market research report : clinical trials market in india 2014 - sample

Clinical Trials Market – India

July 2014

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2 CLINICAL TRIALS MARKET IN INDIA 2014.PPT

Executive Summary

Market

Drivers & Challenges

Government Regulations

Competition

Clinical trials market in India was valued at INR x1 bn in 2013 and is estimated to reach INR x2 bn by 2018, growing at a CAGR of y1%

India’s share in the global clinical trials market was y2% in 2013

Drivers: –Cost competitiveness –Vast patient population with diverse

number of diseases – Increasing R&D expenditure by

pharmaceutical companies –Sound medical infrastructure – International quality standards

Challenges: –New regulations brought in several

challenges –Delays in trial approval –Shortage of research professionals –Challenges of unethical trials

Clinical trial can be initiated only after approval from Drugs Controller General of India (DCGI) and are governed by Schedule Y of Drugs and Cosmetics Act

Registration of trials involving humans has been made mandatory starting in Jun 2009 on the Clinical Trials Registry-India (CTRI) website

Major Players

Company A Company B Company C Company D

Company E Company F Company G Company H



•Macroeconomic Indicators •Introduction •Market Overview •Drivers & Challenges •Government Participation •Competitive Landscape Clinical Research Organizations (CROs) Clinical Research Institutes

•Recent Developments •Strategic Recommendations •Appendix


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Economic Indicators (1/3)

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b2

a2

Q1

d1 c1

b1

a1

Q4

c4

b4

a4

Q3

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b3

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Q2

d2 c2

INR tn

2013-14 2012-13 2011-12 2010-11

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

-2

-1

0

1

2

q

Jul 2013 - Aug 2013

p

%

Nov 2013 - Dec 2013

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Oct 2013 - Nov 2013

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Sep 2013 - Oct 2013

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Aug 2013 - Sep 2013

CLINICAL TRIALS MARKET IN INDIA 2014.PPT



Globally, the clinical research market is gaining importance mainly due to the rising number of new drugs

• China is the leader in the global clinical trials market followed by Turkey and Malaysia

Liberal regulatory environment supports clinical trials

The government encourages pharmaceutical and biotechnology industries to invest in new drugs and procedures for treating cancer and AIDS patients

• In 2013, the global market size of clinical research market was INR x1 bn where the USA contributes y1% of the business followed by UK

• The major trend in the global market is the rise in investment by the pharmaceutical and the device companies in countries with emerging economies

Multinational pharmaceuticals prefer Asian countries for clinical trials to overcome the various challenges of drug discovery and development

• Globally, the major problem for conducting clinical trials is patient recruitment

Global Market - Overview

Share of Human Clinical Trials (2013)

x3

x2 x1

Segment 3

Segment 2

Segment 1

The cost of carrying out clinical research in Russia, Argentina, China and India is half

the amount required in the USA

CRO Market Size and Growth (Value-wise)

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INR bn

X%

2018e

a6

2017e

a5

2016e

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2013

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India is emerging as a preferred destination for clinical trials and the market is expected to show steady growth

Market Overview Market Size and Growth (Value-wise)

Research Institutions

Global Pharma Companies

Drug Discovery Clinical Trials

Outsource

Contract Research Organizations

• Clinical trial market in India has the potential to become the hub for conducting major global multinational clinical trials

• Major sponsors for clinical trials are international pharmaceuticals companies with huge R&D spending India has a large genetic pool and has a large number of

patients suffering from acute chronic disease There are around 60,000 doctors, 45,000 hospitals and

900,000 beds in both public and private hospitals with electronic medical record facilities in most of them

• Many Indian and foreign pharmaceutical companies have tied up with other specialist research companies for development of new drugs

• Pharmaceutical companies are leaning towards outsourcing and concentrating on marketing without spending time for drug discovery and manufacturing

• India’s competitive advantage in generic drugs makes it a potential hub for conducting clinical trials

