Indian Pharma Abroad View US Journey

8/11/2019 Indian Pharma Abroad View US Journey

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Objective of Study

i) To observe the opportunity as India puts an

iconic model for world in this sector

ii) Obstacles created by USFDA:Analysis &

Solution

iii) Understanding US attitudes towards INDIA

market in this sector with SWOT

iv) Scope in global market


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Sector statistics

4.8 % of worlds Pharma Market

4th ranking in production(1.04L cr market domstc+intrl)

400 bulk drugs and around 60,000finished medicines

Around 3 % of countrys FDI

Growth Rate about 912%

USD 10 Billion marketestimated to reach USD 40 Billionby 2020

CIIpharma summit 2012


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Domestic Key Players

20%

14%

13%9%

10%

7%

16%

11%

Market sharesun ranbaxy cipla lupin gsk cadilla drl others

Pharmabiz.com


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Indias Robust growth

0

50,000

100,000

150,000

200,000

250,000

2005 2008 2015 2020

market value(Cr)

http://profit.ndtv.com/news/pharma


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Global Scenario

31 new molecular entities introduced 2013.

Spending on medcn expected to $1,100 billion by2015

17 high growth emerging markets including China, India, Brazil, Russia andMexico will contribute 28 per cent of total spending by 2015, up from only12 per cent in 2005

Pfizer is at the top with $ 50 billion sales.

Expand market by 17% each year.

India holds 60% export.

More than 200 mfg unit in India approved by USFDA,WHO-GMP,UK-MCA

On the other hand, share of patented brands which accounted for nearly 70 percent of global pharmaceutical spending in 2010 are expected to decline to 53 percent in 2015

Global pharma summit 2013,hyderabad. Gmpsummit.com


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Contd...Spending by segment

70%

20%

10%

2005 605$ billion

brand

generic

other

53%39%

8%

2015(estimated) 1025$

billion

brand

generic

other

IMS Market Prognosis, April 2013


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Key drivering of change

Global spending on diabetes is increase by 47% over the fiveyears

Global oncology spending will reach $ 75 bn by 2015

Annual spending growth through 2015 will slow to 25% forasthma and COPD medicines compared to nine per centgrowth over the past five years

** Some innovative research products to be launched are

expected to drive markets (especially in the developedmarkets) in the next few years which will span disease areaslike arrhythmia, autoimmune diseases, diabetes, hepatitisC,Prostate cancer


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Opportunities for entry route

Pharmabiz.com


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Top 5 World Market by 2015

Name of country Estimatemarket($billion)

Incremental growth

point(100)

USA 444 96

CHINA 150 23

GERMANY 82 14

ITALY 38 13

BRAZIL 20 17

http://www.mckinsey.com/insights/globalization/global_flows_in_a_digital_age


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Foreign chasers

8% 7%

9%

5%

4%3%3%

5%

8%

48%

world exportpfizer Astra zeneca Abott Gsk

Sanofi aventis Daichii sankyo Novartis Roche

J&J Others

www.pharmexcil.org


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Export to Abroad

0

5,000

10,000

15,000

20,00025,000

30,000

35,000

40,000

45,000

50,000

export drug & pharma

DGCIS,KOLKATA


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Patent War:foreign vs domestic2013-14

Cipla vs Novartis on Glivec

Cipla,Natco vs Bayer on Nexavar

Sun vs J&J on psychological disorder drugRisperdal

Cipla vs Roche cancer drug Erlocip

Glenmark vs Merck on diabetes drugSitagliptin

http://in.reuters.com/article/india-drugs-patent


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Disease & Dose Gambol rate inUSA11

3.316.91

2.8

4.7

2.53.8

6.08

14.6

2005 2015(estimated)

Chart TitleCoronary Heart Disease Diabates CNS / Neuro Cancer

Disease chronical by SCRIBD.COM

0

1000

2000

3000

4000

5000

cr

Major export to US fromIndia


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USFDA TUSSLE

USFDA chief Mrs.Margaret A.

Hamburg; bitter smile !


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Indian Drug Giants US Stigma

Some reports which slaps domestic major

.Sun pharma recalls Cephalexin unit 3,40,553 in june forcontamination

.Lupin pulls 9,000 bottles of anti infective Suprex in mid june

.DRL recalls 13,000 bottles of hypertention drug Metoprolol

wrong product of mg. In july

.Wockhard reshipment 840 capsule of Buproprion in june

.Ranbaxy mohali plant is totally banned for export to USA inJune

http://profit.ndtv.com/news/pharma/march-june/14


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The bitter pill!

BT:March14,jp morgan estimate


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Hamburgers Harrashment


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Swot Analysis in US market

Strength:

1)$444 billion estimated growth

2)Increase of cns/chd/diabetes alomost double

3)280 USFDA plant approved indian drug major.4)Manufacturers are one of the lowest cost

producers of drugs in the world.


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Contd...Weekness:

1) The industry witnesses price competition, which

reduces the growth of the industry in value term

2)Us global players are strong in NME.


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Contd...

Opportunity:

Since generic drugs are necessary commodities by nature,

Indian producers have the competitive advantage, as they are

the lowest cost producers of drugs in the world.

.Large number of drugs going off-patent in the US during 2005

- 2009 offers a big opportunity for the Indian companies to

capture this market


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Contd...

Threat:

1) Threats from other low cost countries like China and Israel

exist. However, on the qualityfront, India is better placed

relative to China 2)USFDA norms


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Conclusion

1)Robust growth in global market

2)Avoid infringement or contamination

problem

3)Need USFDA like mock test in domestic

plant

4)Medicine is necessity ,here brand image is

secondary issue,India have to capture this

opportunity

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Indian Pharma Abroad View US Journey