Pharma Industry Presentaion

8/7/2019 Pharma Industry Presentaion

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The pharmaceutical industry develops,

produces, and markets drugs licensed for

use as medications. Pharmaceutical

companies can deal in generic and/or

brand medications.

Pharmaceutical Industry - Indian Perspective 2


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Pharmaceutical Industry -

Worldwide 2008:

Year for addressing structural and operationalissues

Determiningwhere future growth will be found

Positioning the industry for reform and otherchanges

Beginning of2009, Global PharmaceuticalMarket Major state of flux

Pharmaceutical usage continued to expand,albeit more slowly than in previous years

Generics continued to pick up market shareglobally

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Pharma Industry Growth Rates

Worldwide

US Pharma Market (comprising 47% of the

global pharma market share) grew by 1%

Canadian Pharma Market grew by 7%

Five major European Pharma Markets grew

by 2%

Indian Pharma Market year enggrowth

rate expected around 12% in 2009.Domestic Retail Sales grew by 18.3% in June

09 and by 8.9% in July 09



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Pharmaceutical Industry - India



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Source: Socio Economic Review 2007-08


Chemical & Pharma 22.9% of the

Indian Industries


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Composition of the Pharma

Industry in Gujarat



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Key Facts & Figures



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Top 5 Global Pharma

Companies

Top 5 Indian Pharma

Companies

I. CiplaII. Ranbaxy

III. GSK

IV. Piramal Health Care

V. Zydus Cadila

(Sun as on Feb. 09)

Top Performing Drugs

I. Lipitor (Pfizer)

II. Plavix (Bristol)

III. Meyer Squibb (Sanofi

Aventis)

IV. Nexium (Astra Zeneca)

V. Seretide/Advair (GSK)

VI. Enbrel (Wyeth)

IN INDIA:

Rank 1: Voveran

(Novartis)


I. PfizerII. Glaxo Smith Kline (GSK)

III. Astra Zeneca

IV. Novartis

V. Sanofi Aventis

Source: IMS Data 2008


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Market Share of Pharma

Companies in India

Cipla, 5.3

Ranbaxy, 5

GSK, 4.3

PiramalHealthcare

, 3.9

Zydus

Cadila, 3.6Cipla

Ranbaxy

GSK

Piramal Healthcare

Zydus Cadila


These Top 5 Companies govern 22% of the

Domestic Pharma Market


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Key Exports Notifications Year 2009

Indias export volume to US hampered(down by 40%) Competition fromChina, Israel & Korea

Reasons for Export Downfall : Fluctuating Dollar (liquidity problems)

Ban on Ranbaxy

Competition from other Asian countries Aggressive pricing by Chinese exporters

Cancellation of Orders



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Indian Advantage

40% to 50% savings in raw materials

8

5% to90

% manpower cost savings

FDA-approved plants can be constructedin India at 30% to 50% lower costs

Higher utilisation of equipment due toimproved processes



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Indias Regulatory framework



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Contract Research &

manufacturing Emerging Sectors

Indian drugdiscovery anddevelopment outsourcing market is

projected to grow at a rate of 50 % in 2009

Indian pharmaceutical manufacturing outsourcing market is valued

at US$ 1.1 billion and the segment is growing at thrice the global

market rate

Indias share of the outsourcing market to increase from 2.8% in

2007 to 5.5% in 2010

APIs /intermediate outsourcing is more prevalent in India than

formulation outsourcing; around64 % of total outsourcing is in thearea of APIs/intermediates. APIs and intermediate demand is likely

to be in the range of US$ 600 million to US$ 700 million by 2010

By 2010, the demand for contract manufacturing of formulations to

be around US$ 210 million to US$ 300 million



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R & D Efforts



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Future of Pharmaceutical Industry

MNCs in India to control 8-9% in

domestic pharma market worth $8

billion by 2015

Indian Pharma Market expected to triple

to $20 billion by 2015 Moving towards

Worlds Top 10 Markets

Focus of Indian Companies shifting from

the US



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Porters Five Forces Model

Barrier to entry: High (Pharmaceuticals)!Cost of R&D and patent limitations

Industry Competition: High! Advantagesgained by first mover advantage(patents)

Suppliers: Supplier power is low!

Buyers: Buyer power is low! Substitutes: Low(with patents), Medium(after patent expiry)



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SWOT


Pharma Industry Presentaion

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