1,000,000,000Happiness is in crossing the$1 billion mark
Exhilaration is in aiming formore!!
Stepping beyondthe billion, we aspire to achievesales of 3,000,000,000by 2015.
CHAIRMAN: MR.PANKAJ PATEL
Financial Highlights (Consolidated)
Financial Highlights (Consolidated)
• Management’s Discussion and Analysis – 2010-11
GLOBAL ECONOMY• The real GDP of the global economy is estimated to have expanded by 3.9% in 2010, led by a strong domestic demand in the developing countries.• After the downward trend following the global economic crisis post 2008. This has been supported by a resurgence in the international and domestic financial flows and a hike in commodity prices, which has helped economies of the developing countries regain the growth rates close to those observed in the pre-crisis period.• Conversely, the recovery process in many high-income countries has been weaker
GLOBAL PHARMA INDUSTRY • Global pharma industry has grown up by 45 in fiscal year 2010-11. • While in 2009 it was around 5.5% and average of last 5 years is 5.9%. • Two regions:1. Pharmerging markets: 14% growth (Asia , Africa &Latin America).2. America, europe and Japan :where growth is less than 3%. Reasons: low cost manufacturing, standard of living ,favorableregulatory enviornment.
Indian economy • In year 2010-11: GDP growth was 8.6% which is remarkable with respect to mute global growth.Pharma market: Double digit growth. Is in top 10 world markets In fiscal year 2010-11,15% growth (Rs 48000 crore size) chronic therapy dominates and export of generics increased.
OPERATING HIGHLIGHTS• Goal of “HEALTHY BILLION” set 4 years back.• The year 2010-11 has been a special one for the Company as it marched ahead to achieve the goal of $1 bn in consolidated revenues by March 2011.• An overall improvement in business health parameters – growth, market share, productivity, margins and returns and increase in value for all the stakeholders.
ACCOUNT OF INITIATIVES AND ACHIEVEMENT:INDIA FORMULATIONS • In fiscal year 2010-11:1. Sales 16,200 mio.,2. Maintained market share of 3.73%Reasons: Increase In market reach ,portfolio expansion ,marketpenetration,new product introduction.Strategic expansion of field force in cardiology and respiratory segments.New divison of “Zydus Heptiza” • Focus was on strengthening the Pillar Brands.17 of companies Brands are in top 300 Pharma brands. • With the launch of VaxiFlu-S, the Company became the first to launch an indigenously developed and manufactured H1N1 vaccine in India. • The new products launched in 2010-11 contributed to about 4% in the growth of the formulations business in India.
The Company maintained its strong position in the participated marketsegments of cardiovasculars, gastrointestinals, women’s healthcare andrespiratory.
International Formulations Business • UNITED STATES:Name: ZYDUS Pharmaceutical Inc.(US)TYPE: 100% subsidiary Rs 9655 mio up by 44%. 11 products launced in US. Ranked 1.2 in generics in US. • EUROPE:ZYDUS France:2.7 Bn euros french generic market growing by 8%.Reason:Market Growth slow because absence of patent expiry & lowergeneric substitution rates. • LABORATORIOS COMBIX SL IN SPAIN: Spanish market grewby 16% in 2010 and crossed Euro 836 mio.
International FormulationsBusiness (contd) • JAPAN:World’s second largest pharm market.Name: Zydus pharma japan co.earlier known has Nippon Universal Pharma.In Japan, generic penetration increased by 22%in volume and 7 % by value.Reason: over-ageing population government incentives to lower healthcare costAMLODIPINE Is 1st Indian company to get marketing approval for productin Japan which has approval in India.Pharma-emerging markets:Brazil:healty groeth in branded and puregenericsAsia-pacific,africa and middle east show appropriate growth.Srilanka,Myanmar,Sudan,Uganda CO. Has leadership postions.Mexico:appro. Pharma market 8 bn $,growth 8%.
WELLNESS DOMAIN• Consumer healthcare and wellness:It is a niche segment within overall FMCG.• Name :Zydus wellness (72% stake)• Brands :sugarfree,everyuth,nutralite.• These brands have good brand equity.• Registered sales of Rs. 3355 mio., up by 25% and a net profit of Rs. 595 mio., up by 31%.• NEW VARIANTS: Sugarfree tealite & ACTILIFE.
API AND INTERMEDIATES• Stagnant Growth In 2010-11,17% growth• Challenges :price erosion and appreciation of Rupees.• JV with NYCOMED not included.• ANIMAL HEALTH BUSSINESS:• Name: Zydus Animal Health Ltd.• Product: Drug ,feed , supplement and vaccine for live stocks and poultry.• During the year 2010-11, ZAHL posted sales of Rs. 1,390mio., with a growth of 17%, driven by robust growth in most of the segments.• 10 New products launch.• 3 new vaccines for poultry launced.• ZAHL received the Indian Poultry Journalists Association Award 2010 for ‘The Best Poultry Health Care Products Company’ of India.
Zydus BSV Pharma:• Zydus BSV Pharma Pvt. Ltd:(ZBSV), The 50:50 JV set up in alliance with Bharat Serums and Vaccines Ltd., owns rights to a novel and patented product for use in Oncology.• ZBSV has completed the Phase II clinical study during the year and will now initiate the Phase III study.Its brand name ‘Nudoxa’ continues to enjoy a strong brand position among indian practioners.
RESEARCH AND DEVLOPMENT• NME research , NDDS , biologics,vaccines formulations & API are key areas of research.• 1050 dedicated scientists.
ALLIANCESZYDUS NYCOMED HEALTHCARE PVT LTD: 50:50JV between Zydus and Nycomed formanufacturing of key starting materials (KSM)for Pantoprazole.ZYDUS HOSPIRA ONCOLOGY (ZHOPL): the 50:50JV between Zydus and Hospira Inc., USA. Duringthe year 2010-11, it registered sales of Rs. 4,304mio. ABBOTT LOBORATORIES:It has being given license of 24 of branded generics in 15 key emerging markets where ABBOTTS position is strong.