Trends, Predictions and possible Roadmap for Pharma in India

1. Crystal Gazing
into
Pharma
MedicinMan – Brand Drift 2013 - 9th
February, Mumbai
Amlesh Ranjan
Values>Excellence>Value

2. The Buddha at Bodh Gaya
Amlesh Ranjan Feb’13
“In compassion lies the world’s true strength."
DISCLAIMER
The views expressed in this presentation are made in an individual capacity and do not necessarily
reflect those of Sanofi (the “company”) or any of its affiliates. Neither the company nor any of its
affiliates assumes any responsibility or liability of any use which may be made of any views expressed
here in.

3. 3
Amlesh Ranjan Feb’13
The Economic Times
8
th February 2013
Read your
Roti (bread),
Wash your
hands before
eating
it…...
Business
With
Responsibility

4. 4
“Marketing is not a function,
it is the whole business
seen from the
Customer's point of view.”
– Peter Drucker
Amlesh Ranjan Feb’13
Customer Centricity

5. 5
Pharma progression….
Amlesh Ranjan Feb’13

6. 6
Stormy landscape….
Cost ContainmentCost Containment
Redefining
Customers
Redefining
Customers
RegulationsRegulations
PricingPricing
ConsumerismConsumerism
OTCOTC
R&D - CostR&D - Cost
ProvidersProviders
PayersPayers
Amlesh Ranjan Feb’13

7. 33
67
133
267
0
50
100
150
200
250
300
2007 2012 2017 2022
ValueinBnUSD
Indian Healthcare Industry
Hospital
services,
50%Pharma,
25%
Insurance
& Med
Equipmt,
15%
Diagnostic
s, 10%
CAGR: 15%CAGR: 15%
Slow rate of growth
Bureaucratic
Poor infrastructure
No Product Patent
YESTERDAY
TODAYOne of the fastest growing
Less global impact
Investment in infrastructure
Product patent regime / R&D
TOMORROW
Rise in healthcare spending
Improved Health Insurance coverage
Rise in Govt spending on Healthcare
Improved medical Infrastructure
Source: Recreated based on India Pharma 2020: Propelling access and acceptance, realizing true potential- McKinsey, Marketing Whitebook, 2011-12
Indian healthcare trends,
USD Exchange rate: 45 INR
Hospital
services,
52%
Pharma,
21%
Insurance
& Med
Equipmt,
18%
Diagnosti
cs, 10%
Healthcare in India…
Amlesh Ranjan Feb’13

8. 8
Household Healthcare spend….
Source: IDFC Institutional Securities: Indian Pharma 2010

9. 9
Healthcare expenditure
6.7
Govt spend on HC in USD Bn
2006
11.7
7.7
9.2
2007 2008
+18%
Source: India Pharma 2020, Mc Kinsey; Overview of Indian Pharma Market, Accenture, Sept 11; Secondary
published reports and websites
Public Healthcare spend…
Share
of
GDP%
0.84% 0.88%0.84% 0.93%
2009
Amlesh Ranjan Feb13

10. 10
Source: India Pharma 2020, Mc Kinsey; Overview of Indian Pharma Market, Accenture, Sept 11; Secondary
published reports and websites
Health Insurance penetration…
Insurance penetration
300
655
45%
‘20‘10
No of people covered by insurance (% penetration)
26%
Amlesh Ranjan Feb13

11. Medical tourism…

12. Private Hospitals Growth…
Source: 1. CII McKinsey analysis; 2. ibef - WHO Statistical Information System, Yes Bank, estimates, Aranca Research

13. 13
Rising Healthcare
spend
Increase in adoption
of Health Insurance
Changing Disease
patterns
Key Drivers to
the growing
healthcare
sector
Resultant
Factors
Indian Healthcare drivers…
Amlesh Ranjan Feb’13

14. 14
Shifting Healthcare landscape…
Projected real per Capita Health spending in
India at current prices (2009-10)
Projected proportions of Public
and Private Out-of-Pocket Expenditure
Source: High level expert group report on Universal Health Coverage in India 2012 –
Planning commission of India & Public Health Foundation of India Amlesh Ranjan Feb13

15. 15
Agenda
For
Growth
Amlesh Ranjan Feb’13

16. 16
Opportunities in Geography…
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17. 17
Opportunities in Economy…
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18. 18
Opportunities in LCM…
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19. 19
Opportunities across Specialty….
Amlesh Ranjan Feb’13

