...5) Impact of the Global Economic Downturn page 9 6) Summary page 10 7) Conclusion page 11 Bibliography page 12 8) 1. Introduction This paper briefly examines the current state of the pharmaceutical industry, as well as the economic characteristics, performance, and the impact of the global recession. The industry is made up of several enterprises engaging in the research, development, manufacture and marketing of medicines, vaccines, medical devices, and nutritional products for humans and animals. Though, this multi-billion dollar industry includes large ethical drug multi-nationals (often referred to as Big Pharma), mid-sized specialty pharmaceutical companies, manufacturers of generics, small biotechnology and biopharmaceutical firms, and service companies, 1 for the purpose of this paper, the emphasis will be mainly on drug makers. 2. History/Overview of the Industry The pharmaceutical industry of today is a far cry from its humble beginnings in the nineteenth century of physicians mainly prescribing plant extracts to being technology intensive, dominated by a few large companies with significant research and development (R&D) budgets, and significant government oversight. Over the past five years, the industry has been characterized by mega-mergers and acquisitions, company reorganizations, regulatory reform, expiring patent protection, and the growth of generics. Figure 1. Big Pharma Top 10 for 2010 ...
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...Strategy for Indian Pharmaceutical Companies in Global Context Submitted to PROFESSOR MURALI PATIBANDLA (FACULTY,CORPORATE STRATEGY AND POLICY) Submitted By Ravela Madhurika- 1211132 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...........................
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...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. Companies gain competitive advantage through primary or applied research...
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...ventures. Strategies are potential actions that require top management decision and large amount of farm’s resources. Additionally strategies affect an organization’s long term prosperity, typically for at least five years, and thus are future oriented. Strategies have multifunctional and multidivisional consequences and required consideration of both the external and internal factors facing the firm. Most Strategic Management Model There are several Strategic Models are available and used in different organizations but following are the most used strategic models: 1. PEST analysis 2. STEER Analysis 3. Five Forces Model 4. Strategic Group Map 5. SWOT analysis 6. Blue Ocean Strategies 7. Open innovation 8. McKinsey seven S model Company Detailed Profile including mission & vision and Organogram Company Detail Profile Square pharmaceutical is now the most leading company in Bangladesh since 1985 and is now on its way to becoming a high performance global player. Today it has achieved a state of mind among consumers. This company has founded in 1958 and since then with hard work and dedication among employees and top management, it has reached the position where every pharmaceutical company wants to reach. Square went public in 1991 and is currently listed on the Dhaka Stock Exchange and Chittagong Stock Exchange. Square Pharmaceuticals Ltd., the flagship company, is holding the strong leadership...
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...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 shipped from the country in 2014-15. This translates...
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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$773 billion in 2008, according to IMS Health. Annual growth in the European Union (EU) has slowed to 5.8%, and sales are increasing at an even more sluggish rate...
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...Pharmaceutical industry The pharmaceutical industry develops, produces, and markets drugs licensed for use as medications.[1] Pharmaceutical companies are allowed to deal in generic and/or brand medications and medical devices. They are subject to a variety of laws and regulations regarding the patenting, testing and ensuring safety and efficacy and marketing of drugs. Indian Pharmaceutical Industry The pharmaceutical industry in India is among the most highly organized sectors. This industry plays an important role in promoting and sustaining development in the field of global medicine. Due to the presence of low cost manufacturing facilities, educated and skilled manpower and cheap labor force among others, the industry is set to scale new heights in the fields of production, development, manufacturing and research. In 2008, the domestic pharma market in India was expected to be US$ 10.76 billion and this is likely to increase at a compound annual growth rate of 9.9 per cent until 2010 and subsequently at 9.5 per cent till the year 2015. | Industry Trends : * The pharma industry generally grows at about 1.5-1.6 times the Gross Domestic Product growth * Globally, India ranks third in terms of manufacturing pharma products by volume * The Indian pharmaceutical industry is expected to grow at a rate of 9.9 % till 2010 and after that 9.5 % till 2015 * In 2007-08, India exported drugs worth US$7.2 billion in to the US and Europe followed by Central and Eastern...
