2 Cipla 2,723 5.06 +12

3 Ranbaxy 2,524 4.69 +16

4 GSK 2,166 4.02 +9

5 Sun Pharma 2,100 3.90 +226 Zydus Cadila 1,970 3.66 +13

7 Mankind 1,815 3.37 +23

8 Alkem 1,795 3.34 +16

9 Pfizer 1,719 3.20 +16

10 Lupin 1,449 2.69 +14

11 Mcleods 1,350 2.51 +43

12 Intas 1,306 2.43 +2813 Sanofi 1,283 2.38 +16

14 Aristo 1,199 2.23 +7

15 Emcure 1,127 2.09 +18

16 Dr Reddys 1,091 2.03 +8

17 Torrent 1,079 2.00 +16

18 Wockhardt 1,075 2.00 +16

19 USV 979 1.82 +24

20 Micro Labs 949 1.76 +15

Rank Company

1 Abbott

2 Cipla

3 Sun Pharma

4 Zydus Cadila5 GSK

January 2012 rankings


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Rank Brand Company Value(Rs cr.) M.S. Growth+/-%1 Corex Pfizer 237 0.44 +16

2 Human Mixtard Abbott 223 0.41 +21

3 Phensedyl Abbott 208 0.39 +20

4 Voveran Novartis 198 0.37 +9

5 Augmentin GSK 196 0.36 +146 Revital Ranbaxy 196 0.34 +14

7 Monocef Aristo 184 0.32 +11

8 Dexorange Franco India 171 0.30 +10

9 Taxim Alkem 162 0.28 +3

10 Liv-52 Himalaya 152 0.28 +10

11 Volini Ranbaxy 148 0.27 +51

12 Mox Ranbaxy 147 0.27 +813 Spasmo Proxyvon Wockhardt 146 0.27 +34

14 Becosules Pfizer 143 0.27 -5

15 Betadine Win Medicare 138 0.26 +14

16 Zifi Fulford 137 0.25 -6

17 Asthalin Cipla 132 0.25 +4

18 Clavam Alkem 124 0.23 +23

19 Calpol GSK 123 0.23 +12

20 Taxim-O Alkem 122 0.23 +7

Jan 12

Rank

1

2

5

4

3


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Top 10 Therapeutic Groups2011

Rank 2011 Supergroup Share of Pharma Value Gr1 Anti-infectives 18% +13%

2 Cardiac 11% +15%

3 Gastro Intestinal 11% +16%4 Pain/Analgesic 8% +14%

5 Respiratory 8% +10%

6 Vitamins/Minerals 7% +13%

7 Anti Diabetic 6% +23%

8 Gynaec 6% +12%

9 Neuro/CNS 6% +16%

10 Derma 5% +15%

86%


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The Pharma Growth Drivers in India

India is one of the fastest-growing pharma industries

globally

Primarily driven by a large population

Evolving patient demographics

Increasing health care expenditure Growing urbanisation

Rising life expectancy and

Active private-sector participation in all sectors of

Indian Healthcare


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6

Higher the Value Curve Better Pricing Advantage

Low

High

Intermediate

& Bulk

Substances

Commodity

Generics

Conventional

Dosage Forms

Value- Added and

Branded Generics

OTC & New Drug

Delivery Systems

New Chemical

Entity & Drug

Discovery

Tech

nological/Marketin

gComplexity

Bottom Line


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The Scene ShiftsThe global pharmaceuticals market grew rapidly in the 1990s and in the early

2000s, spurred primarily by market demand in North America and Europe.

However:

With impeding patent expiries

Declining R&D productivity

Increasing regulatory and pricing pressures

growth in these markets have been slowing down.

Emerging markets represent a potential growth driver for the industry its

contribution to the growth of the global pharma market increased from eightper cent in 2003 to 40 per cent in recent times.

Consequently, global pharma MNCs have adopted prudent strategies to

further expand their footprint in emerging markets such as Brazil, Russia,

India and China.


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The way forward for India

Formulations manufactured in India

Constitute 20 per cent of the global generics market by value and

The overall share of Indian manufactured formulations is as high as 46

per cent in the generics segment in the emerging markets.

Opportunities exist ranging from the low-value added segment,

comprising of NDDS ($134 billion opportunity by 2013)

Generics ($135 billion worth of product expiring before 2015) and

Biosimilars ($115 billion worth of biologics expiring by 2015)

High value New Chemical Entity (NCE)/New Biopharmaceutical Entitysegment.

Thus, domestic companies can look forward to pursue all these

opportunities and build capabilities to conduct drug discovery and in

house development.


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Projections for the

Indian Pharma Market

Indian pharmaceutical market by 2020 (US $billion)


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Increasing number of patented

drugs launched in India

Pharma MNCs are projected to capture a 35 per cent market share of the market by

2017, compared with 28 per cent in 2009.

