...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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...Pharmabiz :: 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...
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...Company Name : Abbott India Assignment 2- Overview of the Industry (a) Degree of competitiveness in the industry; The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of the market share. It is an extremely fragmented market with severe price competition and government price control. 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 injectibles. There are about 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). These units produce the complete range of pharmaceutical formulations, i.e., medicines ready for consumption by patients and about 350 bulk drugs, i.e., chemicals having therapeutic value and used for production of pharmaceutical formulations. Following the de-licensing of the pharmaceutical industry, industrial licensing for most of the drugs and pharmaceutical products has been done away with. Manufacturers are free to produce any drug duly approved by the Drug Control Authority. Technologically strong and totally self-reliant, the pharmaceutical industry in India has low costs of production, low R&D costs, innovative scientific...
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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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...analyzes the US pharmaceutical industry Report analyzes the US pharmaceutical industry Published on April 9, 2010 at 12:04 PM Research and Markets (http://www.researchandmarkets.com/research/eded8d/pharmaceutical_ind) has announced the addition of the "Pharmaceutical Industry in the United States" report to their offering. Over the past decade, pharmaceutical companies have pushed the scientific envelope, working at the cellular and molecular levels to dramatically advance the treatment of disease. Between 1995 and 2005, more than 300 new drugs, biologics, and vaccines that prevent and treat over 150 conditions were approved by the FDA. The FDA also gave the go-ahead for numerous new indications for previously approved medicines, allowing physicians to tailor treatment strategies to meet a patients individual disease status, past medication history, side effect tolerance, and preferences. The US pharmaceutical industry is a highly globalized industry, dominated by multinational companies that engage in significant business activity in many countries and whose products are distributed and marketed worldwide. The industry has undergone dramatic structural changes over the past few decades, with the rise of the biotechnology sector, substantial growth in demand driven by demographics and substitution away from other therapeutic modalities such as surgery, and increased competition from globally active generic manufacturers. The pharmaceutical industry is under mounting scrutiny because...
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...1.0 Introduction This chapter starts with a discussion on Origin of the report(1.1). Then it comes, the relevance and background of the research (1.2) to provide a clear understanding about the research. After the background an elaboration is given on the objective of the research (1.3). The scope of the research that sets the boundary of the research are discussed too (1.4). Then after that a brief discussion is given on the limitation to the research (1.6). Finally there is a summary for this part (1.6). 1.1. Origin of the Report: The prime objectives of this report are to fulfill the partial obligation for the course of “Corporate Finance”. Since, it‟s compulsory for all the groups of students of 2nd batch of Department of Finance & Banking, Jahangirnagar University to understand the current practice of Corporate Finance theories to explore real life business situation. Here we have worked on the analysis of seven different business organizations which are listed in stock market. This analysis helps us to have better understand about the companies and about their financial condition which as well as gives us better knowledge about the course Corporate Finance. 1.2. Background and relevance of the research: Here we have worked one the seven different top business organization and make a comparative financial analysis of those business firms as a course work of “Corporate Finance”. Through the research we have found a better knowledge of the course and have a better...
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...PHRMA Table of Contents 1) Introduction page 3 2) History/Overview of the Industry page 3 3) Economic Characteristics page 4 a) Structure b) Costs c) Demand d) Competition- The Rise of the Generics e) Market Failure, Government Intervention and Price 4) Performance page 7 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...
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... 6. Business level Strategy Pursued 7. Competitive Advantage 8. SWOT Analysis 9. Possible Measures to Improve Performance 10. Relationship between Business Level Strategy and Performance 11. What I Learned 12. Conclusion Historical Background Beximco Pharma is a leading edge pharmaceutical company and is a member of the Beximco Group, the largest private sector industrial conglomerate in Bangladesh. The firm started operation in 1980, manufacturing products under the licenses of Bayer AG of Germany and Upjohn Inc. of USA and now have grown to become nation's one of the leading pharmaceutical companies, supplying more than 10% of country's total medicine need. Today Beximco Pharma manufactures and markets its own `branded generics' for almost all diseases from AIDS to cancer, from infection to sthma, from hypertensio to diabetes for both national and international markets. Company Profile Beximco Pharma manufactures a range of dosage forms including tablets, capsules, dry...
