Global generic pharmaceuticals market – brighter times ahead
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Briefing based on the key findings of my research on the Global Generic Pharmaceuticals Market 2010, covering the developed markets like the U.S, Germany, UK, France, Italy and Spain as well as the ...

Briefing based on the key findings of my research on the Global Generic Pharmaceuticals Market 2010, covering the developed markets like the U.S, Germany, UK, France, Italy and Spain as well as the emerging markets such as India and China.

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Global generic pharmaceuticals market – brighter times ahead Presentation Transcript

  • 1. Global Generic Pharmaceuticals Market – Brighter Times Ahead Analyzing the Global Business Prospects for Generic Drug Manufacturers in the Developed and Emerging Markets Aiswariya Chidambaram, Research Analyst Healthcare 9.2.2012
  • 2. Aiswariya Chidambaram Functional Expertise  Particular expertise in: - Analyzing regional sales performance, identifying performance gaps and providing relevant solutions to stakeholders for the growth and development of regional business. - Designing and roll out of appropriate training modules, conducting workshops on selling skills excellence and working on development of Business executives at professional and personal levels. - Conducting induction training to new recruits and field coaching on marketing projects to ensure smooth implementation. - Recruiting candidates and identifying talents at regional level by appropriate means of performance analysis and competency mapping. Special projects implementation on a regional scale Industry Expertise  Expertise in diverse therapeutic segments and product portfolios which include - Diabetology – Oral Anti Diabetics - Cardiovascular Diseases – Anti-hypertensives.Aiswariya - General Medicine – Antibiotics, Anti-fungals, and Health supplements.Chidambaram - Women’s Healthcare – Oral Contraceptives What I bring to the TeamResearch Analyst,  In depth knowledge of four specific Therapeutic segments.  Expertise in tracking Industry trends and events as part of Market Vigilance.Healthcare Practice,  Reasoning based recommendation for improved efficiency.Frost & Sullivan  Excellent communication and presentation skills.Global, Career HighlightsChennai,  Have successfully completed a NIH project on Filariasis at the Tuberculosis Research Centre (Chennai).India  Completed internship projects on Industrial Microbiology, Cytogenetics and Karyotyping, and a course on “Tools in Bio-informatics and Vector Designing.”  Worked as a Performance Consultant for South India (covering four states – Tamil Nadu, Andhra Pradesh, Kerala and Karnataka) with a leading Multinational firm, Bayer Healthcare.  Worked on market research projects such as the “Global Generics Pharmaceutical Market”, “European Pharmaceutical and Biotech Contract Manufacturing Markets” and so on with Frost & Sullivan. Education  Bachelors in Technology, specialization in Biotechnology, from Anna University, Chennai, India.
  • 3. Focus Points Generics Lead the Way Ahead Key Therapeutic Areas Overview Key Therapeutic Areas – Growth Analysis Key Patent Expiries Between 2010 and 2017 Global Hot Spots – Generic Pharmaceuticals Market Key Market Drivers and Restraints SummaryFocus Points Mergers and Acquisitions Outlook Key Mergers and Acquisitions in 2010 Competitive Landscape Analysis Future Trends and Directions Strategic Recommendations for Success Conclusions and Implications
  • 4. Generics Lead the Way Ahead The global generic pharmaceuticals market was valued at $123.85 billion in 2010, growing at 11.0% Blockbuster drugs worth $150 U.S is the world’s largest billion are set to generics market constituting lose patent 45%. Emerging markets such protection as Brazil, Russia, India, between 2010 and China, Turkey and 2017 South Korea present growth opportunities of 15 % to 20% whileIndia and China are huge generic matured markets are markets in terms of production likely to grow between 6 The top eight global volume. markets – the United % to 10 % over the next States, Germany, five years France, the United Kingdom, Canada, Italy, Spain and Japan – account for 80% of the total generic sales The top ten global generic companies constitute a share of 47% of the total generics market. Source: Frost and Sullivan
  • 5. Key Therapeutic Areas Overview Generic Pharmaceuticals Market: Percent Revenue Contribution of Therapeutic Segments (Global), 2010 Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan Others include Gastro-intestinal, HIV, Immunology and so on. Cardiovascular and CNS are the two largest market segments, constituting nearly 38 per cent of the globalgeneric pharmaceuticals market together. However, therapeutic segments such as Respiratory, CNS and Oncology are likely to witness significantly highgrowth rates, attracting the attention of market participants. On the contrary, segments such as Diabetes and Genitourinary/ hormonal drugs are expected to decline by the2017.
