Will the Eastern Pharmaceutical Market Growth Surpass the Western Multinationals

1
Will the Eastern Pharmaceutical Market Growth
Surpass the Western Multinationals? (China
India vs. USA Europe )
2
Looking to the futureLook East

• While the environment for the pharmaceuticals
  industry in mature
• Western markets is becoming more and more
  regulated, Eastern
• markets are emerging rapidly and generating new
  opportunities.

The New World is now in the east. These vast
and very different markets present challenges
that will reward those who adapt.
Will the Western multinationals capitalize on the
coming boom or will it surpass them? Are
Eastern companies positioned to compete
seriously?
3
CONTENT
Introduction

• East West Comparative Analysis
• Local Population
• Medical Population
• Health Coverage
• Promotion / Rx share

• Country Focus Presentation of the healthcare
  system, market evolution and emerging
  opportunities
• USA
• Top5 Europe
• China
• India

Summary Eastern Pharmaceuticals Growth and
Opportunities/Challenges for the Western
Multinationals
4
POPULATION COMPARATIVE ANALYSIS
5
POPULATION - 2006 EST.

• Worlds most populated nations continue to grow
  
• By 2050 Europe will represent less than 5 of
  the world population
• By 2050 24 of Chinese will be classified as
  Elderly

Total population (millions)
1,314
1,119
0.6
1.4
302
300
0.1
0.9
Source CIA FactBook, 2006
6
POPULATION RURAL/URBAN - 2005
Development of rural regions means greater access
to healthcare for millions
Thousands
59
71
19
19
41
29
81
81
Source WHO 2006 Health Statistics
7
LIFE EXPECTANCY

• Europe USA Increasing demand for treatments
  affecting the elderly (Alzheimers, diabetes,
  osteoarthritis, pneumonia and nursing home care).
  
• India China focus on acute care

82,4
80,8
79,2
77,8
74,5
76,2
72,6
75,0
70,9
64,7
65,6
63,9
Source CIA FactBook, 2006
8
MEDICAL POPULATION COMPARATIVE ANALYSIS
9
MEDICAL POPULATION (2004)
Future growth for Industry in East will depend in
large measure on access to skilled physicians
43
1/1730
646
59
1/680
1930
PHYSICIAN/ INHABITANTS
700
41
1/426
1006
1/300
31
17,4
Thousands
Sources WHO 2006 Health Statistics, China MOH,
C MARC,
10
HEALTHCARE COVERAGE / RD COMPARATIVE ANALYSIS
11
HEALTH INSURANCE COVERAGE

• Europe Industry has benefited from near
  universal healthcare coverage despite low margins
• USA Private Govt Plans cover 84 of
  population. Pricing flexibility and private
  insurance allow a higher profitability
• India No significant private coverage. Estimated
  only 10 have some type of HC financing scheme.
  Remaining 90 out of pocket payment.
• China Estimated 40 of population now part of
  employment related payment scheme

95,9
68
76,2
41
23,8
27
Source OECD Health Data, LEEM, Farma Industria,
National Health Accounts for India,
Source LEEM, Farma Industria, OECD Health Data,
National Health Accounts for India,
12
PER CAPITA TOTAL EXPENDITURE ON HEALTH (2003)

• Can the west sustain current levels of per
  capita HC costs?
• China and India have nowhere to go but up How
  soon? How Much?

2,576
5,711
61
27
22
55
74
76
78
45
24
26
Source WHO 2006 Health Statistics
13
Investment in Research
5
4
4
Source CSD China estimation
Source Industry est
22
Source www.phrma.org (Feb 12, 2007)
Research Share
14
GENERICS SHARE
CHINA
INDIA
21 Pure Generic
79 Branded Generics
Source News, CSD Analysis
Source OPPI, 2006
UK
9.7
20.6
90,3
79.4
Source European Generics Association - 2004
Source US Pharmaceuticals Healthcare Report
15
PROMOTION ACTIVITY COMPARATIVE ANALYSIS
16
PROMOTIONAL SPENDING vs. NUMBER OF CALLS IN 2006
Promotional Spending
Significantly lower Sales Force costs in emerging
markets allow for wide coverage of doctor
universe
Number of Calls

• In India, rep detailing is the most common
  promotional activity. Avg. 5/ 6 products
  presented per rep call.
• 100K Reps x 14 calls/day 300,000,000 M Calls!

