...Tanveer Mohd Ansari-1211151 Contents Introduction .................................................................................................................................................. 3 Global Pharma Industry ............................................................................................................................ 3 Major players of the world pharmaceutical industry ................................................................................... 5 Major Players ............................................................................................................................................ 6 Pfizer Inc................................................................................................................................................ 6 GlaxoSmithKline .................................................................................................................................... 6 Sanofi-Aventis ....................................................................................................................................... 6 Novartis ................................................................................................................................................. 6 Indian Pharma Industry................................................................................................................................. 7 Drivers of the Demand .............................................................
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...Vision of India as pharma power house in 2020 Page 1 of 3 Search Here Search Home Editorial Services Interview Q&A Chronicle Specials ePharmail Archives Join Pharma | Login Home > Chronicle Specials News + Font Resize - Vision of India as pharma power house in 2020 Nandita Vijay, Bengaluru Thursday, December 15, 2011, 08:00 Hrs [IST] The Indian pharma industry has gained significant global presence in the last few years and has been competing with other major countries on equal terms. Its remarkable growth can be attributed to its ability to rapidly access and adopt new technologies and also to its success in evolving an effective mechanism to strengthen research and development. The industry's advanced manufacturing facilities have earned laurels from global regulatory authorities. As a result, the world today turns to the Indian pharma industry not only for high-quality and low-cost generic drugs, but also for in-licensing and out -licensing of drugs. The robust Indian pharma industry today produces a range of formulations, has the expertise for active pharmaceutical ingredients (APIs) and sees significant opportunities for value-creation. Hence, the theme of the 63rd edition of IPC, ‘Pharma Vision 2020: India: The Pharma Power house’, encapsulates the present stature of the Indian pharma industry. India, the pharma power house India ranks third in terms of manufacturing pharma products by volume and 14th in value terms globally. The...
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...1) Pharmaceutical Industry in India: India is the third largest pharmaceutical market in the world in terms of volume. The market is believed to grow at a compound annual growth rage (CAGR) of 14-17 percent in between 2012-16. There has also been a considerable growth in the levels of pharmaceutical exports from India. The industry started picking momentum in the early 1960s, with government actively encouraging the sector with the Patents Act. However, the liberalization of 1991 enabled the industry to become what it is today. Many of the Indian companies principally observe reverse engineering of the new processes for manufacturing drugs at low costs. Although some of the companies have taken baby steps towards innovating newer drugs, the industry as a whole tends to follow this business model. The lack of patent protection, on the other hand, makes India undesirable for multinational companies that have dominated the market. So the pharmaceutical market in India has a tremendous potential for indigenousness. In this context, comparing a global pharmaceutical company with its Indian counterpart becomes evident. GlaxoSmithKline and Ranbaxy: A Comparison GlaxoSmithKline is a British multinational pharmaceutical company also dealing in biologics, vaccines and consumer healthcare. Headquartered at London, it is the world’s sixth largest pharmaceutical company. The company was established in 2000 by the merger of Glaxo Wellcome and SmithKline Beckman Corporation. A giant...
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...Indian Pharma – likely future trends Years back, Isaac Asimov said, “Life is pleasant. Death is peaceful. It's the transition that's troublesome.” While it may not be a matter of life and death for the Indian pharma industry, it certainly is the transition time and like any transition, it has its pain, as well as gain. Indian pharma has enjoyed a decadal growth rate of ≈13%, except for the year 2013, when due to large number of formulations coming under price control, growth rate plummeted by more than half to little over 6%. In couple of months of that year, pharma market actually de-grew - a first in the last 50 years! That was unthinkable. Clearly it was the time, which made people pause and think. And that lead to churning in the thinking of the companies – what’s the road ahead? For sure, during 2014, companies have been busy regaining their composure and the lost sales, but parallely, they have been trying to answer the vital question – what’s next? Everybody believes that the industry will continue to grow at double digit rate in the foreseeable future. But will the existing business model be the only key driver of the growth, is an open question, with multitude of the views. One thing seems pretty certain that the pharma industry will not remain same in immediate to medium future. For starter, industry will learn to live with more price control at regular intervals. Same happened in 2014, and will continue in 2015 and beyond. There is absolutely no ambiguity in government...
