Indian Pharma

Opportunities Drivers Challenges

April 2011 Mumbai

Indian pharma market will grow to US$55bn by 2020

April 2011 Mumbai

Source: McKinsey report

India is progressing

Strong GDP growth

Ascent of the middle class

April 2011 Mumbai

India is progressing

Coverage of health insurance is picking up

April 2011 Mumbai

Drivers of market growth are well entrenched

April 2011 Mumbai

MNCs are positioning themselves to tap the India opportunity

April 2011 Mumbai

Building blocks of Indian Growth Story

Rural

Hospit al

OTC

Biologi cs

Vaccin es

CRAMS

Generi cs

April 2011 Mumbai

Rural will rule

April 2011 Mumbai

Rural will Rule

April 2011 Mumbai

Rural market will be Rs.45K cr by 2020

x 5

Rs.cr

April 2011 Mumbai

Source: McKinsey report

Rural market will pose unique challenges

Enablers Challenges

April 2011 Mumbai

A few examples.

April 2011 Mumbai

Innovation is the name of the game

Novartis Arogya Parivar Social business model

April 2011 Mumbai

Consumer will be the KING

April 2011 Mumbai

Consumer Pharma market to be $14b by 2020

63000 cr

x 4
13500 cr

Rs.cr
April 2011 Mumbai
Source: McKinsey report

Wellness will be a huge opportunity area

April 2011 Mumbai

The action has already begun in the OTC space

Aggressive Launches Aggressive Launches -i-Pill -Unwanted 72 -Prega News -Norlevo -Prosoy -Sunova Cough Syrup -Breathe Right Aggressive Launches Line Extensions - Moov Shoulder Gel - DCold Natural - Revitalite -Crocin Cold & Flu -Dabur Chyawanprash Aggressive Launches Switches - Volini - Chericof - Supractive -Pediasure - Otrivin - Digene - Combiflam Gel

Unleasing the consumer market opportunity

Creating and tapping opportunity through non traditional channels

April 2011 Mumbai

Source: IMS SSA MAT Feb

Challenges

April 2011 Mumbai

Hospital / Institution

April 2011 Mumbai

Hospitals will continue to evolve & also grow in numbers

April 2011 Mumbai

Strong growth in hospitals, primarily in large private hospitals and nursing homes

April 2011 Mumbai

Institution business will gain momentum

April 2011 Mumbai

Trend towards more in-patients treatment

April 2011 Mumbai

Rising healthcare spend will drive hospital business

April 2011 Mumbai

Bundling of products & services will be key success factor

April 2011 Mumbai

KAM skill development will be a key challenge

April 2011 Mumbai

Carving out innovative approaches to build hospital business will be the key challenge

April 2011 Mumbai

Biosimilars

April 2011 Mumbai

Biologics market will grow rapidly

x 9

2020

US$ mn

April 2011 Mumbai

Simple Biologics: eg.Insulin,EPO Complex Biologics : eg. mABs

Source: Mckinsey report

Unlocking the market potential with biosimilars

GCSF volumes in India
Increased by 13 times post generics entry

Source: Dr. Reddys Analysis,

12.0 10.0

EPO volumes in China

Increased by 10 times post generics entry

8.0 6.0 4.0 2.0 0.0 1999 2000 2001 2002 2003 2004 2005 2006

April 2011 Mumbai

Source: data presented by 3S-Bio in BioAsia Singapore 2007

Drivers and resistors to biosimilars uptake both domestically and internationally

Drivers of the Indias biosimilars industry Resistors to growth of the Indias biosimilars industry

Low R&D costs are advantageous for biosimilar development Low levels of health insurance limit access to biologic drugs Brand loyalty among the emerging middle class

India Well Positioned Although the biosimilars market is in its infancy, Indian manufacturers are well positioned to capitalize on the future growth 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.

Appropriate pricing
Use of emerging markets as a stepping stone to potential future launches in more mature markets

Complex and expensive clinical trial and registration process in developed markets

Licensing agreements with multinational companies can facilitate access to developed pharmaceutical markets

Need to enhance physician confidence in biosimilars

Rising affordability
April 2011 Mumbai

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.

To keep it short.India is the place to be !

April 2011 Mumbai

Thank You

April 2011 Mumbai