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Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
Indian Pharma Industry
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Indian Pharma Industry

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It's about major pharma companies in india

It's about major pharma companies in india

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  • 1. Pharma SectorS e p t e m b e r ,1 2 2 0 1 1 S a l im H a j ia n i P r it i P iy u s h Jig a r S h a h
  • 2. Pharma Business Basics  Formulation Business ( Glenmark,Lupin)  API ( Active Pharma Ingredient)  NCE ( New Chemical Entity)  NME ( New Molecular Entity)3
  • 3. Pharma Business Basics1 .F o r m u l a t io n b u s in e s s :F o r m u l a t io n is t h e p r o c e s s in w h ic h d if f e r e n tc h e m ic a l s u b s t a n c e s ,in c l u d in g t h e a c t iv e d r u g,a r e c o m b in e d t o t o p r o d u c e f in a l m e d ic a l p r o d u c t .2 .AP I :An a c t iv e P h a r m a in g r e d ie n t (AP I)is t h e s u b s t a n c eo f a p h a r m a c e u t ic a l d r u g o r a p e s t ic id e t h a t isb io l o g ic a l l y a c t iv e . T e r m s in s im il a r u s e in c l u d ea c t iv e p h a r m a c e u t ic a l in g r e d ie n t (AP I)a n d b u l ka c t iv e in m e d ic in e ; in p e s t ic id e f o r m u l a t io n s a c t iv es ubs tan ce may be us ed .3 .N C E /N M E :A N e w c h e m ic a l e n t it y (N C E ), o r n e w m o l e c u l a re n t it y (N M E ), is , a c c o r d in g t o t h e u .s . F o o d a n d d r u ga d m in is t r a t io n , a d r u g t h a t c o n t a in s n o a c t iv em o ie t y t h a t h a s b e e n a p p r o v e d b y t h e F D A in a n yo t h e r a p p l ic a t io n s u b m it t e d u n d e r s e c t io n 5 0 5 (b )o f t h e F e d e r a l f o o d , d r u g , a n d c o s m e t ic a c t .
  • 4. Drug Develo pmen tF o r m u l a t io n s t u d ie s in v o l v e d e v e l o p in g ap r e p a r a t io n o f t h e d r u g w h ic h is b o t h s t a b l ea n d a c c e p t a b l e t o t h e p a t ie n t . F o r o r a l l ytaken d r u g s ,t h is us ually in v o l v e sin c o r p o r a t in g t h e d r u g in t o a t a b l e t o r ac a p s u l e . It is im p o r t a n t t o a p p r e c ia t e t h a t atablet c o n t a in s a v a r ie t y of others u b s t a n c e s a p a r t f r o m t h e d r u g it s e l f ,a n ds t u d ie s h a v e t o b e c a r r ie d o u t t o e n s u r eth at th e d rugis c o m p a t ib l e w it h t h eDrugo t h e r s u b s t a n c e s .Phase Manner Development of s e C l in ic a l T r ia l P h a s e I D r u g L o a d C l in ic a l T r ia l P h a s e II C l in ic a l T r ia l P h a s e III(F e a s ib il it y o n t h e b a s is o fT e m p e r a t u r e ,h u m id it y ,o x id a t io n a n d p h o t o l y s is (U l t r a v io l e t c l e a r a n c e )
  • 5. Indian Pharma Story India Pharma sector will lead to US $ 21 b by 2015The Indian Domestic Pharma Story is foundedon 4 Pillars,What we call as 4 A  Affordabability  Access  Awareness  Ailments
  • 6. Indian Pharma Market is growing CAGR @ 6% & willreach to 12,72,121,cr. Market by 2015.
  • 7. More Details on Ailments.
  • 8. USFDA Approval in Pharma sector?1. USFDA approval is needed for launching medicine in open market in US.2. Drugs are feasible on Temperature,Humidity,Oxidation.3. Drugs are in line with Medical Formulation for curing the disease or reducing the impact of the diseases.