Over the years, pharma MNCs have adopted India-focused strategies to tap the

growing potential of the countrys pharma market.

The advent of the product patent regime in 2005 instilled confidence in the countrys

IP regime. With renewed confidence, large pharma MNCs are now looking to launch

their patented drugs in India and such product launches are expected to increase

further in future.


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Pharma MNCs : Adopting inorganic

route to enhance presenceMNCs have acquired domestic players to gain sizeable share inthe domestic market.

These acquisitions have also enabled pharma MNCs to access the

infrastructure, distribution networks, and managementcapabilities of domestic players, thereby strengthening their

business operations in the country.

Licensing agreements with Indian companies have helped pharma

MNCs access a ready basket of generic products.

These deals are likely to accelerate the launch of products in

various emerging markets while offering MNCs the advantage of

cost-effective manufacturing.


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Pharma MNCs : Adopting inorganic

route to enhance presencecontd.

Pharma MNCs consider India as a preferred strategic

outsourcing partner with services ranging from:

Contract Research Manufacturing (CRO) and

Clinical research services to sales and marketing,

Information technology,

Finance and accounting, and

Customer-relationship management.


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Pharma MNCs :Changing the tune for India

Differential pricing strategy to strengthen market reach:

In a bid to compete with domestic generic players, pharma MNCs are

launching patent-protected drugs in India at relatively low price points

than those in developed markets.

Simultaneously, a differential pricing strategy is helping these MNCs to

enhance their market reach by addressing affordability issues.

Drugs such as Diovan (for bp, Novartis), Januvia (for type II diabetes,

Merck Sharp & Dohme), and Galvus (also for Type II diabetes,

Novartis) are being sold at discounts of up to 80 per cent on global

prices.


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Rural-centric initiatives to

enhance market accessRobust consumption in the rural economy is expected to be a key

growth driver. Rural India accounts for more than 70 per cent of

all Indian households and close to 40 per cent of the totalconsumption pie. Henceforth, a large number of companies are

organising their efforts to derive a major portion of their overall

sales from this untapped market.

Additionally, pharma MNCs are looking to implement new andeffective business models in India and improve the health of

patients. Delivering patient health outcomes implies getting

involved in the cycle of care, rather than just delivering drugs to a

health care system.


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A few examples include:

In 2009, Sanofi-Aventis launched the Saath 7 programme in India, inwhich certified counsellors help diabetic patients understand their diseases

and provide personalised consultation through home visits.

In 2009, Mercks Indian subsidiary, MSD Pharmaceuticals,launched Sparsh, a multilingual helpline for diabetics on its drugs Januvia

and Janumet to provide diet, exercise, and adherence advice.

In September 2010, Johnson & Johnson (J&J) launched a mobile healthinitiative for expectant mothers in India. Mobile Health for Mothers

provides free text messages on prenatal care, appointment reminders and

calls from health coaches.

Rural initiatives by MNCs


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Rural initiatives by MNCscontd.

In July 2011, Pfizer collaborated with FMCG major ITCto enhance its product sales in the rural markets. According to

the agreement, Pfizer will sell its over-the-counter products

through ITC channels in rural areas.

Such noble initiatives can be expected to help pharma MNCs

further augment their brand awareness in the domestic

market and help tap the segments growth potential.


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Shifting Disease Burden in India

Shifting disease burden in India


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Favourable demographics and

changing disease patterns

This is contributing to the increasing demand.

India has witnessed rapid epidemiological transition as a consequence of

economic and social change.

Historically, acute disease segments have dominated the market, with the anti-

infective sub-segment contributing a major share. However, with growing

urbanisation, the disease profile of the Indian population has become

increasingly skewed toward lifestyle-related ailments such as obesity, heart

disease, stroke, cancer, diabetes and respiratory diseases.

The number of people suffering from chronic diseases such as cancer,

diabetes, neuropsychiatric conditions and cardiovascular disease is setto double in India by 2020. Thus, change in patient demographics will fuel

demand for quality and affordable products in the domestic market.


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Expanding healthcare infrastructure and

changing demographics to supplement growth

The Indian healthcare sector is forecast to reach $280 billion by 2020,contributing expected GDP expenditure of eight per cent by 2012,

compared with 4.2 per cent in 2009, according to a report by an industry body.

Over the past two decades, Indias thriving economy has driven the need for

urbanisation, thereby creating an expanding middle class with increaseddisposable income to spend on healthcare.

Other key growth drivers for this sector include a growing population, the

opening of new hospitals, growing lifestyle related health issues, less expensive

treatment costs, the growth of medical tourism, improving health insurancepenetration and government initiatives.

The overall growth of the Indian healthcare sector is likely to create a sizeable

demand for quality and affordable medicines, thereby providing significant

growth opportunities for both domestic and pharma MNCs.


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Pharma Industry Trends Ppt2

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