The document discusses the pharmaceutical industry in India. It notes that India supplies over 50% of global demand for various vaccines, 40% of generic demand in the US, and 25% of medicine in the UK, making it a leading pharma producer. The industry is growing rapidly at a 22.4% CAGR and is valued at $33 billion in 2017. India also accounts for 20% of global exports in generics, with exports reaching $17.27 billion in 2017-18. The domestic generics market is large as well and expected to reach $27.9 billion by 2020. The biotech industry is also seeing robust growth and estimated to reach $100 billion by 2024-25.

1. Pharmaceutical Marketing in
the 21st Century
Dr.Ramdas T Dolas
M.Pharm., PhD.

2. EXECUTIVE SUMMARY
Notes: Information as per latest available data
Source: 1 FICCI - Trends & Opportunities for Indian Pharma 2018, Pharmexcil, 2TechSci Research, Assocham and RNCOS
 Indian pharmaceutical industry supplies over 50 per cent of global demand for various vaccines, 40 per cent of
generic demand in the US and 25 per cent of all medicine in UK1.
Leading pharma
producer
 The country’s pharmaceutical industry is expected to expand at a CAGR of 22.4 per cent over 2015–
20 to reach US$ 55 billion2. India is the second largest contributor of global biotech and pharmaceutical
workforce. The pharmaceutical sector was valued at US$ 33 billion in 2017.
Among fastest growing
industries
 India accounts for 20 per cent of global exports in generics. India’s pharmaceutical exports stood at
US$
17.27 billion in 2017-18 and are expected to reach US$ 20 billion by 2020. In 2018-19 these exports are
expected to cross US$ 19 billion.
One of the highest
exports
 Indian healthcare sector, one of the fastest growing sectors, is expected to cross US$ 372 billion by 2022.
Rapidly growing
healthcare sector
 The domestic generics market is expected to reach US$ 27.9 billion by 2020. India’s generics market
has immense potential for growth. Indian pharmaceutical companies received record 300 generic drug
approvals in USA during 2017 where the generic market is expected to reach US$ 88 billion by 2021.
High potential generics
market
 By 2024-25, India’s biotech industry is estimated to increase to US$ 100 billion.
Robust growth in Biotech
industry

3. ADVANTAGE INDIA
 Low cost of production and R&D boosts efficiency of
Indian pharma companies, leading to competitive
exports. Indian pharma exports reached US$ 17.27
billion in FY18.
 India’s cost of production is approximately 33 per cent
lower than that of the US.
 India’s ability to
manufacture high quality, low priced medicines, presents
a huge business opportunity for the domestic industry.
 Economic prosperity to improve drug
affordability.
 Increasing penetration of health
insurance to drive expenditure on
medicine.
 With increasing penetration of
pharmacies, especially in rural India,
OTC drugs will be readily available
 Increasing private sector investments in
R&D and acquisitions are driving the
sector’s growth. In FY18, Indian pharma
companies invested 8.8 per cent of their
sales in R&D.
 Between 2007-17, the S&P BSE
Healthcare Index has grown at 12.85 per
cent.
 In 2017, Indian pharmaceutical sector
witnessed 46 merger & acquisition (M&A)
deals worth US$ 1.47 billion.
 Pharma Vision 2020’ aimed at making India
a global leader in end-to-end drug
manufacturing.
ADVANTAGE
INDIA
Note: 2020 revenue forecasts are estimates of McKinsey, API - Active Pharmaceutical Ingredients, F – Forecast, OTC - Over-The-Counter
Source: PwC, McKinsey, Pharmaceuticals Exports Promotion Council of India
 Under Budget 2018-19, allocation to the Ministry of
Health and Family Welfare increased by 11.5 per
cent to Rs 52,800 crore (US$ 8.16 billion).
 In this sector, 100 per cent FDI is allowed under
automatic route.

