2. FLOW OF
PRESENTATION
• Current scenario
• Facts & figures
• Growth drivers for the industry
• Opportunities
• Industry as the reason for growth
• News
3. Today, Indian Pharma industry is emerging as a global
powerhouse – becoming 3rd Pharma super power in the
international level.
4. India is accredited as the global pharmacy of the
developing world and has attained cost-competitive
manufacturing capabilities to provide quality medicines
at lower cost.
5. Facts & Figures
• Annual Turnover Rs. 226 b
• Growth rate 5.2%
• Share of World Pharma market
1.0% in value 8% in volume terms
6. • Global ranking 13th in value terms 4th in
volume terms
• Number of Generic Brands over 60,000
in 60 therapeutic categories
• OTC market Rs. 35 b growth 18-20%
• Alternative medicine - Herbal /
Ayurvedic market Rs. 38 b
7. Growth Drivers
•Increasing drug R&D costs in compared to India
•Enhanced healthcare investments in developing countries
•Healthcare reimbursement issues in the U.S. and Europe
8. •Scientific breakthroughs in Genomics and Proteomics
•Increasing cost and commercialization pressures in other
nations
•WTO patented forcements, and several other industry
dynamics
9. • Leveraging the domestic market
opportunity
• Moving up the value chain in
CRAMS(Contract Research and
Manufacturing Services)
• Increasing foothold in Biologics
Opportunities
10. i. Innovation drives pharmaceutical
business.
ii. Creating alliances.
iii. Addressing global markets.
iv. Generic medicines.
v. Embracing change in organizations.
5 Growth Areas
11. •Functions pertaining to
drug discovery
•Drug development
•Drug safety
• Formulation
•Production
• Quality control
• Quality assurance
•Regulatory
• Packaging
• Logistics
• Storage
•Sales & marketing
What in it for you?
Pharmacy professional might be involved in the
12. •Review scientific papers,
translation research,
•Review of regulatory
documents,
•Clinical research.
•The demand is increasing for
qualified professionals in the
newer segments such as:
oVenture capital banking
oMedical journalism
o Bio-it
oLaw
oCorporate
communications etc.
What in it for you?
Also involved to
13. • Exports Rs. 141 b , 40% .
• Future projections Rs. 1200 b (by
McKinsey)
• Number of units - 10,000 out of which
approximately 300 in organized sector
• Per capita drug expenditure Rs. 220 per
annum
Industry as the Reason for Growth
14. • US exports may drive top Indian
pharmaceutical companies to grow 20
percent in 2013.
• Adequate government support to further
boost the domestic market.
• Differential pricing strategy to strengthen
market reach.
NEWS
15. • Domestic companies are transforming their
business model to play a larger role in
Global Pharmacy market.
• Revenue growth optimism in
pharmaceutical industry: 2013 survey
reports at RnRMarketResearch.com
NEWS
http://tsmg.com/download/article/Emerging_Opportunities_Pharmabioworld.pdf
Leveraging the domestic market
opportunity
With the growth in US and developed
economies expected to taper off, emerging
economies like India are expected to drive
future growth. The key growth drivers in
these countries are increasing per capita
income, growing insurance penetration,
better health awareness, higher
government expenditure, adherence to
IPR norms and shift in disease profiles.
The Indian market was estimated at
USD 8 billion in FY2008 and is expected
to grow at 10-12% CAGR for the next
five years. Life style related or chronic
therapeutic segments are expected to
grow at a much faster pace than the more
traditional acute segments. Crisil forecasts
the Anti Diabetic segment to have a
CAGR of 19% over the period 2008-13
compared to 14% for the Anti-Infective
segment. This has led to MNCs such as
Pfizer, GSK, Roche and Sanofi Aventis
launching almost 15 on-patent products
in India with an eye on high value life style
related therapeutic segments.
Indian companies are well positioned
to partake of this huge domestic
opportunity. Indian companies need to
broaden their product portfolio to include
growing therapeutic segments such as
anti-diabetics, central nervous system
and cardiovascular. Companies can now
sell premium products to aspiring Indian
middle and high class, while at the same
time continue their focus on low value
but high volume bottom of the pyramid
class
Moving up the value chain in
CRAMS
India is today recognized as a global
manufacturing hub, with nearly 40-50%
lower production costs than the US and
the largest number of FDA approved
facilities outside the US. Several Indian
companies jumped on to the CRAMS
bandwagon during the first phase, which
was characterized by manufacturing low
value high volume intermediates, APIs
and carrying out clinical trials. Strong
domestic and international competition
has already brought down margins in
these traditional segments. The global
consolidation may trigger optimization
of assets both in manufacturing and
research thus affecting the future business
of contract service providers. CRAMS
companies could be at a disadvantage
during negotiation of contracts with the
consolidated entity as the quantum of
work offered by a single entity would
potentially increase.
Indian companies need to sustain their
competitive advantage by consistently
focusing on reducing costs and moving
up the value chain. CRAMS players need
to look at niche areas such as oncologyand other high-potency APIs. Antibody
drug conjugates (ADCs), which are
monoclonal antibodies linked to cytotoxic
small molecules, is another area where
contract manufacturers could look to
expand. Increased outsourcing in the
biopharmaceutical space also presents
the contract manufacturing companies
with new avenues for growth. Finished
product/ Dosage form, injectables
manufacturing and lypholization services
are the other promising areas for contract
manufacturers.
Focusing on meeting end to end needs
of innovator companies and venturing
into new areas in the CRAMS space would
allow Indian companies to differentiate
from other low cost manufacturing
nations and provide it the ability to give
better value and charge higher margins.
Increasing foothold in Biologics
The biologics market was estimated
to be nearly USD 70 billion in 2008.
Though this appears small compared to
the overall pharma market, there were
150 deals announced in 2008 alone
worth nearly USD 94 billion. These
deals mostly involved pharma majors
like Roche (Genentech), Eli Lilly & Co.
(ImClone Systems), etc. Closer home,
global majors GSK and Sanofi Aventis
were in detailed discussions to acquire
Shantha Biotech. Four biologics made
the top ten and seven biologics made it
into the top twenty selling drugs of 2008.
US biopharma companies alone spent
over USD 65 billion in R&D last year.
This has lead to a very robust product
pipeline with several drugs in late stages
of development. Even with the current
debate on Biosimilars (generic version of
biologics), the market opportunity post
patent expiry for most biologics in 2017
is expected to be immense.
Indian companies cannot afford to
miss the bus on biologics. This market
is still in nascent stage and offers a first
mover advantage to companies which
can get their strategy right. However
unlike the traditional pharma segment,
entry barriers are very high in this
space due to the investment involved.
Biologics based companies in the west,
which have previously received funding
from venture capitalists may now find it
difficult to raise cash under the current
economic scenario. This presents a good
opportunity for Indian pharma companies
with significant cash on their balance
sheet to scout for suitable targets to gain
market and technology access.
