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Opportunities in the Pharma/ Biotech Sector  2009 -  Market Analysis  by Napoleon Samarasam SUB-SECTORS  :: MARKET SHARE :...
Plans fail for lack of counsel,         but with many advisers they succeed… SUB-SECTORS  :: MARKET SHARE ::  GROWTH TRAJE...
Sub-sectors of the  Pharma / Biotech Industry…. SUB-SECTORS  :: MARKET SHARE ::  GROWTH TRAJECTORY
List of Sub-sectors <ul><li>Pharmaceuticals sector (Small Molecule Drug Companies) </li></ul><ul><li>2.  Bio-pharma (Bio-d...
Sub Sectors…Cont’d.. <ul><li>5. Agri Biotech Companies  </li></ul><ul><li>6. Bio-informatics Companies </li></ul><ul><li>7...
Drugs - Classification DRUGS CLASSIFICATION  :: MARKET SEGMENTATION Drugs Ethical Drugs ( Patented  Small Molecule Drugs )...
Drug Types – Global Market Segmentation DRUGS CLASSIFICATION  :: MARKET SEGMENTATION
<ul><li>Global Pharma/Biotech Market  - $770 billion in 2008   </li></ul>2007 Sales – 663.5 B$ DRUGS CLASSIFICATION  :: MA...
Breakup of the Global Pharma Market – $ 770 Billion <ul><ul><li>Small Molecule drugs accounted for  $  570 billion </li></...
Top Three Therapeutic  categories - Global <ul><li>The  three  top therapeutic categories  were </li></ul><ul><li>CNS drug...
Top Therapeutic Categories - India  <ul><li>Top therapeutic segments: </li></ul><ul><ul><li>gastro-intestinal  </li></ul><...
Biotech Drug Types - Global <ul><li>In  Biologics top  three  categories  were </li></ul><ul><li>monoclonal antibodies at ...
Global rank of Biologics among  top 20 drugs   -  ( 2008 - 2009 ) <ul><li>Four  biologics made the top ten best selling li...
The Prognosis::Global Pharma Market 2008- 2012 <ul><li>The global pharmaceutical market is forecast to grow to  $929 billi...
An Interlude… <ul><li>A Peek into the different stages of Drug Development…  </li></ul>PHASES OF DRUG DEVELOPMENT
Different Phases of Drug Development Domains Involving Biological/Biomedical Research Image Source: Biocon Inc PHASES OF D...
Image Source:  Jubilant Biosys Drug Discovery Phase  of Drug Development DRUG DISCOVERY SEQUENCE
Drug Discovery Sequence… Source: Biocon Inc DRUG DISCOVERY SEQUENCE
1. Core Pharma Industry <ul><li>Core Pharma companies are involved in making  Small molecule drugs. </li></ul><ul><li>The ...
Small Molecule Drug Companies <ul><li>Around  270 large R&D  based pharmaceutical companies in India, including MNCs, gove...
Brand Name drugs Vs Generics drugs  <ul><li>Brand Name drugs have to carry out extensive R & D  (pre-clinical drug discove...
FDA -ANDA (Generics) Approvals for Indian Companies  <ul><li>Year  Number </li></ul><ul><li>2002 - 21 </li></ul><ul><li>20...
India Generics Future – (A News Excerpt ) <ul><li>PATENT EXPIRY: RICH PICKINGS AHEAD </li></ul><ul><li>A boost for the Ind...
Biological Drug Testing in Core Pharma (small molecule drug companies) <ul><li>Core Pharma  developing small molecule drug...
2. CRAMS :: Bio-Services <ul><li>CRAMS  - Contract Research and Manufacturing Services. </li></ul><ul><li>Overseas Compani...
CRAMS :: WORLD MARKET – A PROGNOSIS
Involves Biological Testing & Validation  CRAMS :: MARKET SEGEMENTATION
CRAMS market value - India <ul><li>$0.5bn - 2005  </li></ul><ul><li>$0.9bn - 2006  </li></ul><ul><li>$2.7bn -  2010 </li><...
Clinical Trials - Drug testing  Market <ul><li>India is a growing clinical trial destination, for MNC’s to get approvals t...
Biotechnology in India :: Few Perspectives <ul><li>The Indian biotechnology sector is one of the  fastest  growing knowled...
Comparative advantages of India <ul><li>R&D facilities </li></ul><ul><li>knowledge </li></ul><ul><li>skills, and  </li></u...
