hale & tempest mergers, acquisitions & alliances in emerging markets dr. brian w tempest ...
TRANSCRIPT
Hale & Tempest
Mergers, Acquisitions & Alliances in Emerging Markets
Dr. Brian W Tempest
www.briantempest.com
Generics & Biosimilars, CpHI Conference Istanbul, Turkey
19 September 2012
Hale & Tempest
Dr Brian Tempest advises Companies, Banks, High Net Worth Individuals and Investment Funds on their Strategy in the Emerging World based on his wide experience in China, Japan, South East Asia
and India where he has lived for the last decade.Brian has worked for Ranbaxy Laboratories since 1995 holding the position of Managing Director and Chief Executive Officer until 2005. He was then Chief Mentor and Non Executive Director until 2008 when he retired. He is one of the few westerners to have led a Sensex Nifty 50 Indian blue Chip MNC and as a result has a valuable insight into India. Brian has also worked for Glaxo as Regional Director
Far East and Regional Director Middle East & Africa from 1985 to 1992.Brian has worked in the Pharmaceutical Industry for the last 41 years and has managed Healthcare
businesses in North America, South America, Europe, Africa, Middle East, Australasia, China, Japan and India. He has also led many sessions at Investor Meetings held around the world.
He is now Independent Chairman of Religare Capital Markets, a Non Executive Director of Fortis Healthcare the leading Asian Healthcare Company, a Non Executive Director of SRL the largest Indian Diagnostic Company and a Non Executive Director of Glenmark Pharmaceuticals. He is a member of the SCRIP Global awards panel and is on the Editorial Board of the Journal of Generic Medicines. Brian speaks at global conferences and more information on these presentations can be
found on his website www.briantempest.com.Brian has a PhD in Polymer Chemistry from Lancaster University in 1971 and in 2009 he became Chairman of the Advisory Board for the Lancaster University Management School, UK. He is a
Fellow of the Royal Society of Medicine and a Fellow of the Royal Society of Chemistry and is a Chartered Chemist. He is now Chairman and Senior Partner of Hale & Tempest Co Ltd
Hale & Tempest
Debt Impacting Global Healthcare
Hale & Tempest
But Healthcare will expand faster in Asia
Hale & Tempest
Pressures on Big Pharma
Hale & Tempest
Pharma Business Model source: Pharmatimes World News April 2012
Hale & Tempest
Is the Big Pharma Business Model Sustainable?
Hale & Tempest
One of the largest R&D failures
“Nobody endured these lessons harder than Pfizer. The company built the world’s largest pharmaceutical research centre in Connecticut, USA , a 160 acre site with more than 5,000 employees at its peak and 2.7m sq ft of research space. But the only major drug to come out of the sprawling facility in the past 20 years was the smoking cessation treatment Chantix” Source; Pharmatimes February 2012
Hale & Tempest
But Pharma R&D still needs Funding source: FT
Hale & Tempest
So R&D Spend to 2018 is still growing source: Evaluate pharma 2012
Hale & Tempest
Regulatory Challenges source: Pharmatimes World News Feb 2012
Hale & Tempest
Big Pharma Corporate FinesSource: Daily Mail 3 July 2012
Hale & Tempest
Big Pharma Corporate Fines source: FT August 7 2012
Hale & Tempest
Merck – No 1 Layoffs in 2011 source FiercePharma
Hale & Tempest
Will Big Pharma Change?
Hale & Tempest
Big Pharma Changing Strategies
Share repurchase - Pfizer, Sanofi Aventis Shedding businesses – Pfizer $1.9b nutrition,
$3.6b animal health, £2.4b Capsugel Eye Care - Novartis & Alcon Consumer Healthcare – Sanofi Aventis, GSK Generics – Pfizer, Sanofi Aventis, AZ Pharmemerging – GSK, Abbott, Daichi Sankyo OTC – P&G with Teva entering India
Hale & Tempest
Sanofi, GSK, Merck & Novartis cut Prices source: FT
Hale & Tempest
Following the Asian Growth source: Bangkok Post 26 July 2012
Hale & Tempest
>60% of GSK is a “non white pill” source: GSK Investor Presentation q4 2010, (vaccines, consumer, respiratory, derma)
Hale & Tempest
Price Competition from Big Pharma at Jan 2012
ATORVASTATIN
- Ranbaxy in India 5 Rs per tablet
- Pfizer in NZ 1 Rs per tablet
CEPHALEXIN
- Ranbaxy in India
- GSK in India half price
Hale & Tempest
Competition & Risk for
Generic Companies
Hale & Tempest
Generics - Rising Risk & Competition
Hale & Tempest
Contagious Price Erosion Across Markets source: Deutche Bank 22 may 2012
Hale & Tempest
Patent Expiries to 2018 source: EvaluatePharma 2012
Hale & Tempest
Global Generic Market Future Growth
Hale & Tempest
Losing Control in the EU source: Teva June 2012
Hale & Tempest
Stada focus on Russia Source: Stada
Hale & Tempest
India Compulsory Licence source: ET 13 March 2012
Hale & Tempest
New Measures allow Compulsory licences source: Chemistry World August 2012
Hale & Tempest
Pending USA FDA ANDAs source: Deutsche Bank Jan 2012, 67%
Hale & Tempest
ANDAs from Hisun, China in 2014/15
Hale & Tempest
Indian Company Investment in Discovery source: Glenmark Annual Report 2012
Hale & Tempest
Biosimilars
Hale & Tempest
Deutsche Bank HK July 2010
Hale & Tempest
Biotech Drugs where India has no DMF Source: JGM Volume 6 p333 sep 2009
Hale & Tempest
Biosimilars from Indian Pharma Source: Deutsche Bank Jan 2012
Hale & Tempest
How much is a Biosimilar worth?Source: Datamonitor
Hale & Tempest
Sandoz Business Model -18 Year Payback source: Pharmacloud June 2012
Hale & Tempest
Stada Licence In 2 Biosimilars source: Stada June 2012
Hale & Tempest
Alliances – the New Faces
Hale & Tempest
Rising Biosimilar Competition
Argentina Government is buying 14 cell lines from a Vancouver Company for local manufacture
In Thailand there are currently 19 EPOs
Celltrion, SK capacity is several 20,000L facilities with enough for the world’s supply
WHO is evaluating 2,000L capacity plants for Palivizumab in LA and Africa
Hale & Tempest
Recent Biosimilar Deals
Cipla & Biomab, China $165m 12 products Richter & Stada – mABs, 2 products Celltrion, Korea -Hospira, Egis, Hikma, BB, etc Biocon & Mylan, USA, mABs Teva & Lonza, EU – limited range Biocon Idec & Samsung, Japan Watson & Amgen, USA Fuji Film & Kyowa Hakko Kirin DRL & Merck-Serono, Germany - mABs Actavis & Bioton, Poland - Insulin Pfizer & Hisun, China
Hale & Tempest
Will the Tinibs takeover from the mABs?(Tinibs - Tyrosine Kinase Inhibitors -small molecules)
Axitinib, Pfizer, cancer Cediranib, AZ, cancer Pazopanib, GSK, cancer Regorafenib, Bayer, cancer Semaxanib, Sugen, cancer Sorafenib, Bayer(Nexavar),cancer Sunitinib, Pfizer, cancer Toceranib, Pfizer, cancer Vandetanib, AZ, cancer Tofactinib, Pfizer, RA
Hale & Tempest
Biosimilars from China/India Source: New York Times 20 Sep 2011
Hale & Tempest
A New World Order in Pharma is Coming