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...research-based healthcare and pharmaceutical company. In India, it is one of the market leaders with a turnover of Rs. 2699 crore and a share of 4.2%. The GSK India product portfolio includes prescription medicines and vaccines. Our prescription medicines range across therapeutic areas such as anti-invectives, dermatology, gynaecology, diabetes, oncology, cardiovascular disease and respiratory diseases. The company is the market leader in most of the therapeutic categories in which it operates. GSK also offers a range of vaccines, for the prevention of hepatitis A, hepatitis B, invasive disease caused by H, influenza, chickenpox, diphtheria, pertussis, tetanus, rotavirus, cervical cancer, streptococcus pneumonia and others.GSK's best-in-class field force, backed by a nation-wide network of stockists, ensures that the Company's products are readily available across the nation. GSK has two manufacturing units in India, located at Nashik and Thane as well as a clinical development centre in Bangalore. The state of art plant at Nashik makes formulations while bulk drugs and the active pharmaceutical ingredients are manufactured at Thane. 2 The Indian Pharmaceutical industry The Pharmaceutical industry in India is the world's third-largest in terms of volume and stands 14th in terms of value. The Indian pharma industry is today, the third largest market globally in terms of volume and 14th largest by value. According to PwC’s report...
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...“The Indian pharmaceutical industry is a success story providing employment for millions and ensuring that essential drugs at affordable prices are available to the vast population of this sub-continent.” Richard Gerster The Indian Pharmaceutical Industry today is in the front rank of India’s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. Playing a key role in promoting and sustaining development in the vital field of medicines, Indian Pharma Industry boasts of quality producers and many units approved by regulatory authorities in USA and UK. International companies associated with this sector have stimulated, assisted and spearheaded this dynamic development in the past 53 years and helped to put India on the pharmaceutical map of the world. Growth Scenario in 2010 India's pharmaceutical industry is now the third largest in the world in terms of volume. Its rank is 14th in terms of value. Between September 2008 and September 2009, the total turnover of India's pharmaceuticals industry was US$ 21.04 billion. The domestic market was worth US$ 12.26 billion. This was reported by the Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers. As per...
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...www.pwc.com/us/pharma Aspiring giants How small pharmas can drive to $1 billion — and beyond PwC’s PRTM Management Consulting Aspiring giants Executive summary Amid the volatile blend of opportunity and challenge that characterizes the global pharmaceutical industry, only a few small companies have managed to catapult their revenue over the $1 billion mark over the past two decades. Whether they chose to expand their therapeutic area focus and product portfolios, enter new geographies, or grow their core business, these aspiring giants pursued three distinct strategies to jump-start growth: Leveraged core product and technology capabilities to launch differentiated products Used mergers and acquisitions to gain new products and/or expand geographic presence Built a strong, stable leadership team armed with a compelling vision and relentless drive The experiences of these winning companies offer lessons for today’s smaller pharma companies harboring the ambition to reach the $1 billion revenue mark. To achieve this milestone, these companies will need to excel in three areas: expanding a core area of expertise to deliver niche and valueadded products, adopting an acquisition and partnering mindset to expand product offerings and geographic presence, and attracting and retaining talented leaders. Focusing on these fronts can help position a pharma company to become a growth leader—rather than merely a follower—in tomorrow’s...
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...not independent of its non-food holdings. While this measure was comparable with others in the industry, the executives felt that it was not truly representative of either Nestlé or Alcon. Although small in comparison to Nestlé, Alcon’s growth and profitability had outpaced the Nestlé Group as a whole and, thus, could possibly skew investors’ true valuation of both companies. By listing Alcon, the executives believe that there would be no better way to shed Alcon of its buried position under Nestlé’s food and beverage division. This way, the market can naturally decide the value of Nestlé amongst the expansive food and beverage industry and Alcon amongst the niche ophthalmology industry. At the time of this debate, Nestlé was trading at a discount relative to other similar corporations in the food and beverage industry. The executives credited this to the fact that the non-food divisions of Nestlé, such as Alcon and L’Oreal, were incorporated in Nestlé’s food and beverage market valuation. Listing Alcon would therefore force analysts to break down Nestlé into its divisions and allow the food and beverage division to stand on its own. Once the executives were able to see the true values of each division, they could then compare them to competitors. This comparison would also allow management a better view of the EBITDA differences amongst their competitors in each respective industry, and account for those differences with much more ease. Alcon would be able to flourish by being...