Source CSD Promotion Database, CMarc
17
MEDIA MIX IN 2006
259 Million
16 Billion
36 Billion
Promotion remains largely Rep driven in China
and India Western markets have developed a
sophisticated (and expensive) marketing mix

• Total Spending estimated at 1.1 Billion
  dollars.
• Meetings another common channel of promotion
• Samples are offered regularly
• Clinical trials are organised by the CROs and
  directly by the industry
• Mailing is not used regularly
• DTC and E-activities are not significant.

What about India?
Source CSD Promotion Database, CMarc
18
NUMBER OF CALLS BREAKDOWN - MAIN TARGETS 2006
Targeting and segmentation are in nascent
development in China and India compared to West
114 M
110 M
43 M
What about India?
Reps make about 14 calls per day 10 on GPs and
Specialist targets 4 on Pharmacists
Source CSD Promotion Database, CMarc
19
Western MNs already well est in ChinaIndia
dominated by domestic players - 2006
China Rep calls 2006
SOV
Europe Rep calls 2006
SOV
4,2
5,8
4,1
5,4
3,4
4,7
3,2
4,6
3
4,5
3,8
2,9
3,8
2,6
2,9
2,5
1,6
2,7
2,2
1,6
USA Rep calls 2006
INDIA Rep Calls 2006
SOV
SOV
2,8
10,2
2,4
8,9
6,3
2,1
5,6
2
5,4
2
5
1,9
4,9
1,8
4,1
1,8
3,9
1,8
3,9
1,7
Source CSD Promotion Database, CMarc
20
INDIA LEADING DOMESTIC AND MULTINATIONAL
COMPANIES BY RX MS
21
Detailing Rx levels show chronic care has
priority in West while acute care is focus in East
China detail SOV by class - 2006
Europe detail SOV by class - 2006
SOV
SOV
6,3
18,1
5,1
8,8
4,3
4,4
3,6
4
3,4
3,5
3
3,2
2,9
3,2
2,7
2,9
2,5
2,4
2,3
2,1
USA detail SOV by class - 2006
SOV
India Rx MS by class - 2006
6,7
6,2
4,9
4,4
4,2
3,2
2,9
2,3
2,3
2,2
Source CSD Promotion Database, CMarc
22
US MARKET

• Healthcare System
• Structure of Health insurance
• Market Trends
• Deficit Reduction Act

23
HEALTHCARE SYSTEM ORGANIZATION

• Patients choice of PCP is limited by their health
  insurance plan provider. Dependant on their
  health insurance plan, patients have the freedom
  of choosing a PCP, or may be required to select
  their PCP from a list of doctors
• Patients with the freedom to choose their PCP are
  fully reimbursed only if the PCP is within their
  health insurance plan network

• Patients are limited in the access to a
  specialist by their health insurance provider.
  Dependant on their insurance plan, patients may
  have free access to a specialist or may be
  required to obtain a referral from their PCP.
• Patients are fully reimbursed only if the
  specialist is within their health insurance plan
  network

REFERRAL
LIMITATIONS(HMO)
PCP
Specialist
LIMITATIONS(HMO)
FREE CHOICE(PPO)
Pharmacy
Hospital

• Drugs sold in Pharmacies and Hospitals
• Co-payment and reimbursement vary based upon
  health insurance plan provider