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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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... * 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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...Indian Pharma Industry – an overview April 13, 2012 The demand for pharmaceutical products in India is significant and is driven by low drug penetration, rising middle-class & disposable income, increased government & private spending on healthcare infrastructure, increasing medical insurance penetration etc. The Indian pharmaceutical industry is growing at about 8 to 9 percent annually according to “A Brief Report Pharmaceutical Industry in India,” published in January 2011. The Pharmaceutical industry in India meets around 70% of the country's demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectables. There are approximately 250 large units and about 8000 Small Scale Units, which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units). I. Current Scenario: India's pharmaceutical market grew at 15.7 per cent during December 2011. Globally, Indiaranks third in terms of manufacturing pharma products by volume. According to McKinsey, the Pharmaceutical Market is ranked 14th in the world. By 2015 it is expected to reach top 10 in the world beating Brazil, Mexico, South Korea and Turkey. More importantly, the incremental market growth of US$ 14billion over the next decade is likely to be the third largest among all markets. The US and China are expected to add US$ 200bn and US$ 23bn respectively. McKinsey & Company’s report, “India Pharma 2020:...
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...an ethical theory that an entity, be it an organization or , has an obligation to act to benefit society at large. Social responsibility is a duty every individual has to perform so as to maintain a balance between the economy and the ecosystems. Corporate social responsibility: Corporate initiative to assess and take responsibility for the company’s effects on the environment and impact on social welfare. The term generally applies to Company efforts that go beyond what may be required by regulators or environment protection groups. Corporate social responsibility may also be referred to as “corporate citizenship” and can involve incurring short-term costs that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental changes and also a change in the community’s attitude toward the company. Companies have a lot of power in the community and in the national economy. They control a lot of assets, and may have billions in cash at their disposal for socially conscious investments and programs. Some companies may engage in "green washing", or feigning interest in corporate responsibility, but many large corporations are devoting real time and money to environmental sustainability programs, alternative energy/cleantech, and various social welfare initiatives to benefit employees, customers, and the community at large. Examples of Corporate Social Responsibilities: Accessibility Partners - Many people take their computers, smart...
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...Chapter - 01 Chapter - 02 Chapter - 03 Chapter - 04 Chapter - 05 About the Company Strategy Analysis Valuation Conclusion Annexure ………………………… ………………………… ………………………… ………………………… 01 03 11 21 A M B E E P H A R M A : V A L U A T I O N 1 Chapter About the Company The company’s operation & historical performances were moderate and they were not leading the market from their inception A MBEE PHARMACEUTICALS LTD., was established in 1976 in Bangladesh. This public limited company was registered under the companies Act, 1913 and was incorporated in Bangladesh on 4th February 1976. Ambee has a joint venture with a famous multinational company Medimpex of Hungary. Ambee started its operation with modest 17 joint ventured products and is now running in full swing with 76 products. They have Tablets, Capsules, Liquids, and Gel in tubes and Injectables. Its operational area covers all over Bangladesh with a large number of field forces who strive hard to establish the demand of products of the company in every corner of the country. The company maintains four outside Depots located at Khulna, Bogra, Chittagong and Sylhet besides its National Distribution Cell in Dhaka. When Ambee Pharmaceutical Ltd.(APL) was launched back in Feb’ 1976, Ambee had only 30 field forces who had launched 17 products only. In the first year company had registered a sales little over than 1 Crore. Since then the company engaged itself in marketing most needed new formulations and today in 2001...
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...Project Presentation on Dr Reddy’s Laboratories Group 4: Abhishek Aggrawal Anik Bairagi Nishant Sawan Kumar Varun Saini 1 0911074 0911079 0911109 0911127 0911138 Global Pharmaceutical Market - Overview The increasing generics share and shift of the industry towards emerging markets is causing margin pressure on global pharma players and forcing them to invest in these new markets Global Pharmaceutical Market The pharmaceutical market was $ 820Bn in Other Patented 86% 83% 81% 79% 2009, growing at a CAGR of 9% over 200309 Generics is growing at double the rate of the Generics 2004 2006 2008 2010E total industry (18% CAGR), while Patented drugs market is growing at 7% India 1% Geographical Market Share Middle Africa 1% East 1% CIS 2% Others 12% US 42% Top 10 countries account for 73% of sales US accounts for 42% of the world sales While the US sales are growing at only 1-2% CAGR, growth in emerging markets is over 10% Latin America 6% South East and East Asia 6% EU 29% Source: Centrum Research Report on Pharma Industry 2009; 2 Key Growth Drivers for Global Pharmaceutical Market 1 Sluggish Growth in Mature Markets Economic slowdown leading to reduced healthcare spending Top brands’ patent expiries and very few new product launches Decentralization of government healthcare budgets. High healthcare expenditure by government 2 Faster Growth in Emerging Markets Broader public and private...
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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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...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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