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PHARMACEUTICAL
INDUSTRY
BYPRATEEK GUPTA (33)Sathish Kumar (46)
The pharmaceutical industry develops, produces, and
markets drugs or pharmaceuticals licensed for use as
medication .
PHARMACEUTICAL INDUSTRY
GLOBAL PHARMACEUTICAL MARKET
580
600
670
710
750
790
880
900
940
959
0 200 400 600 800 1000 1200
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012Pharma Sales
Pharma Sales
Source of
Data
By Deloitte
IN US
BILLION $
Globally region wise Sales
America
Europe
Australia, Asia and
Africa
Japan
45.36
12.02
18.26
24.36
Source of Data
By Deloitte
959 US BILLION$
2012-2013
1. Johnson & Johnson
2. Pfizer
3. Roche
4. GlaxoSmithKline
5. Novartis
6. Sanofi
7. AstraZeneca
8. Abbott Laboratories
9. Merck & Co.
10.Bayer HealthCare
MAJOR PLAYERS OF THE WORLD
The research based pharmaceutical industry is
playing a major role in reviving Europe’s economy.
There is rapid growth in market and research
environment in the emerging economies such as
brazil, china and India.
In 2012 North America accounted for 41.0% of world
pharmaceutical sales compared with 26.7% for
Europe.
MAIN TRENDS
PHARMACEUTICAL R&D EXPENDITURE IN EUROPE, USA AND
JAPAN
(MILLION OF NATIONAL CURRENCY UNITS*) , 1990 -2012
The cost of developing a new chemical was
estimated at 1172 million pounds.
On average, only one to two of every 10,000
substances produced in laboratories will successfully
pass all stages of development process required to
become a marketable medicine.
PHARMACEUTICAL RESEARCH IN EUROPE
PHASES OF RESEARCH AND
DEVELOPMENT
NUMBER OF NEW CHEMICALS(1993-
2012)
In 2011 the pharmaceutical industry in Europe invested
about € 29,200Million in R&D.
Facing increased competition from emerging economies
like India Brazil and China.
The change of focus towards emerging economies.
According to EUROSTAT data pharmaceutical sector is the
sector contributing huge amount of money to R&D.
IMPORTANCE OF RESEARCH AND
DEVELOPMENT.
Distribution margins, are generally fixed by governments, and
VAT rates vary from country to country in Europe
On average, approximately 35% of the retail price of a
medicine goes not to the manufacturer, but rather to the
distributors (pharmacists and wholesalers) and state
Breakdown of the retail
price of a medicine in
2011 (%).
PRICE STRUCTURE
It is usually produced by manufacturer not by inventor.
Marketed according to Intellectual Property Rights.
The market share is higher in European union.
GENERICS
EXPORTS, IMPORTS AND TRADE
BALANCE
On average, 16.6% of total health expenditure in Europe being
spent on pharmaceuticals and other medical nondurables.
In costly diseases such as cancer and rheumatoid, arthritis ,
medicines account for even less than 10% of the total disease
costs.
ADDED VALUES OF MEDICINES IN HEALTH
CARE
INDIAN PHARMA INDUSTRY
Sources: http://www.ibef.org/industry/pharmaceutical-india.aspx
PHARMA MANUFACTURING & PATENTS
India is home to 10,500 manufacturing units and
over 3,000 pharma companies.
India accounts for 36.9 per cent (3,411) of the 9,296
Drug Master Files (DMFs) filed with the USA, which is
the highest outside of the USA (as on December 31,
2013).
Higher spending on R&D, owing to products patents
have made India a major destination for generic drug
manufacturing.
MARKET SIZE
From a market size of US$ 12.6 billion in 2009, the Indian
pharmaceutical market will grow to US$ 55 billion by 2020,
with the potential to reach US$ 70 billion in an aggressive
growth scenario. In a pessimistic scenario characterized by
regulatory controls and economic slowdown, the market will
be depressed but is still expected to reach US$ 35 billion.
India currently exports drug intermediates, Active
Pharmaceutical Ingredients (APIs), Finished Dosage
Formulations (FDFs), Bio-Pharmaceuticals, and Clinical
Services across the globe.
As per 'Pharma Vision 2020', the Government of India aims to
make India a global leader in end-to-end drug manufacturing.
Manufacturing costs in India are approximately 35-40 per cent
of those in the US due to low installation and manufacturing
costs.
Indian vaccines are exported to 150 countries.
The projected human resource requirement in the Indian
pharma sector is estimated to be about 21,50,000 by 2020
ROAD AHEAD
The growth in Indian domestic market will be boosted by
increasing consumer spending, rapid urbanization, increasing
healthcare insurance and so on.
The lifestyle segments such as cardiovascular, anti -diabetes,
anti-depressants and anti -cancers will continue to be lucrative
and fast growing owing to increased urbanization and change
in lifestyle patterns.
For the US market, Indian companies are developing niche
portfolios in various segments. High margin injectables,
dermatology, respiratory, biogenerics, complex generics, etc.,
have become areas of interest.
ADVANTAGES
Due to a genetically diverse population and availability of
skilled doctors, India has the potential to attract huge
investments to its clinical trial market.
Demand for generic medicines in rural markets has seen a
sharp growth. Various companies are investing in the
distribution network in rural areas.
Growing demand could open up the market for production of
high-end drugs in India.