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...Strategy Formulation & Implementation Ranbaxy Laboratories Ltd 1. Summary: Indian pharmaceutical industry is estimated at $8 billion in 2013 and had been growing at an average rate of 8–9 %. The industry was highly fragmented with more than 1000 players out of which 30% of market was controlled by top ten companies and the rest of 70% by small companies. The Global pharmaceutical industry was estimated at $ 600 billion in 2013. Indian pharmaceutical industry has become more innovative and enterprising with more investment in R&D especially since the WTO agreement was signed. Indian drug makers command 10 per cent share in the USD 30 billion US generic drug market and also has the highest (over 150) US Foods & Drug Administration (FDA) approved facilities. US accounts for one-fourth of the Indian drug exports. The share of Indian pharma companies in the total approvals for generic drugs called Abbreviated New Drug Application (ANDA) has risen steadily. From 32 per cent in 2009, it went up to 38.5 per cent in 2013. Increasing share of Indian companies in total ANDAs approved by the USFDA can be attributed to increase spending by them for research and development (R&D) activities. As per CMIE’s database, the industry’s R&D expenses to sales ratio jumped to around five per cent in 2012-13 from around three per cent in 2003-04. The export of drugs from India is expected to grow by 4.2 per cent to USD 15.2 billion in 2013-14. Around USD 16.3 billion of drugs are likely to be...
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...against, or working with, new innovation-based companies. My study focuses on the processes and outcomes of globally distributed pharmaceutical companies. This article will present the changing marketing strategies when a pharma company shifts from Acute base to Chronic therapy base. This research paper will also give an insight about shift in supply chain process and customer and end-customer perception which is the base of formulation of different marketing strategies. Key Words: Acute, Chronic, Core, Super Core, Closing stock, Inventory, Push, Pull, End-customer, Core customer, SKUs, SAP, ERP, Primary Sales, Secondary Sales. 1.INTRODUCTION: The pharmaceutical industry is the world’s largest industry due to worldwide revenues of approximately US$2.8 trillion. Pharma industry has seen major changes in the recent years that place new demands on payers, providers and manufacturers. Customers now demand the same choice and convenience from pharma industry that they find in other segment. Indian Pharmaceutical Industry is poised for high consistent growth over the next few years, driven by a multitude of factors. Top Indian Companies like Ranbaxy, DRL, CIPLA and Dabur have already established their presence. The pharmaceutical industry is a knowledge driven industry and is heavily dependent on Research and Development for new products and growth. However, basic research...
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...Economic Analysis 7 6) Chapter 2: Industry Analysis 9 * Industry Life Cycle * Porters 5 Forces * SWOT * PESTLE * Correlation 7) Chapter 3: Company Analysis 24 * Company Profiles (10 Companies) * Financial Ratio Analysis * DCF Valuation * Valuation Shares 8) Conclusion 74 9) Bibliography 76 RESEARCH OBJECTIVES Research Project Topic: “Analysis and Valuation of the Indian Pharma Sector” The research objectives of this specialization project are: 1) Identifying the key indicators of the Global Pharma Industry 2) Understand and analyze the Indian Pharma Industry and identify the prominent players. 3) To examine the trends in the pharma industry 4) Fundamental and Technical Analyses of the Top 10 pharma companies in India. The main objective of this study is: 1) Valuation of the Top 10 Pharma companies 2) Finding the correct share price of the company 3) Making investment decision of- Buying, Selling or Holding the stocks of the respective pharma company. EXECUTIVE SUMMARY * Global Pharma Industry is likely to grow at a CAGR of 5% to US $ 1...
