research on india_healthcare sector in india monthly update_december 2012

Healthcare Sector in India Monthly Update

December 2012

Healthcare Sector – Monthly Update

Top Story CSTM to initiate stem cell course The Calcutta School of Tropical Medicine (CSTM) has decided to initiate a fellowship course in stem cell biology that happens to be the 1st ever in India. The post‐graduate programme — Regeneration Medicine and Translational Science has already received consent from the West Bengal State Health Department. The course will be offered to students who have completed their MBBS degree course for which 20 such students have already been shortlisted for 2013 1st batch. The course that CSTM will commence shortly is available currently only in reputed universities such as Translational Centre for Regenerative Medicine in Germany and University of Liverpool and Stanford University. The course is aimed at teaching how dead tissues of brain, kidney could be used in various purposes for clinical research. The programme will help push forth Indis’s position in stem cell therapy a step ahead. News Update

General Venus to conduct final stage clinical trial of NCE VRP1620 Venus Remedies Ltd. has acquired the approval to conduct phase III clinical trial of cancer detecting New Chemical Entity (NCE) from the Drugs Controller General of India (DCGI). The phase III clinical trial for the early cancer detection molecule VRP1620 will involve an investment of approximately INR 55 mn. Venus is in plans to launch the NCE by the end of calendar year 2013 in domestic and international market. Presently, across the globe there is no technology for early detection of small‐sized solid tumours. With expected launch of the product that the company claims to keep at an affordable price there will be a major breakthrough in oncology therapeutic branch. UK government keen on upgrading Indian primary healthcare The UK government is in plans of partnering with India’s primary healthcare segment. It is working towards partnerships with such primary healthcare segments with the intention of uplifting their treatment standards. UK government has already initiated a pilot project in partnership with Kerala government for upgrading 3 government‐run primary healthcare centres of the Thiruvananthapuram district. The partnerships can take place through public private partnerships (PPPs) and also at the private level where business houses and corporate entities can venture into collaborations with UK hospitals and General Practitioner (GP) networks.


Glenmark ties up with Forest Laboratories Glenmark Pharmaceuticals SA (GPSA) has signed a pact with US based Forest Laboratories Inc. for drug molecules development for treatment of chronic inflammation. Glenmark has already identified clinical candidates and is conducting pre‐clinical studies and other development activities required to support initiation of first‐in‐human dosing. As per the agreement, Glenmark will receive INR 500 mn in part payment from Forest Laboratories for development of mPGES‐1 inhibitors that will treat chronic inflammation including pain. A part of the payment will be made upfront while the remaining will be made to support the next phase of work. Aurobindo Pharma to launch Ondansetron injections Hyderabad based Aurobindo Pharma Ltd. has received has obtained final approval from US Food & Drug Administration (USFDA) for manufacture and marketing of Ondansetron injections. The injection is for the prevention of nausea and vomiting associated with initial and repeat courses of emetogenic cancer chemotherapy or postoperative nausea and/or vomiting. The Ondansetron injection will be available in USP 2rng/mL packaged in 40mg/20mL multiple‐dose vials and USP 2mg/mL packaged in 4mg/2mL single‐dose vials. The product is already ready for launch in US market. News Update

Regulatory Formal decision on drug pricing released The Indian government has made its final decision of enforcing the new policy that will bring more generic medicines under price control. The policy will extend price restrictions to 348 "essential" drugs inclusive of cancer and HIV unlike the previous policy that covered barely 74 drug compounds and their combinations. The policy will put a ceiling on the maximum price of a drug on the basis of average price of all medicines in that category which have a market share of at least 1%. India’s cabinet has already approved the policy in late Nov 2012 and will be put to operation soon. The policy will also embrace imported drugs that are on the "essential" medicines list and this will ensure not only domestically manufactured but also imported drugs to be accessible for common man.


