Isp Final Gr Presentation

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Isp Final Gr Presentation

  1. 1. Gedeon Richter<br />Producing the Next Generation of Generics<br />Erica Chau | Andy Chiu | Nicole Lee | Lisa Liu | Haonan Zhang<br />
  2. 2. Agenda<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />
  3. 3. Market Position<br />Composition of Global Pharmaceutical Market<br />CAGR 2004-08 (%)<br />Pfizer<br />Bayer<br />40<br />Servier<br />30<br />Gedeon Richter<br />GlaxoSmith Kline<br />20<br />Sales growth 2007-08 (%)<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />Zentiva<br />Novartis<br />Sanofi-Aventis<br />10<br />Krka<br />5 10 15 20 25 <br />
  4. 4. Sales Composition<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />
  5. 5. SWOT Analysis<br />Strengths<br />Opportunities<br />Weaknesses<br />Threats<br /><ul><li>Top 10 generics player in Europe
  6. 6. Well-diversified export base
  7. 7. Strong position in gynecological drug market
  8. 8. Early investor in biotech
  9. 9. Long-term value in biosimilars
  10. 10. Potential growth in branded products and OTC medicines
  11. 11. Increasing focus on generic drugs
  12. 12. Size of firm limits extensive global expansion
  13. 13. Sales are highly correlated with stability of CIS region
  14. 14. Stricter governmental policies and regulations
  15. 15. Declining domestic sales
  16. 16. Increasing competition in generic market and downward pricing pressures</li></ul>The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />
  17. 17. Rising Health Care Costs<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />
  18. 18. Industry Structure Shift <br />Traditional Pharmaceutical Industry<br />New Pharmaceutical Industry<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />Licensing deals & alliances<br />
  19. 19. Industry Growth Comparison<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />
  20. 20. Business Concerns<br />Company facing increased pressure from the trend toward biosimilars<br />Customers demanding less expensive generic drugs<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />
  21. 21. Our Recommendations<br />Prepare Gedeon Richter for industry trend toward biosimilars<br />Company facing increased pressure from the trend toward biosimilars<br />Customers demanding less expensive generic drugs<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />Partner with biotech firm to develop biosimilar business<br />Outsource generics manufacturing to India<br />
  22. 22. Why Biosimilars?<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />
  23. 23. What Are Biosimilars?<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />
  24. 24. GR Experience in Biotech<br />Management made a decision in 2006 to start recombinant biotechnological activities<br />Gedeon Richter and Helm AG acquired Strathmann Biotech for R&D laboratory, pilot plant, and manufacturing unit<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />Constructed a biotechnology plant in Budapest, operational in 2009<br />Made a greenfield investment in manufacturing plant in Debrecen for mammalian cell development<br />
  25. 25. Potential Partners<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />Yes<br />No<br />
  26. 26. Shifting Focus<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />
  27. 27. Outsource Generics <br />to India<br />Why Outsource?<br />Frees current resources to focus on biosimilars<br />Low costs help GR compete in generics market <br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />Maintains current generics business line<br />
  28. 28. Outsource Generics <br />to India<br />Why India?<br />Large pool of skilled labor for low cost to reduce production costs by approximately 40%<br />Indian government building facilities that are compliant to Western standards <br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />Produces 30% of world’s generics – high capacity and capability<br />Substantial export potential with well-established connections to other countries<br />
  29. 29. Financial Results<br />Actual DCF<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />
  30. 30. Financial Results<br />Proforma DCF<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />
  31. 31. Strategy Analysis<br />Potential Risks/Weaknesses<br />How We Address the Concern<br />Potential of relationship with partners failing<br />Perform extensive analysis of potential biotech partners<br />India has strength in generic manufacturing and distribution; perform frequent quality control<br />Compromising quality of generics business<br />Maintain well-diversified portfolio; have higher rate of success by partnering; by entering the biotech market which is outpacing the traditional pharma market<br />Failure to realize return on biosimilar investment<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />Increase potential of earning more<br />Sharing profits<br />Extensive analysis of countries prior to entering<br />Country risk<br />
  32. 32. Implementation Timeline<br /><ul><li>Enter into negotiations with potential biotech partners
  33. 33. Finalize the contract with the pharmaceutical manufacturing company
  34. 34. Develop new biosimilar to produce</li></ul>By <br />year end<br />Within <br />9 years<br />Within <br />3 years<br />Within 11 years<br />Now<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br /><ul><li>Visit biotech companies for potential partnership
  35. 35. Examine facilities of viable generics manufacturing options in India
  36. 36. Start negotiations with the Indian companies
  37. 37. Finalize the contract with the biotech firm
  38. 38. Get drug approved</li></li></ul><li>Questions?<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />
  39. 39. Leasing out Property & Equipment<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />
  40. 40. Timeline of Patent Expiries<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />
  41. 41. Problems with Biosimilars<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />
  42. 42. Biotech partnering <br />with RG<br />Benefits for Biotech Firm<br />Strong trend towards partnerships<br />Decreases risk of unsuccessful discovery process and increases financial support<br />The Company<br />The Industry<br />The Challenges<br />Recommendations<br />Conclusion<br />Knowledge on regulations in the EU<br />Increases international reach and marketing skills<br />

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