India Pharmaceutical Industry 2H10

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Report Excerpt

2.1 Indian Generics Production

Global pharmaceutical market has a value of USD773bn and the US accounts for a staggering 38% of global pharmaceutical market share. In 2009, the global market for generic drugs was projected to be worth USD84bn, and again, the US has the largest share at 42% while India accounted for approximately USD19bn.

Throughout 2008, nearly USD20bn worth of drugs went off-patent but only USD14bn worth of drugs went off-patent a year later. However, as much as USD52bn worth of drugs is projected to go off-patent in 2011 while analysts predicted that an accumulated USD300bn worth of prescription drugs may go off-patent from 2008 to 2015.

3.1 Leading Players

3.1.1 Ranbaxy Laboratories Ltd. (Ranbaxy)

Ranbaxy was established in 1961 and expanded into a public-listed company in 1973. Within a few decades, Ranbaxy has developed into India’s largest pharmaceutical company that recorded global sales of USD1.52bn in 2009. This integrated research based pharmaceutical company manufactures a wide range of quality, affordable generic drugs.

Operating its world-class manufacturing plants in 7 countries, Ranbaxy serves customers across more than 125 countries. In 2008, this pharmaceutical giant entered into an alliance with one of the leading Japanese-based company, Daiichi Sankyo Co. Ltd. (DS) in order to create generic pharmaceutical powerhouse. This joint entity currently ranks among one of the top 20 pharmaceutical companies in the global platform.

As an international pharmaceutical company, Ranbaxy has a balanced mix of revenues that are obtained from both emerging and developed markets. Through organic and inorganic growth strategies, Ranbaxy focuses on generics business in its key markets. Moreover, the company will increase the momentum in high growth potential businesses, namely, vaccines and biogenerics.

In line with its strategy to enhance its global R & D operations, the company’s New Drug Discovery Research (NDDR) was transferred to Daiichi Sankyo India Pharma Pvt. (Private) Ltd. in 2010. After the transference, NDDR will become an integral part of Daiichi Sankyo Life Science Research Centre in Gurgaon, India while Ranbaxy will independently develop and market the antimalarial drug.

Total revenue garnered by Ranbaxy amounted to INR75.97bn in 2009 against INR74.14bn during the previous year. However, its profit bounced back to register INR3.11bn in 2009 after experiencing a disappointing net loss of INR9.35bn in 2008. In order to complement its existing portfolio in the derma operations, Ranbaxy acquired the marketing rights for dermatological and lifestyle products from Ochoa Laboratories Ltd.

In September 2010, Ranbaxy announced the opening of its state-of-the-art manufacturing unit, Be-Tabs Pharmaceuticals Manufacturing Plant at Roodepoort, Johannesburg, South Africa. Built with an investment of USD30mn, this new facility will manufacture analgesics, cold, cough and flu preparations, anti-histamines, antihypertensives, vitamins, minerals and other over-the-counter medication.

Additional Information

IN Pharmaceutical includes an overview of India’s pharmaceutical industry, where the first part of this report explains India’s domestic pharmaceutical industry, pharmaceutical imports and exports as well as Central Pharma Public Sector Undertakings (PSUs). The US remains the top export destination for Indian pharmaceutical products, in which export value jumped 21.64% during 2008-09.

The second part of this report includes current trends and issues in India’s pharmaceutical industry, comprising government schemes, the country’s generics production, R&D initiatives, India’s Vision 2015 as well as other initiatives undertaken by the Indian government to boost this industry.

A ranking of the major companies in this industry are included in the final part of this report, where current leading players include Ranbaxy, Dr Reddy’s, Cipla and Lupin. This part also includes a comparative matrix of the financial highlights as well as SWOT analysis of these companies.