Riding the new wave of pharma market trends dk

Riding the new wave of Pharma Market Trends

Content• Indonesia Pharma Market

• Therapeutic Area

• Top Corporations

• Top Products

• OTC Trends

• Business Deals

2009 2013 F-2017

3,005

4,710

7,493

OTC

ETHICAL

TOTAL MARKET

OKU YEN Sales ValueMAT

2013Q2 43%

57%

40%

58%

42%

60%

CAGR: +12%

CAGR: +12%

Indonesia Pharma MarketSales Value 2009-2013 & Forecast 2017

+11%

+13%

+17%

+9%

IMS ITMA MAT2013Q2

Pharma Market Size – South Asia RegionEUR 30.3 BIO, YoY +5.5%

-1.6%

+9.7%

+12%

+8.7%

+3.6%

+5.7%

+6.2%+20.6%

TAKEDA SA Region Report MAT2013Q2

Domestic Growth Comparison

Textile

Tobacco

Coal

Electronic

Clothing

F & B

Motor Vehicle

-5%

+2%

+7%

+2%

+20%

+20%

+6%

Pharma +12%

ID Economy

+6%

BPS Added Value 2010

• Key positive (+) forecast drivers: – Implementation of a National Health Insurance (NHI)

system – Expansion and improvement of the healthcare

infrastructure – Expansion of the private hospital sector

• Key negative (-) forecast drivers: – Encouragement of generic usage and growing pressure on

prices following implementation of the NHI system – Demographic factors as population growth slows

Pharma Market Forecast Drivers

IMS Prognosis MAT 2013Q2

Therapeutic Areas Growth

IMS Prognosis MAT 2013Q2

0% 5% 10% 15% 20% 25% 30%0%

5%

10%

15%

20%

25%

Series3; A ALIMENTARY T.& METABOLISM; 113072%

Series3; J SYSTEMIC ANTI-INFECTIVES; 70761%

Series3; N NERVOUS SYSTEM; 50667%

Series3; C CARDIOVAS-CULAR SYSTEM; 45436%

Series3; R RESPIRATORY SYSTEM; 44719%

Series3; M MUSCULO-SKELETAL SYSTEM; 26186%

Series3; D DERMATOLOG-ICALS; 25590%

Series3; V VARIOUS; 20195%

Series3; B BLOOD + B.FORMING ORGANS; 14612%

Series3; L ANTINEOPLAST+IMMUNOMODU

L; 11283%

CAG

R 5y

rs

Market Share

Pharma CAGR +12%

Therapeutic Areas Growth - Ethical

IMS Prognosis MAT 2013Q2

CAG

R 5y

rs

Market Share

0% 2% 4% 6% 8% 10% 12% 14% 16%0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Series3; J SYSTEMIC ANTI-INFECTIVES; 70701%