Corporate, Private
24
HEALTH INSURANCE ORGANIZATION
84.1
PRIVATE INSURANCE (68)
GOVERNMENT INSURANCE (27)
Employer (60) gt Mostly managed care plans
Individual (9)
Medicare (14)
Medicaid (13)
Military (4)
Limited Reimbursement
CONVENTIONAL
MANAGED CARE PLANS (PPOs, EPOs, POSs)
Free choice of any provider
In-plan providers
Despite recent initiatives to mandate universal
health insurance coverage, 15.9 of Americans (
46.6 milion people) had no coverage in 2005
(0.3 vs 2004 3 vs 1987)
Sources US Bureau of the Census, Bureau of Labor
Statistics
25
CURRENT MARKET SITUATION AND EXPECTED EVOLUTION
Prospective Situation
Current Situation

• Medicare Part D program (January 2006)
• 1 to 2 of the drug sales increase
• Generics vs Branded
• Expected to be the major source of growth
• Financial settlements arranged by brand name drug
  companies to keep the lower priced generic drugs
  off the market (14 settlements in 2006 vs. 3 in
  2005)
• 2008 could look better for branded products
  based on pipelines
• Renewed interest by Americas top executives to
  discuss healthcare costs and overhauling the
  nations medical system (New York Times April 6
  2007)
• RD
• RD spending reached a record high of 55.2bn in
  2006 ( 3.4bn vs 2005 record high)

• US Drug sales in 2005 driven by increased use of
  biotechnology products and a decrease in
  medications purchased from abroad
• Sales of drugs obtained from Canada through
  Internet pharmacies dropped 23 to 349 million

Primary Factors for Growth

• Increased prescription volume
• Shift toward usage of more expensive drugs
• Price increases and aggressive marketing

Sources Pharma Industry News 2005
Bloomberg/Inquirer
26
DEFICIT REDUCTION ACT Many Key Provisions
Started Jan1st 2007 , Final Rules June 2007

• 1. Drive more Medicaid drug spending toward
  generics and reduce the market advantages of
  authorized generics.
• 2. Make Average Manufacturer Price (AMP) - a key
  measure of drug prices in the marketplace and the
  metric used in determining Medicaid rebates -
  transparent to the public. Previously, AMP was
  confidential and known only to government
  officials.
• 3. Lower AMP on many prescription drugs, putting
  drug makers under increased cost pressures and
  increasing Medicaid rebates to states.
• 4. Increase the compliance risks of drug
  manufacturers.
• 5. Reduce Medicaid reimbursement to pharmacies.
• 6. Put another nail in the coffin of Average
  Wholesale Price (AWP) by moving Medicaid pharmacy
  reimbursement systems from AWP to AMP.

27
CHALLENGES OF DRA FOR PHARMACEUTICAL COMPANIES

• 1. Transparency of AMP (Average Manufacturer
  Price ) and ASP will substantially increase
  pricing and political pressures.
• 2. Inevitable expansion of regulated drug
  pricing by government.
• 3. Increased pressure on brand name drugs and
  generics, and further fuel for market shift
  towards generics.
• 4. Stronger financial interest in AMP,
  especially among pharmacies.
• 5. Impact of exclusion of prompt pay discounts,
  most nominal pricing, and other class of trade
  discounts.
• 6. Major investment in systems, data,
  compliance, legal, and Public Relations
  resources.

28
EUROPEAN MARKET

• Overview of European Healthcare System
• Major Cost Control Measures

29
2 MAIN SYSTEMS IN EUROPE

• Italy Free choice from a list of conventionaed
  doctors
• France Free choice of dedicated physician
• UK GP chosen within a specific area

• France You may choose your Specialist, but will
  not be fully reimbursed
• Spain UK You may choose in case of emergency
• Italy Exception of some specialties

LIMITATIONS IT, FR, UK
ONLY IT, FR, UK, SP
FREE CHOICE GER, SP
PCP
Specialist
FREE CHOICE GER
ONLY UK, SP
ONLY UK, SP
FREE CHOICE GER, FR, IT
Hospital
Pharmacy