Indian Biotech market <ul><li>The Indian biotech market was estimated at $  2.80 billion USD  in 2007–08 </li></ul><ul><li...
Biotech Categories – Indian Market <ul><li>Bio-Pharma </li></ul><ul><li>Agri-biotech </li></ul><ul><li>Bio-informatics </l...
3. Bio-Pharma industry - India <ul><li>The bio-pharma industry accounted for almost  70 per cent  (of the 2.8 Billion USD)...
4. Bio-Industrial Segment - India <ul><li>Includes industry involved in the production of enzymes, and other products for ...
5. Agriculture Biotech  <ul><li>One of the fastest growing sectors in the industry. </li></ul><ul><li>India became the fou...
6. Bioinformatics Companies <ul><li>A small section is involved in Bio-informatics approaches to help in drug discovery. (...
7. Diagnostics Kit Development <ul><li>1. Diagnostic Kit Development </li></ul><ul><li>Biochemical Assays </li></ul><ul><l...
8.Lab Research Chemicals & Equipments <ul><li>Customers: Industry & Academia </li></ul><ul><li>Current Size:- 3,621 crores...
Summary :: Indian Industry Market Size (08’-09’) <ul><li>Core Pharma Industry – 12.3 Billion USD (55K crores) </li></ul><u...
Summary :: Indian Industry <ul><li>Core Pharma Industry  </li></ul><ul><ul><li>Huge Domestic Market.  </li></ul></ul><ul><...
Summary :: Indian Industry <ul><li>Biotech –  A sunrise Industry, Picking up with a growth rate of  30%  every year. </li>...
Inputs & Suggestions plz…  <ul><li>Thank You !!! </li></ul>SUB-SECTORS  :: MARKET SHARE ::  GROWTH TRAJECTORY  Hi, This i...
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Biotech &amp; Pharma Market July 2009

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Biotech &amp; Pharma Market July 2009

  1. 1. Opportunities in the Pharma/ Biotech Sector 2009 - Market Analysis by Napoleon Samarasam SUB-SECTORS :: MARKET SHARE :: GROWTH TRAJECTORY Imbued with Passion... Muscled by Reason…!!!
  2. 2. Plans fail for lack of counsel,        but with many advisers they succeed… SUB-SECTORS :: MARKET SHARE :: GROWTH TRAJECTORY
  3. 3. Sub-sectors of the Pharma / Biotech Industry…. SUB-SECTORS :: MARKET SHARE :: GROWTH TRAJECTORY
  4. 4. List of Sub-sectors <ul><li>Pharmaceuticals sector (Small Molecule Drug Companies) </li></ul><ul><li>2. Bio-pharma (Bio-drug Companies) </li></ul><ul><li>3. CRAMS (Contract Research & Manufacturing Organizations) – Custom Research </li></ul><ul><li>4 . Biotech Companies working on Industrial Enzymes </li></ul>SUB-SECTORS :: MARKET SHARE :: GROWTH TRAJECTORY
  5. 5. Sub Sectors…Cont’d.. <ul><li>5. Agri Biotech Companies </li></ul><ul><li>6. Bio-informatics Companies </li></ul><ul><li>7. Diagnostics Kit Development (Biomedical Assays etc…) </li></ul><ul><li>8. Lab Research Chemicals & Equipments (Bio-Suppliers Category) </li></ul>SUB-SECTORS :: MARKET SHARE :: GROWTH TRAJECTORY
  6. 6. Drugs - Classification DRUGS CLASSIFICATION :: MARKET SEGMENTATION Drugs Ethical Drugs ( Patented Small Molecule Drugs ) Biologics ( Biotech Drugs Very Expensive ) Generics ( Patent expired Drugs offered at low prices )
  7. 7. Drug Types – Global Market Segmentation DRUGS CLASSIFICATION :: MARKET SEGMENTATION
  8. 8. <ul><li>Global Pharma/Biotech Market - $770 billion in 2008 </li></ul>2007 Sales – 663.5 B$ DRUGS CLASSIFICATION :: MARKET SEGMENTATION
  9. 9. Breakup of the Global Pharma Market – $ 770 Billion <ul><ul><li>Small Molecule drugs accounted for $ 570 billion </li></ul></ul><ul><ul><li>biotechnology drugs/biologics accounted for $120 billion </li></ul></ul><ul><ul><li>generics  for $80 billion of the global market </li></ul></ul>DRUGS CLASSIFICATION :: MARKET SEGMENTATION