20. 20
“30 – 50% of medicines prescribed for long-
term illnesses are not taken as directed.”*
Opportunities in Adherence…
*Adherence to Long-Term Therapies: Evidence for Action, WHO
**Fierce Healthcare article on Drug Adherence – Aug 12
Amlesh Ranjan Feb’13
…….better drug adherence could avert
699,000 emergency visits and 341,000
hospitalizations each year…**

21. Opportunities in Digital ecosystem…
Amlesh Ranjan Feb’13

22. 22
Roadmap for Growth…
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Segment

23. 23
Multi-segment approach…
GP/CP/Specialist
Public Healthcare
Health Insurance
Corporate Hospitals
Metro / Tier 1
Tier 2 in Metro
Tier 2
Tier 1 a
Indication 1
Indication 4
Indication 3
Indication 2
Specialty 1
Specialty 4
Specialty 3
Specialty 2
Amlesh Ranjan Feb’13

24. 24
Prescriber
Marketing
Provider
Marketing
Payer
Marketing
Seeing as many prescribers
with as high frequency as
possible
Managing contact with all
the key stakeholders in the
accounts
Working in partnership with
the payers and policy
makers
Detailing and messaging Effective Account
management
Health system participation
and optimization
Features and Benefits
communication
Value based relationship
development
Health outcome oriented
collaboration
Branding and Life cycle
management
Business-to-Business
mutuality
Community / Population
level impact
Multi-level Marketing…
Share
of Voice
ParticipationPartnership
Amlesh Ranjan Feb’13

25. 25
Patient
Centricity
Patient
Centricity
Transactions
Choice
Consumption
Price –
Performance
Adapted from The Future of Competition: Co-creating Unique value with Customers, HBS Press by C.K.Prahalad & Venkat Ramaswamy
Patient centricity
▼
System involvement
Dialogue
Access
Risk-Benefit
Transparency
Network
orientation
System
Involvement
Amlesh Ranjan Feb’13

26. 26
Ref. The Future of Competition: Co-creating Unique value with Customers, HBS Press by C.K.Prahalad & Venkat Ramaswamy
Dialogue
Access
Risk-Benefit
Transparency
Community
InnovationTrust
Choice
Co-creation of value…
Network
orientation
System
Involvement
Co- Creation of
Value Space
Amlesh Ranjan Feb’13

27. 27
All-round Effectiveness…
Ref:achieveglobal Amlesh Ranjan Feb’13

28. 28
Commercial Excellence…
Execution Excellence – ZS Associates Amlesh Ranjan Feb’13

29. 29
ims consulting report
Reach and penetration…
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30. 30
Relationship progression…
Preferred supplier
Partner
Preferred partner
Strategic partner
Talk first about Bundling
Talk first about Services / Support
Talk first about Innovative Solutions
Talk first about co-leveraging Strengths
Amlesh Ranjan Feb’13
Standard supplierSupply products

31. Social media engagement…
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32. 32
Live detail
with tablet-PC
Web-based
e-detail
Multi-channel
CRM application
Electronic details,
interactions tracked
and logged by CRM
application
Multi-Channel approach…..
Interactive details
customized to meet
doctor’s needs
Amlesh Ranjan Feb’13

33. Hunter can be hunted…
Amlesh Ranjan Feb’13

34. 34
A time for Co-opetition…
Amlesh Ranjan Feb’13

35. 35
An era of Partnerships….
Amlesh Ranjan Feb’13

36. 36
PublicHealthcare
PrivateHospitals
PatientCentricity
Share
of
voice
Partnership
Participation
Co-createCo-create
Value inValue in
HealthcareHealthcare
ThroughThrough
PartnershipPartnership
ParticipationParticipation
ExcellenceExcellence
Co-creation of value
Commercial Excellence
Multi-channel efficiency
Healthcareapproach
M
ulti-Level
M
arketing
All-round
Effectiveness
Crystal gazing into Pharma
Amlesh Ranjan Feb13

37. While you
Create, Co-create or, Add
Value,
always remember……
37

38. “The Value you add,
comes from
the Values you hold.”
amleshranjan@gmail.com
Amlesh Ranjan Feb’13
@AmleshR
https://www.linkedin.com/in/amlesh-ranjan-71a7a712