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Prem ppt (1)

  1. 1. By: Prem Yadav
  2. 2. OBJECTIVE: To understand growth of pharmaceutical sector with perspective of growth in shareholders value
  3. 3.       Contents Pharmaceutical Industry  Value chain analysis Industry structure Regulatory framework Analysis of financial models Analysis of value drivers Bibliography
  4. 4. <ul><li>Indian pharmaceutical industry 14 th value terms and 3 rd volume terms. </li></ul><ul><li>Global overview : </li></ul><ul><li>The value of the global pharmaceutical market is grown 4 to 6 %. </li></ul><ul><li>Top emerging markets </li></ul><ul><li>Indian overview: </li></ul><ul><li>Non-existent before 1970 to a prominent provider of healthcare products. </li></ul><ul><li>20,000 registered units . </li></ul><ul><li>about 250 large units that control 70 per cent of the market </li></ul><ul><li>8000 Small Scale Units </li></ul>Pharmaceutical industry
  5. 5. 98 U.S. FDA-approved manufacturing facilities Figures in Rs Crore   2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Domestic Market 30365 32575 34128 39989 45367 50946 55454 Exports 12826 15213 17857 22216 24942 30760 38433 Imports 2865 2956 3139 4515 5867 6734 8552 Total Market Size 42326 47332 52029 62566 68442 78610 89335 Current status:
  6. 6. Value chain analysis
  7. 7. The Pharma market structure is dominant collusive type because 20% companies covering 80% market. Collusive type because companies depends for raw materials. Industry structure:
  8. 8. <ul><li>Competition is mainly from the domestic manufacturers and imports from China </li></ul><ul><li>because of the low manufacturing cost. </li></ul>Competition Overview
  9. 9. REGULATORY FRAMEWORKS
  10. 10. <ul><li>Highly regulated </li></ul><ul><li>Government controls prices of a large number of bulk drugs and formulations </li></ul><ul><li>Export Promotion Cell </li></ul><ul><li>Acts as a nodal agency in the matters related to export </li></ul><ul><li>KEY FEATURES OF THE INDIAN PATENTS ACT OF 2005 </li></ul><ul><li>product patents for drugs </li></ul><ul><li>Patent term made 20 years </li></ul><ul><li>100 per cent foreign investment automatically permitted </li></ul><ul><li>Automatic approval for Foreign Technology Agreements </li></ul><ul><li>POLICY INITIATIVES </li></ul><ul><li>• Stringent measures for makers of spurious drugs </li></ul><ul><li>• Creation of pharma R&D fund with a total corpus of US$ 33.3 million. </li></ul><ul><li>• Constitution of India Pharmacopoeia Commission </li></ul><ul><li>• Creation of Export Promotion Council “Pharmexcil” </li></ul><ul><li>• Tax holiday for R&D companies </li></ul>
  11. 11. ANALYSIS OF INDIAN PHARMACEUTICAL MARKET
  12. 12. PORTER’S 5 FORCES MODEL
  13. 13. SWOT Analysis
  14. 14. <ul><li>Objective </li></ul><ul><li>Methodology </li></ul><ul><li>Value drivers </li></ul><ul><li>Profitability </li></ul><ul><li>Non financial </li></ul><ul><li>Growth </li></ul>Analysis of value drivers for share holders value:
  15. 15. All pharmaceutical companies
  16. 16. Indian pharmaceuticals
  17. 17. Foreign pharmaceuticals
  18. 18. Conclusion
  19. 19. Rankings
  20. 20. <ul><li>  </li></ul><ul><li>Capitaline software </li></ul><ul><li>Strategic value-chain analysis of Indian pharmaceutical alliances by gaurav raizada & </li></ul><ul><li>atul pall (IIM, Lucknow). </li></ul><ul><li>Capital market February 2010 issues. </li></ul><ul><li>  </li></ul><ul><li>Indian Drug Manufacturers’ Association, 48th Annual Publication,2010. </li></ul><ul><li>  </li></ul><ul><li>Indian pharmaceutical ministry website. </li></ul><ul><li>   </li></ul><ul><li>www.nseindia.com </li></ul>Bibliography
  21. 21. THANK YOU

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