4. STRUCTURE OF PHARMA SECTOR IN INDIA
Pharmaceuticals
Active Pharmaceutical
Ingredients/ Bulk drugs
Formulations
Branded Generics Branded Generics
 Cardiovascular
 Anti-Diabetes
 Gastro-Intestinal
 Neurological
Source: Dun and Bradstreet
 Anti-infectives
 Respiratory
 Pain
 Gynecology

5. EVOLUTION OF INDIAN PHARMACEUTICAL SECTOR
Notes: KAM - Key Account Management, CSO - Contract Sales Organisation
 Indian Patent Act passed in 1970
 Several domestic companies start
operations
 Development of production
infrastructure
 Export initiatives taken
 Increased patent filings by pharma players
 Likely adoption of newer sales models such
as channel management, KAM and CSO
 The National Pharmaceutical Pricing Policy,
2012 (NPPP-2012)
 In Union Budget, 2016, FDI increased to 74
per cent in existing pharmaceutical
companies
 The Government of India unveiled 'Pharma
Vision 2020' aimed at making India a global
leader in end-to-end drug manufacture.
Approval time for new facilities has been
reduced to boost investments.
 Liberalised market
 Indian companies increasingly launch
operations in foreign countries
 India a major destination for generic drug
manufacturing
 Approval of Patents (Amendment) Act 2005,
which led to adoption of product patents in
India
2013: New Drug Pricing Control Order issued by Directorate of Food and Drugs this will reduce the
prices of drugs by 80 per cent
 2014: 100 per cent FDI allowed in medical device industry. The investment will be routed through
automatic route
 Leading Indian pharma companies are raising funds aggressively to fund acquisition in domestic
as well as international market to increase their product portfolios
 2015: India has 10,500 manufacturing units and over 3,000 pharma companies
 National Health Policy Draft 2015 to increase expenditure in health care sector
 Patent Act Amendment 2015, it includes amendments in Patent Act 2002
1990-2010
Source: Aranca Research
2010- 20152010
2016
onwards
1970-90

6. Important Segments in Indian
Pharmaceutical Sector
Active Pharmaceutical Ingredients
(APIs)
 Domestic API consumption is expected to
reach US$ 18.8 billion by FY221.
 In April 2018, a high-level task force was
constituted to create a roadmap for increasing
domestic production of APIs. Currently India
imports over 60 per cent of its APIs from other
countries.
Contract Research and Manufacturing
Services (CRAMS)
 Fragmented market with more than
1,000 players
 CRAMS industry is estimated to reach US$ 18
billion in 2018 and expected to witness a strong
growth at a CAGR of 18-20 per cent between
2013-18.
Biosimilar
The government plans to allocate US$ 70 million
for local players to develop Biosimilar.
 The domestic market is expected to reach US$ 40
billion by 2030
Formulations
Largest exporter of formulations in terms of volume,
with 14 per cent market share and 12th in terms of
export value. Drug formulation* exports from India
reached US$ 12.91 billion during FY18 and US$ 8.16
billion between Apr-Oct 2018.
 Double-digit growth is expected over the next five
years
Pharmaceutical
industry
Source: 1 RNCOS, BMI, Datamonitor, Kemwell Biopharma, Chemical Pharmaceutical Generic Association, ICRA Report estimates, pharmanewsprwire.com, DGCI&S
9
Notes: OTC - Over The Counter,* including biologicals

7. INDIAN PHARMA MARKET
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
2015 2016 2017
Non-Scheduled FormulationsScheduled Formulations
Note: F - Forecast, CAGR - Compound Annual Growth Rate, CY – Calendar Year, E - Estimated
Source: Department of Pharmaceuticals, PwC, McKinsey, AIOCD AWACS, , IQVIA, CII
 Indian pharmaceutical market grew 5.5 per cent in CY2017 in terms of
moving annual turnover. With a turnover of Rs 1.16 trillion (US$
18.06 billion).
 In Jul-Sep 2018, Indian pharmaceutical market grew 9.7 per cent
and stood at Rs 1.26 trillion (US$ 17.95 billion) for the Moving
Annual Total (MAT) ended September. In November 2018, the
Indian market grew by 6.3 per cent year-on-year.
 Medicine spending in India is projected to grow 9-12 per cent
over the next five years, leading India to become one of the top
10 countries in terms of medicine spending.
 India’s cost of production is significantly lower than that of the
US and almost half of that of Europe. It gives a competitive edge to
India over others.
 The Ayurveda sector in India is expected to reach US$ 4.4 billion by
2018 end and grow at 16 per cent CAGR till 2025.
 Increase in the size of middle class households coupled with the
improvement in medical infrastructure and increase in the
penetration of health insurance in the country will also influence
in the growth of pharmaceuticals sector.
Visakhapatnam port traffic (million tonnes)Annual Turnover of Indian Pharmaceutical Market (US$ billion)
18.06
17.11 14.97
15.46 13.92
12.32
3.14 3.19 3.08