  • 9. Latest FDA Approvals ,Launch & Tie ups in Pharma Sector. Glenmark gets USFDA approval for hypertensive drug. Sun Pharma receive USFDA nod for generic proscar tablet. Dr. Reddys resolve patent litigation of generic Lipitor with Pfizer. Lupin to Market Sanofis CNS brands in Phillippines. Dr. Reddys launches Allegra D24 OTC Tablet in US Market. Rainbaxy Launches Painkiller in Domestic Market. Orchid restarts production of API Facility.
  • 10. The upcoming patent cliff : T h e l e a d in g g l o b a l p h a r m a c e u t ic a l f ir m s a r e f a c in g s o m e c h a l l e n g in g t im e s a s a s ig n if ic a n t n u m b e r o f p a t e n t s f o r b r a n d e d d r u g s a r e s e t t o e x p ir e o v e r t h e n e x t f iv e y e a r s . F r o m 2 0 1 1 -2 0 1 5 , t h e t o t a l v a l u e (a s m e a s u r e d b y a n n u a l s a l e s )o f p a t e n t e x p ir a t io n s is e x p e c t e d t o b e a r o u n d $ 1 0 0 b il l io n , a s ig n if ic a n t in c r e a s e f r o m $ 7 3 b il l io n in p a t e n t e x p ir a t io n s o v e r t h e p r e v io u s f iv e y e a r s . In d ia n p h a r m a c e u t ic a l c o m p a n ie s c a n c a p it a l iz e o n t h is o p p o r t u n it y d u e t o t h e ir f ir s t m o v e r a d v a n t a g e , s t r o n g p r o c e s s e n g in e e r in g s k il l s a n d a c c e s s t o l o w -c o s t t a l e n t .E x a :
  • 11. Benefits & Precautions of Patent Expiration toIndian Companies1.Globally Competitive in the 1.Focus on Long Term & Niche generic business Segment.2.The First Mover Advantage 2.Strong Competitive position3.Low-Cost Manufacturing 3.Backward integration. Base4.Deep and Low-cost talent Pool.
  • 12. Details on Precautions 1.Focus on Complex & Niche Segment :Long-term growth can be generated by focusing in specialized therapeutic areas and/or more complex molecules. 2.Strong Competitive Positioning : New drug delivery systems can be used to compete with drugs whose formulation patents have not expired. These segments tend to be less competitive, but development of such applications requires significant capabilities in both research and marketing. 3.Backward integration:Backward-integrated generic players with captive Active Pharmaceutical Ingredient ( API) manufacturing capabilities are likely to enjoy higher margins.
  • 13. Domestic Pharma SectorGrowth Rate : 16.5% in 2010.Highest Market Share : CiplaLarges selling Brands : Cough Medication “Corex” ( Pfizer)Largest Growing Drugs : Abbotts insulin ( 27% rise) Novartis Voveran ( 6%)
  • 14. Important comments by Azaz Motiwalaon Indian Pharma• T h e G l o b a l m a r k e t is e x p e c t e d t o g r o w b y 7 % t o 8 % o v e r n e x t 5 y r s . R e a c h in g a n a n t ic ip a t e d $ 1 .7 t r il l io n2 . In d ia n c o n s u m e r s p e n d 1 % o f h is t o t a l in c o m e o n D r u g s & P h a r m a c e u t ic a l ,h o w e v e r r is e in p e r c a p it a in c o m e w il l t r ip l e t h e s a m e b y 2 0 2 0 .3 . G o v e r n m e n t s l o n g t e r m v is io n o f m a k in g q u a l it y h e a l t h c a r e a f f o r d a b l e ,a t l e a s t 5 0 % o f In d ia n p o p u l a t io n s h o u l d b e c o v e r e d u n d e r h e a l t h in s u r a n c e b y 2 0 2 0 a g a in s t 1 5 % t o d a y .4 . In d ia n h e a l t h c a r e in d u s t r y is e s t im a t e d t o b e w o r t h o f $ 2 7 5 .6 b il l io n .5 . In d ia n p h a r m a in d u s t r y w il l b e in T o p 5 in t h e w o r l d b y 2 02 0.Azaz Motiwala ,F o u n d e r ,Ik o n M a r k e t in g C o n s u l t a n t