Series3; A ALIMENTARY T.& METABOLISM; 42923%

Series3; C CARDIOVAS-CULAR SYSTEM; 38789%

Series3; N NERVOUS SYSTEM; 27231%

Series3; K HOSPITAL SO-LUTIONS; 18784%

Series3; R RESPIRATORY SYSTEM; 16354% Pharma

CAGR +12%

Therapeutic Areas Growth - OTC

IMS Prognosis MAT 2013Q2

CAG

R 5y

rs

Market Share

0% 2% 4% 6% 8% 10% 12% 14% 16%0%

5%

10%

15%

20%

25%

Series3; A ALIMENTARY T.& METABOLISM; 70150%

Series3; R RESPIRATORY SYSTEM; 28365%

Series3; N NERVOUS SYSTEM; 23436%

Series3; V VARIOUS; 18834%

Series3; D DERMATOLOG-ICALS; 16995%

Series3; M MUSCULO-SKELETAL SYSTEM; 11690%

Pharma CAGR +12%

IMS QPMU 2013Q2

Top 25 TC Level 3

Top Corporations

IMS ITMA MAT 2013Q2

Sales Trade Value Market Share CAGR 5yrs

Rank Top 20 Corporations Status 2009 2013 2009 2013 2013

IND TOTAL MARKET 3,005 4,710 100% 100% 12%

1 KALBE GROUP LOCAL 439 647 13% 12% 10%2 SANBE LOCAL 208 326 6% 6% 12%3 SOHO GROUP LOCAL 167 278 5% 5% 14%4 DEXA MEDICA GROUP LOCAL 175 272 5% 5% 12%5 PHAROS GROUP LOCAL 93 207 3% 4% 22%6 TEMPO GROUP LOCAL 146 200 4% 4% 8%7 NOVARTIS GROUP MNC 75 145 2% 3% 18%8 GLAXOSMITHKL GROUP MNC 86 135 3% 3% 12%9 FAHRENHEIT LOCAL 71 130 2% 2% 16%

10 SANOFI-AVENTIS GRP MNC 78 126 2% 2% 13%11 DARYA-VARIA GROUP LOCAL 81 118 2% 2% 10%12 KONIMEX LOCAL 60 116 2% 2% 18%13 BAYER INDONESIA MNC 94 113 3% 2% 5%14 MENSA GROUP LOCAL 89 112 3% 2% 6%15 KIMIA FARMA GROUP LOCAL 70 105 2% 2% 11%16 NOVELL PHARM LOCAL 53 103 2% 2% 18%17 PFIZER GROUP MNC 88 101 3% 2% 4%18 LAPI LOCAL 32 100 1% 2% 33%19 INTERBAT LOCAL 70 94 2% 2% 8%20 INDOFARMA LOCAL 56 87 2% 2% 12%21 B.INGELHEIM GROUP MNC 44 81 1% 2% 16%22 MERCK INDONESIA GP MNC 55 76 2% 1% 9%23 J&J MNC 44 68 1% 1% 12%

