indian pharmaceutical opportunities, enablers and challenges
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8/6/2019 Indian Pharmaceutical Opportunities, Enablers and Challenges
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Indian Pharma
Opportunities Drivers Challenges
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Indian pharma market will grow to US$55bn by 2020
Source: McKinsey report
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India is progressing
Strong GDP growth Ascent of the middle class
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Coverage of health insurance is picking up
India is progressing
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Drivers of market growth are well entrenched
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MNC’s are positioning themselves to tap the India
opportunity
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Building blocks of Indian Growth Story
OTC
Rural
CRAMS
Generi
cs
Vaccines
Biologics
Hospit
al
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Rural will rule
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Rural will Rule
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Rural market will be Rs.45K cr by 2020
Rs.cr
5 x
Source: McKinsey report
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Rural market will pose unique challenges
Enablers Challenges
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A few examples…….
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Innovation is the name of the gameNovartis Arogya Parivar – Social business model
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Consumer will be the KING
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Consumer Pharma market to be $14b by 2020
4 x
Source: McKinsey report
63000 cr
13500 cr
Rs.cr
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Wellness will be a huge opportunity area
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The action has already begun in the OTC space
Aggressive Launches
-i-Pill
-Unwanted 72
-Prega News
-Norlevo
-Prosoy
-Sunova Cough Syrup
-Breathe Right
Aggressive Launches Aggressive Launches
- Moov Shoulder Gel
- DCold Natural
- Revitalite
-Crocin Cold & Flu
-Dabur Chyawanprash
Line Extensions Aggressive Launches
- Volini
- Chericof
- Supractive
-Pediasure
- Otrivin
- Digene
- Combiflam Gel
Switches
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Unleasing the consumer market
opportunity
Creating and tapping opportunity
through non traditional channels
Source: IMS SSA MAT FebApril 2011 Mumbai
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Challenges
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Hospital / Institution
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Hospitals will continue to evolve & also grow in numbers
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Strong growth in hospitals, primarily in large private
hospitals and nursing homes
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Institution business will gain momentum
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Trend towards more in-patients treatment
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Rising healthcare spend will drive hospital business
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Bundling of products & services will be key success factor
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KAM skill development will be a key challenge
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Carving out innovative approaches to build hospital
business will be the key challenge
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Biosimilars
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Biologics market will grow rapidly
Simple Biologics: eg.Insulin,EPOComplex Biologics : eg. mABs
US$ mn
2020
Source: Mckinsey report
9 x
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0.0
2.0
4.0
6.0
8.0
10.0
12.0
1999 2000 2001 2002 2003 2004 2005 2006
GCSF volumes in IndiaIncreased by 13 times post
generics entry
Source: data presented by 3S-Bio in BioAsia Singapore 2007
EPO volumes in ChinaIncreased by 10 times post
generics entry
Source: Dr. Reddy’s Analysis,
Unlocking the market potential with biosimilars
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India – Well Positioned
Although the biosimilars market is in its
infancy, Indian manufacturers are well
positioned to capitalize on the futuregrowth of this market both domestically
and internationally.
Global Expansion
Furthermore, biosimilar manufacturers
are looking to expand globally, firstly
using emerging markets as a stepping
stone to potential future biosimilar
launches in more mature markets.
Collaboration Route
While the developed pharma markets
may be difficult to access alone due to
the complex and expensive clinical trials
and registration process, licensing
agreements with multinational
companies can facilitate access to these
markets, such as the recent deal
between Biocon and Pfizer.
Drivers and resistors to biosimilars uptake both
domestically and internationally
Low R&D costs are advantageous for biosimilar development
Low R&D costs are advantageous for biosimilar development
Licensing agreements with
multinational companies canfacilitate access to developedpharmaceutical markets
Use of emerging markets as astepping stone to potential futurelaunches in more mature markets
Low levels of health insurance limitaccess to biologic drugs
Low levels of health insurance limitaccess to biologic drugs
Drivers of the India’s biosimilarsindustry
Resistors to growth of theIndia’s biosimilars industry
Complex and expensive clinical trialand registration process in
developed markets
Brand loyalty among the emergingmiddle class
Brand loyalty among the emergingmiddle class
Rising affordability
Need to enhance physician
confidence in biosimilars
Appropriate pricing
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To keep it short….India is the place to be !
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Thank You
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