Pharmaceuticals - India Brand Equity Foundation

drawerbeamerBiotechnology

Dec 6, 2012 (4 years and 10 months ago)

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March 2005
Indian Pharmaceutical Industry
Riding a Growth Wave


March 2005
Pharmaceuticals

India - An Overview

Market and Growth Potential

Players

Opportunities

Why India?

Contact in India
India - An Introduction

Population

States/UTs

Geographical Area

Languages recognised

Business language

Per Capita Income**

GDP**
Over 1 bn
35
3.3 mn sq kms
22
English
US$ 534
US$ 650 bn
Source:CSO Statistics
**(at factor cost & at current prices)
1USD=43.54 INR (as on July 4, 2005)


March 2005
India - Fast pace Growth


Largest democracy


4th largest economy by PPP index


6th largest energy consumer


ForEx reserves skyrocket from US$ 42 bn (2001) to

US$ 133 bn (February, 2005)


GDP growth to continue between 6-8%


3rd largest economy by 2050: Goldman Sachs


Leading in IT & BPO


Oil & Gas and Biotechnology
sunrise industries


March 2005
India - Leading the world


Hero Honda
- largest manufacturer of motorcycles


Moser Baer
- among the top three media manufacturers

in the world


Pharmaceutical Industry
- 4th largest in world


Walmart, GAP, Hilfiger
sources more than

USD 1bn worth apparel from India


100 Fortune 500
have set R&D facilities in India

including GE, Delphi, Eli Lilly, HP, Heinz and Daimler

Chrysler


March 2005
Pharmaceuticals

India - An Overview

Market and Growth Potential

Players

Opportunities

Why India?

Contact in India


March 2005
Pharma Market
Volume – wise
8% of global market
4
th
largest in the world
CAGR
(1995-2002)
16.6%
Exports
23%
CAGR(1995-2002)
Size (2002-03)
US$ 7 bn
Share of formulations
80%
Size 2010 (estimated)
US$ 25 bn


March 2005
Exports
CAGR (over last decade )
26%
Rate of growth (2003)
21%
Export destinations
US, Germany,
Russia, UK and
China
India - Net exporter of pharmaceutical products
Exports (2002-2003)
US$ 2.8 bn


March 2005
Increased R&D Focus
Shift from business-driven research
to research-driven business


March 2005
Increasing R&D Spend

1996 -2002
Annual recurring R&D expense growth rate
32.3% yoy


March 2005
Resurgence of FDI
100% automatic FDI approvals
to aid increased investment in
R&D infrastructure by MNCs
Resurgence of FDI in the Pharma Sector
Source: CMIE


March 2005
Quality Assurance in Manufacturing

India has the highest number of USFDA approved
plants outside the US

GMP compliant

Approved by international bodies - US FDA, UK MCA,

South African MCC

Manufacturing facilities


March 2005
Pharmaceuticals

India - An Overview

Market and Growth Potential

Players

Opportunities

Why India?

Contact in India


March 2005
Domestic Players
Ranbaxy
Largest pharma company in India;
Laboratories
Annual revenues of US$1bn
Dr Reddy’s
Indian company with presence in
Laboratory
more than 50 countries
Cipla
One of the lowest cost manufacturer

of anti-HIV drugs in the world
Wockhardt
Largest Indian pharmaceutical
company in UK


March 2005
MNC Presence in India
GlaxoSmithKline

Leads in 6 of the 10 therapeutic
categories
Pfizer


Owns the two largest selling
brands in India
Astra Zeneca
Involved in cardiovascular,
respiratory, maternal healthcare
& pain control and anasthesia
Aventis
Indian manufacturing sites identified
as potential global sourcing units
by global parent company


March 2005
MNC Presence in India
Novartis
Collaborations with
Dr Reddy’s and Torrent
Wyeth
Contract-manufacturing tie-up
with Indian major Bharat Biotech
Sanofi-Synthelabo
Present in cardiology,
thrombosis & neuropsychiatry
Roche
Already invested US$ 20 mn in
India and plans additional
US$ 7.35 mn in 2004-05
Merck
Leader in laboratory reagents
market in India



March 2005
MNC Activity in India

Novartis AG seeking tie-ups with Indian companies

Bristol-Myers to enter India again

Aventis’s Goa unit to be sourcing hub

Pfizer India doubles research investment in India

AstraZeneca, Glaxo to make India R&D hub

Chiron to make India its Asian hub

Bayer AG to make India sourcing hub

Eli Lilly to make India sourcing hub

German major Boehringer Ingelheim to enter India

India to be Roche's global hub for bulk drugs


March 2005
Pharmaceuticals

India - An Overview

Market and Growth Potential

Players

Opportunities

Why India?

