Pakistan Pharma Overview


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  • Wonderful brother an excellent effort from you .did you have the latest data of global and Pakistan for the year 2013?
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  • Dear Adeel,
    I am a BBA student at IBA, Karachi. I am working on a case study pertaining 'Lantus'. I'd really appreciate if you could help me with any data about Lantus, and its major competitors in particular that you could share. The market share, distribution, promotion, and pricing strategies etc.
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Pakistan Pharma Overview

  1. 1. An Overview of the Pharmaceutical Industry Syed Adeel Ahmed Business Development Manager Atco Laboratories Limited May 21, 2010
  2. 2. Global View of the Industry May 21, 2010
  3. 3. Global Company Sales May 21, 2010
  4. 4. Global Company Sales May 21, 2010
  5. 5. Global Company Sales May 21, 2010
  6. 6. The Past, Connecting Future <ul><li>Global pharmaceutical sales will grow 5-6 percent to over US$735 billion in 2008 , compared with 6-7 per cent in 2007, driven by </li></ul><ul><ul><li>the declining costs of drug treatment in major therapy areas, </li></ul></ul><ul><ul><li>increased uncertainty over safety, pricing and market access, and </li></ul></ul><ul><ul><li>Intellectual property issues. </li></ul></ul><ul><li>Pharmaceutical players will be required to change their game plan in line with these evolving dynamics in order to stay ahead </li></ul><ul><li>There will also be a shift in growth from </li></ul><ul><ul><li>the top seven markets to emerging markets, and </li></ul></ul><ul><ul><li>from primary care-driven to specialty care-driven drugs </li></ul></ul>May 21, 2010
  7. 7. Growth Trend of the Global Industry May 21, 2010 Growth trend
  8. 8. Top products (by sales 06) May 21, 2010
  9. 9. Top products (by sales 06) May 21, 2010
  10. 10. Top products (by sales 06) May 21, 2010
  11. 11. Overview of Industry in Pakistan May 21, 2010
  12. 12. Macro Analysis of Pakistan Pharma market (last 5 fiscal years) May 21, 2010 Rs. Million IMS Health
  13. 13. Local Company Sales May 21, 2010 Fiscal year 07-08
  14. 14. The Players May 21, 2010 Fiscal year 07-08
  15. 15. The Players May 21, 2010 Fiscal year 07-08 Total companies: 681 Share of top-50: 84%
  16. 16. Therapeutics May 21, 2010 Fiscal year 07-08
  17. 17. Disease Profile of Pakistan May 21, 2010
  18. 18. May 21, 2010 <ul><li>Pakistan has a population of 160 millions; survey in Pakistan indicate very high prevalence rate of CVD risk factors, with over 30% of the population over 45 years of age affected. </li></ul>In Pakistan….
  19. 19. May 21, 2010 <ul><li>The risk factors for atherosclerotic CVD are divided into three major categories: </li></ul><ul><ul><li>Underlying risk factors </li></ul></ul><ul><ul><ul><li>Atherogenic diet </li></ul></ul></ul><ul><ul><ul><li>Overweight / Obesity </li></ul></ul></ul><ul><ul><ul><li>Physical Inactivity </li></ul></ul></ul><ul><ul><ul><li>Genetic Influence </li></ul></ul></ul>Major Contributor of CVD
  20. 20. May 21, 2010 <ul><ul><li>Major, independent risk factors </li></ul></ul><ul><ul><ul><li>Smoking </li></ul></ul></ul><ul><ul><ul><li>High blood pressure </li></ul></ul></ul><ul><ul><ul><li>High LDL / Low HDL </li></ul></ul></ul><ul><ul><ul><li>Diabetes </li></ul></ul></ul><ul><ul><ul><li>Family history of premature atherosclerosis. </li></ul></ul></ul><ul><ul><li>Emerging risk factors </li></ul></ul><ul><ul><ul><li>Pro-thrombotic state </li></ul></ul></ul><ul><ul><ul><li>Pro-inflammatory state </li></ul></ul></ul><ul><ul><ul><li>Insulin resistance </li></ul></ul></ul><ul><ul><ul><li>Glucose intolerance </li></ul></ul></ul>Major Contributor of CVD
  21. 21. May 21, 2010 Diabetes, a Growing Global Crisis Adapted from Zimmet P et al. Diabet Med . 2003;20:693-702. 30 million people in 1985 189 million people in 2003 324 million projected for 2025 72% increase Diabetes mellitus is a very serious public health problem which prevalence is increasing rapidly 25.0 39.7 59% 10.4 19.7 88% 38.2 44.2 16% 1.1 1.7 59% 13.6 26.9 98% 81.8 156.1 91% 18.2 35.9 97%