  • 15. Key Success factor for evaluation of Indian Pharma companies
  • 16. Price Movements for BSE Health care Index v/s BSE Sensex
  • 17. G L E N M AR K P H AR M A
  • 18. Introduction• R e s e a r c h -d r iv e n , g l o b a l , in t e g r a t e d p h a r m a c e u t ic a l co mpan y• L e a d in g p l a y e r in d is c o v e r y o f n e w m o l e c u l e s – N C E s (n e w c h e m ic a l e n t it y ) – N B E s (n e w b io l o g ic a l e n t it y ) – 1 3 m o l e c u l e s in v a r io u s s t a g e s o f p r e c l in ic a l & c l in ic a l d e v e l o p m e n t• S ig n if ic a n t p r e s e n c e in Br a n d e d G e n e r ic s acro s s E m e r g in g E c o n o m ie s• O u t -l ic e n s in g d e a l s w it h G l o b a l P h a r m a m a j o r s r e - a f f ir m s G l e n m a r k ’s s t r e n g t h in d is c o v e r y• 1 2 M a n u f a c t u r in g f a c il it ie s l o c a t e d in 4 c o u n t ir e s
  • 19. B u s in e s s M o d e l E l u c id a t e d
  • 20. Specialty Business : Drug Discovery• P r im a r il y f o c u s e d in t h e a r e a s o f – in f l a m m a t io n – m e t a b o l ic d is o r d e r s – p a in• R o b u s t p ip e l in e o f m o l e c u l e s (N C E ’s & N B E ’s ) – 7 m o l e c u l e s a r e in c l in ic a l t r ia l s s t a g e• P o t e n t ia l p e a k s a l e s o p p o r t u n it y f o r e a c h m o l e c u l e b e in g in t h e r a n g e o f U S D 1 -1 0 b il l io n
  • 21. Molecules under research
  • 22. Specialty Business :Formulations Business• C u r r e n t l y o r g a n iz e d a r o u n d f o u r r e g io n s – In d ia – L a t in Am e r ic a – Ce n t r a l Ea s t e r n Eu r o p e – S e m i R e g u l a t e d M a r k e t s o f Af r ic a /As iaF o c u s o n t h e r a p e u t ic a r e a sd ermato lo gy -c a r d ia c – a n t i-in f e c t iv e s -d ia b e t e s r e s p ir a t o r y -g y n e c o l o g y -C N S
  • 23. Specialty Business : Generics• G l e n m a r k G e n e r ic s L t d (G G L ), a s u b s id ia r y o f G l e n m a r k Ph a r m a• It c o m p r is e s o f U S G e n e r ic s , E u r o p e G e n e r ic s , AP I a n d O n c o l o g y b u s in e s s e s• G G L s M a r k e t in g S t r a t e g y : – d e v e l o p in g , m a n u f a c t u r in g , s e l l in g , a n d d is t r ib u t in g g e n e r ic p r o d u c t s t h r o u g h w h o l e s a l e r s , r e t a il e r s a n d p h a r m a c y c h a in s• G G L s f o c u s o n n ic h e b u s in e s s s e g m e n t s : – D e r m a t o l o g y ,H o r m o n e s ,C o n t r o l l e d S u b s t a n c e s , O n c o l o g y , M o d if ie d R e l e a s e P r o d u c t s• It m a r k e t s a r o u n d 6 5 AP Is g l o b a l l y , in c l u d in g t h e U S , v a r io u s c o u n t r ie s in t h e E U , S o u t h Am e r ic a a n d In d ia .• G G L h a s s o f a r f il e d 4 1 D M F s (D r u g M a s t e r F il e s )w it h t h e U S -F D A.
