The Era Of Generics By Shaji July 2009Presentation Transcript
David against Goliath! or the era of g e n e r i c s
compiled , translated and presented by : shaji john
Courtesy to Article of Mr. Uwe Schtor, Director-Exports Worwang Pharma, Germany .
G e n e r i c is a
bio equivalent copy
of a formulation drug,
& marketed after the patent expiry
of an innovator drug
Growth of Global Market of g e n e r i c s 1998 – 2008 Turn over in USD Billion
growth of g e n e r i cs
the growth of Generics , especially since 70’s, been facilitated by :
Increase of life-expectancy and increase of chronic diseases of elder population,
Slow temp of innovations and decrease of number of new molecules,
deficit of social and medical insurance funds, health sector reforms aimed to cut-down drug and therapy spending,
WHO recommends usage of Generics to make essential drugs more accessible to the people, especially the developing countries.
Country wise g e n e r i c s’ Share in the Global Pharma Market - 2008 18,3 14,27 OTHERS 7,4 3,5 2,73 SPAIN 12 3,9 3,04 ITALY 29 4,4 3,43 TURKEY 28 5,8 4,52 CANADA 20,3 6,1 4,76 GREAT BRITAN 13,6 6,9 5,38 FRANCE 37 8,7 6,79 GERMANY 69 42,4 33,07 USA Generic Share in the Domestic Market % Generic Share in the Global Market % Generics Share in the Global Market USD Billion Country
the total generic turn over touched $78 billions by 2008, which is 18-20% of the pharma market of leading developed countries.
Few factors which provides further growth of generics:
Expiry of patents of original molecules in the 8 basic markets with estimated total volume of $140 Billion by 2012 .
Necessity of alternates to expensive original drugs during the global financial crisis .
The upcoming Health Reform in US has been planned to give ample importance to generics
Growth of g e n e r i c s in Billion USD
Collaborations in the generic sector 2005-2007 736 Marix USA Mylan USA 4 900 Merck generics Ger Mylan USA 2007 230 Makiz Russia Stada Germany 324 Therapia Romania Ranbaxi India 494 Hemofarm Serbia Stada Germany 615 Betapharm Ger Dr. Reddys India 1 900 Andrx USA Watson USA 2 550 Pliva Croatia Barr USA 2006 not declared Heumann Germany Torrent India 5 650 Hexal/EON Labs Germany Novartis Swiss 2005 deal value Mill USD seller buyer year
? Actavis Island ? Ratiopharm Germany 2 150 Stiefel Lab USA GlaxosmithKline GB Kendrik Mexico Sanofi Aventis France 500 Medley Brazil Sanofi Aventis France 925 EBEWE Swiss Sandoz 2009 Collaborations in the generic sector 2008 & 2009 1 800 Zentiva Czech Sanofi Aventis France 4 600 Ranbaxi India Daiichi Sankyo Japan 7 500 Barr USA TEVA Israel 2008 deal value Mill USD seller buyer year
The g e n e r i c s GiANTS! 43 650 29 005 24 028 TOTAL 1 682 1 557 1 381 Japan Daichi-Ranbaxi 1 950 1 740 1 339 Island Actavis 2 139 2 033 1 569 Ger STADA Turn over Million USD Country Company 2 535 2 496 1 979 USA Watson 2 565 2 436 2 136 Ger Ratiopharm 5 137 2 166 1 257 USA Mylan 7 557 7 169 5 959 Swiss Sandoz 11 085 9 408 8 408 Israel TEVA 2006 2007 2008
the BIG pharma
If in 80s – 90s, attempts of multinational innovators and pharma giants did not succeeded, But the “BIG Pharma” aggressively invades to the g e n e r i c s sector in the past few years:
Transnational giants like Novartis, Sanofi-Aventis, Daiichi Sankyo floated own daughter companies to manufacture and market copies of own Innovator Brands. Now, these companies are in the top 10 Generic list!
Pfizer , the US Giant ignored g e n e r i c s in the past. But, in 2008, they floated the “Established Products Business Unit” and started with post patent products, especially Amlodipine of Norvasc, Sertralin (Zoloft) with sales of $10 Billion!
Also GreenHill with a turn over of $400 Mill and Billion $ worth Generics acquired from Wyeth!
Strategy of Pfizer
Pfizer prognosis up to 25% share in the total corporate turn over, by the newly floated generic unit.
2010 will be the turning point, as Lipitor, the $12 Billion Brand, expires the Patent.
75 Indian Generics for US
Also interested to note those license arrangements and agreements of Pfizer with, “Aurobindo” (India) and
“ Claris Lifesciences” (India)
for marketing and promotion of
75 INDIAN GENERIC BRANDS
in US & Europe.
Transnational Giants are not ready to spare potential of post patent molecules to Generic Manufacturers!
One more methods to hook significant share of Generics fm the Traditional Generic Players is to focus on Fast Growing Therapeutic Segments (Eg. Oncology):
So, Novartis strengthens their own Generic company Sandoz , by purchasing set of Oncology Generics from Austiran WBEWE for a sum of 922 Million Euro!
Strategic steps of the BIG PHARMA!
Sanofi-Aventis after the purchase of Czech Zentiva , Mexican Kendrick and Brazilian Medley continues their search among Generic Manufacturers to acquire more!
GSK purchased the Words Biggest Dermatology manufacturer Stiefel Labs US for $2,9 Billion!
Steps of the BIG PHARMA!
Also, GSK acquired 16% share of African Pharma manufacturer Aspen Pharmcare and given the rights to American Prasco Labs for realization of part of their Generics in US.
Merck floated MerckBioVentures to manufacture the so-called ‘BioSimilars’ – copy of biological products.
Target of the BIG PHARMA!
And after the sales of RatioPharma and Actavis the Generc Segment will be fully in the hands of the
The Tendency is to shift the manufacturing to the developing countries.
More Volume and Less Margin is the key to success and growth of the future Generic Market
Governments & MoH all of the World insists to reduce the prices as they procure more and more Generics through quotation trade basis.
This factor compelled the US and EU companies to reduce the prices and simultaneously to search manufacturing facilities with much lower production cost.
For this reason the Generic Manufacturing shifts to India, Malaysia, Indonesian and South East Asia.
The Asian and Indian factors
As a result, Supply fm India to Europe has grown 26% in 2008 in comparison with 2007!
The Asian share of global Generic market has grown to 30%!
Currently the Capital investment of Indian Companies in Western Europe grows.
Ranbaxi, DRL, Cipla, Wockardt, Torrent have aquired companies in Europe and participating in the supply to Govt Insurance system.
R E S U M E
Generic segment undergoes through a dramatic period: One side there are DRIVERS which enables dynamic growth. Other side - emergence of set of factors which suppress the Growth…
As a result, the tendency for Consolidation has become a necessity.
the ‘Big Pharma Monsters’ invades to the Generic Market as their growth had become impossible without Generic Business!
The BORDER between Generic Manufacturers and Innovators ERAZES as the new ‘HIBRID MONSTERS’ becomes more and more!
These ‘Hybrid Monsters’ will lead the show, who have both, Original as well as Copies!