Elder inks deal with Holding PharmaEco Elder Pharmaceuticals Ltd. has entered into an agreement with Russia based Holding PharmaEco for bilateral co‐operation in healthcare sector. The agreement is part of the 13th Annual Indo‐Russian bilateral summit. India has already earned a good reputation of being a reliable supplier of quality drugs to Russia. With Russian Government’s Pharma 2020 Programme, Indian pharma companies are increasingly showing interest in collaborating with Russian partners. The respective governments of the 2 countries are jointly working towards liberalizing registration procedure of new drugs to boost bilateral pharma trading activities. News Update

Expansion Plans Eli Lily and Strides partner to market oncology drugs USA based Eli Lilly and Co. and Bangalore based Strides Arcolab has entered into a joint venture for increasing marketing of oncology products in emerging markets. According to the agreement Eli Lilly will in‐license a portfolio of branded generic injectible and oral cancer medicines manufactured by Agila Specialties, the specialties division of Strides Arcolab Ltd. The deal which had been signed on 5th Dec, 2012 will come into effect from second half of 2013. The deal will sufficiently aid both the companies to capture a greater share of the market due to their predefined responsibilities. Defiance Technologies penetrates healthcare sector Chennai based Defiance Technologies Ltd., the Hinduja Group Company, is venturing into medical equipment manufacturing – the latest addition to its business of engineering and IT services for automobile and defence sectors. The company has entered into partnership with a US‐based R&D company that will aid the firm in re‐designing equipments specifically suited for the price‐sensitive Indian market. To understand the Indian medical equipment market that believes in refurbishing equipments, Defiance has also tied up with two hospitals in Chennai and Bangalore. It also has plans of entering into such a partnership with its group hospital Hinduja Hospital. Defiance’s business plan is expected to re‐model the Indian healthcare sector that is filled with low standard refurbished equipments often hampering quality of diagnosis and treatment for common man. Claris enters JV with Japanese drug maker Otsuka Pharma & Mitsui Ahmedabad based Claris Lifesciences Ltd. has entered into a joint venture (JV) with Japan based pharmaceutical company Otsuka Pharmaceutical and Mitsui & Co Ltd. that has been


named Claris‐Otsuka. The agreement is worth INR 13.13 bn for which Claris will receive INR 10.50 bn over multiple agreements. Shareholding pattern will see Claris owning 20%, Otsuka Pharma 60% and Mitsui 20%. As according to the deal, Claris will be responsible for transfer of Common Solutions, Anti‐Infectives, Plasma Volume Expanders and Parenteral Nutrition therapies business for India and other emerging markets to Claris‐Otsuka. Claris will also be transferring 2 out of its 5 plants to Claris‐Otsuka. The partnership is a valuable one for Claris as it involves infusions business expert Otsuka and global trading and financial expertise Mitsui. Industry Expert Speak UK government keen on upgrading Indian primary healthcare – Mike Nithavrianakis, British deputy high commissioner in Chennai and exofficio president of IndoBritish health initiative (IBHI) “The collaboration can happen in different levels. The state governments can partner with British entities to upgrade the existing primary health centers (PHCs). Further, there could be public‐private‐partnerships in primary health care. In the private sector, family‐run businesses or corporate entities that are keen to enter healthcare can also consider joint venture partnerships with UK hospitals and GP networks” Eli Lily and Strides partner to market oncology drugs Jacques Tapiero, Eli Lilly Senior Vice President and President of Eli Lilly emerging markets division “The demand for high‐quality cancer medicines is unmet in many markets around the world. This agreement will help Eli Lilly expand its portfolio and deliver high‐quality cancer medicines to patients across emerging markets.” Formal decision on drug pricing released Manoj Garg, Pharmaceuticals Analyst at Mumbaibased brokerage Edelweiss Securities Ltd. "On a broad level, local drug makers will have to cut prices by 20%‐25% across portfolios, while multinational drug companies will have to reduce rates by between 30% and 50%," Glenmark ties up with Forest Laboratories – Glenn Saldanha, Glenmark Pharmaceuticals Chairman and Managing Director "This collaboration reinforces our strategy of partnering to achieve our goal of launching innovative technologies around the world.”


Transaction Detail (Oct – Dec 2012)

Date Buyer Target Deal Size (INR mn) % stake Deal Status

Type of Transaction

17th Dec 2012

Bupa Australia Health Pty Ltd.

Dental Corporation Holdings Ltd

11276 64% Planned M&A

17th Dec 2012

Caraco Pharmaceutical

URL Pharma

N.A. N.A. Planned M&A

15th Dec 2012

Erba Diagnostics US arm of Transasia

Bio‐Medicals Ltd.