  • 24. Diverse Product Portfolio
  • 25. Segment Revenue Break-Up
  • 26. St r e n g t h b e yo n d Nu m b e r s• G r o w t h in n e t s a l e s d r iv e n b y r o b u s t g r o w t h in S p e c ia l t y & G e n e r ic s b u s in e s s e s in t h e d o m e s t ic a n d g l o b a l m a r k e t s• B o o k e d o u t -l ic e n s in g in c o m e r e l a t e d t o G B R 5 0 0 o f 1 1 1 .2 c r o r e a s a g a in s t 8 9 .5 c r o r e (r e l a t e d t o G R C 1 5 3 0 0 )in Q 1 F Y1 1 . T h e r e m a in in g U S $ 2 5 m il l io n w il l b e b o o k e d in Q 2 F Y1 2• L a t in Am e r ic a n a n d C a r ib b e a n m a r k e t s s a l e s w it n e s s e d r o b u s t gro w th d ue to lo w bas e• L AT AM R e g io n t o b e E B ID T A n e g a t iv e f o r n e x t 2 y e a r s a s it is s t il l in in v e s t m e n t p h a s e . T h u s im p l y in g r o b u s t r e v e n u e g r o w t h p o t e n t ia l in t h e l o n g e r t e r m• M a n a g e m e n t g u id a n c e f o r g r o w t h o f 2 5 % g r o w t h in U S in F Y 2 01 2 d u e t o : – L a u n c h o f k e y p r o d u c t s : M a l a r o n e & C u t iv a t e in Q 3 F Y1 2 a n d Q 4 F Y 1 2 r e s p e c t iv e l y
  • 27. Share Price Data
  • 28. Financial Snapshot
  • 29. Trend in EBITDA and PAT Margins
  • 30. • Gl e n m a r k h as v a r io u s prod ucts in c l in ic a l d evelo pmen t s tages . – C r o f e l e m e r c o m p l e t e d it s P h a s e III c l in ic a l t r ia l s a n d is e x p e c t e d t o l a u n c h in b e g in n in g o f F Y 1 3 . – Al s o r e c e iv e d $ 1 5 m n f r o m S a l ix P h a r m a f o r u p g r a d in g m a n u f a c t u r in g f a c il it y t o m e e t h ig h e x p e c t e d d e m a n d o f Cr o f e l e m e r .• L a u n c h e d t w o p r o d u c t s in Q 1 F Y 1 2 i.e . V o r t h T P & D o r ig e n in t h e o r t h o p a e d ic s e g m e n t .• r e c e iv a b l e d a y s h a v e d r o p p e d t o 1 2 5 f r o m 1 4 0• S e t t l e m e n t o f l im it e d c o m p e t it io n p r o d u c t s l ik e F l u t ic a s o n e P r o p io n a t e l o t io n (m a r k e t s iz e U S $ 4 4 m n ) a n d H y d r o c o r t is o n e B u t y r a t e c r e a m (m a r k e t s iz e U S $ 3 8 m n ) w o u l d a l s o p e p u p t h e g r o w t h in t h e n e x t 2 years• L a s t f is c a l it l a u n c h e d 1 9 p r o d u c t s a n d plan s to l a u n c h 1 5 p r o d u c t s in c u r e n t f is c a l .
  • 31. Valuation Matrix
  • 32. Salesforce Productivity
  • 33. Prescription Ranking
  • 34. Strengths RisksS t r o n g R & D p ip e l in e D e l a y in p r o d u c t a p p r o v a l sPl a n s t o l a u n c h 7 p r o d u c t s R is in g c o m p e t it io n in t e n s it ya n d f il e 1 5 -2 0 AN D A’s in F Y 1 2 Fr a g m e n t e d Ma r k e t S h a r eS a t is f a c t o r y p r o s p e c t s f o r R a p id P r ic e E r o s io no u t -l ic e n s in g d e a l s Ad v e r s e v e r d ic t in t h eF o c u s o n n ic h e s e g m e n t s in t h e o n g o in g T a r a k a L it ig a t io nU S m a r k e t w h e r e p r ic e e r o s io nis n o t s t e e p in c l u d e s : H ig h l y r e g u l a t e d m a r k e to r a l c o n t r a c e p t iv e sCo n t r o l l e d S u b s t a n c e sDermato lo gy
  • 35. LUPIN
  • 36. Formulations BusinessP r o m o t e d b y D r . D e s h B a n d h u G u p t a , a f ir s t g e n e r a t io ne n t r e p r e n e u r , L P C is In d ia ’s f if t h l a r g e s t c o m p a n y b yd o m e s t ic s a l e s .G l o b a l F o r m u l a t io n s b u s in e s s c o n s t it u t e s c l o s e t o 8 4 %o f L u p in ’s o v e r a l l b u s in e s s m ix , a n d in t e r m s o fg e o g r a p h ie s , U S A is it s l a r g e s t m a r k e t o u t s id e In d ia . 6 7 % o ft h e o v e r a l l b u s in e s s o f t h e C o m p a n y c o m e s f r o mIn t e r n a t io n a l M a r k e t s
  • 37. Active Pharmaceutical Ingredients ( API)• AP I s p a c e is d r iv e n b y t h e t w o As ia n g ia n t s C h in a a n d In d ia .