66% +12

Sales Trade Market Share Growth CAGR 5yrs

Rank Status 2013 2013 2013 2013

Top 20 Corporations in OTC 3,177 100% 11% 13%

1 KALBE GROUP LOCAL 445 14% 17% 15%

2 SANBE LOCAL 281 9% 16% 15%

3 DEXA MEDICA GROUP LOCAL 202 6% 16% 12%

4 NOVARTIS GROUP MNC 134 4% 10% 20%

5 SANOFI-AVENTIS GRP MNC 126 4% 8% 13%

6 FAHRENHEIT LOCAL 119 4% 17% 17%

7 PFIZER GROUP MNC 101 3% -1% 4%

8 KIMIA FARMA GROUP LOCAL 81 3% -4% 11%

9 MENSA GROUP LOCAL 80 3% 11% 13%

10 INDOFARMA LOCAL 77 2% 16% 11%

11 GLAXOSMITHKL GRP MNC 74 2% 16% 10%

12 BAYER INDONESIA MNC 67 2% 5% 9%

13 SOHO GROUP LOCAL 58 2% -3% 14%

14 OTSUKA GROUP LOCAL 57 2% 16% 9%

15 ACTAVIS MNC 56 2% 23% 28%

16 INTERBAT LOCAL 56 2% 9% 7%

17 DARYA-VARIA GROUP LOCAL 55 2% 7% 11%

18 B.INGELHEIM GROUP MNC 53 2% 20% 20%

19 PHAROS GROUP LOCAL 53 2% 5% 14%

20 ASTRAZENECA MNC 47 1% 12% 9%

Top Corporations - Ethical

IMS ITMA MAT 2013Q2

Sales Trade Market Share Growth CAGR 5yrs

Rank Status 2013 2013 2013 2013

Top 20 Corporations in OTC 2,134 100% 15% 11%

1 SOHO GROUP LOCAL 219 10% 25% 13%

2 KALBE GROUP LOCAL 202 9% -2% 2%

3 TEMPO GROUP LOCAL 179 8% 6% 8%

4 PHAROS GROUP LOCAL 154 7% 34% 26%

5 KONIMEX LOCAL 116 5% 11% 18%

6 DEXA MEDICA GROUP LOCAL 70 3% 10% 11%

7 DARYA-VARIA GROUP LOCAL 63 3% 17% 8%

8 GLAXOSMITHKL GRP MNC 61 3% 8% 14%

9 LAPI LOCAL 60 3% 79% 55%

10 NOVELL PHARM LOCAL 58 3% 30% 17%

11 BAYER INDONESIA MNC 46 2% 19% 0%

12 SANBE LOCAL 45 2% 7% -2%

13 INTERBAT LOCAL 38 2% 6% 8%

14 J&J MNC 35 2% -1% 9%

15 MERCK INDONESIA GP MNC 34 2% 7% 6%

16 MENSA GROUP LOCAL 32 1% -11% -6%

17 COMBIPHAR GROUP LOCAL 31 1% -3% 7%

18 B.INGELHEIM GROUP MNC 27 1% 12% 10%

19 MAHAKAM BETA FARMA LOCAL 27 1% 68% 45%

20 HISAMITSU PHARMA MNC 26 1% 38% 26%

21 KIMIA FARMA GROUP LOCAL 24 1% 9% 9%

22 TAISHO GROUP LOCAL 24 1% 4% 12%

Top Corporations - OTC

IMS ITMA MAT 2013Q2

Top ProductsSales Value

2013Market Share

CAGR 5Yrs

TOP 20 OTC PRODUCTS

PROMAG KLB 51.5 2% 11% NOURISH SKIN P-I 49.2 2% 14% IMBOOST SHO 40.1 2% 19% PARAMEX KOX 38.4 2% 18% BODREX TFC 33.9 2% 9% OMEPROS P-I 22.5 1% 110% NEO-RHEUMACYL TFC 21.2 1% 6% SALONPAS MEDICATED HSM 20.8 1% 24% HEMAVITON JRENG TFC 19.9 1% -4% BETADINE MKB 19.7 1% 47% CALCIUM-D-REDOXON B/S 19.4 1% 0% THROMBOPHOB NMK 19.0 1% 10% MIXAGRIP DKS 18.7 1% 8% ASTHIN SHO 18.5 1% 14% SUPER ESTER C TCN 17.9 1% 7% PRORIS P-I 16.5 1% 35% VIOSTIN DS P-I 16.2 1% 73% NEUROBION MCK 16.2 1% 8% COUNTERPAIN TIP 15.3 1% 13% MICROLAX P-I 14.5 1% 27%

Sales Value2013

Market Share

CAGR 5Yrs

TOP 20 ETHICAL PRODUCTS

DIOVAN NVR 29.1 1% 48% SUPER TETRA D.V 21.4 1% 9% LIPITOR PFZ 20.2 1% 9% PLAVIX S.A 18.5 1% 13% SOMADRIL COMP ATV 18.0 1% 41% TERFACEF SN5 16.3 1% 14% AMOXSAN SN5 15.5 0% 8% MICARDIS B.I 15.0 0% 62% NORVASK PFZ 14.6 0% -3% CEFAT SN5 14.4 0% 7% PANTOZOL NYE 14.1 0% 14% VENTOLIN GSK 14.0 0% 19% PLASBUMIN DPI 14.0 0% 26% CEFSPAN KLB 13.3 0% 11% CATAFLAM NVR 12.9 0% 29% RINGER LAKTAT(OGB) WIB 12.9 0% 14% NOVORAPID N-N 12.8 0% 90% PONSTAN PFZ 12.8 0% 0% NOVOMIX 30 N-N 12.2 0% 56% SPORETIK SN5 11.9 0% 20%