India has 16% of the world population and 20% of the global burden of diseases

t

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INR bn

X%

2018e

a6

2017e

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2016e

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2015e

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2014e

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2013

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Drivers & Challenges – Summary

Drivers

Cost competitiveness

Vast patient population with diverse number of diseases

Increasing R&D expenditure by pharmaceutical companies

Sound medical infrastructure

International quality standards

Challenges

New regulations have brought in several challenges

Delays in trial approval

Shortage of research professionals

Challenges of unethical trials



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SAMPLE Porter’s Five Forces Analysis

Competitive Rivalry

Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of Substitutes

Threat of New Entrants

Impact x

Impact x

Impact x

Impact x

Impact x

*Note: BEP (Break-even point)



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SAMPLE Key Ratios of Top 3 Companies – Operational Basis (FY 2013) (1/3)

Competitive Benchmarking (2/5)

0

10

20

30

40

%

Company C

b3 a3

Company B

b2 a2

Company A

b1

a1

Operating Margin Net Margin

• Company A recorded operating margin of x1%, higher than that of Company B which recorded operating margin of y2% but lower than that of Company C which recorded operating margin of z3%

• Net margin for Company A , Company B and Company C are a1%, b2% and c3% respectively, wherein Company A has the highest net margin among these three companies



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SAMPLE Private: Domestic Company – Company 1 (1/5)

Key People

Products and Services

Company Information Offices and Centres – India

Name Designation

Person 1 Director

Person 2 Director

Person 3 Director

Person 4 Director

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation Head Office

Category Products/Services

Ready Meals

Instant Mixes

Others

Mumbai



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SAMPLE Private: Domestic Company – Company 1 (2/5)

Shareholders of the Company Ownership Structure

Name No. of Shares held

23.6%57.4%

19.0%

Segment

Segment

Segment



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SAMPLE Financial Snapshot Key Ratios

Particulars y-o-y change

(2013-12) 2013 2012 2011 2010

Profitability Ratios Operating Margin

Net Margin

Profit Before Tax Margin

Return on Equity

Return on Capital Employed

Return on Working Capital

Return on Assets

Return on Fixed Assets

Cost Ratios Operating costs (% of Sales)

Administration costs (% of Sales)

Interest costs (% of Sales)

Liquidity Ratios Current Ratio

Cash Ratio

Leverage Ratios Debt to Equity Ratio

Debt to Capital Ratio

Interest Coverage Ratio

Efficiency Ratios Fixed Asset Turnover

Asset Turnover

Current Asset Turnover

Working Capital Turnover

Capital Employed Turnover

Private: Domestic Company – Company 1 (3/5)

Improved Decline

Financial Summary

• The company earned a net profit of INR x1 mn in FY 2011, as

compared to net profit of INR x2 mn in FY 2010

• The company reported total income of INR x3 mn in FY 2011,

registering an increase of x4% over FY 2010

• The company earned an operating margin of x5% in FY 2011,

an increase of x6 percentage points over FY 2010

• The company reported debt to equity ratio of x7 in FY 2011, a

decrease of x8% over FY 2010

Net Profit/Loss Total Income

a

t

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f

p

b

c

d

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b4

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2011 2008

a1

b1

2010

a3

b3

2009

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b2



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SAMPLE

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Description News

Overview • Company 2 has hospital network in Country A, Country B and Country C and is primarily headquartered in

Country D

• Presently located in 10 cities in India having hospitals in Region 1, Region 2 and Region 3

Facilities • Has core specialties in heart care, brain and spine, bone and joint and minimal access surgery

• Provides advanced medical diagnostics and treatment with personal care

Recognitions • Obtained NABH accreditation within one and a half years of beginning operation in India

• Hospital A, Region 1, Hospital B, Region 2 has been NABH accredited

Business Highlights

Private: Domestic Company – Company 1 (3/5)



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SAMPLE

T O

W S

Private: Domestic Company – Company 1– SWOT Analysis (5/5)



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