  • 38. • Th e C o m p a n y ’s w id e prod uct bas k et c o m p r is in g f o r m u l a t io n s f r o m C V S , C N S , An t i-As t h m a , An t i-T B , D ia b e t o l o g y , D e r m a t o l o g y , G I, a n d o t h e r t h e r a p y segments• P l a n t s h if t f r o m G o a t o In d o r e S E Z• M e d ic is P h a r m a t o u s e L u p in R & D p l a t f o r m f o r U S $ 2 0 m il l io n T o m a r k e t E l i L il l y ’s H u m in s u l in p r o d u c t s in d o m e s t ic mark et wo rth 1 25• S ig n e d a n a g r e e m e n t w it h N a t c o P h a r m a t o j o in t l y c o m m e r c ia l is e a g e n e r ic e q u iv a l e n t G S K ’s c a n c e r d r u g T y k e r b w o r t h U S $ 1 1 3 .6 m il l io n
  • 39. Valuation• O n t h e U S f r o n t , t h e l a u n c h o f Al l e r n a s e• N e w p r o d u c t l a u n c h e s e s p e c ia l l y O c s w il l d e t e r m in e t h e c o u r s e . T h e l a u n c h o f g e n e r ic F o r t a m e t (a n t i- d ia b e t ic )a n d Z ip r a s id o n e (a n t i-p s y c h o t ic )in t h e c u r r e n t f is c a l a n d T r ic o r (a n t i c h o l e s t e r o l )a n d C o m b iv ir (a n t i- r e t r o v ir a l )in F Y 1 3 w il l b e k e y t r ig g e r s t o w a t c h o u t for.• L a u n c h e d 6 n e w p r o d u c t s in Ja p a n l a s t f is c a l a n d p l a n s f o r 6 t o 7 in F Y 1 2• S u p r a x s a l e s g r e w 3 0 % a n d An t a r a in s in g l e d ig it• F il e d 4 AN D As t a k in g t o t a l t o 1 5 2 – 51 appro ved P l a n s t o l a u n c h 8 t o 9 p r o d u c t s in U S b e t w e e n Q 2 F Y 1 2 – Q 4 F Y1 2 S o u t h Af r ic a s a l e s in c r e a s e d b y 4 7 %
  • 40. Valuation Matrix
  • 41. Strengths Risks• G iv e n it s h e a l t h y g e o g r a p h ic m ix (8 0 % s a l e s • E a r l ie r t h a n e x p e c t e d f r o m In d ia , U S & Ja p a n ) G e n e r ic c o m p e t it io n in• D if f e r e n t ia t e d p r o d u c t s Suprax a n d r o b u s t f in a n c ia l • IN R a p p r e c ia t io n w o u l d m e t r ic s . h u r t , g iv e n it s e x p o s u r e• B ig p r o d u c t r o l l o u t in to glo bal markets t h e U S , in c l u d in g n ic h e /P IV • Re a s o n a b l e e x p o s u r e t o oppys the d o m e s t ic• G r o w t h in e m e r g in g f o r m u l a t io n s market m a r k e t s (in c l u d in g In d ia )& (c 3 0 % o f s a l e s ) Ja p a n • In a b il it y t o e f f e c t iv e l y• M a r g in im p r o v e m e n t b y s cale up the Ky o w a b a c k e n d in g s o u r c in g t o o p e r a t io n s o r An t a r a In d ia f r o m Ja p a n & r is in g s ales . US s a l e s
  • 42. GlaxoSmithKline
  • 43. Stock Data Market Cap Rs179.4bn/US$4.0bn Share Outstanding 84.7 52-week Range (Rs) 2478/1842 Free Float(%) 49.3 FII(%) 16.8 Sensex Return 12m(%) 5.2
  • 44. IN T R O D U C T IO N GSK Pharma is the 4th largest formulations company in India, with a strong presence in segments like dermatology, respiratory and vaccines. Its parent has one of the richest product and R&D pipelines among Pharma companies worldwide .T h e c o m p a n ie s in t h e p r o c e s s o f e x p a n d in g it s p r e s e n c e in t h e l if e -s t y l e s e g m e n t l e d b y n e w l a u n c h e s f r o m t h e p a r e n t s p o r t f o l io , l a u n c h o f b r a n d e d g e n e r ic s a n d in -l ic e n s in g .
