Final Pharma First 3 Ppl

7/29/2019 Final Pharma First 3 Ppl

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GROWTH OPPORTUNITIES IN

PHARMACEUTICAL SECTOR

Presented by

Gayatri Limbachiya A-1OPriyam Mhashilkar A-23

Pallavi Edakhe A-6

Sheetal Pawar A-31

Ashwin Soni A-47

Farhan Siddiqui A-45

Akhlaque Shaikh A-54


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INTRODUCTION

The Pharmaceutical Industry in India is one of the largest in the world

By 2015 it is expected to reach top 10 in the world beating Brazil, Mexico,South Korea and Turkey

The estimated worth of the Indian Pharmaceutical Industry is US$ 20billion

Almost most 70% of the domestic demand for bulk drugs is catered by theIndian Pharma Industry


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The growth rate of the industry is 13% per year

Healthcare grew from 4 per cent of average household income in 1995 to 7

per cent in 2005 and is expected to grow to 13 per cent by 2025


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The Indian Pharmaceutical Industry is one of the biggest producers of the

active pharmaceutical ingredients (API) in the international arena

Indian bulk drug industry will expand at an annual growth rate of 21

percent to reach $16.91 billion by 2014.

Around 40% of the total pharmaceutical produce is exported

55% of the total exports constitute of formulations and the other 45%

comprises of bulk drugs

There are approximately 250 large units and about 8000 Small Scale Units,

which form the core of the pharmaceutical industry in India (including 5

Central Public Sector Units).


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PHARMA INDUSTRY STUCTURE


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Active Pharmaceutical Ingredients (APIs) examples Orchid Chemicals,

Elder Pharma etc.

Formulationsexamples Sun Pharma, Cipla, Dr. Reddys etc.

Contract Research and Manufacturing Services (CRAMS)Examples

include companies like Divis Labs, Jubilant Life Sciences etc.


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Export from India March -2011


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CHANGING FOCUS IN CRAMS

Contract research is increasing at the rate of 25% per year

CRAMS sector to the level of $7.6 billion by 2012 from $3.8 billion a yearago


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Contract Research Organizations(CROs) provides services including

drug discovery, new product development, formulation, pre-clinical

trial

The main factors for the growth of the CRAMSHigh Number of USFDA and UKMHRA approved plants

Well-developed chemistry skills

Low production & R&Dcost


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Under WTOs TRIPS Agreement(2005), Developing countries to provide

product patents on pharmaceuticals.

India decided to enforce a product patent regime since 2005, which banned

copying and selling of patented drugs launched after 1995.

This gave them confidence to take on global generic companies and went

ahead to acquire numerous overseas units to enter newer markets


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Biosimilars

48% of global revenues of the top 100 drug

will be from biomolecules by 2016

Biggest product could be Humira rheumatoid

arthritis drug in 2020

Patented Biologicals costlier demand less,

Companies keen on Biosimilar


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Challenges

Tougher to produce

Manufacturing processes cant be altered

cost of developing a biosimilar higher than

chemical generics


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Biosimilars in India

15 epoetin, 4 insulin also other Anti Cancer

Biosimilars

Market estimated with CAGR 30%+

Success Story: Dr Reddy's Reditux, biosimilar

of Roche's cancer drug Rituxan


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Mergers


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Alliance and Partnership

Research

Co Develop Drugs

buy or in-license molecules

Manufacturing

cost advantage

highest number USFDA-approved plantsoutside US


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Innovation DrivesPharmaceuticals Business


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Stratified Medicine

the move from mass market therapy to

specialized therapies to treat smaller groups

of patients

Companies with great science and deep

pockets are developing high tech compounds.

Pfizers Xalkori (crizotinib)


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Convergence Of Drug Device

opportunity to combine the biological and/or

biomechanical properties of drugs and devices

e.g. direct in situ delivery of therapeutic

agents

It requires a highly specialized marketing and

sales


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Reviving Dormant Compounds

a major growth opportunity lay in revisiting

dormant compounds

some companies are re-evaluating and re-

visiting them

opportunities in reviewing data, reviewing all

aspects of past clinical data


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E.g. Thalidomide

approved by the Federal Drug Administrationfor treatment of leprosy


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Embracing Change In Organization

a shift in mind set hence in behaviours is

needed in order to redefine success

daring to propose and implement stepwise

new ways of working, of competing should be

part of a firms DNA.