• Drugs sold in Pharmacies (In Italy, Self
  medication drugs may be sold in supermarket)
• Fixed price

30
Government cost controls at all levels

• In Europe, governments are trying to contain
  spending
• Encourage generic use
• Pricing control
• Limit of promotion
• Sampling
• Calls
• Events
• Control access to specialists
• Asking for co-payment from patients

31
Government cost controls at all levels

• France
• Push the GP as Gatekeeper Patient gets less
  reimbursement if going directly to specialist
• NHS Rep pressure
• Germany Heavy government control on prices
• Italy Regionally controlled drug formulary list
• Spain Regional Healthcare Budget control
• UK Nurses and pharmacists allowed to prescribe
• Limited Rep promotion compared to other Europe

32
CHINESE MARKET

• Evolution of the Healthcare System
• New Opportunities

33
HEALTHCARE REFORM - 2007 - CHINA
The objective of the healthcare outline is to
provide affordable and equal access to healthcare
services for all

• Establishing an urban healthcare system based on
  community-health-service-centers (CHSC)
• Implementing the new Rural Collaboration
  Healthcare System
• Announced by Chinese Prime Minister in the
  government work report 2007

Source XinHua News 2007
34
HEALTHCARE SYSTEM IN CHINA (CURRENT)
Tier III
General Hospitals Specialty Hospitals
FREE CHOICE
Tier II
FREE CHOICE
Centered Hospitals (district level hospitals)
Tier I
Community Hospitals (Majority) Private Clinics
(Minority)
FREE CHOICE
Drug Sales

• Main sales of drugs are made in hospitals for
  patients who fill prescriptions directly from
  physicians while other patients also purchase
  their medicines from pharmacies to get a better
  price.
• Governments pressure on manufacturers to reduce
  product price as a measure to cut down the
  growing costs

35
HEALTHCARE SYSTEM IN CHINA (FUTURE)

• Community-Health-Service-Center (CHSC), a
  nonprofit public organization
• One CHSC in each community or village to cover
  50 to 100 thousand local residents
• A new GP system launch in CHSC
• Comprehensive healthcare responsibilities

CHSC
FREE CHOICE
GPs at CHSC
REFERRAL
Hospitals
Drug Sales
General Hospitals Specialty Hospitals
LIMITATIONS

• Government has been enhancing its power to
  control healthcare activities to improve the
  health access for each citizen.
• More and more patients will receive primary care
  service in community hospitals to solve
  overcrowding and resource waste in the general
  and specialty hospitals.

36
PUBLIC HEALTHCARE INSURANCE IN CHINA
Urban employee healthcare insurance scheme

• Free for the drugs on the reimbursement list
• Other drugs are either partially reimbursed or
  need to be paid by patients

Million People
By 2010, more than 300 million people will be
covered.
Source MOLSS (Ministry of Labor and social
Security)
37
PUBLIC HEALTHCARE INSURANCE IN CHINA (Cont.)
New Rural Collaboration healthcare System

• A community-based healthcare insurance in rural
  areas
• Free access. Partial reimbursement.
• Help to increase the healthcare efficiency and
  affordability

• Over 400 million rural residents joined
• The government invested RMB 30 bil by 2006, and
  will invest RMB 30 bil each year.
• Goal to cover most rural areas and 700 million
  people by 2010
• according to the minister of MOH.

Source XinHua News 2007
38
PRIVATE HEALTHCARE INSURANCE IN CHINA
Current situation
Prospective situation

• Most Chinese have relied on the public healthcare
  insurance for decades.
• Private insurance restricted to some serious
  disease or injuries

• Multinational insurers show interest in the
  market
• AIU Insurance Co
• Chindex

Source News, CSD analysis
39
ANTI-CORRUPTION ISSUES TOUGHER GOVERNMENT
SURVEILLANCE
Legal, open and transparent pharmaceuticals
promotion principle

• A specific campaign is launched for
  anti-corruption in pharmaceutical industry.
• Bribery to medical practitioners is considered as
  a crime
• Database is to be set up to monitor and punish
  pharmaceutical companies that practice unethical
  medical promotions.