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...Industry Snapshot The Indian pharmaceutical industry is highly dynamic and offers great opportunities for both domestic and foreign companies. The industry is estimated to have generated revenue worth US$ 13.1 billion in FY 2011, according to a new Research and Market’s report, “Indian Pharma Sector Forecast 2014.” India will emerge as a leading global player in pharmaceutical industry by 2020, securing a place among the top five major global markets, according to Ikon Marketing Consultant (IMC). Also, Associated Chambers of Commerce and Industry (Assocham) has said it expects the Indian pharmaceutical industry to reach US$ 20 billion by 2015, making it one of the world's top 10 pharmaceuticals markets. India has a strong local manufacturing base and domestic players are developing substantial international presence. Healthcare is also one of the largest service sector industries in India, in terms of revenue and employment. Rising health awareness and increasing government expenditure on healthcare sector is driving growth in the sector. Medical tourism and health insurance are also on a rise, with significant growth in healthcare sector and establishment of large number of hospitals, both public and private. The Indian healthcare industry, estimated at US$ 50 billion, is expected to reach over US$ 75 billion by 2012, and US$ 100 billion by 2015. Talent Challenges While specialised talent is critical for any knowledge industry, it is more so within the pharmaceuticals industry...
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...Pharmaceuticals and Life Sciences Global pharma looks to India: Prospects for growth Table of contents Introduction 03 Background 04 A fast growing economy An expanding pharmaceutical market Government-provided healthcare improving, but private healthcare dominates Domestic market overview 09 Background Consolidation underway, despite challenges Contract manufacturing Vaccines Over the counter market holds significant potential Reaching the untapped rural market Growing Research & Development 15 Overview Clinical trials Biotech and biosimilars on track for growth Other growth areas Bioinformatics 20 Stem cell research Medical devices Global Pharma’s evolving business models and options in India 23 Background Export-oriented business (Contract Research and Manufacturing Services) Licensing Franchising Joint ventures Wholly-owned subsidiaries Practical concerns 27 Infrastructure Tax environment Counterfeiting Intellectual property Conclusion 30 Related reading: Pharma 2020 31 References 32 Acronyms 38 Introduction The pharmaceutical industry’s main markets are under serious pressure. North America, Europe and Japan jointly account for 82% of audited and unaudited drug sales; total sales reached US$773 billion in 2008, according to IMS Health. Annual growth in the European Union (EU) has slowed to 5.8%, and sales are increasing at an even more sluggish rate...
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...www.pwc.com/pharma2020 Pharma 2020: Supplying the future Which path will you take? Pharmaceuticals and Life Sciences Previous publications in this series include: Pharmaceuticals Pharma 2020: The vision Which path will you take?* Published in June 2007, this paper highlights a number of issues that will have a major bearing on the industry by 2020. The publication outlines the changes we believe will best help pharmaceutical companies realise the potential the future holds to enhance the value they provide to shareholders and society alike. Pharmaceuticals and Life Sciences Pharma 2020: Challenging business models Which path will you take? Fourth in the Pharma 2020 series and published in April 2009, this report highlights how Pharma’s fully integrated business models may not be the best option for the pharma industry in 2020; more creative collaboration models may be more attractive. This paper also evaluates the advantages and disadvantages of the alternative business models and how each stands up against the challenges facing the industry. *connectedthinking Pharma 2020: The vision # Pharmaceuticals and Life Sciences Pharma 2020: Virtual R&D Which path will you take? This report, published in June 2008, explores opportunities to improve the R&D process. It proposes that new technologies will enable the adoption of virtual R&D; and by operating in a more connected world the industry, in collaboration with researchers, governments, healthcare payers and providers...
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...September 2005 Project Portfolio Management at XYZ Pharma Early morning, Monday 29th August 2005. John Smith, head of portfolio management and strategic planning, was paging through the slides he had prepared for the Portfolio Management Board (PMB) meeting which would start at 9 am, and which was scheduled to last until Friday. “We have been preparing this meeting for weeks”, he thought, “and it seems the PMB has some tough decisions to make”. The PMB of XYZ Pharma, the pharmaceutical division of XYZ, one of the world’s leading companies in the life science sector, convenes yearly in August to review the composition of the research and development (R&D) project portfolio. It also meets on a monthly basis to monitor the project portfolio and make decisions regarding new developments. According to John Smith, “The PMB is an important decision making body because it shapes the future of the company by determining its product pipeline”. The PMB members include the CEO of XYZ, the CEO of XYZ Pharma, the heads of the different business units, the heads of Development, Research, Global Marketing and Strategic Planning, the regional heads for the US, Europe and Japan and the functional managers for Regulation, Clinical, Licensing, Technical Research and Development, and Patents. The portfolio group, led by John Smith, had analysed the project portfolio carefully and had highlighted several potential threats that required action. According to John, “There will be an indepth discussion...
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