Research on India_Healthcare Sector in India_January 2013

Healthcare Sector in India Monthly Update

January 2013

Healthcare – Monthly Update

Top Story India meets WHO regulatory authority standard for vaccines India has been praised by United Nations’ (UN) directing and coordinating authority for health, World Health Organization (WHO) for its healthcare efforts. India has been appreciated for meeting the stringent WHO national regulatory assessment for vaccines as well as for its role in lowering medicine prices and thereby ensuring universal healthcare.

India’s effort in supplying vaccines to regions not funded by UN or any other charitable organization led WHO in declaring that the country's national regulatory authority and affiliated institutions meet the prescribed international standards to supply vaccines to international bodies such as the WHO, UNICEF and the World Bank.

News Update

General Indus Health Plus enters into partnership with Apollo Hyderabad Pune based preventive healthcare provider Indus Health Plus (P) Ltd. has extended its operation in southern belt by entering into a partnership with Apollo Hospitals in Hyderabad. The association marks Indus’ 55th centre through its tie up with 15 odd hospitals. The firm was already in association with Ahmedabad located Apollo and after its Hyderabad association, it has plans of setting up 30 more centers for lending focus to southern and western India within the next year and a half. Indus has been able to make a mark through its specially designed health packages for different age groups. The firm has been able to tap Indians growing awareness of early disease detection which has resulted in almost 25% increase in client base annually. GVK Biosciences signs pact with Onconova Therapeutics Hyderabad based contract research organization (CRO) GVK Biosciences has entered into an agreement with US‐based Onconova Therapeutics for development of new drugs for treatment of cancer. As according to the deal, Onconova will provide two discovery targets with early chemical equity while GVK Biosciences will use its multi‐disciplinary discovery platform to advance these programmes through lead optimization and investigational new drug (IND) candidate selection. The deal will also see GVK Biosciences gain an increasing share of up to 50‐50 split based on achievement of milestones or funding brought into the JV with advancement in their target.


The proceedings in cancer development drugs will be based in US with the aim of developing Onconova oncology assets from early discovery to clinical development stage. Biocon gains approval for Itolizumab Bangalore based biotech firm Biocon has recently been awarded approval for its treatment of skin disease psoriasis Itolizumab drug by the Drug Controller General of India (DGCI). Following the approval from DGCI, the company is now in the process of launching the product under the brand name Alzumab. Indian pharma companies like Biocon and Glenmark who had ventured into research almost a decade ago are gradually acquiring approvals that are throwing a positive light on Indian drug manufacturing capability. IITMadras successful in generating RBCs from stem cells A team of engineering department scientists of IIT Madras has been successful in creating enough red blood cells (RBCs) from stem cells that could be used as artificial blood who need transfusion. The team has also been approved a funding from the Union Ministry of Science and Technology to produce artificial blood on an industrial scale. The RBCs will soon go in for mass production before sending it for human trials in 3 years span prior to being tested on animals. If the trials prove to be successful, the perennial problem of blood shortage in hospitals can be overcome that will save numerous accident victims. The blood generated will have the added advantage of being disease free and will be available at almost half the cost at which blood is now sold at. Omron Healthcare launches convenient Blood Glucose Monitors Medical technology provider Omron Healthcare India has launched much simplified and economical “Blood Glucose Monitor – HGM111” and “Blood Glucose Monitor – HGM112”. The products have been designed in a way that requires no coding and can be operated with ease by diabetic patients sitting at home. The Blood Glucose Monitor ‐ HGM 111 provides accurate glucose measurement in 5 seconds and can store up to 512 sets of measurement with average data for 7, 14 and 30 days and can be downloaded onto computer as well. Blood Glucose Monitor – HGM 112 too has similar benefit of being light weight, easy to use and fast test results. Blood Glucose Monitor – HGM111 is estimated at a price of INR 1,980 while Blood Glucose Monitor – HGM112 is estimated at a price of INR 990. The surge in diabetic population over the years is drawing healthcare sector to greatly focus on the particular segment. With launch of the products, Omron is looking forward to improving the quality of an average Indian household’s preventive healthcare standard.