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...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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...1. Historical background Beximco Pharmaceuticals Limited (BPL) is a part of Beximco Group, the largest private sector industrial conglomerate in Bangladesh. BPL develops, manufactures and markets both finished dosage form branded generic pharmaceutical products and active pharmaceutical ingredients (APIs), with products including solid dose forms, Metered Dose Inhalers, Nasal Sprays, Large Volume Intravenous Fluids, Suppositories, and Creams/Ointments. BPL produces and markets 'branded generics' for most diseases ranging from AIDS to cancer, from infection to asthma, from hypertension to diabetes, for both national and international markets. The company also manufactures active pharmaceutical ingredients and intravenous fluids and contract manufacture for major international brands of leading multinational companies. BPL utilizes state of the art manufacturing facilities. BPL also has outstanding reverse engineering capabilities. Incorporated in 1976, BPL started off as a distributor of pharmaceutical products. It imported products from global MNCs such as Bayer AG of Germany and Upjohn Inc. of USA and sold them in the local market. It eventually graduated to a manufacturer and distributor of these products in local market under licensing agreements. During the early 80s, BPL launched its own products in the local market. Beximco started its exports operation in the early 90s with APIs. Today BPL is one of the largest exporters of medicines from Bangladesh. BPL employs more...
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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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...pharmaceuticals is relatively low. By 2010 end, the domestic Pharma market in India is expected to be US$ 13.76 billion and this is likely to increase at a compound annual growth rate of 9.5-10 per cent till the year 2015. The success and failure of any project in this industry is largely dominated by R&D spending. R&D spending of the large firms is almost as high as 10 percent of the total earnings. The aim of our study is to find out what effect R&D spending has on the market capitalisation as well as on the share prices of the firms. The regression technique along with the Booz-Allan-Hamilton approach has been used in finding out this relation. The Indian Pharmaceutical Market- A review India has a huge population in excess of one billion people and a growing middle class with access to high quality healthcare. The Indian pharmaceutical market is highly competitive and remains dominated by low priced, domestically-produced generics. In value terms, India accounts for less than 4% of the world market and per capita expenditure on pharmaceuticals is relatively low. The pharmaceutical sector is currently experiencing double digit growth and this is expected to continue, driven by the vaccines market. Continued growth is also expected in the diagnostic and therapeutic segments, including cancer and diabetes. The Indian pharmaceutical industry represents around 8% of world pharmaceutical production. This industry plays an important role in promoting and sustaining development...
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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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...I. FARMACEUTICAL INDUSTRY OVERVIEW 1. Major players of the world pharmaceutical industry ( and some numbers) The pharmaceutical industry is characterized by a high level of concentration with 15 multinational companies dominating the industry. http://www.pmlive.com/top_pharma_list/global_revenues The majority of the largest pharmaceutical companies are not diversified. They are either concentrated exclusively on pharmaceutical products (Eli Lilly and AstraZeneca are good examples with virtually 100% of their revenues coming from sales of pharmaceutical products), or they develop other health care products, that still have pharmaceutical divisions. Other products manufactured by these companies usually include medical devices, nutritional products, consumer healthcare products and products for animal health. Only two out of these 15 major pharmaceutical companies have revenues from sales of pharmaceutical products that are lower than 50% of their total sales. These companies are world giants Johnson & Johnson (which besides pharmaceutical products manufactures consumer goods and medical devices) and Bayer which has only about 15% of its revenues from the sales of pharmaceutical products. Geographical headquarters of major pharmaceutical companies are approximately evenly distributed between the U.S. and Western Europe with only one Asian company in the list. http://news.bbcimg.co.uk/media/images/78427000/gif/_78427037_pharmaceutical_profits_624.gif ...
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...Historical Background Incepta Pharmaceuticals Ltd. is a leading pharmaceutical company in Bangladesh established in the year 1999. The company has a very big manufacturing facility located at Savar, 35 kilometer away from the center of the capital city Dhaka. Incepta began its operation with a handful of highly skilled and dedicated professionals guided by an able leadership. Proper strategic planning, technical excellence, swift and timely decisions helped us achieve our objectives leading to much faster growth. Incepta was able to anticipate the need of the market and provide the right product at the right time. High focus on R&D investment from the very beginning made possible the introduction of quality products ahead of its competitors in most cases. Incepta Pharmaceuticals Ltd. is now the 2nd largest company of the country and recognized as the fastest growing of the top five manufacturing company in the country. Incepta now has one of the largest and competent sales force and large distribution network of its own, operated from 18 different locations throughout the country. A marketing team composed of pharmacists and doctors are at the core of the marketing operation. These professionals play a crucial role in providing the necessary strategic guideline for the promotion of its product. The company has very innovative plan to become a most renowned pharmaceutical company in the world by improving research based dosage form manufacturing within a very short period. ...
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