  • 6. Key Therapeutic Areas – Growth Analysis 20% The patent expiry of several key antipsychotics and anti-depressants The reason behind such contribute to the rapid growth of CNS enormous growth is the drugs market between 2010 and 2017. massive number of 14% patent expiries. Almost Development/ half of the global asthma Fast Growing and COPD market drugs are set to lose patent 12% protection by 2016. Relatively lesser number of drugs are subjected to generic Fast exposure during the 10% Growing forecast period andC Development/ hence the decline inA growth. Fast GrowingG 8% FastR Growing Growing Growing One of the promising 6% segments for generic Declining Declining Stable participants to venture Intense competition, between 2010 and promotion of branded 2015 is oncology as 4% drugs worth $10 b are drugs and new innovative set to lose patent formulations such as protection by 2015 inhalable insulin are all 2% likely to deter the growth of generics. Cardiovascular CNS Oncology Rheumatology Respiratory Diabetes Dermatology Genitourinary Others Bubble size represents market value Source: Frost & Sullivan analysis.
  • 7. Key Patent Expiries Between 2010 and 2016 Expiry in 2010• Advair/Seretide by GSK Expected expiry in 2012 Expected expiry in 2014• Aricept by Pfizer, Eisai • Avandia by GSK • Actonel by Warner Chilcott• Arimidex by Astra Zeneca • Avapro by Sanofi Aventis, BMS • Celebrex by Pfizer• Cozaar by Merck • Detrusitol by Pfizer, • Copaxone by Teva• Effexor by Pfizer Pharmacia-Upjohn • Cymbalta by Eli Lilly• Flomax by Boehringer, Astellas • Diovan by Novartis • Micardis by Boehringer• Gemzar by Eli Lilly • Evista by Eli Lilly • Nexium by Astra Zeneca• Hycamptin by GSK, Pfizer, • Lexapro by Forest • Spiriva by Boehringer Ingelheim Protonix • Seroquel by Astra Zeneca• Levaquin by J&J • Singulair by Merck Expected expiry in 2015• Taxotere by Sanofi Aventis • Symbicort by Astra Zeneca • Abilify by Otsuka • Viagra by PfizerExpiry in 2011 • Enablex by Novartis • Viramune by Boehringer• Actos by Takeda • Neulasta by Amgen • Zeldox/Geodon by Pfizer• Alimta by Eli Lilly • Tracleer by Actelion • Zometa by Novartis• Atacand by Astra Zeneca• Femara by Novartis Expected expiry in 2013 • Epogen by Amgen Expected expiry in 2016• Lipitor by Pfizer • Pariet by Eisai • Cialis by Eli Lilly• Oxycontin by Purdue • Procrit by Amgen • Crestor by Astra Zeneca• Plavix by BMS, Sanofi Aventis• Zyprexa by Eli Lilly Source: Generic Pharmaceutical Association, CPA Global, Frost & Sullivan analysis.
  • 8. Global Hot Spots – Generic Pharmaceuticals Market Key Mature Germany Size : $8.80 billion India Emerging Size:$10.00 billion Growing United Kingdom Size : $5.40 billion United States Italy Size:$55.78 billion Size:$1.09 billion China Size:$26.45 billion Note France India and China are studied as two separate generic pharmaceuticals market owing to the Size:$4.20 billion lack of implementation of patent protectionlaws up to 2005. Hence, domestic players were free to produce generic versions of molecules Spain under patent protection in these markets by Size:$2.20 billion means of reverse engineering. Source: Frost & Sullivan analysis.
  • 9. Key Market Drivers and Restraints Summary Generic Pharmaceuticals Market: Key Drivers and Restraints Summary (Global), 2011-2017 Blockbuster drugs Key Drivers worth $150 billion are due to lose patent protection New provisions between 2010 and introduced by Changing population 2017 governments to demographics and encourage lifestyle patterns generic utilisation Increasingly Gaining access to Threat of introduction stringent emerging markets of authorised generics regulations and and niche therapeutic by branded price control segments companies measures Parallel trading and counterfeiting of generics from low cost marketsKey Restraints/Challenges Source: Frost & Sullivan analysis
  • 10. Mergers & Acquisitions Outlook Generic Pharmaceuticals Market: Number of Deals and Amount Spent on Mergers & Acquisitions (Global), 2000 - 2009The number of deals and the total expenditure on mergers and acquisitions have been increasing steadily over theyears since 2000. There was a peak in M&A activity in 2005 and 2008. The trend is likely to continue with all the keygeneric participants increasing their dependence on strategic alliances to conquer market shares. Source: Frost & Sullivan analysis.
