5. Introduction
The pharmaceutical segment is seen as an integral part of the Indian healthcare market.
The pharmaceutical industry is comprised of companies engaged in researching,
developing, manufacturing and distributing drugs for human or veterinary use.
Advances in medicine have eliminated deadly diseases and have brought other life-
threatening conditions under control.
‘pharmaceuticals’ refers to innovative and generic products, chemically derived
products, and prescription-based and over-the-counter products.
6. STRUCTURE OF PHARMA SECTOR IN INDIA
Pharmaceuticals
Active pharmaceutical
ingredients/ Bulk drugs
Branded Generics
Formulations
Chronic
- Cardiovascular
- Anti Diabetes
- Gastro Intestinal
- Neurological
Acute
- Anti infectives
- Respiratory
- Pain
-Gynaecology
7. Present Scenario Of IPI
Indian pharmaceutical sector accounts for about 2.4 per cent of the global pharmaceutical
industry in value terms and 10 per cent in volume terms and its estimated worth is rs.
10000 crore.
Indian pharmaceutical industry is the third largest in terms of volume and 13th in terms of
value.
The market capitalization of Pharma Industry among Other sectors in India is 7%.
With 71 per cent market share, generic drugs form the largest segment of the Indian
pharmaceutical sector.
Indian drugs are exported to more than 200 countries in the world, with the US as the key
market.
Generic drugs account for 20 per cent of global exports in terms of volume, making the
country the largest provider of generic medicines globally and expected to expand even
further in coming years.
Attracted 5 per cent of the total FDIs into India from April 2000 to September 16.
Cumulative FDI inflows worth USD13.32 billion from April 2000 to September 16.
Currently there are 10500 manufacturing units and over 3000 pharma companies in India.
8. Patents Act
Indian Patents Act, 1970 was enacted containing provisions relating to
pharmaceutical patents.
In 2005, the patent laws in India made compliant with TRIPS.
Prior to 2005, only processes were patented and not the end product.
Now product patents have been permitted for over a period of 20 years.
Compulsory licensing (CLs) under patents act are aimed at preventing the
situation where the public health is prejudiced due to the patented product.
CLs are awarded if-
a. the reasonable requirements of the public with respect to the patented
invention are not satisfied.
b. if the patented invention is not available to the public at affordable price
9. Porter’s Five Theory
Bargaining power
of suppliers: Low
Bargaining power of
buyers: Medium
Intensity of
Competition: High
Threat of
Substitutes:Low
Barriers to
entry: High.
13. Growth Factors For Indian Markets
Increasing
fatal diseases
Accessibility
of drugs to
greatly
improve
Increasing
penetration of
health
insurance
Growing number of
stress-related diseases
due to change in
lifestyle
14. Recent News
Indian Pharmaceutical Association (IPA), whose members include companies such
as Sun Pharma, Dr Reddy's, Lupin, Cadila Healthcare, Torrent Pharma are worried
that the Trump administration might get tough on issues like IPR or invoke the
Trade Facilitation and Trade Enforcement Act of 2015 to curtail imports of
medicines from India.
In a move to curb the unethical practice of pharma companies seeking to influence
doctors and chemists through expensive gifts, the govt. has decided to impose a
ceiling rs.1000 on such giveaways and ban expensive freebies.
Despite capping of prices, demonetisation and GST implementation, the Indian
pharma sector, 58,000 additional job opportunities are likely to be created as the
industry is expected to grow up to 45 per cent by 2025.
15. Top 10 Companies In Indian Pharma Industry
Name Of Companies Turnover (rs.cr) Market Share
Cipla 12,034.06 15.72%
Lupin 11,280.07 14.74%
Sunpharma 10,207.70 13.33%
Dr. Reddy’s Lab 9,166.18 11.97%
Aurbindo Pharm 7,614.46 9.95%
Cadila Health 7,035.30 9.19%
Glenmark 6,113.50 7.98%
Torrent Pharma 5,428.94 7.094%
Alkem Lab 3,924.69 5.12%
Divis Lab 3,721.33 4.86%
18. Sunpharma
Sun Pharmaceuticals was established by Mr. Dilip Shanghvi in 1983 in Vapi with five
products to treat psychiatry ailments.
Cardiology products were introduced in 1987 followed by gastroenterology products in 1989.
Today it is the largest chronic prescription company in India and a market leader in psychiatry,
neurology, cardiology, orthopedics, ophthalmology, gastroenterology and nephrology.
The 2014 acquisition of Ranbaxy made the company the largest pharma company in India, the
largest Indian pharma company in the US, and the 5th largest specialty generic company
globally.
Sun Pharma was listed on the stock exchange in 1994 in an issue oversubscribed 55 times. The
founding family continues to hold a majority stake in the company.
Today Sun Pharma is the second largest and the most profitable pharmaceutical company in
India, as well as the largest pharmaceutical company by market capitalisation on the Indian
exchanges.