Strict government control on pharmaceutical
products

• A few of fake and low quality pharmaceuticals
  incurred public health disasters in 2006
• Tougher pharmaceutical registration,
  manufacturing and distribution regulations are
  rolling-out.
• Permanent inspectors to be sent to some
  pharmaceutical manufacturers by SFDA

40
CHINA - 2006 TREND IN TOTAL NUMBER OF CALLS
TOTAL NUMBER OF CALLS (Millions)
TOP 10 MULTINATIONALS NUMBER OF CALLS (Millions)
-12,4
15,7
-10,4
-9,9
-1,1
-12,4
Source CSD Promotion Data
41
NEW OPPORTUNITIES EMERGED
Factor
Summary
Impact
Income

• The overall Chinese income grows steadily, with
  urban income growing faster.

• Affordability to be increased
• The sales of branded pharmaceutical products to
  be increased

Aging

• 98.6 million people are 65
• Over 164 million will reach 65 by 2020

• To boost the sales of medical products for
  chronic disease
• To expand the size of the healthcare market

Awareness

• Health care awareness increased after SARS in
  2003
• Some public education projects helped
• People are ready to consume healthcare products

• In the long-run to boost the sales of
  pharmaceuticals for
• disease prevention
• healthcare products for lifestyles Dipresseant
  and
• vaccines etc.

Source National Bureau of Statistic, news, CDS
analysis
42
CHINA CASES TO SHARE
CASE I

• DIABETES CASE
• SITUATIONS
• Currently 40 million diabetes patients in China,
  with 1.3 million new patients each year
• ACTIONS
• Novo Nordisks sales force covers all the 31
  provinces in China
• Lilly increased 100 reps for its diabetes
  products in 2006
• Bayer sponsored a trial to find the effects of
  Glucobay on fighting the recurrent cardiovascular
  disease in 2006.

Source news, annual report of each companies,
China Guideline to diabetes prevention and
treatment
43
CHINA CASES TO SHARE(CONT.)

• ANTIDEPRESSANT CASE
• SITUATIONS
• Depression patients exceeded 26 million, 60 not
  ever treated
• Diagnosis and treatment rates very low
• ACTIONS
• Lilly, launched a series of project to raise the
  awareness of mental disease
• Lilly best psychiatrist award
• Lilly psychological healthcare for youths
• Hotline and conference for psychological
  problems

CASE II
Source news, annual report of each companies
44
THE BUSINESS DEVELOPMENT OF PHARMACEUTICAL
GIANTS IN CHINA
Facing plenty opportunities in China, lots of
pharmaceutical giants have been establishing
powerful sales force for product promotion.

• We have a global sales force of 35,900
  representatives, including 1,800 in China.
• Sanofi-Aventis report 2007
• In 2006, we added 100 sales representatives to
  our diabetes business in China to respond to the
  enormous unmet need.
• Lilly annual report 2006
• In China, the growth and expansion strategy of
  the past four years has continued to provide
  strong returns. Investments in a large field
  force covering extensive areas of China allow
  AstraZeneca to ensure our products reach Chinese
  patients.
• AstraZeneca annual report 2006
• Today, Novo Nordisk China employs close to 1,000
  people. This includes a sales and marketing force
  with representatives in each of the countrys 31
  provinces.
• Novo Nordisk annual report 2006
• Swiss-based Novartis, which had sales of over
  188 million in China last year, could see 20
  annual sales growth there through 2010 .And since
  2003, Novartis has doubled its Chinese sales
  force to more than 1,900.
  Barron's news 2005

