BUSINESS INSIGHTS

The Indian Pharmaceutical

Market to 2011

Competitive Dynamics between the 20 leading companies in India,

1. Cipla 2005

2. Ranbaxy 22%
Abbott
20%
3. Nicholas Piramal 18% Aristo
Sun Pharma
FDC Torrent
16%
4. Sun Pharmaceuticals Dr. Reddy’s
Sales Growth 2004-05 (%)

14%
Lupin
12% Micro Labs
5. Zydus Cadila 10%
Alkem
Ranbaxy
Alembic
8% Novartis

6. Dr. Reddy’s 6%
USV

4%
7. Alkem 2%
Wockhardt
Sanofi Aventis
NPIL Cipla
GSK
Pfizer
0%
8. Lupin -1% 50 75 125 150 175 200 225 250 275 300

-2% Sales, 2005 ($m)

9. Aristo -3%

-4% Zydus Cadila

10. Torrent
MNC Indian Company

Note: Bubble size is proportionate to 2005 Market Share; NPIL= Nicholas Piramal

Your insight into  Strategic position

Best practice strategies
Mergers and acquisitions
Therapeutic focus
The Indian Pharmaceutical Market to 2011

Traditionally, the Indian pharmaceutical industry has been characterized by a core competency in generics’ manufac-
turing and relatively immature capabilities in R&D. This outlook has evolved substantially since the 1990s and Indian
companies have been making investments towards expanding drug discovery and development capabilities. The
acceptance of patent laws and the rise of contract manufacturing have led to the diversification of revenue streams,
enabling Indian pharma companies to experience high market growth.

The Indian Pharmaceutical Market to 2011 provides a detailed analysis of the leading players and discusses how
they are planning to sustain growth over the next five years. For each company, this report analyzes current and future
therapeutic focus, sales growth, key pipeline products and future growth prospects.

This report will help you to identify the critical success factors that have driven company growth, evaluate
diversification opportunities and assess the future potential of each company’s R&D portfolio over the next
five years.

Key findings of the report...

Figure 1.1: Comparison of pharmaceutical sales in the • In 2005, the Indian pharmaceutical industry was valued at $4,660m,
markets of India, EU5, US, Brazil, Russia, China and
Japan, 2005
representing an increase of 8.3% over year previous sales of
300,000 40% $4,304m. A surge in growth is expected to take place between 2006
35%
250,000
30%
and 2008, attributable to the opportunities presented by contract
research and manufacturing sourcing (CRAMS).
Sales growth (%)

25%
200,000
Sales ($m)

20%

150,000 15%

100,000
10%
• MNCs have a modest representation among the top 20 companies in
5%

50,000
0% the Indian pharmaceutical industry. As the market leader, GSK
-5%
captured a 6.3% share, illustrating the highly fragmented nature of
0 -10%

the market.
er n

Fr y

a
n
ly

il
ce
S

a
na
an
pa

az

di
ai

si
Ita
U

U
an

In
Sp

us
hi

Br
Ja

R
G

Market growth 2004-05 (%) Market size ($m)

Source: The Indian Pharmaceutical Market to 2011

• The re-introduction of the patent regime in 2005 has forced many
smaller Indian companies to exit the industry, while others have
“On a global perspective, the Indian pharmaceutical is been forced to re-evaluate existing corporate strategies.
ranked among the lowest as per sales potential in 2005.
However, the rate of pharmaceutical spending is
expected to continue growing at a rapid pace, based on • The Indian market has been associated with commodity generics,
5 year CAGRs (compound annual growth rates) over
although a shift in priorities has occurred with many companies
2001-05...”
increasing their investments in research capabilities and thus
establishing themselves as development partners of choice with
international companies.
Key questions answered in this report

• What are the challenges faced by pharmaceutical companies in the

Indian market?

Opportunities
• Emerging markets of Latin
America, CIS, Middle East
• How has the re-introduction of patent regime affected Indian
and Asia
• Further development of
drug delivery technologies
• Increasing public-private
pharmaceutical companies?
partnerships with international
not-for-profit initiatives

Strengths
• Strong foothold in the Indian market
• Strong relations with Indian government
CIPLA
Weaknesses
• Lack of international presence
• Faltering performance in domestic market
• What are the market shares for the ten leading Indian companies
• Established manufacturing agreements • Current strategies focused only on
with major western companies
• Established reputation in the global
HIV/AIDS market
domestic market and organic growth
2005?
Threats
• Re-introduction of patent
regime in India
• Growing competition from
China in manufacturing
• Which of the top ten companies are out performing and under
• Competition from Indian
companies within the domestic
market performing in the current market situation and why?