19. CIPLA
Cipla Limited is a pharmaceutical company based in Mumbai, India. Cipla makes drugs to treat
cardiovascular disease, arthritis, diabetes, weight control, depression and many other health
conditions.
Cipla is a global pharmaceutical company whose goal is to ensure that no patient shall be denied
access to high quality & affordable medicine and support.
Mission: Cipla’s mission is to be a leading global healthcare company which uses technology
and innovation to meet every day needs of all the patients.
Incorporated 1935
Cipla has 34 manufacturing units in 8 locations across India and has presence in 170 countries.
Employees 22,300+
Turnover USD 1.78 Billion
Founder (1898-1972) Dr. K.A. Hamied
20. Cipla Limited is a holding company. The Company is a pharmaceutical company.
The Company's strategic business units include Active Pharmaceutical Ingredients (APIs),
Respiratory and Cipla Global Access.
The Company's geographical segments include India, USA, South Africa and Rest of the World.
The Company manufactures metered dose inhalers, dry powder inhalers, nasal sprays, nebulizers
and a range of inhaled accessory devices.
Cipla Global Access is a tender-based institutional business that concentrates on approximately
four therapy areas: human immunodeficiency virus/acquired immuno deficiency syndrome
(HIV/AIDS), malaria, multi drug-resistant tuberculosis and reproductive health.
The Company offers its products for the therapeutic areas, including cardiovascular, children's
health, dermatology and cosmetology, diabetes, HIV/AIDS, infectious diseases and critical care,
malaria, neurosciences, oncology, ophthalmology, osteoporosis, respiratory, urology and women's
health.
22. Vision & Mission of The Companies
Sunpharma
Vision
With the prime objective of good health to
all, Sun India Pharmacy aims to be
amongst the top ten Generic Pharma and
OTC players in India in the span of next
ten years. We intend to achieve this with
the help of strategic growth and stringent
quality measures.
Mission
The mission of Sun India Pharmacy Ltd. is
good health and happiness for all. We
believe in utilizing modern science to bring
out the essence of nature and provide
effective and high quality medicines at
affordable prices.
Cipla
Vision
To become a center of excellence
in the manufacturing of quality,
affordable and newer medicines
Mission
To sustainably avail affordable
and efficacious medicines
in order to improve the quantity
and quality of life
24. Sunpharma
Dilip Sanghavi MD
Israel Makov Chairman
Sudhir V. Valia Executive Director
Sailesh T. Desai Executive Director
Hasmukh S. Shah Non Executive Independent Director
Keki M Mistry Non Executive Independent Director
Ashwin Dani Non Executive Independent Director
S. Mohanchand Dadha Non Executive Independent Director
25. Cipla
Dr. Y.K. Hamied Chairman
Dr. M.K. Hamied Vice Chairman
Mr. Subhanu Saxena MD-Global CEO
Mr. S. Radhakrishnan Whole Time Director
Ms.Samina Vaziralli Executive director
Mr. Umang Vohra Global COO
Mr. Kedar Upadhyay Global CFO
Mr. Mital Sanghvi Company Secretary
Mr. Ashok Sinha
Ms. Naina Lal Kidwai
Dr. Peter Mugyenyi
Mr. Adil Zainulbhai
Ms. Punita Lal
Independent Directors
29. Strategies Of Sun Pharma
• Pricing strategy :
• Sun Pharma has always try to maintain a reasonable pricing strategy to meet the needs
of the local people.
• It tries to optimise the operational cost thus help in maintain affordable prices. The
pricing policies followed by Sun Pharma is on par with the major competitors in its
marketing mix.
• Sun Pharma produces generic medicines at a very low cost thus giving it a competitive
advantage. With their diversified product line they have been able to meet both high
end and low end products.
• Leadership Strategy :
• Quality is considered paramount at all locations where they conduct regulated research,
development, manufacture, testing and distribution of pharmaceutical products.
• Their operations are driven by best-in-class technology and processes, abiding by all
major stringent regulatory approvals.
31. Strategies Of Cipla
Pricing Strategy-
Cipla is the leading health-care company in India and its aim is to provide access to high-
quality medicines at affordable rates.
In order to meet the needs of its patients, it has decided to keep an economic and reasonable
pricing policy.
For products that are exported it has maintained a competitive pricing policy, so that it can
successfully compete with its competitors.
Leadership Strategy-
Developing new drug formulations for existing and newer drug substances
Improving processes for existing API and formulation products.
Tie-ups with independent research teams to develop new products
33. Sunpharma
Strengths
Strong growth in emerging market
business
Introduction of Pantoprazole & Eloxatin
in US market has very limited
competition
They have strong marketing & sales
force of over 12,000 employees
They have successfully acquired Taro
pharma which has further consolidated
their position in Indian markets
5. Strong brand presence in India and
US markets.