  22. 22. May 21, 2010 Rank Country 1995 Country 2025 (million) (million) 1 India 19.4 India 57.2 2 China 16 China 37.6 3 U.S. 13.9 U.S. 21.9 4 Russian Federation 8.9 Pakistan 14.5 5 Japan 6.3 Indonesia 12.4 6 Brazil 4.9 Russian Federation 12.2 7 Indonesia 4.5 Mexico 11.7 8 Pakistan 4.3 Brazil 11.6 9 Mexico 3.8 Egypt 8.8 14 Ukraine 3.6 Japan 8.5 All other countries 49.7 103.6 Total 135.3 300.0 Prevalence of Diabetes in World
  23. 23. Hepatitis C <ul><li>World wide, HCV accounts for more than 90% post transfusion chronic hepatitis & cirrhosis. </li></ul><ul><li>According to W.H.O, 3% of world’s population is HCV infected. </li></ul><ul><li>200 million people are chronically infected. </li></ul><ul><li>HCV prevalence is HIGHEST in AFRICA e.g. 18% in Egypt </li></ul><ul><li>Estimated > 4% - 7% of Pakistan’s population is suffering from HCV </li></ul><ul><li>Pakistan …….HCV Genotype 3 is positive in 87% of infected patients. </li></ul>May 21, 2010
  24. 24. Hepatitis C <ul><li>Chronic progressive Disease </li></ul><ul><li>More than 80% of infected patients develop chronic liver Disease </li></ul><ul><li>20-50% patients of Chronic Hepatitis C develop Cirrhosis </li></ul><ul><li>Cirrhosis develops 10-20 years after the transmission of infection </li></ul><ul><li>0.4-2.5% of patients with Chronic HC develop HCC (Hepatocellular carcinoma) </li></ul><ul><li>In End stage Liver disease Transplantation is the only treatment option available. </li></ul>May 21, 2010
  25. 25. Top Products (by sales 07-08) May 21, 2010
  26. 26. Top Products (by sales 07-08) May 21, 2010
  27. 27. Top Products (by sales 07-08) May 21, 2010
  28. 28. Pharmaceutical Marketing Mix May 21, 2010 Product Place Promotion Price P P P P
  29. 29. The Product <ul><li>Pharmaceutical products are used in the treatment of diseases hence called “Drug” </li></ul><ul><li>Every operation pertaining to the drugs including import, manufacturing & distribution is governed by “The Drugs Act 1976” </li></ul>May 21, 2010
  30. 30. The Product <ul><li>Drugs are manufactured under the strict quality standards called GMP (good manufacturing practices) </li></ul><ul><li>No product can be marketed/distributed unless registered by the Ministry of Health, Pakistan </li></ul><ul><li>Pharmaceutical products are often patented based on innovation </li></ul>May 21, 2010
  31. 31. The Product <ul><li>Drugs are delivered to the body by oral, nasal or through injections, skin and rectal etc </li></ul><ul><li>Following are the forms </li></ul><ul><ul><li>Capsules/tablets </li></ul></ul><ul><ul><li>Inhalers/nasal drops </li></ul></ul><ul><ul><li>Creams/ointments/gels </li></ul></ul><ul><ul><li>Injections/infusions </li></ul></ul><ul><ul><li>Eye drops </li></ul></ul><ul><ul><li>Enema/suppositories </li></ul></ul>May 21, 2010
  32. 32. The Price <ul><li>Pricing of drugs is regulated (the upper limit of the retail level) by the Ministry of Health too (controlled pricing – this is not true for many other countries where prices are not controlled </li></ul><ul><li>Generic companies can make low cost drugs, not having to invest in R&D </li></ul>May 21, 2010
  33. 33. The Price <ul><li>Pricing of innovative and/or patented drugs is high so as to recoup the investment in the research & development </li></ul><ul><li>In general, the larger production reduces the cost/price > however, there is a misconception that Indian prices are lower than those in Pakistan </li></ul>May 21, 2010
  34. 34. The Price <ul><li>The key factor affecting the price of drugs include but not limited to </li></ul><ul><ul><li>uniqueness (availability) of the product </li></ul></ul><ul><ul><li>the country from where final dosage form or the main raw materials are imported </li></ul></ul><ul><ul><li>process steps involved in manufacturing </li></ul></ul><ul><ul><li>size of production (economies of scale) </li></ul></ul>May 21, 2010