News Update

Regulatory Clinical trials in India set for stricter regulations The Indian government has woken up to take charge of regulating the clinical trials market seriously. The government is taking major initiatives in changing the drug laws in order to do away with lapses made by MNC pharmaceutical majors a punishable offense. The Health Ministry is in the process of introducing rules that would monitor clinical trials under the Drugs and Cosmetics Act within Jan 2012. Once the rules meant for the pharma companies conducting clinical trials on Indians get notified, the government will further amend the Drugs and Cosmetics Act to make lapses by pharma MNCs a punishable offence by law. The Ministry will for the 1st time put specific responsibility on investigators and sponsors of drug trials. This will make it mandatory for them to address issues of medical management of subjects involved in trials in case of serious adverse outcomes such as death. It will also prescribe a formula to provide for a higher compensation in case of subject’s death and fix a minimum compensation for subjects otherwise. Stricter norms in clinical trials are expected to make pharma companies more careful in dealing with its subjects. News Update

Expansion Plans Aurobindo Pharma to launch migraine drug Hyderabad based drug manufacturer Aurobindo Pharma Ltd. has acquired the final approval for manufacturing and marketing of Rizatriptan Benzoate Tablets from US Food and Drug Administration (USFDA). The product has been approved out of Unit VII (SEZ) formulations facility in Hyderabad. The 5mg (base) and 10mg (base) dose is indicated for acute treatment of migraine with or without aura in adults and in pediatric patients between 6 to 17 years of age. The medication is a generic equivalent of Merck and Co's Maxalt Tablets. With generic equivalents getting approvals there is a growing accessibility to cheaper alternatives. Moolchand acquires Pankaj Apollo Hospital Moolchand Healthcare has recently announced its acquisition of Agra based Pankaj Apollo Hospital. Moolchand has plans of expanding the 200‐bedded tertiary care hospital to a 300‐bed facility with a total investment of INR 0.75 bn. This acquisition is in line with Moolchand’s INR 5 bn expansion plan that it had envisaged in early 2012. The group has plans of expanding the hospital with a comprehensive cancer institute


within the next 18 months, while in second phase the hospital will be expanded to 300 beds. This acquisition has enabled Moolchand expand its presence to western UP that otherwise has few leading hospital groups operating. Indian pharma majors to supply life saving drugs to Iran Indian dug manufacturers Ranbaxy, Cipla, Glenmark and Ind‐Swift Laboratories have been roped in to supply life saving drugs to the Islamic Republic of Iran. The decision came after representatives of Glenmark, Ind‐Swift and Hetero Drugs were invited to Tehran to the meeting led by Pharmaceuticals Export Promotion Council of India (Pharmexcil) during Dec 17th to Dec 19th, 2012. The Government of Iran has requested supply of bulk drugs, active pharmaceutical ingredients (APIs) and generic formulations for treatment of lung and breast cancers, brain tumours, heart ailments and other key diseases. The payment by Iran will be made in Indian rupee, however both countries’ government have agreed that the companies supplying drugs will enjoy benefits of dollar payment mode. USA being a big importer of Indian generic pharmaceuticals, India should carefully expand its export business by fulfilling Iran’s requirements. ICT Health expands India business Bangalore based ICT Health Technology Services has installed its Health Information and Management System HINAI hospital enterprise solution at Narayana Hrudayalaya (NH) Group Hospitals. The single, multi‐tenant, cloud has connected 17 hospitals under NH Group. ICT Healthcare already has a strong market base in Middle East and is trying to expand its market in India. The company already provides cloud assistance to over 25 hospitals and diagnostic centers by integrating data of more than a million patients world over, is now targeting to integrate 3 mn patient population data by 2013 and raise the statistic to 5 mn by 2014. Stemade launches dental stem cell banking facility Mumbai based Stemade Biotech Pvt. Ltd. has drawn a partnership with Ludhiana based Dr Vivek Saggar's Dental Care and Cure Centre and Dr Vikas Jindal's Jindal Smile Clinic for providing dental stem cell banking service by launching Stemade Connect Clinics (SCC). Stemade is making efforts in penetrating beyond the metro cities that will enable biological insurance to customers even in lesser developed tier II and tier III towns and cities.