Drew Scientific Inc and JAS

Diagnostics Inc, from

Escalon Medical Corp

N.A. N.A. Completed M&A

11th Dec 2012

Sutherland Global Services

Apollo Health Street (AHS)

10000 100% Planned M&A

4th Dec 2012

Decision Resources Group (DRG) Subsidiary of Piramal

Enterprises

Abacus International N.A. N.A. Completed M&A

4th Dec 2012

Matrix Partners India

Enhance Aesthetic and Cosmetic Studio

Pvt. Ltd.

N.A. N.A. Completed M&A

26th Nov 2012

Trivitron Healthcare Pvt.

Ltd.

Ani Labsystems Ltd. 1221.12 N.A. Completed M&A

22nd Nov 2012

IncuCapital Navigene Genetic Science Pvt. Ltd.

N.A. N.A. Completed Private Equity


21st Nov 2012 Cipla Ltd.

Cipla Medpro South Africa Ltd. 12101.2 51% Completed M&A

8th Nov 2012

Sun Pharma Industries Ltd.

DUSA Pharmaceuticals,

Inc. 12.65 N.A. Planned M&A

31st Oct 2012

GE Equity International Mauritius

Syngene International (Biocon Ltd. subsidiary)

1250 7.69 Completed Private Equity

25th Oct 2012

Fidelity India Capital

Trivitron Healthcare

4000 35‐40 Planned Private Equity

22nd Oct 2012

Dr. Reddy's Laboratories OctoPlus N.V. 1930 100 Planned M&A

17th Oct 2012

Mylan Laboratories

SMS Pharmaceuticals’ Vishakhapatnam

located manufacturing

1730 N.A. Completed Acquisition

Annual Financial Results – Revenue (INR mn) – Major Healthcare Companies

Companies FY ’09 FY ’10 FY ’11 FY’ 12

Biocon Ltd. 16,492.50 23,932.70 27,947.70 21,483.0

Blue Star Ltd. 25,026.2 25,249.7 29,536.8 27,888.5

Cadila Healthcare Ltd. 29,066.00 35,780.00 44,671.00 50,899.7

Cipla Ltd. 52,876.20 56,704.00 63,850.70 68,477.0

Dabur India Ltd. 28,122.40 33,958.00 40,817.40 52,832.0


Dr. Reddy’s Laboratories (DRL) 69,441.00 70,277.00 74,693.00 96,737.4

GlaxosmithKline Consumer Healthcare Ltd.

19,757.6 23,693.3 27,688.6 28,857.3

Glenmark Pharmaceuticals Ltd. 21,241.20 25,291.30 29,490.70 40,206.4

Jubilant life Sciences Ltd. 35,491.00 38,047.80 34,484.40 42,539.5

Lupin Ltd. 38,508.30 48,318.10 57,851.90 70,829.1

Nestle India Ltd. 51,395.5 62,609.4 74,994.6 77,409.0

Opto Circuits (India) Ltd. 8,185.197 10,775.826 15,855.631 23,568.543

Piramal Healthcare Ltd. 32,478.20 36,276.30 25,157.70 20,838.3

Ranbaxy Laboratories Ltd. 75,970.40 89,607.70 101,614.1 117,153.2

Siemens India Ltd. 93,070.2 96,272.4 119,718.1 124,657.9

Strides Arcolab Ltd. 13,101.6 16,958.4 25,245.2 25,645.1

Sun Pharmaceuticals Industries Ltd.

42,723.00 38,086.30 57,214.30 80,056.6

Torrent Pharmaceuticals Ltd. 16,306.60 19,160.40 22,264.80 26,959.2

Wockhardt Ltd. 3,6294.4* 36,477.60 37,633.50 46,138.0

Annual Financial Results – Income (INR mn) Major Healthcare Companies

Companies FY ’09 FY ’10 FY ’11 FY’ 12

Biocon Ltd. 931.2 2,932.40 3,675.20 3,384.0

Blue Star Ltd. 1,802.9 2,114.9 1,609.6 ‐1,051.0


Cipla Ltd. 7,710.20 10,825.90 9,895.70 11,442.4


Dabur India Ltd. 3,905.00 5,010.80 5,685.70 6,449.0

Dr. Reddy’s Laboratories (DRL) ‐5,168.00 1,068.00 11,040.00 14,262.1

GlaxoSmithKline Consumer Healthcare Ltd.

