INDIANPHARMACEUTICAL

INDUSTRY By: Devansh Mehta

M.Pharm.(Pharmacology)M.B.A.in Pharmaceutical marketing and H.A.B.PharmaMob. +91-8171552727Email: devanshmehta.pharma@gmail.com

02 INTRODUCTION

• On the front rank of India’s science-based industries

• A highly organized sector, the Indian Pharma Industry is estimated to be worth $ 4.5 billion

• Growing at about 8-9 % annually

• Indigenously manufactures products from simple headache pills to sophisticated antibiotics and complex cardiac compounds

INTRODUCTION• Highly fragmented sector with more than 20,000

registered units.

• Leading 250 pharmaceutical companies control 70% of the market

• 250 large units, 8000 Small Scale Units,form the core of the industry in India (including 5 Central Public Sector Units).

• Complete range of pharmaceutical formulations, i.e., medicines ready for consumption by patients and about 350 bulk drugs

• The industry remains largely unaffected by the Current Recession

• The patented drugs have recorded a growth of over 37 per cent in the last couple of years.

• The national Pharma market would experience the rise in the sales of the patent drugs

IMPACT OF RECESSION

• The industry has already launched a drive to tighten costs at all levels

• It is focusing on ways to optimise productivity to position itself for the future.

• Need to improve productivity in the area of R&D, Cost containment , coupled with prudent management of resources and reserves

IMPACT OF RECESSION

MAJOR PLAYERS

Role in GDP contribution

• Pharma Industry in India produces around 20% to 24% of the global generic drugs

• Around 40% of the total pharmaceutical produce is exported

• 55% of the total exports constitute of formulations and the other 45% comprises of bulk drugs

• Almost most 70% of the domestic demand for bulk drugs is catered by the Indian Pharma Industry

3.9

8.67.5

9.29.8

0

2

4

6

8

10

12

2003 2004 2005 2006 2007

Growth%

Year

GDP Growth

GDP Contribution

Source: Marketing white book 2008-09

FINANCIAL PERFORMANCE• From 2002-2007 growth at CAGR of 13%• From 2007-2011 expected growth at CAGR of 16%• Over last couple of years industry has grown at

approximately 1.5-1.6 times the growth of the economy

Rural Class II to IV Class towns Metro

21 20

33

26

38

1013 14

Pharmaceutical market growth across various regions

Share % Value growth %

Source: Marketing white book 2008-09

THE FUTURE

Six trends will influence the growth of the Indian Pharmaceutical market over the next decade.

• Doubling of disposable incomes & the number of middle class households

• Expansion of medical infrastructure

• Greater penetration of health insurance

• Rising prevalence of chronic disease

• Adoption of product patents

• Aggressive market penetration driven by the relatively smaller companies.

THE FUTURE

Top pharmaceutical Markets, in 2005

Top pharmaceutical Markets, in 2015

Figures are in US$ billion

PHARMACEUTICAL MARKET 2005 VS 2015

248

69

131314

1920

3132

68

INDIABrazilChina

CanadaSpain

UKItaly

GermanyFrance

JapanUS 444248

2020

252525

323838

4682

BrazilINDIA

CanadaItaly

SpainUK

ChinaGermany

France Japan

US

Source: Marketing white book 2008-09

GLENMARK AT A GLANCE

• Intensively Research-driven

• Truly Global and fully integrated pharmaceutical company

• Headquartered at Mumbai, India.

• Employs over 4100 people across its global operations shares are listed on BSE and NSE

GLENMARK AT A GLANCE

243212

Revenue 08-09 (USD Mn)

GPL

GGL

Glenmark Ltd.

All India; Revenue 0809 (USD Mn);

137; 56%

Rest of the World; Revenue 0809 (USD Mn); 85;

35%

Europe; Revenue 0809 (USD Mn);

21; 9%

All India Rest of the World Europe

Glenmark Pharmaceutical Ltd.

North America; Revenue 0809 (USD Mn); 158;

75%

API; Revenue 0809 (USD Mn);

42; 20%

Oncology; Rev-enue 0809 (USD

Mn); 9; 4%

Europe; Revenue 0809 (USD Mn);

3; 1%

North America API

Oncology Europe

Glenmark Generics Ltd.

Source: Annual report of Glenmark ltd.

QUARTER 1 RESULTS

1153.768534.546

4717.417

5512.8

0

1000

2000

3000

4000

5000

6000

Quarter ended june 30 ,2008 Quarter ended june 30, 2009

Consolidated result

NET PROFIT AFTER TAX TOTAL INCOME

All figures are in millionSource: 2009 Q1 result of Glenmark Ltd.

568.35752.2

1944.1762219.753

0

500

1000

1500

2000

2500

Quarter ended june 30 ,2008 Quarter ended june 30, 2009

Unaudited results for quarter ended june 30, 2009

NET PROFIT AFTER TAX TOTAL INCOME

All figures are in million

QUARTER 1 RESULTS

Source: 2009 Q1 result of Glenmark Ltd.

• The expected sales of the for the year was approx 23 crores Indian rupees.

• The actual sales of Glenmark for the year end March,2009 is 21,160,332 crore Indian rupees.

• In comparison to the previous year the sales rose by 10,68,327

SALES

0 5 10 15 20 25

2006

2007

2008

2009

Sales

Sales

Amount in Millions RS

SALES TREND

Source: Annual reports of Glenmark Ltd.

COMPARISON AND SALES DISTRIBUTION

2008 (Rs) 2009 (Rs)

Sale of Goods from IP and Assets 20,078,295 21,145,423

Sale Income from Services 13,710 14,909

Sales in India 6,719,547 7,155,326

Other than India 13,372,458 14,005,006

Source: Annual report of Glenmark Ltd.

Glenmark Vs Competitor companies

Source: Annual report of Glenmark Ltd.

Last Price

Market Cap.(Rs. cr.)

SalesTurnover

Net Profit

Total Assets

Sun Pharma 1,196.60 24,783.55 3,861.55 1,265.29 5,175.02

Cipla 259.05 20,135.73 5,270.54 767.83 4,336.35

Ranbaxy Labs 360.30 15,146.00 4,494.52 -1,032.33 7,442.15

Dr Reddys Labs 866.00 14,606.59 4,197.53 560.89 5,899.40

GlaxoSmithKline 1,479.95 12,535.62 1,685.56 576.57 1,546.72

Lupin 1,089.15 9,317.70 2,967.13 416.97 2,320.21

Piramal Health 351.90 7,355.17 2,333.46 275.32 1,520.76

Divis Labs 553.20 7,222.41 1,203.49 421.26 960.05

Cadila Health 493.10 6,730.77 1,945.72 265.91 2,052.70

Glenmark 222.30 5,570.52 856.11 217.93 2,295.88

Recent news of Glenmark

Source: Equity Bulls

• Glenmark to issue shares to large investors

• Glenmark Pharmaceuticals allots 198560 Shares

• Glenmark Pharmaceuticals to set Plant at Argentina

• Glenmark Confirms Patent Challenge on Atovaquone & Proguanil Hydrochloride tablets

Conclusion

Source: Equity Bulls

The pharmaceutical industry is such a reliable industry that even an obstacle like recession just helped boost its growth....as per our group analysis it is an industry which is evergreen and everlasting. It is one of the strongest industries which has survived the global meltdown.

PHARMACISTS

Devansh Mehta

THANK YOU!