  10. 10. Top Three Therapeutic categories - Global <ul><li>The three top therapeutic categories were </li></ul><ul><li>CNS drugs at $118 billion, </li></ul><ul><li>Cardiovascular drugs at $ 105 billion and </li></ul><ul><li>Cancer drugs at $70 billion of sales. </li></ul>The list of therapeutic categories is quite long – a separate one for each type of disease & disorder. DRUGS CLASSIFICATION :: MARKET SEGMENTATION
  11. 11. Top Therapeutic Categories - India <ul><li>Top therapeutic segments: </li></ul><ul><ul><li>gastro-intestinal </li></ul></ul><ul><ul><li>cardiac therapies. </li></ul></ul><ul><ul><li>Opthologicals, </li></ul></ul><ul><ul><li>cardiovascular, </li></ul></ul><ul><ul><li>anti-diabetic and </li></ul></ul><ul><ul><li>neurological drugs. </li></ul></ul><ul><ul><li>anti-infective, </li></ul></ul><ul><ul><li>neurology,  </li></ul></ul><ul><ul><li>Cardiovascular </li></ul></ul><ul><ul><li>anti-diabetic segments </li></ul></ul>THERAPEUTIC CATEGORIES
  12. 12. Biotech Drug Types - Global <ul><li>In Biologics top three categories were </li></ul><ul><li>monoclonal antibodies at $33 billion, </li></ul><ul><li>Vaccines at $24 billion and </li></ul><ul><li>TNF inhibitors at $18 billion sales in 2008. </li></ul>DRUGS CLASSIFICATION :: MARKET SEGEMENTATION
  13. 13. Global rank of Biologics among top 20 drugs - ( 2008 - 2009 ) <ul><li>Four biologics made the top ten best selling list and seven biologics made the top twenty lists in 2008 ( A very positive trend for bio-drugs) </li></ul>GOOD NEWS ….!!! DRUGS CLASSIFICATION :: MARKET SEGEMENTATION
  14. 14. The Prognosis::Global Pharma Market 2008- 2012 <ul><li>The global pharmaceutical market is forecast to grow to $929 billion in 2012 , an equivalent CAGR of 5.5% over the next four years </li></ul>DRUGS CLASSIFICATION :: MARKET SEGEMENTATION
  15. 15. An Interlude… <ul><li>A Peek into the different stages of Drug Development… </li></ul>PHASES OF DRUG DEVELOPMENT
  16. 16. Different Phases of Drug Development Domains Involving Biological/Biomedical Research Image Source: Biocon Inc PHASES OF DRUG DEVELOPMENT
  17. 17. Image Source: Jubilant Biosys Drug Discovery Phase of Drug Development DRUG DISCOVERY SEQUENCE
  18. 18. Drug Discovery Sequence… Source: Biocon Inc DRUG DISCOVERY SEQUENCE
  19. 19. 1. Core Pharma Industry <ul><li>Core Pharma companies are involved in making Small molecule drugs. </li></ul><ul><li>The Indian pharmaceutical market value will reach as high as US $25 billion by 2015 . </li></ul><ul><li>Current exports of top ten Pharma companies alone accounts to US $5.8 billion. </li></ul>SMALL MOLECULE PHARMA INDUSTRY :: INDIAN SCENARIO
  20. 20. Small Molecule Drug Companies <ul><li>Around 270 large R&D based pharmaceutical companies in India, including MNCs, government and private companies. </li></ul><ul><li>Around 3,000 companies are involved in pharmaceutical production to cater to the market needs. (not all of them are up to international standards though) </li></ul>SMALL MOLECULE PHARMA INDUSTRY :: INDIAN SCENARIO
  21. 21. Brand Name drugs Vs Generics drugs <ul><li>Brand Name drugs have to carry out extensive R & D (pre-clinical drug discovery assays, Clinical trials [ Phases 1–4 ] testing) to test the efficacy/toxicity of the drugs. </li></ul><ul><li>Generics drugs are drugs manufactured after a patent expires and are NOT required to do Pre clinical trials . They just directly perform Bioavailability /Bio-equivalent studies (i.e. Phase I of Clinical Trials). </li></ul>SMALL MOLECULE PHARMA INDUSTRY :: INDIAN SCENARIO
  22. 22. FDA -ANDA (Generics) Approvals for Indian Companies <ul><li>Year Number </li></ul><ul><li>2002 - 21 </li></ul><ul><li>2003 - 26 </li></ul><ul><li>2004 - 25 </li></ul><ul><li>2005 - 52 </li></ul><ul><li>2006 - 74 </li></ul><ul><li>2007- 124 </li></ul><ul><li>2008 - 134 </li></ul><ul><li>2009 – 50 (Q1 ) </li></ul>FDA Approval for Indian Drugs on the rise…!!! SMALL MOLECULE PHARMA INDUSTRY :: INDIAN SCENARIO