Industry Expert Speak Indus Health Plus enters into partnership with Apollo Hyderabad Amol Naikawadi, Joint Managing Director, Indus Health “We already have a tie‐up with Apollo Group in Ahmadabad. We now decided to extend the association to Hyderabad. We now plan to add 30 more centers, a majority in the southern and western States, in the next 12 to 18 months. We will also be tying up with new hospitals as we expand our network.” Biocon gains approval for Itolizumab Kiran Mazumdar Shaw, Managing Director, Biocon "This approval paves the way for us to extend clinical development for other indications like rheumatoid arthritis, multiple sclerosis and vitiligo. We also intend to file a US IND (Investigational New Drug) shortly to enable us to embark on a global clinical development plan" IITMadras successful in generating RBCs from stem cells Dr Soma Guhathakurta, Visiting Professor at Department of Engineering Design IITM "Almost all earlier attempts have had at least 40% of white blood cells in the culture. Introducing such artificial blood into a patient with a weak immune system could be tricky. As a surgeon, I would prefer only red blood cells," Transactions (Nov 2012 – Jan 2013)

Date Buyer Target Deal Size (INR mn) % stake Deal Status

Type of Transaction

23rd Jan 2013 Tata Capital

Marck Biosciences Ltd. 450 13% Completed Private Equity

18th Jan 2013

Sequoia Capital India

ASG Eye Hospitals 500 N.A. Completed Private Equity


17th Jan 2013

Norwest Venture Partners

Nueclear Healthcare 220 N.A. Completed Private Equity

7th Jan 2013 Lok Capital

Drishti Eye Care Pvt. Ltd. N.A. N.A. Completed Private Equity

4th Jan 2013

Artiman Ventures

Core Diagnostics Pvt. Ltd.

270 N.A. Completed Private Equity

3rd Jan 2013

Ashmore Alchemy India Advisors

Zim Laboratories Ltd. 450 N.A. Completed Private Equity

2nd Jan 2013

Moolchand Healthcare Ltd.

Pankaj Apollo Hospital N.A. N.A. Completed M&A

20th Dec 2012

Transasia Bio‐Medicals Ltd.

Drew Scientific Inc. and

JAS Diagnostics Inc.

N.A. N.A. N.A. Completed

17th Dec 2012

Bupa Australia Health Pty Ltd.

Fortis Healthcare Ltd. held Australia’s Dental

Corporation Holdings Ltd

11276 64% Planned M&A


17th Dec 2012

Caraco Pharmaceutical Laboratories (Wholly owned subsidiary of

Sun Pharmaceutical Industries)

URL Pharma (Owned by Japanese drugmaker Takeda

Pharmaceuticals)

N.A. N.A. Planned M&A

15th Dec 2012

Erba Diagnostics US arm of Transasia

Bio‐Medicals Ltd.

Drew Scientific Inc and JAS

Diagnostics Inc, from

Escalon Medical Corp

N.A. N.A. Completed M&A

11th Dec 2012

Sutherland Global Services

Apollo Health Street (AHS)

10000 100% Planned M&A

4th Dec 2012

Decision Resources Group (DRG) Subsidiary of Piramal

Enterprises

Abacus International


4th Dec 2012

Matrix Partners India

Enhance Aesthetic and Cosmetic Studio

Pvt. Ltd.


26th Nov 2012

Trivitron Healthcare Pvt.

Ltd.

Ani Labsystems Ltd.

1221.12 N.A. Completed M&A

22nd Nov 2012 IncuCapital

Navigene Genetic Science Pvt. Ltd. N.A. N.A. Completed Private Equity

21st Nov 2012

Cipla Ltd. Cipla Medpro

South Africa Ltd. 12101.2 51% Completed M&A

8th Nov 2012

Sun Pharma Industries Ltd.

