1. Strategic responsiveness of the survivors of Big Pharma companies Amit Rangnekar NMIMS-PhD-2004 DIIS Seminar, Copenhagen 2 nd October, 2006
2. Industry Brief Pharmacies Takeda Pharmacies , dyes Roche, Hoechst, Ciba, Sandoz Pharmacies , dyes Wyeth, BMS, Lilly , Merck, Pfizer, Origin Cost controls Price controls, non harmonisation Pricing, marketing, innovation,generics Drivers / resistors 11% 29% 44% Market share Dominant, 8 of the top 10, account for 75% of local sales More US sales (43%) than European (34%), except SanofiAventis Strong US sales (60%), but low Europe sales (25%) Local companies Pharma Takeda, Sankyo Chemicals,agro,dyes, drugs, OTC- Hoechst, Bayer, Ciba, Sandoz Pharma, healthcare Pfizer, Merck, Wyeth, J&J Traditional focus on Japan Europe US
3. Key Growth Elements In Top 10 Markets IMS-Health MIDAS, December, 2005 9.1 2.5 4.3 2.3 Average 5.7 2.3 1.8 1.6 2005 7.2 2.3 2.7 2.2 2004 10 2.6 4.5 2.9 2003 9.2 2.6 4.3 2.3 2002 13.4 2.8 8.1 2.5 2001 Total New Products Volumes Price Year
6. Big Pharma v/s World Pharma Growth % World pharma growth (%) Big pharma growth (%) Big Pharma on an average, has grown at 67% more than the world pharma industry growth rate between 1995 and 2004
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10. Big Pharma 2004- Market shares since 1997 Survivors of Big Pharma Other Big Pharma
11. Big Pharma Geographical Ranking 4 10 10 29 47 WMS % Novartis Pfizer Pfizer GSK GSK No 2 GSK Pfizer Latin America Novartis GSK Asia (minus Japan) Astellas Takeda Japan Novartis SanofiAventis Europe J&J Pfizer North America No 3 No 1 Region
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13. Strategies of Survivors Use of strategy: High +++ , Moderate ++ , Low + ++ ++ Strategic stake Novartis Roche GSK BMS Merck Pfizer + +++ ++ Eur +++ + + US +++ ++ +++ ++ Organic growth + + Co-promotion + + Eur ++ Eur + US ++ +++ US Alliances M&A Origin