  23. 23. India Generics Future – (A News Excerpt ) <ul><li>PATENT EXPIRY: RICH PICKINGS AHEAD </li></ul><ul><li>A boost for the Indian generic industry will come from the significant number of blockbuster branded products – many of them first-line therapies – that will lose patent protection in the next 5 years in the US. Over 49 such products will be affected by the end of 2013, including Topamax, Effexor XR, Lipitor, Plavix and Cymbalta. </li></ul>Source : Research Study SMALL MOLECULE PHARMA INDUSTRY :: INDIAN SCENARIO
  24. 24. Biological Drug Testing in Core Pharma (small molecule drug companies) <ul><li>Core Pharma developing small molecule drugs perform Biological Testing & Validation as a part of the Pre-Clinical Testing. </li></ul><ul><li>Fertile ground for Bioscience research. </li></ul>SMALL MOLECULE PHARMA INDUSTRY :: INDIAN SCENARIO
  25. 25. 2. CRAMS :: Bio-Services <ul><li>CRAMS - Contract Research and Manufacturing Services. </li></ul><ul><li>Overseas Companies have started to outsource their work to cut their cost from 40 – 70%. </li></ul><ul><li>India – A favored destination. </li></ul><ul><li>~98 Contract Research Organizations (both domestic & global) having operations in India. </li></ul>CRAMS :: INDIAN SCENARIO
  26. 26. CRAMS :: WORLD MARKET – A PROGNOSIS
  27. 27. Involves Biological Testing & Validation CRAMS :: MARKET SEGEMENTATION
  28. 28. CRAMS market value - India <ul><li>$0.5bn - 2005 </li></ul><ul><li>$0.9bn - 2006 </li></ul><ul><li>$2.7bn - 2010 </li></ul><ul><li>Currently,80% of the contract work undertaken consists APIs and intermediates manufacturing. </li></ul><ul><li>India has managed to attract $360m in drug discovery investment (expected to grow in the near future.) </li></ul>CRAMS :: INDIAN SCENARIO
  29. 29. Clinical Trials - Drug testing Market <ul><li>India is a growing clinical trial destination, for MNC’s to get approvals to test their new drugs in the country. </li></ul><ul><li>No of applications for conducting Clinical trials </li></ul><ul><ul><li>100 - 2005 </li></ul></ul><ul><ul><li>170 - 2006 </li></ul></ul><ul><ul><li>200 - 2007 </li></ul></ul><ul><ul><li>350 - 2008 </li></ul></ul>CROs :: INDIAN SCENARIO
  30. 30. Biotechnology in India :: Few Perspectives <ul><li>The Indian biotechnology sector is one of the fastest growing knowledge-based sectors in India. </li></ul><ul><li>Currently, India holds two per cent share of the global market. </li></ul>BIOTECH INDUSTRY :: INDIAN SCENARIO
  31. 31. Comparative advantages of India <ul><li>R&D facilities </li></ul><ul><li>knowledge </li></ul><ul><li>skills, and </li></ul><ul><li>cost effectiveness </li></ul>BIOTECH INDUSTRY :: INDIAN SCENARIO
  32. 32. Indian Biotech market <ul><li>The Indian biotech market was estimated at $ 2.80 billion USD in 2007–08 </li></ul><ul><li>Likely grow at a compound annual growth rate (CAGR) of 30 per cent. </li></ul><ul><li>Ranked 4 th in the Asia Pacific region behind Japan, China & Australia. </li></ul><ul><li>The sector is poised to generate US$ 13–16 billion by 2015. </li></ul>BIOTECH INDUSTRY :: INDIAN SCENARIO
  33. 33. Biotech Categories – Indian Market <ul><li>Bio-Pharma </li></ul><ul><li>Agri-biotech </li></ul><ul><li>Bio-informatics </li></ul><ul><li>Bio-industrial and </li></ul><ul><li>Bio-services </li></ul><ul><li>The first three are the most important segments according to their revenue contribution. </li></ul>BIOTECH INDUSTRY :: CATEGORIES