DUSA Pharmaceuticals,

Inc. 12.65 N.A. Planned M&A


Annual Financial Results – Revenue (INR mn) – Major Healthcare Companies

Companies FY ’09 FY ’10 FY ’11 FY’ 12

Biocon Ltd. 16,492.50 23,932.70 27,947.70 21,483.0

Blue Star Ltd. 25,026.2 25,249.7 29,536.8 27,888.5

Cadila Healthcare Ltd. 29,066.00 35,780.00 44,671.00 50,899.7

Cipla Ltd. 52,876.20 56,704.00 63,850.70 68,477.0

Dabur India Ltd. 28,122.40 33,958.00 40,817.40 52,832.0

Dr. Reddy’s Laboratories (DRL)

69,441.00 70,277.00 74,693.00 96,737.4

GlaxosmithKline Consumer Healthcare Ltd.

19,757.6 23,693.3 27,688.6 28,857.3

Glenmark Pharmaceuticals Ltd. 21,241.20 25,291.30 29,490.70 40,206.4

Jubilant life Sciences Ltd. 35,491.00 38,047.80 34,484.40 42,539.5

Lupin Ltd. 38,508.30 48,318.10 57,851.90 70,829.1

Nestle India Ltd. 51,395.5 62,609.4 74,994.6 77,409.0

Opto Circuits (India) Ltd. 8,185.197 10,775.826 15,855.631 23,568.543

Piramal Healthcare Ltd. 32,478.20 36,276.30 25,157.70 20,838.3

Ranbaxy Laboratories Ltd. 75,970.40 89,607.70 101,614.1 117,153.2

Siemens India Ltd. 93,070.2 96,272.4 119,718.1 124,657.9

Strides Arcolab Ltd. 13,101.6 16,958.4 25,245.2 25,645.1

Sun Pharmaceuticals Industries Ltd. 42,723.00 38,086.30 57,214.30 80,056.6

Torrent Pharmaceuticals Ltd.

16,306.60 19,160.40 22,264.80 26,959.2

Wockhardt Ltd. 3,6294.4* 36,477.60 37,633.50 46,138.0


Annual Financial Results – Income (INR mn) Major Healthcare Companies

Companies FY ’09 FY ’10 FY ’11 FY’ 12

Biocon Ltd. 931.2 2,932.40 3,675.20 3,384.0

Blue Star Ltd. 1,802.9 2,114.9 1,609.6 ‐1,051.0


Cipla Ltd. 7,710.20 10,825.90 9,895.70 11,442.4

Dabur India Ltd. 3,905.00 5,010.80 5,685.70 6,449.0

Dr. Reddy’s Laboratories (DRL) ‐5,168.00 1,068.00 11,040.00 14,262.1

GlaxoSmithKline Consumer Healthcare Ltd.

2,327.8 2,998.5 3,552.1 3,765.6

Glenmark Pharmaceuticals Ltd.

1,916.60 3,244.70 4,532.10 4,603.5

Jubilant life Sciences Ltd. 2,831.80 4,214.60 2,297.20 145.6

Lupin Ltd. 5,015.40 6,816.30 8,625.50 8,676.5

Nestle India Ltd. 6,550.0 8,186.6 9,615.5 9,815.7


Piramal Healthcare Ltd. 3,162.50 4,819.00 128,833.60 1,115.0

Ranbaxy Laboratories Ltd. 2,964.90 14,967.50 ‐28,997.3 ‐19,573.5

Siemens India Ltd. 7,046.0 7,577.7 8,677.5 7,300.6




Torrent Pharmaceuticals Ltd. 1,843.70 2,312.00 2,701.70 2,840.4

Wockhardt Ltd. ‐4,355.4* ‐9,804.20 905.2 3,427.1

Quarterly Financial Results – Revenue (INR mn) – Major Healthcare Companies

Companies OctDec 2011

JanMar 2012

AprJun 2012

JulSep 2012

Biocon Ltd. 5,171.90 5,892.2 5,770.0 5,924.0

Blue Star Ltd. 5,896.9 N.A. N.A. N.A.