The domestic pharma sector is witnessing strong growth due
to higher penetration in tier -II and tier-III cities and greater
focus on the largely - untapped rural market.
India is one of the fastest-growing pharmaceutical markets in the world and has established itself as a global manufacturing and research hub. A large raw material base and the availability of a skilled workforce gives the industry a definite competitive advantage.
The rise of pharmaceutical outsourcing and investments by multinational companies (MNCs), allied with the country's growing economy, committed health insurance segment and improved healthcare facilities, is expected to drive the market's growth.
India’s cost of production is significantly lower than that of the USA and almost half of that of Europe.
GOVERNMENT SUPPORT
The Government of India plans to set up a US$ 640 million
venture capital fund to boost drug discovery and strengthen
pharma infrastructure. Government expenditure on health has
increased from US$ 14 billion in 2008 to US$ 23 bill ion in
2011.
FDI in India allowed upto 100% on pharma industry.
Allocation of INR 5000 Million to set up four more institutions
of the stature of AIIMS in Andhra Pradesh, West Bengal,
Maharashtra and U.P.
Full exemption from excise duty is being provided for
HIV/AIDS drugs and diagnostic kits.
OPPORTUNITY FOR FUTURE
Sites that allow online ordering and delivery of prescriptions.
Manufacturer sponsored sites to access reliable health care
information.
Apps that remind patients to take medicine, schedule follow
up doctors visits.
Apps for patients to use as tools to monitor their health.
Customized interactive platforms with a focus on doctor
engagement for sales reps to util ize during office visits.
Since Pfizer was founded by cousins Charles Pfizer and Charles Erhart in 1849, the
pharmaceutical company has remained dedicated to discovering and developing new, and
better, ways to prevent and treat disease and improve health and well being for people
around the world.
CEO: Ian Read
Pfizer Locations: Corporate Headquarters:
New York, NY (USA)
Stock Exchange Listings: New York Stock Exchange (PFE)
London (PFZ)
Euronext
Swiss
Key Pfizer Pharmaceutical Products:
BeneFIX
Bosulif
Celebrex
Chantix/Champix
Detrol/Detrol LA
Diflucan
Duavee
Eliquis
Rare Disease:
Elelyso
Vyndaqel
Norvasc
Enbrel
EpiPen
Genotropin
Inlyta
Lipitor
Lyrica
Medrol
Premarin
Prevnar
Pristiq
Quillivant XR
ReFacto AF/Xyntha
Spiriva
Sutent
Vfend
Viagra
Xalatan/Xalacom
Xalkori
Xanax XR
Xeljanz
Zithromax/Zmax
Zoloft
Zyvox
Products
Millions of Dollars 2013 2012 2011
REVENUE $ 51,584 54,657 $ 61,035
NET INCOME $ 22,003 $ 14,570 $ 10,009
Research and
development
expenses
$ 6,678 $ 7,482 $ 8,681
Revenue, Net Income
REVENUE
Total revenues were $51.6 billion in 2013, a
decrease of 6% compared to 2012, Which
reflects an operational decline of $1.9 billion,
or 4%. Total revenues were $54.7 billion in
2012, a decrease of 10% compared to 2011,
which reflects an operational decline of $5.0
billion, or 8%.
The continued erosion of branded Lipitor (Cholesterol fighter)
in the U.S., developed Europe and certain other developed
markets (approximately $1.7 billion);
The loss of exclusivity for Geodon in March 2012 in the U.S.
(approximately $130 million);
Other product losses of exclusivity (approximately $1.3
billion);
Decreased government purchases of the Prevnar family of
products and Enbrel in certain emerging markets
(approximately $160 million); and lower revenues from
generic atorvastatin (approximately $145 million)
THE OPERATIONAL DECREASE WAS
PRIMARILY THE RESULT OF:
R&D EXPENSES
2013 v. 2012 : R&D expenses decreased 11% in 2013, compared
to 2012, primarily due to:
- - lower charges related to implementing cost -reduction and
productivity initiatives.
2012 v. 2011: R&D expenses decreased 14% in 2012, compared
to 2011, primarily due to:
-- savings generated by the discontinuation of certain therapeutic
areas and R&D programs in connection with their previously
announced cost-reduction and productivity initiatives.
SUN PHARMA
It was established in 1983.
Headquarters are in Mumbai, Maharashtra.
It was l isted on the stock exchange in 1994.
Chairman is Israel Makov.
25 manufacturing facil ities in 4 countries.
It ’s major acquisitions l ike Taro, URL Pharma and Milmet, Able and
many more.
2014- Acquired Ranbaxy for 4bil l ion$.
Sun Pharma to sustain its ranking as the 5th largest
global specialty generic pharma company
No. 1 pharma company in India
No. 1 by prescriptions in 13 specialty segments, Strong
OTC business with trusted brands
No. 1 Indian pharma company in US market.
More than 75% of its sales from international markets.
REVENUE COMPOSITION
Gross Annual Sales (Rs 161,995 million )
US Formulations ( 60%
)
International Generics (
38% )
API's ( 11% )
India Branded Generics
( 23% )
NET SALES
Rs Crores
2010-
2011
5723
2011-12 8006
2012- 13 11239
2013-14 16004
NET PROFIT
Rs Crores
2010-11 1816
2011-12 2587
2012-13 2983
2013-14 3204
Thank you !