8. COMPOSITION OF INDIAN PHARMA MARKET
 1With 70 per cent of market share (in terms of revenues),
generic drugs form the largest segment of the Indian pharmaceutical
sector. Over the Counter (OTC) medicines and patented drugs
constitute 21 per cent and 9 per cent, respectively
 The share of generic drugs is expected to continue increasing;
domestic generic drug market is expected to reach US$ 27.9 billion
in 2020
 Due to their competence in generic drugs, growth in this market
offers a great opportunity for Indian firms
 Based on moving annual turnover, Anti-infectives, Cardiac,
Gastro Intestinal had the biggest market share in the Indian pharma
market in 2017.
2.46
2.20
2.09
1.55
1.63
1.34
1.22
1.14
1.09
0.91
0.37
0.34
0.34
0.31
0.22
0.21
0.19
0.08
0.08
0.10
Anti Diabetic
Gastro Intestinal
Cardiac
Anti-Infectives
Vitamins/Minerals/Nutri…
Others Urology
Blood Related
Hormones
Opthal/Otologicals
Vaccines Anti-
Neoplastics
Gynaecological
Neuro Derma
Pain/Analgesics
Respiratory
Sex Stimulants…
Anti Malarials
Stomatologicals
Segment Wise Moving Annual Turnover2 December 2017 (US$
billion)
Source: FCCI Indian Pharma Summit, 1KPMG US-India Dynamic June 2018, 2MedicinMan January 2018

9. Pharmaceutical Marketing
in the 21st Century
• The Shift in Marketing Mix
• More Reps, Less Doctors Calls
• Opportunities in the Internet
• The Growth of Chain Stores
• Changing Aspects of Training

10. What’s “M”?..........
• Kotler states “ Marketing is all about
creating a need in mind of customers and
then satisfying that need”.
• Peter Drucker said“ Marketing is so basic
that it can not be considered a separate
function. It is the whole business seen from
the point of view of its final result that is
from the customer point of view. Business
success is not determined by the producer
but by the customer.”

11. What’s “PM”?..........
• Pharmaceutical marketing is no different from this.
More precisely we can say, “ It is all about
generating a prescription for your products. ”
• DOCTOR if GOD the Decision Maker. Here
doctor plays very important role as he writes the
prescriptions.
• Hence the PM efforts are concentrated to influence
and educate doctors about the products.
• There is a glaring difference between marketing
Pharmaceutical products and other products, which
makes PM a unique activity.

12. Marketing Mix
• Set of marketing tools that the firm uses to
pursue its marketing objectives in the target
market
1. Product
2. Price
3. Promotion
4. Place
Also known as the 4 P’s of Marketing

13. Product Price Promotion Place
Variety
Quality
Design
Features
Brand name
Packaging
Sizes
Warranties
List price
Discounts
Allowances
Payment period
Credit terms
Sales promotion
Advertising
Sales force
PR
DM
Channels
Coverage
Assortments
Locations
Inventory
Transport

14. 4 P’s vs. 4 C’s
• Product – Customer needs/wants
• Price – Cost to customer
• Place – Convenience
• Promotion - Communication

15. Product Management Team
• The Product Management Team is one of the
core teams of the Marketing Department in a
Pharmaceutical Company.
• Product Management, which oversees the
overall marketing plan for a specific product, is
responsible for profits or losses generated by
that product.