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CHALLENGES

delivering affordable health care to India's

billion-plus people

the regulatory environment

to create access to a reasonable quality healthcare for all


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FUTURE PROJECTIONS


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Divis laboratory Limited


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Introduction

Established in the year 1990

Headquarters and Registered Office

at Hyderabad

four multi-purpose manufacturing facilities withall support infrastructure like Utilities,

environment management and safety systems.


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Fundamentals and strength

As a Prime fundamental, focused on developingnew processes for the production of ActivePharma Ingredients (APIs) & Intermediates.

Complete turnkey solutions to the domesticIndian pharmaceutical industry.

With 5 years of experience, expertise and aproven track-record of helping many companieswith its turn-key and consulting strengths,


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It undertakes custom manufacture of APIs andadvanced Intermediates offering a competitiveadvantage to its clients over the entire life cycle of

the products.

Transparency in operation

Great benefit from Divis Research Center givesclients the advantage to concentrate on actualinvention

Invested heavily in knowledge, equipment and man-power to expand in technology area which issophisticated, challenging and rewarding. Currently,Divis is a major manufacturer of protected amino-

acids.


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Stock Analysis

Q1 Net profit up

67% Y-o-Y to

Rs167 cr

Q4 net profit up24% Y-o-Y to

Rs 216 cr


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Key financial indicators


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Financial Ratios

Net Profit ratio : 28.57 %

Expense Ratio : 63%

Current ratio : 3.181

Return on Asset : 25 %


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About Sun Pharma

Established by Mr. Dilip Shanghvi in 1983 inKolkata

57% sales (US).

fourth largest pharma company in India

The company markets over 200 generics, withanother 150 awaiting approval from the USFDA.


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Manufacturing is across 23 locations

Canada

U.S

Mexico

Brail

Isral


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A planned acquisition of Israeli Taro Pharmaceuticalsinitiated in March 2007 completed in Sept 2010.

Acquisition via Alkaloida

Sun's subsidiaries has stake in Taro to 66.5 per cent asper the deal

Proposes acquiring remaining stake (33.5%) in Oct2011


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1 Not interested in taking over

Wockhardt: Sun Pharma

2 Lupin's acquisition

agenda for the future

With Sun Pharma-Merck

striking JV, why is SPARC

shining?

The good, the bad &

the ugly of Q4

earnings(12%

increase442 cr)

Sun Pharma to

acquire Taro, to pay

$367m for 33.5%

stake


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6 Wockhardt to

conclude nutrition

business sale by

20127 Wockhardt to conclude

nutrition business sale by 201

8 Sun Pharma to

acquire Taro, to pay

$367m for 33.5%

stake


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Financial Analysis

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2010 2011 2012

PAT

Operating Profit

Income


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Highlights


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Reasons

Sales in India were Rs. 19,334 million, down 6%.

Caraco, Sun pharmas 75%

us-base subsidiary

Stopped manufacturing

operations from June 2009

Total Income


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0.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00

4,000.00

4,500.00

5,000.00

2010 2011 2012

Total Income

Total Income


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0

100

200

300

400

500

600

700

800

900

2010 2011 2012

R&D

R&D


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R&D

Creating new molecules

537 products

Developed APIs in cost effective manner

Anticancer ,steroid

Generic formulation (nasal sprays , dose inhaler )


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Initiated exports to Europe for the first time

received 11 product approvals in Europe up to

March 2010.

Received approvals for eight APIs from various

regulatory authorities; this took the total

regulated market-approved APIs to 89 out of155

Net Block


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0

200

400

600

800

1000

1200

2010 2011 2012

Net Block


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0

5

10

15

20

25

30

35

40

45

50

2010 2011 2012

Earning Per Share (Rs)

Earning Per Share (Rs)


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COMPANY ANALYSIS:

DRL


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Company was founded by Dr. Anji Reddy.

Pharmaceutical company global generics segment, API segmentand proprietary products segment.