  34. 34. 3. Bio-Pharma industry - India <ul><li>The bio-pharma industry accounted for almost 70 per cent (of the 2.8 Billion USD) of the overall revenues in 2007-08 </li></ul><ul><li>Likely to touch US$ 4.60 billion by 2012-13. </li></ul><ul><li>Currently more than 40 % of the total 325 biotech companies in India are in the bio-pharma segment. </li></ul><ul><li>Products from Fermentation/Animal Cell cultures etc… </li></ul><ul><li>Growth is expected in the Bio-Generics space </li></ul>BIO-PHARMA INDUSTRY :: INDIAN SCENARIO
  35. 35. 4. Bio-Industrial Segment - India <ul><li>Includes industry involved in the production of enzymes, and other products for agriculture, nutrition etc. </li></ul><ul><li>Industry Size – $ 101 Million USD </li></ul>BIO-INDUSTRIAL SEGMENT :: INDIAN SCENARIO
  36. 36. 5. Agriculture Biotech <ul><li>One of the fastest growing sectors in the industry. </li></ul><ul><li>India became the fourth largest adopter of biotech crop in the world, by planting Bt cotton on 7.6 million hectares </li></ul><ul><li>The companies that come in the top 20 are all involved in developing Bt hybrid varieties. </li></ul><ul><li>Current Size - $ 318 Million USD </li></ul>AGRI-BIOTECH INDUSTRY :: INDIAN SCENARIO
  37. 37. 6. Bioinformatics Companies <ul><li>A small section is involved in Bio-informatics approaches to help in drug discovery. (studying Structure Activity Relationship of drug-target etc…) </li></ul><ul><li>$47 Million USD. </li></ul><ul><li>Expected to grow considering India’s IT strength </li></ul>BIO-INFO INDUSTRY :: INDIAN SCENARIO
  38. 38. 7. Diagnostics Kit Development <ul><li>1. Diagnostic Kit Development </li></ul><ul><li>Biochemical Assays </li></ul><ul><li>Molecular Biology Applications </li></ul>2. Bio medical Instruments used for Diagnosis like CT,MRI,PET <ul><li>Not a lot of R & D right now, but expected to Grow. </li></ul><ul><li>Currently a billion dollar industry . Diagnostics subsectors are Heavily Fragmented. </li></ul>DIAGNOSTICS :: INDIAN SCENARIO
  39. 39. 8.Lab Research Chemicals & Equipments <ul><li>Customers: Industry & Academia </li></ul><ul><li>Current Size:- 3,621 crores (0.94 Billion USD) </li></ul>Source: Biospectrum BIO-SUPPLIERS :: INDIAN SCENARIO
  40. 40. Summary :: Indian Industry Market Size (08’-09’) <ul><li>Core Pharma Industry – 12.3 Billion USD (55K crores) </li></ul><ul><li>CRAMS – Over 1 Billion USD </li></ul><ul><li>Biotech – 2.8 Billion USD </li></ul><ul><li>Diagnostics – 1.19 Billion USD </li></ul><ul><li>Bio-Suppliers – 0.94 Billion USD </li></ul>SUMMARY :: INDIAN MARKET Overall Size ~ 18 Billion USD
  41. 41. Summary :: Indian Industry <ul><li>Core Pharma Industry </li></ul><ul><ul><li>Huge Domestic Market. </li></ul></ul><ul><ul><li>Increasing international presence in the Generics space. </li></ul></ul><ul><ul><li>Appreciable consolidation across the globe in the last few years. </li></ul></ul><ul><ul><li>Ranked 4 th in terms of Volume & 11 th in terms of Global Value share. </li></ul></ul><ul><li>CRAMS – Increasing Growth in the coming years due to outsourcing & cost reduction by 40 – 70%. </li></ul>SUMMARY :: INDIAN MARKET
  42. 42. Summary :: Indian Industry <ul><li>Biotech – A sunrise Industry, Picking up with a growth rate of 30% every year. </li></ul><ul><li>Diagnostics – Heavily Fragmented. A 25% annual growth rate is expected in the coming years. </li></ul><ul><li>Bio-suppliers – Domestic & MNC’s catering to the growing industry & economy. </li></ul>SUMMARY :: INDIAN MARKET
  43. 43. Inputs & Suggestions plz…  <ul><li>Thank You !!! </li></ul>SUB-SECTORS :: MARKET SHARE :: GROWTH TRAJECTORY Hi, This is just my small effort to understand the Biotech/Pharma Market in India. I am eagerly looking forward to your feedback. Please do email me your comments at [email_address] Thanks. S.M.Napoleon

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