  • 45. GSK Pharma is a 50% subsidiary of GSK Plc ( UK) and isbeing currently managed by Dr. Hasit Joshipura ( MD) .Maintaining a leading presence in India and sustaining oneof the highest p r o f it a b il it y a n d r e t u r nr a t io s in t h e in d u s t r y d e s p it e m in is c u l ep r e s e n c e in t h e h ig h -g r o w t h l if e -s t y l es e g m e n t s is t h e k e y a c h ie v e m e n t .
  • 46. SPECIALLTY OF BUSINESSGSK derives majority of its business from acute therapeutic s e g m e n t s a n d h a s v e r y l it t l e p r e s e n c e in t h e c h r o n ic s e g m e n t s .G S K d e r iv e s 9 5 % o f it s r e v e n u e s f r o m a c u t e t h e r a p e u t ic s e g m e n t s w it h d o m in a n t p r e s e n c e in An t i-in f c e t iv e s , d e r m a t o l o g y , p a in m a n a g e m e n t a n d V it a m in s .It r a n k s n o .1 in d e r m a t o l o g y s e g m e n t , n o .3 in P a in man agemen t an d V it a m in s s e g m e n t s a n d n o 5 in AI a n d r e s p ir a t o r y segments.
  • 47. SPECIALLTY OF BUSINESSG S K is a m o n g t h e l a g g a r d s w h e n it c o m e s t o laun ch o f n ew p r o d u c t s . GS K h a s laun ch ed very few n ew pro d ucts o ver th e l a s t 4 y e a r s c o m p a r e d t o it s p e e r s .It h a s l a u n c h e d 5 n e w p r o d u c t s (in c l u d in g l in e e x t e n s io n s ) a n n u a l l y o v e r t h e l a s t 4 years .R a m p -u p in d o m e s t ic f o r m u l a t io n s r e v e n u e s is d r iv e n l a r g e l y b y e x is t in g p r o d u c t s . .
  • 48. SPECIALLTY OF BUSINESSN e w l a u n c h e s : G S K l a u n c h e d t w o in n o v a t iv e p r o d u c t s , n a m e l y Revol e (o r a l ad platelet gen erato r) an d Votrient (o n c o l o g y ) in Ju l y ’1 1 .In a d d it io n , t h e c o m p a n y h a s a l s o laun c h a bran d ed g e n e r ic a n d a d e r m a prod uct f r o m t h e S t ie f e l p o r t f o l io .GS K r e m a in s o n t r a c k t o laun c h e ig h t b r a n d e d g e n e r ic s in C Y 1 1 .
  • 49. Prescription ranking of GSK
  • 50. Top 10 brands of GSK
  • 51. VALUATIONYear to Dec CY 09E CY 10E CY 11E CY12E 12Net Revenue(Rs mn 19078 21511 25146 28798 10Net Profit (Rs mn) 5097 5606 703 8415 8Dil.EPS(Rs) 59.1 68.3 83.9 99.3 Column 1 6 Column 2 Column 3% Chg YoY 8.1 15.5 22.8 18.5 4P/E(X) 35.9 31.1 25.3 21.4 2EV/EBITDA(X) 23.9 20.9 16.4 13.3 0 Row 1 Row 2 Row 3 Row 4
  • 52. Distribution and ReachGSK derives 60% of its revenue from metros and Class-I towns compared with an industry average of 63% . O v e r t h e p a s t f o u r y e a r s r e v e n u e C AG R f o r a l l g e o g r a p h ie s h a s l a g g e d the in d u s t r y a v e r a g e . H o w e v e r , G S K s C Y 1 0 g r o w t h in a l l g e o g r a p h ie s w a s in h ig h e r d o u b l e d ig it s .
