SWOT Analysis of Indian Pharma Industry

The Indian pharmacy companies are marred by the price regulation. Over a period of time, this regulation has reduced the pricing ability of companies. The NAP (National Pharmacy Pricing Authority), which Is the authority to decide the various pricing parameters, sets prices of different drugs, which leads to lower profitability for the companies. 2. Indian pharmacy sector has been marred by lack of product patent, which prevents global pharmacy companies to introduce new drugs in the country and discourages

Innovation and drug discovery. 3. Very low penetration in India. To put things in to perspective, India accounts for almost 16% of the world population while the total size of industry is Just 1% of the global pharmacy industry. 4. Due to very low barriers to entry, Indian pharmacy industry Is highly fragmented with about 300 large manufacturing units and about 1 8,000 small units spread across the country. This makes Indian pharmacy market increasingly competitive. Opportunities 1 . The migration into a product patent based regime is likely to transform industry fortunes In the long term.

The new patent product regime will bring with It new Innovative drugs. 2. Large number of drugs going off-patent in Europe and in the US between 2012 to 201 5 offers a big opportunity for the Indian companies to capture this market. 3. Opening up of health Insurance sector and the expected growth in per capita income are key growth drivers from a long-term perspective. This leads to the expansion of healthcare industry of which pharmacy industry is an integral part. 4. Being the lowest cost producer combined with FDA approved plants, Indian companies can become a global outsourcing hub for pharmaceutical products. Threats: 1 .

There are certain concerns over the patent regime regarding its current structure. It might be possible that the new government may change certain provisions of the patent act formulated by the preceding government. 2. Threats from other low cost countries like China and Israel exist. However, on the quality front, India is better placed relative to China. So, differentiation in the contract 3. The short-term threat for the pharmacy industry is the uncertainty regarding the implementation of VAT. Though this is likely to have a negative impact in the shorter, the implications over the long-term are positive for the industry Other

Important News about Pharmacy Industry: Third Largest in the world in terms of volume & 13th largest in terms of value Total Market Size: RSI. 1233 ban Domestic Consumption: RSI. 600 ban & Exports: RSI. 633 ban Compounded Annual Growth Rate of the industry in past 5 years: 12. 5% Expected to grow at 15. 1% dung 2013-2017 Main Drivers for higher R & D costs in Indian Companies are: a) increased pace of product filings in US and Europe, b) focus on complex generics, some of which require clinical trials to demonstrate basic safety and efficacy and c) investments in developing bookmobiles for emerging markets and eventually for plodded markets.

About Dry Redder: Started in 1984 by ANSI Reedy Guru. The company has over 190 medications, 60 active pharmaceutical ingredients (Apish) for drug manufacture, diagnostic kits, critical care, and biotechnology products. Redder was linked to I-J Multinational GALLO SMELLING. First Indian Pharmacy Company to be listed on US Stock Exchange. Share Price of the Company traded on NOSE: RSI 2377 as on Septet 19 2013. Market Capitalization: RSI 40410 scores PIE Ratio: 35. 09 Industry PIE: 30. 48 Tag Line: Life. Research. Hope USPS: Strong vertically integrated portfolio of products, businesses & geographies

SOOT Analysis of Dry Redder: 1 . Company launched Peg-aggregate, an inexpensive variety of epigrammatic, used to fight infection in chemotherapy where company has sold some 1. 5 million units of it. 2. Diaphragm/Cirrhotic acquisition provided proprietary choral and biostatistics technology 3. The acquisition of Beta pharmacy helped to introduce an array of generic products and show its presence in the European markets. Strength 4. Has a strong workforce of over 1 5,000 employees 1 . Discovery of drugs is a highly unpredictable business Weakness 2. Strict gobo regulations and policies affects operational efficiency

Market 2. New partnerships to develop Bookmobiles business 3. Develop cost effective ways of new drug development to improve Opportunity business in emerging markets 1 . Preliminary investment for Drug discovery is very high 2. Long gestational period for new drug development Threats 3. Increasingly stringent regulations for new drug developed About Lupine: Tagging: Being Lupine, Enriching lives everyday. USPS: Lupine is the world’s largest manufacturer of anti- tuberculosis drugs Share price: RSI. 849. 55 Market Cap: 38,058 scores PIE: 28. 97 SOOT Analysts: 1 . World wide leader in Cosponsoring and Anti TAB drugs 2.