16. E Marketing
• Training via the Internet
• CME in the Internet
• Internet Portals for Doctors
• Using the Internet to Support Marketing
Effectiveness
• Patient Groups in the Internet

17. Pharma Consolidation
• Slowdown in mergers, but they will
continue
• Previous M&As driven by fear and pain
• Now by conviction that bigger is better
• Makes financial sense, redundant costs
• Strategic sense

18. Use of Online Detailing
• E Detailing: another component of the
marketing mix
• MDs are invited to participate
• With a promise of a coupon for a book
• 71% of e Details done evenings or early
mornings or weekends
• E Detailing lasts 8-10 minutes
• Increased use of attention mechanics
• MD selects the time. So attention

19. Increasing Field Forces
• Increasing Sales and Marketing Staff
• Increased Pay and Reward!
• Only slowdown in the use of Contract Sales
• Slower turnover except in Specialty Reps
• Pharma salaries now ahead by 20%
compared with other industries

20. Drug Discount Programs
• Senior Poor struggle to pay for medicines
• No drug insurance coverage
• PDPL (Parenteral Drug Pvt Ltd)
• Eg. Breast Cancer:Doxotaxil Trihydrate
• 48000/Vial Discount 4:1

21. Successful Use of the Internet
• Marketing to Physicians who regularly go
online
• For latest information on disease
management, research
• Latest clinical papers
• Networking with others

22. Dinner Meetings
As MDs get harder to see...
• Pure CME Activity
• Group Selling
• Focus Group Discussions
• MAPs or Marketing Advisory Panels
• Social Activity to Celebrate Something
• Peer Selling

23. Case Study: 1 Claritin
(Clarityn in Europe)
• The Schering-Plough company became a
drug industry success due to the bestselling
drug Claritin (Loratadine), anti-histamine.
Spending more to advertise one pill than
any other drug company, Schering-Plough
made Claritin become one of the most
popular allergy products and one of the
most successful companies of the 1990s.

24. • Claritin is an antihistamine that reduces the natural
chemical histamine in the body. Histamine can produce
symptoms of sneezing, itching, watery eyes, and runny
nose.
• What made Claritin prominent in the market was the non-
drowsy formula.
• This was an advantage due to the fact that other
competitor‟s products made people drowsy and that people
with allergies who took Claritin could get on with life,
which the company based their marketing campaign on.

25. • Claritin had a long approval process by the FDA - it was patented
in 1981 but was not approved until 1993. This was due to the
scientific controversy about whether it was any better than a
placebo at the low doses necessary to prevent drowsiness. The 17-
year patent should have expired in 1998 but was extended by a
total of four years and four months of exclusivity. This was worth
billions in sales.
• Due to the massive advertising campaigns, Schering-Plough spent
US$56.5 million on direct-to-consumer (DTC) advertising in the
first six months of 2001 and achieved sales of US$2.7 billion.
This was due to the advantage of having a non-drowsy
formulation.
• Claritin went on OTC sale in the US on December 10th
2002.

26. Advertising campaigns
• Schering-plough tried another approach to advertising Claritin. Instead of dry statistics,
it had humorous TV commercials that treated the annual allergy and hay fever as the
annoyance that it is. In the pharmacies, it‟s packaging, with its blue sky and drifting
clouds (Image 1), in Europe; Clarityn has a blue box with a pollen motif (Image 2) that
stands out among the competitors
USA/Canada packaging for Claritin

27. • The television commercials in the US (DTC and OTC advertising) and in
Europe when it was an OTC drug used an unconventional approach in selling
the product with a strong and distinctive message; along with in-store
promotions helped Schering-Plough to capture a share of the allergies market.
• When the FDA in 1997 reduced the regulations making it easier for
pharmaceutical companies to sell their prescription products to consumers,
Schering-Plough jumped at this opportunity, revolutionising pharmaceutical
marketing in the process. The company started aggressive DTC advertising. The
Claritin advertisements that were colourful and everywhere, pressed allergy
sufferers to ask their doctors for the pill

28. Opening page for the US website for Claritin

29. Opening homepage for UK website

30. Second Case Study:Lipitor
• Case_study_Seminar_24_jan_2019.docx

31. Peronality Game
• Salesman/Marketing

32. My College

33. •Thank You you all
for patience listening