Cipla Ltd. 17,580.00 N.A N.A. N.A.

Dabur India Ltd. 14,526.80 13,858.3 14,620.0 15,226.0

Dr. Reddy’s Laboratories (DRL) 27,692.00 26,584.0 25,406.0 28,808.5

GlaxoSmithKline Consumer Healthcare Ltd. 6,854.0 8,608.7 7,869.6 8,275.4

Glenmark Pharmaceuticals Ltd. 10,310.90 10,751.2 10,404.1 12,551.9

Jubilant life Sciences Ltd. 10,871.70 12,235.9 12,358.9 12,197.3

Lupin Ltd. 17,917.0 20,063.7 22,191.5 22,392.6

Nestle India Ltd. 19,633.2 20,558.7 19,865.8 21,155.9


Piramal Enterprises Ltd. 5,518.30 8,858.0 7,102.9 8,285.8

Ranbaxy Laboratories Ltd. 37,923.1 36,954.0 31,740.6 26,513.9


Siemens India Ltd. 30,458.2 37601.432 33,082.4 32,693.6



Torrent Pharmaceuticals Ltd. 6,965.9 6,686.8 7,356.0 7,471.7

Wockhardt Ltd. 12,086.70 12,413.90 14,258.2 13,474.4

Companies OctDec 2011

JanMar 2012

AprJun 2012

JulSep 2012

Biocon Ltd. 848.50 978.0 790.0 896.5

Blue Star Ltd. (327.6) N.A. N.A. N.A.

Cadila Healthcare Ltd. 1,492.10 1,708.8 1,947.9 951.4

Cipla Ltd. 2,699.10 N.A. N.A. N.A.

Dabur India Ltd. 1,728.20 1,705.1 1,494.0 2,023.7

Dr. Reddy’s Laboratories (DRL) 5,130.0 3,427.0 3,360.0 4,074.4

GlaxoSmithKline Consumer Healthcare Ltd. 591.0 1,319.7 1,066.0 1,285.5

Glenmark Pharmaceuticals Ltd. 461.20 1,482.7 782.8 1,567.5

Jubilant life Sciences Ltd. ‐783.90 ‐635.3 50.1 1,520.0

Lupin Ltd. 2,350.60 1,556.4 2,803.9 2,904.6

Nestle India 2,308.30 2,757.3 2,459.7 2,673.1


Piramal Enterprises Ltd. 85.2 ‐386.8 40.8 (920.2)

Quarterly Financial Results – Income (INR mn) Major Healthcare Companies


Ranbaxy Laboratories Ltd. ‐29,827.7 12,467.6 ‐5,857.3 7,541.7

Siemens India Ltd. 1,873.6 3,040.0 (157.8) (557.7)

Strides Arcolab Ltd 684.1 6,420.7 904.8 524.9

Sun Pharmaceuticals Industries Ltd. 6,683.0 8202.1 7,955.5 3,196.4

Torrent Pharmaceuticals Ltd 831.8 ‐16.5 1,018.5 1,072.5

Wockhardt Ltd. 2,128.10 ‐1,916.4 3,779.7 4,535.5

Events Calendar

Health 2.0 Everywhere! – Health 2.0 India Date: 8th – 9th Feb, 2013 Venue: CMR Institute of Technology, Bengaluru Contact No: +91 80 2852 4466 Website : www.health2con.com/events/conferences/india‐2013/

India Bio 2013 Date: 4th – 6th, 2013 Venue: The Lalit Ashok, Bengaluru Contact No: +91 080 4113 1912 / 13 Website: www.bangaloreindiabio.in

Medicall 2013 Date: 8th – 10th Feb, 2013 Venue: Gujarat University Exhibition Hall, Ahmedabad Website: medicall.in/medicall/ahamedbad‐venue.php


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Research on India_Healthcare Sector in India_January 2013

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