Contact in India


March 2005

USD 70 mn market (2001-02)

Growing at 20% per annum

Outsourcing
- fastest growing
area for new investment


US$ 1 bn opportunity by 2010
Clinical research
Invest in India
Contract Research


March 2005
Invest in India
Custom synthesis

Largest pool of trained analytical
and development chemists

Excellent track record of innovation

US FDA approved manufacturing
facilities

30-50% cost savings


March 2005
Invest in India

Global Outsourcing opportunity
worth US$ 15 bn by 2010

Global majors to outsource
manufacturing from India
API sourcing and
contract
manufacturing


March 2005
Invest in India

Pre clinical testing

Superior and low cost chemical synthesis

skills advantages

Clinical trials

India to be an outsourcing centre for conducting

low cost clinical trials
Collaborative R&D
GlaxoSmithKline has R&D alliance with
Ranbaxy Laboratories


March 2005
Export from India

Source: SSKI
Exports drive growth for Indian pharmaceutical majors


March 2005
Export from India
Generics - The key driver for export growth
Source: SSKI


March 2005
Partner with India
Marketing alliances - A win-win strategy
Increased market penetration

Zydus Cadila has strategic agreement with Schering AG

Nicholas Piramal has 5 year strategic alliance with

Biogen Idec


March 2005
Partner with India


Process reengineering expertise

Low-cost scientific manpower available

Low capital requirement for NDDS research

Fast clearances from regulatory authorities
New Drug Delivery System (NDDS)


March 2005
Pharmaceuticals

India - An Overview

Market and Growth Potential

Players

Opportunities

Why India?

Contact in India


March 2005
Advantage India

Excellent chemical synthesis skills

Successful scaling up of laboratory processes to plant-size

Cost-effective and commercially viable non-infringing

processes

Pool of low-cost and highly skilled medical professionals

Manufacturing facilities of international standards

Quick absorption of new technology


March 2005
Indian Pharmaceutical Act

Reduction in number of drugs under price control to 28 as

against 74

100% foreign investment automatically permitted

Abolishment of industrial licensing for bulk drugs,

intermediates and formulations

Automatic approval for Foreign Technology Agreements


March 2005
Regulatory Scenario

IPR/Patent regulations
Product patent regime implemented w.e.f January 2005
in compliance with TRIPS

Price regulations
Price controls decline substantively

Product and quality regulations
28
370
143
74
1979
1987
1995
2005
N
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under P
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i
ce
contro
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(E)
28
370
143
74
1979
1987
1995
2005
N
o. of Dru
gs

under P
r
i
ce
contro
l
(E)


March 2005
Policy Incentives

Tax exemptions at par with IT

Reduction in peak custom duties from 30% to 25%

Increase on rate of depreciation on life saving

equipment from 25% to 40%

Tax holiday for R&D companies


March 2005
Key Features


22% increase in allocation under the National Rural Health
Mission


Formation of a SME Growth Fund to provide equity support to
small & medium units in the pharmaceutical & biotechnology
sectors.


Import duty on select equipments used in pharmaceutical &
biotech research reduced from 20% to 5%.


150% weighted deduction on R&D expenditure

Union Budget 2005-06

Fillip to R&D initiatives


March 2005
Pharmaceuticals

India - An Overview

Market and Growth Potential

Players

Opportunities

Why India?

Contact in India


March 2005
Contact in India
Confederation of Indian Industry (CII)
The Mantosh Sodhi Centre
23, Institutional Area
Lodi Road
New Delhi – 110003
Tel 0091 11 24629994-97
Fax 0091 11 24626149/24615693
Email c.banerjee@ciionline.org