  • 11. Key Mergers & Acquisitions in 2010 Abbott - Abbott – Piramal Teva – Mylan – Solvay Healthcare Ratiopharm Bioniche Pharma Value: $3.72 billionValue: $6.20 billion Key Reason: Value: $5.00 billion Value: $550.0 millionKey Reason: • Abbott, by acquiring the Key Reason: Key Reason:• This acquisition will entire solutions business • Ratiopharm, the •. Bioniche Pharma hasenable Abbott to attain of a leading company in second largest generic more than 30 products inleadership in emerging the branded Indian company in Germany the market, 15 ANDAsmarkets where there is generic pharmaceuticals and the sixth largest pending for approval atsignificant opportunity market such as Piramal worldwide, will position the United States FDAfor branded generics Healthcare, has the Teva as the leading and 25 products inand in specialty markets rights to gain access to generic pharmaceutical developmental stages.like cardiovascular, 350 brands and company in Europe, This will help drive bothneuroscience and trademarks. These particularly in Germany top and bottom linegastroenterology. It is include market- leading as well as in emerging growth for Mylan andexpected to add another brands in multiple markets like Spain, facilitate direct entry into$2.90 billion to Abbott’s therapeutic areas such Italy, France, and the the North American2010 sales. as respiratory and Netherlands. injectables market. antibiotics.. Source : Frost & Sullivan analysis.
  • 12. Competitive Landscape Analysis Generic Pharmaceuticals Market: Top Five Companies by Market Share (Global), 2010  The top five generic pharmaceutical companiesRank Company accounted for 39 per cent of the share in the global generic pharmaceuticals market in 2010.  The top three companies namely Teva, Sandoz and Mylan registered significant growth rates of 1 16, 14 and 11 per cent respectively in 2010.  Most of the big companies prefer mergers and 2 acquisitions to organic growth as a faster means to consolidate and expand their market shares. 3 Mylan 4 5 Source: Frost and Sullivan analysis
  • 13. Future Trends and Directions Balance in terms of healthcare expenditure and sales revenue is likely to shift from developed markets to emerging markets owing to immense market opportunities and untapped market potentials. Consolidation is expected to remain the key factor for growth and sustenance of generic companies. Partnerships, mergers, acquisitions and strategic alliances will help both branded and generic companies to expand their global footprint and gain market shares. Large generic companies seek to establish their own R&D entity and hence areKey Trends likely to increase their investments in R&D activities for long-term growth and sustenance in the pharmaceutical industry. Technology Development of Transgenic technologies Generic consumption is likely to be favoured in a big way by the government, payers, Stem cell technologies Cloning technologies policy-makers and physicians owing to the huge cost-saving benefits to the patients and curtail healthcare expenditure. Generic manufacturers tend to increasingly focus on higher value biological therapies, biosimilars, controlled release products, sterile formulations and niche therapeutic segments, which are less competitive yet commercially attractive. Source: Frost and Sullivan analysis
  • 14. Strategic Recommendations for SuccessStrategy is a style of thinking, a conscious and deliberate process, an intensive implementation system, the science of insuring future success – Pete Johnson Differentiated Approach Explore New Avenues Instill Competitive Plan Ahead for the Future Capabilities Big multinational generic firms require to focus on  Analyze prospects for  Invest in R&D.  Research customer  Products with market globalization needs, preferences, technologically - Strategic alliances  Improve product line. expectations. challenging between multinational formulations. generic firms and  Defend company’s  Monitor new  Products which require domestic participants position in the market. technological significant regulatory with locally restricted developments to face support. operations.  Strike a balance the change.  Products with limited between supply and availability of APIs.  Strengthen distribution. demand side.  Target therapeutic areas with high levels Medium-sized generic firms  Pioneer new and better of unmet clinical require to focus on technologies. needs.  Products with relatively higher profit margins.  Appropriate time of entry into the right market. Source: Frost and Sullivan analysis
  • 15. Conclusions and Implications The global generic pharmaceuticals market is expected to peak in 2012, owingto the patent expiry of several leading brands such as Seroquel, Viagra, Lexapro toname a few. Regulations favoring generics, wider health insurance coverage by Governmentand private bodies, and better co-operation from physicians and pharmacists areexpected to boost generic consumption. The consolidation wave is likely to rise high in the global generic pharmaceuticalsmarket. CNS and Cardiovascular are expected to be the therapeutic areas of interest forgeneric drug manufacturers. However, market participants are likely to face challenges due to increasingpricing pressure, price-cuts and regulatory barriers. Source: Frost and Sullivan analysis
  • 16. Next StepsDevelop Your Visionary and Innovative Skills Share your growth thought leadership and ideas or Growth Partnership Service join our GIL Global Community Join our GIL Community Newsletter Keep abreast of innovative growth opportunities 16
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  • 19. For Additional InformationName NameCorporate Communications Research AnalystIndustry Industry(210) XXX-XXXX (XXX) XXX-XXXXEmail@frost.com email@frost.comName NameResearch Manager Sales ManagerIndustry Industry(XXX) XXX-XXXX (XXX) XXX-XXXXemail@frost.com email@frost.com