Source news, annual report of each company
45
THE RESEARCH ACTIVITIES OF PHARMACEUTICAL GIANTS
IN CHINA
MNC
ACTIVITIES
Pfizer inaugurated RD center in Shanghai in 2005
AstraZeneca declared a 100 million USD investment
in RD in China in 2006
Roche set up its fifth global RD center in
Shanghai in 2003
Novartis plans to build a US100 million R D
center in Shanghai, 1st RD center in China and
8th globally
However, most Chinese local pharmaceutical
companies still invest less than 5 of its
turnover into their RD activities. CSDs estimate
Source news, CDS analysis
46
INDIA MARKET

• Key Demographic and Economic Facts
• Key Developments in The Evolution of
• Indian Pharmaceutical Industry
• Important Factors Influencing The Industry Today
• Conditions Primed for Growth

47
Healthcare system organization in India

• Either organized in Private or Group practice.
• Physicians, for the great majority, have a
  private practice, in individual or group practice.

• Either organized in Private or Group practice or
  polyclinics.
• Many specialists have mix activities with an
  office-based pratice and a public or private
  hospital practice.

REFERRAL
FREE CHOICE
GP
Specialist
FREE CHOICE
Pharmacy
EMERGENCY
Hospital

• Many drugs under price regulation for protecting
  the brand market as India practiced off-patent
  regime
• Non monopolistic corporate 2tier distribution
  system. Company uses rep to promote product to
  the doctors, i.e demand generator first. 2nd part
  for selling the product to wholesellers and
  retailers.

governemental, corporate, private
48
Evolution of Indian Pharma Industry
Next
49

• Presentation Plan
• Key Demographic and Economic Facts
• Key Developments in The Evolution of
• Indian Pharmaceutical Industry
• Important Factors Influencing The Industry Today
• Conditions Primed for Growth

Next
50
Key Demographic and Economic Facts

• At current birth / mortality rates India will be
  the No.1 populated country by 2020
• Based on GDP growth, it is estimated that India
  will be the 3rd largest economy by 2020

Next
Source Census of India, 2001,Statistical Outline
of India 1999-2000, Goldman Sachs
51
EVOLUTION OF THE INDIAN PHARMACEUTICAL
INDUSTRY
Source C MARC
Previous
52
Greater emphasis on New Product Launch
No. of Brands Rxed 1992 to 2006
Greater orientation toward specialisation
early 80s today GP 60
40 Specialist 40 60
53
Growing Incidence of Chronic Disease
early 90s today Chronic 28
36 Non-chronic 72 64
INDUSTRY
Top 10 Cos.
1.06
0.90
0.84
1.09
Rxer () Rx ()

• Leading Companies having greater focus amongst
  specialist for Chronic Disease Management

54
Relative Shift in Therapy Preference (Rx )

• Progressive Therapy Area CV, OHA, CNS, GI,
  Respiratory, Nutritional
• Relative use of Anti-infective Therapy is
  decreasing

Anti-infective
73
59
66
GI
Nutritional
CV Antidia
Pain
CNS
Respiratory
CNS
Others
Projected
55
Therapy Management Focus

• Company A, once a small Indian company of 1990s
  has become a
• leading organization through Therapy
  Management implementation

Company A Rx RESPONSE TREND All India BASE
1996 FOUR MONTHLY AVG.100
Rank 63
Rank 75
27.3 M
Rank 97
Therapy Mgt. review
Rank 129
Therapy Mgt. implementation review
Therapy Management implementation
Company Turnover 0.45 M
56
CNS Therapy focus divisionalisation to increase
Rx Productivity amongst Psychiatrist