2,327.8 2,998.5 3,552.1 3,765.6

Glenmark Pharmaceuticals Ltd.

1,916.60 3,244.70 4,532.10 4,603.5

Jubilant life Sciences Ltd. 2,831.80 4,214.60 2,297.20 145.6

Lupin Ltd. 5,015.40 6,816.30 8,625.50 8,676.5

Nestle India Ltd. 6,550.0 8,186.6 9,615.5 9,815.7


Piramal Healthcare Ltd. 3,162.50 4,819.00 128,833.60 1,115.0

Ranbaxy Laboratories Ltd. 2,964.90 14,967.50 ‐28,997.3 ‐19,573.5

Siemens India Ltd. 7,046.0 7,577.7 8,677.5 7,300.6


Sun Pharmaceuticals Industries Ltd. 18,177.30 13,510.80 18,160.60 25,872.5


Wockhardt Ltd. ‐4,355.4* ‐9,804.20 905.2 3,427.1


Quarterly Financial Results – Revenue (INR mn) – Major Healthcare Companies

Companies OctDec 2011

JanMar 2012

AprJun 2012

JulSep 2012

Biocon Ltd. 5,171.90 5,892.2 5,770.0 5,924.0

Blue Star Ltd. 5,896.9 N.A. N.A. N.A.


Cipla Ltd. 17,580.00 N.A N.A. N.A.

Dabur India Ltd. 14,526.80 13,858.3 14,620.0 15,226.0

Dr. Reddy’s Laboratories (DRL)

27,692.00 26,584.0 25,406.0 28,808.5


6,854.0 8,608.7 7,869.6 8,275.4


10,310.90 10,751.2 10,404.1 12,551.9

Jubilant life Sciences Ltd. 10,871.70 12,235.9 12,358.9 12,197.3

Lupin Ltd. 17,917.0 20,063.7 22,191.5 22,392.6

Nestle India Ltd. 19,633.2 20,558.7 19,865.8 21,155.9


Piramal Enterprises Ltd. 5,518.30 8,858.0 7,102.9 8,285.8

Ranbaxy Laboratories Ltd. 37,923.1 36,954.0 31,740.6 26,513.9

Siemens India Ltd. 30,458.2 37601.432 33,082.4 32,693.6



21,451.30 23,299.3 26,581.4 26,572.4


Wockhardt Ltd. 12,086.70 12,413.90 14,258.2 13,474.4


Companies OctDec 2011

JanMar 2012

AprJun 2012

JulSep 2012

Biocon Ltd. 848.50 978.0 790.0 896.5

Blue Star Ltd. (327.6) N.A. N.A. N.A.

Cadila Healthcare Ltd. 1,492.10 1,708.8 1,947.9 951.4

Cipla Ltd. 2,699.10 N.A. N.A. N.A.

Dabur India Ltd. 1,728.20 1,705.1 1,494.0 2,023.7

Dr. Reddy’s Laboratories (DRL)

5,130.0 3,427.0 3,360.0 4,074.4


591.0 1,319.7 1,066.0 1,285.5


461.20 1,482.7 782.8 1,567.5

Jubilant life Sciences Ltd. ‐783.90 ‐635.3 50.1 1,520.0

Lupin Ltd. 2,350.60 1,556.4 2,803.9 2,904.6

Nestle India 2,308.30 2,757.3 2,459.7 2,673.1


Piramal Enterprises Ltd. 85.2 ‐386.8 40.8 (920.2)

Ranbaxy Laboratories Ltd. ‐29,827.7 12,467.6 ‐5,857.3 7,541.7

Siemens India Ltd. 1,873.6 3,040.0 (157.8) (557.7)

Strides Arcolab Ltd 684.1 6,420.7 904.8 524.9


6,683.0 8202.1 7,955.5 3,196.4

Torrent Pharmaceuticals Ltd 831.8 ‐16.5 1,018.5 1,072.5

Wockhardt Ltd. 2,128.10 ‐1,916.4 3,779.7 4,535.5

* denotes a change in financial year

Quarterly Financial Results – Income (INR mn) Major Healthcare Companies


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