  • 53. Improvement in MR productivityG S K s r e v e n u e p o s t e d C AG R o f 8 .7 % o v e r C Y 0 4 -1 0 a n d it s s a l e s f o r c e p o s t e d C AG R of 5 .9 % over C Y0 4 -1 0 , im p l y in g im p r o v e m e n t in s a l e s f o r c e p r o d u c t iv it y .In 2 0 0 4 , G S K d e r iv e d IN R 6 .5 m r e v e n u e p e r M R , w h ic h r o s e t o IN R 7 .7 m in C Y 1 0 . G S K s c u r r e n t M R p r o d u c t iv it y is a r g u a b l y o n e o f t h e b e s t in t h e in d u s t r y .
  • 54. Cadila Healthcare
  • 55. STOCK DATA
  • 56. Cadila is amongst one of the largest domestic pharma companies in India with a strong focus on the global INTRODUCTION generics opportunity.Th e c o m p a n y is g r a d u a l l y b u il d in g it s p r e s e n c e in t h e r e g u l a t e d g e n e r ic markets beginning with the US and France It a l s o p l a n s t o t a p s o m e u n iq u e o p p o r t u n it ie s t h r o u g h it s Jv s w it h N y c o m e d , H o s p ir a .B a y e r a n d Bh a r a t S e r u m s .It is p r o m o t e d b y Mr. Pankaj Patel.H is k e y a c h ie v e m e n t is S u s t a in in g s t r o n g g r o w t h a n d r e t u r n r a t io s c o u p l e d w it h a v e r y c o n s e r v a t iv e , l o w -r is k m a n a g e m e n t . .
  • 57. SPECIALLTY OF BUSINESSCadila is among the top three players in two of the largest therapeutic segments, CVS and GI.The company ranks first in the fast growing gynecology Segment.C a d il a s in t e r n a t io n a l b u s in e s s , g iv e n it s s t r o n g c h e m is t r y s k il l s a n d p r a g m a t ic m ix of it s g e o g r a p h ic presence an d p a r t n e r s h ip s .
  • 58. The top 3 therapeutic segments, CVS, GI and gynecology, Prescription ranking of Cadila contribu about half of Cadilas domestic formulations revenue. Ot h er lar g e s eg m e n t s u c h as r e s p ir a t o r y a n d a n t i-in f e c t iv e , c o n t r ib u t e 1 1 % a n d 1 0 % r e s p e c t iv e l y t o t o t al r ev en u e. Ov er t h e p as t 1 0 ye ar s , t h e c o n t r ib u t io n o f C V S a n d G Is e g m e n t s t o r e v e n u e r o s e f r o m 2 4 % t o 3 7 % w h il e t h a t o f r e s p ir a t o r y a n d a n t i-in f e c t iv e s e g m e n t s f e l l f r o m o v e r 3 2 % in F Y0 1 t o l e s s t h a n 2 1 % in F Y1 0 .
  • 59. Prescription ranking of Cadila
  • 60. Distribution and ReachCadila derives 65% of its revenue from metros and class-I town compared with 63% of the industry average. In the past four years, revenue CAGR for all geographies except metros were in line or marginally better than that of the industry average.
  • 61. Valuation FY10 FY11 FY12 FY13summaryEPS(IN Rs) 24.7 37.7 40.5 52.9PE(X) 35.4 25.2 21.6 16.5Target PE(X) 38.6 27.5 23.6 18EV to 24.8 20.5 17 12.6EBITDA(X)Price to 11.8 8.9 6.8 5.2book(x)RoNW(%) 37 38.7 34.3 34.7
  • 62. Improvement in MR productivityCadilas domestic formulations business revenue posted 9.2% CAGR over FY04-10 and its sales force posted 11.3% CAGR, implying negative productivity of the workforce.In 2004, Cadila derived sales of INR4.1m per MR, which fell to INR3.6m in FY10.Cadilas performance was below average, compared with the average of performances covered in the report . .
  • 63. THANK YOU

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