Weaknesses
Stiff competition from many
Indian and other global brands
means limited market share
growth
Limited presence in emerging
markets and European countries
34. Opportunities
They can leverage their acquisitions
to further increase the growth
They can increase their presence in
contract manufacturing
Increasing healthcare awareness in
India
Threats
There is growing competition in
generics market
Stringent patent regulations
High price sensitivity of consumers
35. Cipla
Strengths Weaknesses
• Large basket of 1,500 formulations; and
Partnered 8 leading generics companies in
the US for nearly 125 projects.
• It is not present in CRAMS and
BioPharmaceutical segment which are the
best.
• Cipla has a voluminous productportfolio
containing more than 200brands some of
which are the leadingbrands in their
respective category.
• projected segment in the industry.
• The company has excellent processR&D
skills which are considered to beone of the
best in the country
• Impact of IPR regime.
• 18 brands that feature among the top-300
brands
36. Opportunities Threats
• Biotherapeutics – A new and
promising area.
• Partnership related
• Agreement with Avesthagen • Potential de-rating
• Venturing towards areas of
cardiology and anti-cancer.
38. Sunpharma
A year after it acquired New Delhi-based Ranbaxy Laboratories from Japan's Daiichi
Sankyo for close to $4 billion (around Rs 24,000 crore), Dilip Shanghvi-led Sun
Pharmaceutical Industries, in 2015, completed the merger of the two companies
GSK opiates business (2015) DUSA pharma ( 2012)
Licensing agreement with Merck for MK-
22 ( 2014)
TARO Israel (2010)
Acquired Pharmalucenses ( 2014) Chattem Chemcials (2008)
Formulation of Sun- Intrexon JV (2013) Acquired assets of Able Labs (2005)
URG generic business- Added 107
products to the cart (2013)
Caraco.(1997)
39. Cipla
Cipla Ltd has completed acquisition of Cipla Medpro South Africa Ltd at
around $512 million in 2013.
India's top drugmakers Cipla and Wockhardt are in advanced stages of
talks for a broader business alliance exploring the best synergies between
the two to tide over serious market and regulatory challenges globally.
Acquired InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc.
for $550 million (approximately Rs.3,657 crore) in 2015.
41. Sunpharma
Mobile Medical
Unit Programme
• Reducing infant and
maternal mortality
rate
• Promote Awareness
On HIV/AIDS
• Spent Rs.31.5 crore
towards the
program, covering
more than 60
villages across
India.
Maatra Shishu
Swastiya Sewa
Sanitation Project
• Aliened with “
sanitation for all by
2019” objective.
• Undertaken
projects to
construct
individual toilets.
• Created critical
awareness about
sanitation scheme,
best hygienic
practices in 7
villages.
Environmental
Conservation
Programme.
• Undertook
roadside
plantation at
panoli village &
distributed 2800
saplings in
madurantakam
area, with total
cost involving
rs.0.14 million.
• Contributed
towards up
gradation of
classroom, schools
and proper drinking
water facilities at
rural schools.
• Project’s cost was
rs.1.24 crore
benefiting 3859
students.
42. Cipla
Health
• Aspires to serve
the society by
aiding diagnosis,
treatments,
promoting
preventive
healthcare,
building
awareness,
setting rehab
centres, running
mibile health
vans, etc.
Education
• Infrastructure for
schools
• Education
centres
• Promoting e-
learning
• Mobile science
vans
• Sponsorships &
merit wards.
Skill Development
• Supports Skill
building
programmes
• Sponsorship for
employability skill
courses
• Skill development
courses in
healthcare
industry.
Disaster Response
• Health campus for
affected
communities
• Secure
environment for
the children for
their socio
emotional
development.
49. Sunpharma
Recently Sunpharma completed the buy back of shares worth rs.675 crores to return
surplus funds to its shareholders.
Signed an agreement with the international centre for genetic engineering and
biotechnology to develop a botanical drug to combat the dengue.
The share price of Sun Pharma surged 3.6 per cent last Tuesday. This followed the
company’s announcement that the US Food and Drug Administration (USFDA) had
proposed to lift the import alert imposed on its Mohali (Punjab) manufacturing
facility and remove the facility from the Official Action Initiated (OAI) status.
This will clear the path for Sun Pharma to supply approved products from the
Mohali facility to the US market. Currently, the US business accounts for 45 per
cent of the company’s total sales. In the near term though, earnings accretion may
not be much as the review and approval of drugs filed earlier from the Mohali plant
may take time.
50. Cipla
Cipla Health has appointed Law & Kenneth Saatchi & Saatchi as creative
AoR for the launch of ActivKids Immuno Boosters, a unique nutritional
supplement for kids that helps build their immunity.
Cipla is entering the Brazil and China markets to grow its emerging
markets (EMs) portfolio. And, is looking at further acquisitions to grow its
speciality business in the US.
Cipla has been recognized by Fortune magazine in the list of global firms
changing the world for the good and having a positive social impact
through their activities.
1st point. location- Baramati. (403750 tonnes from pg 10 of report.) TPA Tonnes per annum.
2. Top 26 by IndiaMart survey.
5. CV- commercial vehicle and private vehicle. From markets slide in report