Reddys manufactures and markets a wide range ofpharmaceuticals in India and overseas.

Co. has 190 medications, 60 API for drug manufacture, diagnostickits and biotechnology products.

1st pharma company from Asia (except Japan) to be listed on NYSE.

DRL d B t h i iti


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DRL and Beta pharma acquisition DRL acquire 100% equity of the German drug major.

Benefits to DRL DRL immediately got access to the generic market of germany.

66% market in Europe was held by Germany.

DRL gained strategic presence in EU.

There was not much liability linked to this acquisition.

Stock market, Jan 16, 06 1030, Feb 16,06 1260.

Synergy

Distribution

Manufacturing

Pipeline

Branding

Presence

Size


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DRLs acquisition of GSK's penicillin facility in US

Completed the acquisition of Glaxosmithkline (GSK) oral penicillin facility

in US on Nov10. The buy was in line with its strategy to scale up its generic business in

North America.

It also brought an opportunity to explore additional synergy with itsbusiness.

Dr Reddys scrip gained 2.93% to end at Rs 1680 on BSE.

DRL and Merck Serono announce collaboration to develop


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p

and commercialize Biosimilars

DRL has been pioneer in Biosimilar space as launched 4 Biosimilarmolecules till date.

The partnership with Merck Sereno expands DRLs presence in theBiosimilar space select emerging markets and enables partnershipglobally.

With FDA guidance, any significant player in the field will need strongbiologics, development, manufacturing and commercialization

capabilities. Merck Serenos & DRLs Joint expertise in these fields makes for a powerful

global partnership.


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DRL to acquire Octoplus pharma

DRL announced to acquire Octopus pharma, a service based

pharmaceutical company of Netherlands for 27.39 million in cash on 22October, 2012.

DRL offered to acquire 100% of the issued and outstanding shares of

octopus with a premium of 30%.

DRL already got commitment from over 50% of share holders of Octoplus.

Deal would help expand the companys expertise and scientific capabilities

as DRL is aiming to build a research base in Leiden (Netherlands).

DRLs New molecule


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DRL s New molecule

DRLs stock surged about 4% on announcement of encouraging phase III

trials of an anti diabetic drug and tie up for manufacturing obesity

management drug, Orlistat. DRL and its research partner, Rheoscience announced that the initial trials

of phase III stage of its anti diabetic compound, Balaglitazone is effective

in reduction of HbA1c.

HbA1c test is carried out to test blood sugar levels and it is the first Indian

molecule to reach this stage. The company will have to prove the superiority of its molecule over

Pioglitazone, a $3 billion drug launched a decade ago in trial, if it is to have

a commercial launch which is estimated to be 1 year from now.

DRL is in a tie up with Indian Bio technology company Transgene Biotek to

manufacture and market Orlistat, an obesity management drug.

The market size from obesity management drugs accounts for $2

billion worldwide.

Molecule


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Molecule

Takeda filed patent infringement suit


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p g

Global pharma major Takeda Pharmaceuticals Ltd. had filed a

patent infringement suit in New york court over the latters

efforts to manufacture generic version of acid refluxtreatment drug Dexilant (Dexlansoprazole) in April 2011.

According to Takeda, the 2 patents which it alleged Dr. Reddy

infringed would expire in June 2020 & August 2026.


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Crosses USD 2bn in

revenuesFuji film & Dr. Reddy - JV

Expands R&D centre in

cambridge, UK

Key Financial Trends


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Key Financial Trends


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Key Financial Highlights


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Key Financial Highlights

Rs in crore


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Balance Sheet of Dr Reddys Laboratories


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Balance Sheet of Dr Reddys Laboratories

Mar 201212 mths Mar 201112 mths Mar 201012 mths

Rs Cr

Reserves 6,633.00 5,935.60 5,830.20

Net worth 6,717.80 6,020.20 5,914.60

Net Block 1,896.80 1,691.00 1,315.60

Total Assets 8,251.20 7,465.00 6,477.80

Ratios


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Ratios

Mar 12 Mar 11 Mar 10


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Mar 12 Mar 11 Mar 10

l


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Financial


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THANK YOU

Final Pharma First 3 Ppl

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