  35. 35. The Price <ul><li>Price structure </li></ul><ul><ul><li>Cost of raw/packaging materials </li></ul></ul><ul><ul><li>Cost of conversion </li></ul></ul><ul><ul><li>Cost of distribution </li></ul></ul><ul><ul><ul><li>Distributor margin </li></ul></ul></ul><ul><ul><ul><li>Retailer margin </li></ul></ul></ul><ul><ul><li>Cost of promotion </li></ul></ul><ul><li>The cost of drugs is higher than the profits associated with them </li></ul>May 21, 2010
  36. 36. Promotion Pharmaceutical Marketing May 21, 2010
  37. 37. May 21, 2010 HOME Patients visits a Dr Doctor Rx Distributor Drug Factory Drug Buying Behavior Reps visits a Dr Dr write prescription Buying Process Pharmacy
  38. 38. Pharmaceutical Marketing <ul><li>Mass marketing of prescription medications in major markets of the world was rare until recently. </li></ul><ul><li>Marketing of legitimate non-prescription medications, such as pain relievers or allergy medicine, has also long been practiced. </li></ul><ul><li>It is believed that since doctors made the selection of drugs, mass marketing was a waste of resources; specific ads targeting the medical profession were thought to be cheaper and just as effective. </li></ul>May 21, 2010
  39. 39. Pharmaceutical Marketing <ul><li>This would involve ads in professional journals and visits by sales staff to doctor’s offices and hospitals. </li></ul><ul><li>Pharmaceutical marketing is in-direct marketing , there is difference in customer and consumer . </li></ul><ul><li>Consumer does not have their own choice of using the medicine so general concepts of marketing are different in pharma marketing. </li></ul>May 21, 2010
  40. 40. Direct and indirect marketing to health care providers <ul><li>Physicians are the key players in pharmaceutical sales. </li></ul><ul><li>They write prescriptions that determine which drugs will be used by the patient. </li></ul><ul><li>Influencing the physician is the key to pharmaceutical sales. </li></ul>May 21, 2010
  41. 41. Direct and indirect marketing to health care providers <ul><li>Historically, this was done by a large pharmaceutical sales force. </li></ul><ul><li>A medium-sized pharmaceutical company might have a sales force of 500 representatives. </li></ul>May 21, 2010
  42. 42. Direct and indirect marketing to health care providers <ul><li>The largest companies have tens of thousands of representatives around the world. </li></ul><ul><li>Sales representatives called upon physicians regularly, providing information and free drug samples to the physicians. </li></ul>May 21, 2010
  43. 43. Direct and indirect marketing to health care providers <ul><li>This is still the approach today; however, economic pressures on the industry are causing pharmaceutical companies to rethink the traditional sales process to physicians. </li></ul><ul><li>Pharmaceutical companies are developing processes to influence the people who influence the physicians. </li></ul>May 21, 2010
  44. 44. Direct and indirect marketing to health care providers <ul><li>There are several channels by which a physician may be influenced, including </li></ul><ul><ul><li>self-influence through research, </li></ul></ul><ul><ul><li>peer influence, </li></ul></ul><ul><ul><li>direct interaction with pharmaceutical companies, </li></ul></ul><ul><ul><li>patients, and </li></ul></ul><ul><ul><li>public or private insurance companies </li></ul></ul>May 21, 2010
  45. 45. Direct physician contact with pharma sales reps <ul><li>Currently, there are approximately 25,000 pharmaceutical sales reps in the Pakistan pursuing pharmaceutical prescribers. </li></ul><ul><li>A pharmaceutical representative will often see a given physician every few weeks. </li></ul>May 21, 2010
  46. 46. Direct physician contact with pharma sales reps <ul><li>Representatives often have a call list of about 200 physicians with 120 targets that should be visited in 4-6 week cycles. </li></ul>May 21, 2010
  47. 47. Direct physician contact with pharma sales reps <ul><li>Because of the large size of the pharmaceutical sales force, the organization, management, and measurement of effectiveness of the sales force are significant business challenges. </li></ul><ul><li>Management tasks are usually broken down into the areas of physician targeting, sales force size and structure, sales force optimization, call planning, and sales forces effectiveness. </li></ul>May 21, 2010