Source: The Indian Pharmaceutical Market to 2011 • What are the major strengths, weaknesses, opportunities and threats
“Cipla’s strategy to establish itself in the Indian and
for the market leaders?
international markets has been primarily through continual
investments in manufacturing facilities, developing drugs in • Which of the ten companies features the most promising R&D
collaboration with third parties and forming manufacturing pipeline and how will this impact future growth?
contracts with international generics companies...”

Top five reasons to order your copy today

Figure 1.3: Sales performance of different • Gain insights from the best practices of the top 10 Indian
therapeutic areas in the Indian market, 2005
pharma companies, by reviewing detailed profiles of current and
CNS future drug portfolios, growth strategies and organizational structure.
Anti-infectives
Cardiovascular 8%
23%
• Assess the pipeline strength of the top 10 Indian Pharma
16%
companies and identify future opportunities for growth.
1%
Cancer $4,660m
9%
Respiratory • Evaluate how market share of leading companies, such as Ranbaxy,
26% 6% Cipla, Nicholas Piramal, Sun Pharma and Zydus Cadila will change
4%
Alimentary Tract & Musculo -Skeletal
Metabolism
5%
System over the next 5 years.
Dermatology
Women's health
2%
Others
• Benchmark forecast performance of the leading players by using
Source: The Indian Pharmaceutical Market to 2011
analysis of key products in major indications.
“In 2005, the strongest performance was recorded by
products indicated for the treatment of alimentary tract and
metabolism related disorders, which accrued sales of • Identify which therapy areas offer the greatest opportunity by
$1,230m, representing a market share of 26.4%...” evaluating the therapeutic focus of the competition.
Sample information from the report

Chapter 2: Company Analysis

Dr Reddy’s
Overview

Dr. Reddy’s Laboratories commanded 2.6% of the Indian pharmaceutical market in 2005, positioning the company at
number six with sales of $123m. This represented an increase of 14.4% over 2004 sales of $108m. The company
manufactures and markets APIs, finished dosages and biologics as well as diagnostic products. Dr. Reddy’s has an
extensive international presence, in over 60 markets including Europe, the US and Japan, with an active presence
across the pharmaceutical value chain in the development and manufacturing of generic and branded
pharmaceuticals and bulk pharmaceutical ingredients.

Other than manufacturing, Dr. Reddy’s has three established R&D centers that focus on the development of
generics, novel drug delivery systems (NDDS) and new drug discovery research (NDDR) in a range of research fields.
While Dr. Reddy’s has further expanded its capabilities through organic growth, the company has also taken an
active part in expanding its geographic presence through
M&A. Figure 2.27: Dr. Reddy’s geographic presence, 2005

Eastern Europe
Dr. Reddy’s sells and markets its products in more than 100 10.9%
RoW
countries, with an established presence in the US, Germany 0.3%

and Russia. The company derives most of its revenues from

exports and its international acquisitions that accounted for
an estimated 65% of total revenues in 2005. Driven by the India Germany
26.7% 49.6%
acquisition of the German pharmaceutical company, $123m

Betapharm, Germany accounted for 49.6% of sales in 2005.

In the same year, the US market accounted for 12.4% of
sales, followed by Eastern Europe which accounted for
10.9% of sales. Dr. Reddy’s also possesses a subsidiary in the US
12.4%
US, Reddy US Therapeutics, which is involved in drug
Source: The Indian Pharmaceutical Market to 2011
discovery research focused on new molecular targets.

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The Indian Pharmaceutical Market to 2011