IMS ITMA MAT 2013Q2

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

Top 20 Products Over 3 MATs

IMS QPMU 2013Q2

OTC Trends

2009 MAT 2013Q20.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

1,600.0

1,800.0

2,000.0

114.2 45.2

1,260.2 1,892.0

OTCNutrition

Lifestyle19% Skin

Vita-min5%

Digestive / GI4%Laxative

3%Memory

1%Herbal11%

MAT 2013Q2 $ Share (%)

Sales in OKU YEN Share (%) CAGR2009 MAT 2013 Q2 2009 MAT 2013 Q209-'13

OTC + Nutrition 1,340.2 1,885.0 100.0% 100.0% 8.9%Lifestyle 339.4 363.9 24.7% 18.8% 1.8%Herbal 109.6 215.8 8.0% 11.1% 18.5%Digestive / GI 47.6 70.4 3.5% 3.6% 10.3%Skin Vitamin 42.9 101.5 3.1% 5.2% 24.0%Respi 34.2 52.3 2.5% 2.7% 11.2%Laxative 33.2 51.7 2.4% 2.7% 11.7%Memory 6.0 17.5 0.4% 0.9% 30.9%Others 761.5 1,064.1 55.4% 54.9% 8.7%

Business Partnership FormatsFormat Postive (+) Negative (-) Case Study

In-sourcing / Contract Sales ForceCo-partner is carrying and marketing Host-Partner products by commision based

• Full authority of marketing and promotion of the products

• No subject to production and COGS

• No subject to distribution margin (depends on MoU)

• Most of outsourced products are unpromoted which in mature/ declining growth

• To be ready for additional reporting system

• Subject to product management fee

• Ethica to MSD, for unpromoted products

• Dexa to Novartis, for unpromoted products

• InMark to Takeda, for established (legacy) products

• Abbot to GSK, for established & unpromoted products

Co-Marketing & Co-Promotionboth Host-partner and Co-partner are promoting the products but divided into agreed market segments (geographical, specialty, outlets type, etc)

• Partnership and gain support from one to another

• Clear market segmentation

• Clear marketing promotion & message

• Promotion startegy is controlled by partner company (CoC, reporting, markets)

• Dependent to the market segmentation

• Dependent to distribution coverage

• In-mark/Dexa and Pfizer, for Norvask

• In-mark/Dexa and Novartis, for Diovan

Bulk Purchasing Co-partner purchases the products at discounted price and then selling it using their own sales model

• Full control and authority for products management & marketing

• No market segmentation

• Huge risk of low sales required strong marketing investment

• Distribution hassle

• Pharos to Nycomed, for Albothyl

2nd BrandCo-Partner manufactures a generic of host-partner’s product

• Full control and authority for products management & marketing

• Market is already shaped• Follower advantage to

original brand

• Complex segmentation• Cannibalism • Confrontation in field force

level

• Dexa with Pfizer, for Norvask and Tensivask

• PT. Soho Farmasi (51%) joint venture with Frenesius Kabi (49%) to establish a new business entity, including Generics Factory

• PT Kalbe Farma Tbk (KLBF) and PT Indofarma Tbk (INAF) plans to conduct acquisitions this year

• PT Indofarma Tbk (INAF), strengthens its strategic alliance with PT Sysmex Indonesia, a Japan-based clinical laboratory

• PT Indofarma Tbk will invest 263 billion dollars for the development of their drug manufacturing capacity, ahead of the implementation of the national social security system of the early 2014.

• PT B Braun Indonesia develops IV fluid factory in Indonesia

Pharma Business Deals News Update

CO-OPETITION

2009 2013 F-2017

3,005

4,710

7,493

OTC

ETHICAL

TOTAL MARKET

OKU YEN Sales ValueMAT

2013Q2 43%

57%

40%

58%

42%

60%

CAGR: +12%

CAGR: +12%

Indonesia Pharma MarketSales Value 2009-2013 & Forecast 2017

+11%

+13%

+17%

+9%

IMS ITMA MAT2013Q2

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