MGDMU PROJECT

Group 8
Section B
Amelie Swaton
Sameer Shankar
Sumit Kumar
 Pharma Industry Overview
• By 2007 end, Indian Pharma Industry $10.1
billion, World $ 695 billion
• 12% growth in last quarter in spite of rupee
appreciation, fuelled mainly by exports
• Increase in exports due to growth in sales of
generics and increase in Contract Research and
Manufacturing( CRAMS)
• Drugs with revenues of $ 40 billion in US and $ 12
billion in Europe expected to go off patent by 07-
08
• Increased RnD expediture n Initiatives of Indian
firms
• $2.2 changed hands in MNAs involving Indian cos
SWOT Analysis of Indian Pharma
Industry
 Regulations
• Indian Patents Act, 1970 allowed product patents
for non chemical substances but only process
patents for chemical substances including
pharmaceuticals
• Patent Law ( 1st Jan 2005) – products patented
before 1995 can be manufactured by anybody,
but after cannot be till the patent expires
- few life saving products Patented till 2015, also
made by local players using non-infringing-
process and sold in non regulated countries
 Regulations Contd…
• Product and Quality Regulations
- Drugs and Cosmetics Act 1940
- DCGI overseas conduct of clinical trials,
approvals and registration of drugs and issues
licenses for manufacturing and marketing
• Price Regulations
- Drugs Price Control Order 1970
- to protect interest of consumers and ensure a
restricted but reasonable return to producers
 Opportunities in International Pharma
Market for India
• Export of Generics
- 2004-2009 drugs with annual sales of USD 65 b will go off
patent
- advantage India due to strong reverse engg n chemistry
skills and low cost of prod.
- 5% share of DMFs n 25% of ANDA fillings
• Contract Research and Contract Manufacturing
• As International Manufacturing Base
- Technical Competence
- Manufacturing Competence
- Regulatory Compliance
- Low prod. Cost- low capital, labour and clinical trial cost
 The company
• India’s third biggest pharmaceutical
company
• Top pharmaceutical company in
terms of turnover and profitability
• Vertically integrated pharmaceutical
company present in more than 100
countries.
 History
• Founded in 1984 by Dr. K. Anji Reddy
• 1993 it started drug discovery program
(Dr.Reddy’s Research Foundation)
• 1994 a GDR (Global Depository Receipt) issue
was successfully made (worth US$ 48 million)
• Acquisitions :
– 1999 American Remedies Limited, an Indian
pharmaceutical company
– In 2001 BMS Laboratories Limited and Meridian
Healthcare in United Kingdom
• 2001, becomes the first pharmaceutical company
in Asia Pacific region outside Japan to be traded
on the NYSE
• December 2006 its revenues touched USD 1
billion
 Strategy/ Growth option
BUSINESS MODEL
Market bulks drugs and Discovery led
Formulations at Global company
Affordable prices

Generics

Supplier to Indian
Export bulk drugs
Drug manufacturers
Over the last decade Sales grew by a CAGR of 29.49%
while in the same period Net profit grew by CAGR of 37.47%
 References & Source
• CapitaLine Database
• Dr. Reddy Laboratories website
www.drreddys.com
• CRISIL database
• ICRA reports
• Annual Reports
• Cygnus Industry Analysis, Pharma
Industry