Rajinder Singh - Global Absolute Pharma Booklet-2010 - Singh

8/8/2019 Rajinder Singh - Global Absolute Pharma Booklet-2010 - Singh

http://slidepdf.com/reader/full/rajinder-singh-global-absolute-pharma-booklet-2010-singh 1/3

GLOBAL ABSOLUT

Global Absolute Pharma Plays

Dr. Know Asian Pharma CBs



Global Absolute is one of the few research based brokerages world‐wide that produces bottom‐up

research covering the Asian CB universe. As there are few players providing this service we have been

able to capture significant market share as an organisation with sales/trading footprints in UK and

Singapore and research centre in India under our CBs specialist Mr. Rajinder Singh. We provide credit,

asset cover, liquidation, price point discovery analysis for the entire Asian CBs Universe. We are pretty

confident this market will continue to grow from $60bn and the CBs will become the instrument of

choice for new issuance. We attach our new pharma booklet “Dr. Know”.

Indian Pharmaceutical Sector Overview:

The Indian pharmaceutical industry is currently valued at around Rs 1,006 bn [US$22 bn] (Source:

Economic Survey 2009‐10 report), as the industry growth gets back on track following the global

economic revival. India’s pharma sector now ranks 3rd in terms of volume of production with 10% share

of the global pharmaceutical market and occupies 14th position by value (Source: Press Information

Bureau from the Ministry of Finance, government of India).

The Indian pharmaceutical industry directly employs around 500,000 people and is highly fragmented.

While there

are

around

270

large

R&D

based

pharmaceutical

companies

in

India,

including

multinationals, government‐owned and private companies, there are also around 5,600 smaller licensed

generics manufacturers, although in reality only around 3,000 companies are involved in pharmaceutical

production. The pharmaceutical industry in India has leapt from Rs. 15 bn in 1980 to the current level

with an overall industrial growth of 7.7% during April ‐ November 2009. Growth has been fuelled by

exports which registered an increase of 25% in 2008‐09 followed by Retails sales.

The advent of pharmaceutical product patent recognition in January 2005 changed the ground rules for

Indian companies. In the run up to the new post‐patent era, the Indian industry has been evolving for

better. R&D departments are moving away from reverse engineering in favor of developing novel drug

delivery systems and discovery research. With low‐cost manufacturing, high‐quality research and

manufacturing

facilities

and

educated

personnel,

the

Indian

pharmaceutical

industry

presents

both

a

competitive threat and partnering opportunities to other global players.

The Indian pharmaceutical market is expected to double to US$45 billion by 2018 from the current

US$22 billion level, growing at compounded annual growth of over 10% per annum. Pharmaceutical

regulations are rapidly improving in India. In July 2009, the Indian Department of Biotechnology (DBT)

planned to create a separate IP regulator for the biotechnology sector. The National Biotechnology

Regulatory Board would be responsible for identifying and controlling drugs and vaccines which are

developed from natural sources. Drug Controller General of India (DCGI) has also identified six research

and development (R&D) centers in which new drugs will be tested before they are launched.

India’s health insurance market is one of the most promising sectors in the world. Multinational

companies operating

in

India

are

expected

to

control

nearly

8‐10

per

cent

of

the

total

market

with

their

patented medicine worth $8 billion in the domestic pharmaceutical market by 2015 (Source: FICCI‐Ernst

& Young Report on Compelling Reasons for Doing Clinical Research in India). Fast growing population in

the highest income class, which is expected to touch 25 million in 2015 from 10 million, is likely to drive

the affordability of high value patented drugs.

This cost arbitrage is also influencing India’s attractiveness as a clinical trial destination. India

participates in 7% of global Phase III and 3.2% of Phase II trials with industry‐sponsored trials having



grown at a spectacular 39% CAGR from 2004‐2008. The number of industry sponsored Phase II‐III sites in

India has grown by 116% over the last 15 months and India has moved from rank 18 to 12 across the 60

most active countries. India ranks second in Asia after Japan in its number of industry‐sponsored Phase

II‐III clinical trial study sites and accounts for nearly 20% of all Asian study sites. The cost of conducting

clinical studies and other outsourced activities in India is typically 40‐60 per cent lower than in

developed countries and around 10‐20 per cent lower than in other emerging economies. Nearly eight

of the top 10 pharma companies are carrying out one or more allied services in India, either by setting up captive centers or through tie ups with Clinical Research Organizations and IT/ITES companies.

As per 2009 IMS MAT, there has been no change in the ranking of the top five pharma companies in

India. Cipla is the number one in terms of market share, followed by Ranbaxy, GSK (India), Piramal

Healthcare and Zydus Cadila.

TABLE OF CONTENT

INTRODUCTION

JUBILANT ORGANOSYS LIMITED: Yield Play/Credit ‐ BUY

ORCHID CHEMICALS & PHARMA LTD: Good Yield/Improved Credit ‐ BUY

PANACEA BIOTEC

LTD:

Good

Yield/Good

Credit

‐BUY

RANBAXY LABORATORIES LTD.: Low Yield/Good Credit: SELL

NECTAR LIFESCIENCE LTD: Equity/Good Yield Play ‐ BUY

STRIDES ARCOLAB LTD: Yield / Low Credit‐ BUY

AUROBINDO PHARMA LTD: Yield / Low Credit ‐ BUY

STERLING BIOTECH LTD: Good Yield/Credit ‐ BUY

PLETHICO PHARMACEUTICALS LTD.: Good Yield/Credit‐ BUY

Please contact: [email protected]

Rajinder Singh - Global Absolute Pharma Booklet-2010 - Singh

Documents

Transcript of Rajinder Singh - Global Absolute Pharma Booklet-2010 - Singh