TABLE OF CONTENTS - Geographic Presence

- Product Portfolio Analysis
CHAPTER 1 : THE PHARMACEUTICAL MARKET
- Sales focus by therapy area
ENVIRONMENT IN INDIA
- Marketed Portfolio
• Summary
- R&D Pipeline
• Introduction
- Strategic Positioning
• Pharmaceutical market environment in India
- SWOT analysis
- Pharmaceutical spending in the Indian market
- Corporate Strategy
- Performance of Therapeutic Areas
• Zydus Cadila
- Performance of leading companies in the Indian market
- Company Overview
- Leading products in the Indian pharmaceutical market
- Geographic Presence
- Factors shaping the Indian pharmaceutical market
- Product Portfolio Analysis
- Sales focus by therapy area
CHAPTER 2 : COMPANY ANALYSIS
- Marketed Portfolio
• Summary
- R&D Pipeline
• Introduction
- Strategic Positioning
• Indian Market analysis by company
- SWOT analysis
• Cipla
- Corporate Strategy
- Company Overview
• Dr. Reddy’s
- Geographic Presence
- Overview
- Product Portfolio Analysis
- Geographic analysis
- Sales focus by therapy area
- Product portfolio analysis
- Marketed Portfolio
- Sales focus by therapy area
- R&D Pipeline
- Marketed portfolio
- Strategic Positioning
- R&D pipeline
- SWOT analysis
- Strategic positioning
- Corporate Strategy
- SWOT analysis
• Ranbaxy
- Corporate strategy
- Company Overview
• Alkem
- Geographic Presence
- Company Overview
- Product Portfolio Analysis
- Geographic Presence
- Sales focus by therapy area
- Product Portfolio Analysis
- Marketed Portfolio
- Sales focus by therapy area
- R&D Pipeline
- Marketed Portfolio
- Strategic Positioning
- R&D pipeline
- SWOT analysis
- Strategic Positioning
- Corporate Strategy
- SWOT analysis
• Nicholas Piramal
- Corporate strategy
- Company Overview
• Lupin
- Geographic Presence
- Company overview
- Product Portfolio Analysis
- Geographic analysis
- Sales focus by therapy area
- Product portfolio
- Marketed Portfolio
- Sales focus by therapy area
- R&D Pipeline
- Marketed portfolio analysis
- Strategic Positioning
- R&D pipeline
- SWOT analysis
- Strategic positioning
- Corporate Strategy
- SWOT analysis
• Sun Pharmaceuticals
- Corporate strategy
- Company Overview
The Indian Pharmaceutical Market to 2011

LIST OF FIGURES (ABRIDGED)

• Aristo Figure 1.1: Comparison of pharmaceutical sales in the
- Company overview markets of India, EU5, US, Brazil, Russia,
- Geographic analysis China and Japan,
- Product portfolio Figure 1.2: Comparison of pharmaceutical spending in
- Sales focus by therapy area the markets of India, EU5, and the US, 2005
- Marketed portfolio analysis Figure 1.3: Sales performance of different therapeutic
- R&D pipeline areas in the Indian market, 2005
- Strategic Positioning Figure 1.4: Competitive Dynamics between the 20
- SWOT analysis leading companies in India, 2005
- Corporate strategy Figure 1.5: Competitive dynamics between leading
• Torrent brands in the Indian market, 2005
- Company overview Figure 1.6: Factors shaping the Indian pharmaceutical
- Geographic analysis market
- Product portfolio Figure 2.7: Share of Indian companies by sales, 2005
- Sales focus by therapy area Figure 2.8: Cipla’s geographic presence, 2005
- Marketed portfolio analysis Figure 2.9: Cipla therapeutic areas sales performance,
- R&D pipeline 2004-5
- Strategic Positioning Figure 2.10: Cipla’s SWOT Analysis
- SWOT analysis Figure 2.11: Cipla’s future direction
- Corporate strategy Figure 2.12: Ranbaxy geographic presence, 2005
- Company forecast sales for the period -2005- 2011
. LIST OF TABLES (ABRIDGED)
CHAPTER 3: FUTURE OUTLOOK AND COMPETITIVE Table 1.1: Breakdown of the Indian pharmaceutical
PRESSURES market by therapy area, 2001-05
• Summary Table 1.2: Sales of leading pharmaceutical companies
• Introduction in India, 2004-05
• Competitive pressures being faced by the Indian Table 1.3: Leading brands in the Indian market,
companies 2004–05
- Re-introduction of product patent regime in 2005 Table 2.4: Sales of leading Indian pharmaceutical
- Market saturation in the Indian market across major companies, 2004-05
therapy areas Table 2.5: Breakdown of the Cipla’s revenues by
- Increasing competition from other low cost manufacturing therapy area, 2001-05
markets such as China Table 2.6: Leading brands in Cipla’s marketed
- Stringent pricing controls on numerous essential medicines portfolio, 2004–05
• Future Indian pharmaceutical growth models Table 2.7: Cipla’s Commercial Agreements 2001-2007
- Value versus volume driven market Table 2.8: Breakdown of the Ranbaxy’s revenues by
- Contract Research and Manufacturing Sourcing (CRAMS) therapy area, 2001-05
- Contract Manufacturing Table 2.9: Leading brands in Ranbaxy’s marketed
- Contract Research and low cost clinical trials portfolio, 2004–05
- Mergers and acquisitions Table 2.10: Ranbaxy's R&D product pipeline, 2006
Table 2.11: Ranbaxy’s Commercial Agreements
CHAPTER 4: APPENDIX 2001-2007
Table 2.12: Breakdown of the Nicholas Piramal’s
revenues by therapy area, 2001-2005
Table 2.13: Leading brands in NPIL’s marketed
portfolio, 2004–05
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