• Intas Pharma, a progressive Indian company has
  therapy focus divisional structure - ALTIMA,
  AQUILA for
• class market CNS and SUPRIMA for class market CV
  OHA. PHARMA division portfolio represents
• multi-therapy areas - mass market CNS, CV class
  market GI therapy
• This analysis shows, Intas has successfully
  increased Rx Productivity in CNS amongst
  Psychiatrist through
• strategic coverage overlap of PHARMA ALTIMA
  AQULIA. 69.3 Psychiatrist prescribe 78.8 of
  total Intas Rx,
• who are covered by all the three divisions.
• Note Class Growth PLC Specialist
  driven market,
• Mass Mature to Decline PLC
  Generalist driven market

57
Increasing Dominance of Indian Companies

• Rx share increased from 65 in 1995 to 86 in
  2006

• Due to unregulated market, increased franchise
  marketing

58
Increasing Presence Faster Growth of
Small and Medium size Indian Co.s
59
HEALTHCARE GETS MORE PRIVATISED

• Private hospitals are growing faster than public
  hospitals

No. of Hospital Beds (unit in thousand)

• 1973 to 2005 CAGR
• ALL 31
• Public 20
• Private 56

• 1973

• 1983

• 1996

• 2005

Source Health assessment of India 2005
60
Consumer Expenditure on MedicineUrban x
Extra-Urban x Rural

• Huge Rural population (73) represents enormous
  potential for Pharma Industry

67
110
62
184
12
105
60
12
168
60
21
148
12
26
28
Expenditure on Medicine in M
914 2482 4873
Source National Sample Survey Organisation
61
Diverse Pricing Strategy by Different Brands

• Shows importance of effective marketing and Brand
  Equity

62
Take Away

• Key Factors Today in Evolving Indian Market
• Moving from selling drugs to demand creation
  through Rx Generation
• Specialist orientation segment specific
  marketing
• Therapy Management / Franchise Approach
• Increasing awareness of Rural Marketing
• Way Forward
• Optimization of Rx response through
  Co-promotion
• Increased sophistication of doctor coverage and
  targeting, field force
• planning and call pattern design

Next
63
ADVANTAGE INDIA Conditions Primed for Growth

• One of the fastest emerging markets world wide
  attracting massive FDI
• Changing Demographic and Socio-Economic Profile
• Large and diverse patient base with diversity of
  disease
• Access to capital well-developed capital market
  
• Speed Low cost both people and infrastructure
• Large pool of English speaking scientific and
  technological brainpower cost
  effectiveness (Intellectual Capital)
• Potential to Absorb Higher Priced Products
• Opening up of the Health Insurance Sector
• Government incentives for RD and export
• Strong base of bulk drug manufacture (400 APIs)
• Mature Industry with Strong Manufacturing Base
  having U.S. FDA/ U.K. MCA / WHO Compliant
  Manufacturing Facilities
• Major opportunities in Biotechnology, drug
  discovery and development research . Indian
  Biotechnology industry estimated CAGR is 39 (in
  2008-09 over 2003-04)
• Opportunity to conduct international clinical
  trials
• Commitment to Patent Protection

Next
64
INDIA Now a Trillion Dollar Nation!
Wednesday (26th April 2007), will go down in the
countrys history as a historic day, when in its
economic march, India became the 12 th country to
join the exclusive club of economic powers, whose
GDP, at nominal (market) prices, has crossed US
One Trillion (Rs. 41 lakh crore) mark.
Source IndiaRetailBiz
65
SUMMARY
Eastern Pharmaceuticals Growth and
Opportunities/Challenges for the Western
Multinationals
66
Looking to the futureLook East

• Growing Populations and increased life expectancy
  of China and India represent enormous
• growth potential.
• Domestic Indian companies better positioned to
  take advantage, Western MNs need to act now.
• Western Multi-nationals in China have already
  taken the lead.
• Speed of growth will depend on access to health
  care
• China more advanced with government initiatives
  to increase coverage
• India private sector will grow in tandem with
  economic development
• Spend on HC and RD can only go up in eastern
  markets.
• Pharma industry will benefit as a whole
• Individual companies must position now