  48. 48. Physician Targeting <ul><li>Marketers attempt to identify the universe of physicians most likely to prescribe a given drug. This is done by measuring the number of total prescriptions and new prescriptions per week that each physician writes. </li></ul>May 21, 2010
  49. 49. Physician Targeting <ul><li>This information is collected by the reps or commercial vendors. The physicians are then &quot;deciled&quot; into groups based on their writing patterns. Higher deciles are more aggressively targeted. Some pharmaceutical companies use additional information such as: </li></ul>May 21, 2010
  50. 50. <ul><ul><li>profitability of a prescription (script), </li></ul></ul><ul><ul><li>accessibility of the physician, </li></ul></ul><ul><ul><li>tendency of the physician to use the pharmaceutical company's drugs, </li></ul></ul><ul><ul><li>effect of managed care formularies on the ability of the physician to prescribe a drug, </li></ul></ul><ul><ul><li>the adoption sequence of the physician (that is, how readily the physician adopts new drugs in place of older, established treatments), and </li></ul></ul><ul><ul><li>the tendency of the physician to use a wide palette of drugs </li></ul></ul><ul><ul><li>influence that physicians have on their colleagues. </li></ul></ul>Physician Targeting May 21, 2010
  51. 51. Opinion Leader Influence Mapping <ul><li>Alternatives to segmenting physicians purely on the basis of prescribing do exist, and marketers can call upon strategic partners who specialize in delineating which characteristics of true opinion leadership, a physician does or does not possess. </li></ul>May 21, 2010
  52. 52. Opinion Leader Influence Mapping <ul><li>Such analyses can help guide marketers in how to optimize KOL engagements as bona fide advisors to a brand, and can help shape clinical development and clinical data publication plans for instance, ultimately advancing patient care. </li></ul>May 21, 2010
  53. 53. Sales force size and structure <ul><li>Marketers decide on the appropriate size of a sales force needed to sell a particular portfolio of drugs to the target universe. </li></ul><ul><li>Design the optimal reach (how many physicians to see) and frequency (how often to see them) for each individual physician. </li></ul>May 21, 2010
  54. 54. <ul><li>Decide how many sales representatives to devote to office and group practice and how many to devote to hospital accounts. </li></ul>Sales force size and structure May 21, 2010
  55. 55. Place (of distribution) <ul><li>The aim of distribution is to have the right product in the right location & at the right time </li></ul><ul><li>Distribution channels are also regulated by the Ministry of Health </li></ul>May 21, 2010
  56. 56. Place (of distribution) <ul><li>Since in majority of the cases drugs are not purchased by choice of the consumers – the distribution is to some extent selective </li></ul><ul><li>Most pharmaceutical products require special storage condition to be maintained at manufacturers’ warehouses, channel of distribution, and the point of sale </li></ul><ul><li>Many products need not supply at the pharmacies but to the hospitals only like Cancer medications </li></ul>May 21, 2010
  57. 57. Regulations on Pharmaceutical Industry May 21, 2010
  58. 58. What is regulated? <ul><li>The quality of medication </li></ul><ul><ul><ul><li>Ingredients </li></ul></ul></ul><ul><ul><ul><li>Process </li></ul></ul></ul><ul><ul><ul><li>Packaging </li></ul></ul></ul><ul><ul><ul><li>Impact of drugs intake (adverse drugs reactions monitoring) </li></ul></ul></ul><ul><ul><ul><li>Pricing </li></ul></ul></ul>May 21, 2010
  59. 59. International Marketing (Exports) of Pharmaceuticals from Pakistan May 21, 2010
  60. 60. Exports <ul><li>Pakistan exports pharmaceuticals of worth $100 million </li></ul>May 21, 2010
  61. 61. Thank you … May 21, 2010