Considerable presence in market for drugs against Asthma, Pediatrics, Diabetes, and CONS boosts the sales 3. In the US and Japanese market it is the largest generic player 4. Acquisition of lorry pharmacy helped to increase its product list and in turn sales Strength 5. Wide global footprint as it is present in over 70 countries 1 . High dependence on global formulation business with 84% revenue coming from US market 3. Forecasting done on technological level is less 4. It operates in low growth segments such CONS, respiratory diseases 1 . Alliances health awareness 2. Emerging technological trends in drug delivery

Opportunity 3. Increasing prevalence of TAB in developing countries 2. Rigid opposition both from locals and global company 3. Soaring cost of discovering novel products About Granules: Share price: RSI. 149. 5 as on 19th septet 2013 Market cap: RSI. 302. 43 PIE: 7. 7 Vision: To be the global leader in pharmaceutical manufacturing by process innovation and unparalleled efficiencies. Compounded annual growth rate: 29% Major source of revenue from: Europe (32%), India(21 %). Managing Director: Mr.. P Krishna Parkas About CAPITAL: Tagging: Caring for Life Share price: 439. 50 PIE: 22. 32 Market Cap: 35, 288 scores

USPS: Commitment to make medicines affordable and accessible particularly to cancer patients 1. Capital has developed good positive image by providing support to cancer patients by issuing drugs at low cost 2. Imminent commencement of the Fixed-Dose combination for treatment of uncomplicated P. Follicular malaria to tackle the 200+ million cases of malaria globally 3. Initiation of ‘No Touch Breast Scan’ a step forward in the screening technology in India. 4. A foremost player in anti-infective and anti-asthmatic formulations. Strength 5. Has a strong employee force of over 16,000 1 .

Strong competition from international and domestic giants means limited market share 2. Capital had faced problems during negative campaign by UHF 1 . It can venture into Alchemist’s disease medication 2. They can use Variance generic to achieve higher growth. 3. Increased investment in the budding markets, to push expansion Opportunity 1 . Constant price rises in the Indian country is taking its toll and compounding the problem 2. The Indian Rupee depreciated as compared to the US Dollar 3. Fluctuations in currency exchange rates have a noteworthy impact Threats on the Company’s operations and financial results.

About SUN PHARMACY: Managing Director -Deli S Shanghai Sun Pharmaceutical Industries Ltd is an international specialty pharmacy company. The company manufactures and markets pharmaceutical formulations as branded generics, as well as generics in India, the United States and several other markets across the world. The company’s business is divided into four segments: Indian Branded Generics, US Generics, International Branded Generics (ROW) and Active Pharmaceutical Ingredients (API). Their brands are prescribed in chronic therapy areas like cardiology, psychiatry, neurology, gastroenteritis, adaptability and expiratory.

They make specialty Apish, including peptides, steroids, hormones and anticancer. Apish and Dosage forms are made at 20 plants across India, Israel, the United States, Canada, Hungary, Brazil, Mexico and Bangladesh. Sun Pharmaceutical Industries Ltd was incorporated in the year 1983. The company began operations in Kola with Just 5 products to treat psychiatry ailments. They set up a compact manufacturing facility for tablets/capsules at API. Sales were initially limited to two states in Eastern India. In the year 1986, the company set up an administrative office in Iambi.

They extended the customer coverage to select cities in Western India. In the year 1987, they rolled out their marketing operations nation-wide. Sun Pharmacy Industries Parent Company Category Pharmaceutical Sector Healthcare Tagging/ Slogan USPS Sun pharmacy fifth largest & most profitable company in India STEP Segment Cardiology, psychiatry, neurology, gastroenteritis, topology Target Group Healthcare professionals, pharmacists They are international specialty pharmacy company with strong Positioning presence in Indian & US generics market SOOT Analysts 1 .

Strong growth in emerging market business 2. Introduction of Pantaloon & Elation in US market has very limited competition 3. They have strong marketing & sales force of over 12,000 employees 4. They have successfully acquired Taro pharmacy which has further consolidated their position in Indian markets 5. Strong brand presence in India and US markets 1 . Stiff competition from many Indian and other global brands means limited market share growth 2. Limited presence in emerging markets and European countries 1 .

They can leverage their acquisitions to further increase the growth 2. They can increase their presence in contract manufacturing Opportunity 3. Increasing healthcare awareness in India 1 . There is growing competition in generics market 2. Stringent patent regulations 3. High price sensitivity of consumers Recent Developments In the year 2005, the company bought a plant in Bryan, Ohio, US and the business of ICON, Hungary from Valiant Pharmacy. In December 2005, they acquired the intellectual property and assets of Able Labs from the US District Bankruptcy court in New Jersey.

In the year 2007, the company De-merged the innovative research and business into a new company, SPARS Ltd. SPARS Ltd was listed on the stock exchanges in India, the first pure research company to be so listed. In May 2007, the company along with their subsidiaries, signed definitive agreements to acquire Taro Pharmaceutical Industries Ltd. , (TAROT, Pink Sheets), a multinational generic manufacturer with established subsidiaries, manufacturing and products across the U. S. , Israel, Canada for $454 mill.

In November 2008, the company along with their subsidiaries acquired 100% ownership of Chatted Chemicals, Inc. , a narcotic raw material importer and manufacturer of controlled substances with an approved API facility in Tennessee. This offers vertical integration for our controlled substance dosage form business in he US. In September 2010, the company acquired Taro Pharmaceuticals. This acquisition doubled the size of their US business and brought them a range of generics including a strong line of dermatological.