Biotech & Pharma Market July 2009

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Opportunities in the Pharma/ Biotech Sector 2009 - Market Analysis by Napoleon Samarasam SUB-SECTORS :: MARKET SHARE :: GROWTH TRAJECTORY Imbued with Passion... Muscled by Reason…!!!

Transcript of Biotech & Pharma Market July 2009

Page 1: Biotech & Pharma Market July 2009

Opportunities in the Pharma/ Biotech Sector 2009

- Market Analysis

byNapoleon Samarasam

SUB-SECTORS :: MARKET SHARE :: GROWTH TRAJECTORY

Imbued with Passion... Muscled by Reason…!!!

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Plans fail for lack of counsel,        but with many advisers

they succeed…

SUB-SECTORS :: MARKET SHARE :: GROWTH TRAJECTORY

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Sub-sectors of the Pharma / Biotech Industry….

SUB-SECTORS :: MARKET SHARE :: GROWTH TRAJECTORY

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List of Sub-sectors

1. Pharmaceuticals sector (Small Molecule Drug Companies)

2. Bio-pharma (Bio-drug Companies)

3. CRAMS (Contract Research & Manufacturing Organizations) – Custom Research

4. Biotech Companies working on Industrial Enzymes

SUB-SECTORS :: MARKET SHARE :: GROWTH TRAJECTORY

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Sub Sectors…Cont’d..

5. Agri Biotech Companies

6. Bio-informatics Companies

7. Diagnostics Kit Development (Biomedical Assays etc…)

8. Lab Research Chemicals & Equipments (Bio-Suppliers Category)

SUB-SECTORS :: MARKET SHARE :: GROWTH TRAJECTORY

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Drugs - Classification

Drugs

Ethical Drugs(Patented

Small Molecule Drugs)

Biologics ( Biotech DrugsVery Expensive )

Generics( Patent expired

Drugs offered at low prices )

DRUGS CLASSIFICATION :: MARKET SEGMENTATION

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Drug Types – Global Market Segmentation

DRUGS CLASSIFICATION :: MARKET SEGMENTATION

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►Global Pharma/Biotech Market - $770 billion in 2008

2007 Sales – 663.5 B$

DRUGS CLASSIFICATION :: MARKET SEGMENTATION

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Breakup of the Global Pharma Market –$ 770 Billion

► Small Molecule drugs accounted for $ 570 billion

► biotechnology drugs/biologics accounted for $120 billion

► generics for $80 billion of the global market

DRUGS CLASSIFICATION :: MARKET SEGMENTATION

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Top Three Therapeutic categories - Global

The three top therapeutic categories were

►CNS drugs at $118 billion,

►Cardiovascular drugs at $ 105 billion and

►Cancer drugs at $70 billion of sales.

The list of therapeutic categories is quite long – a separate one for each type of disease & disorder.

DRUGS CLASSIFICATION :: MARKET SEGMENTATION

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Top Therapeutic Categories - India

Top therapeutic segments:►gastro-intestinal ►cardiac therapies. ►Opthologicals, ►cardiovascular, ►anti-diabetic and►neurological drugs.►anti-infective,►neurology, ►Cardiovascular►anti-diabetic segments

THERAPEUTIC CATEGORIES

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Biotech Drug Types - Global

In Biologics top three categories were

►monoclonal antibodies at $33 billion,

►Vaccines at $24 billion and

►TNF inhibitors at $18 billion sales in 2008.

DRUGS CLASSIFICATION :: MARKET SEGEMENTATION

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Global rank of Biologics among top 20 drugs - ( 2008 - 2009 )

►Four biologics made the top ten best selling list and seven biologics made the top twenty lists in 2008 ( A very positive trend for bio-drugs)

GOOD NEWS ….!!!

DRUGS CLASSIFICATION :: MARKET SEGEMENTATION

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The Prognosis::Global Pharma Market 2008- 2012

►The global pharmaceutical market is forecast to grow to $929 billion in 2012, an equivalent CAGR of 5.5% over the next four years

DRUGS CLASSIFICATION :: MARKET SEGEMENTATION

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An Interlude…

A Peek into the different stages of Drug Development…

PHASES OF DRUG DEVELOPMENT

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Different Phases of Drug Development

Domains Involving Biological/Biomedical Research

Image Source: Biocon Inc

PHASES OF DRUG DEVELOPMENT

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Image Source: Jubilant Biosys

Drug Discovery Phase of Drug Development

DRUG DISCOVERY SEQUENCE

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Drug Discovery Sequence…

Source: Biocon Inc

DRUG DISCOVERY SEQUENCE

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1. Core Pharma Industry

►Core Pharma companies are involved in making Small molecule drugs.

►The Indian pharmaceutical market value will reach as high as US $25 billion by 2015 .

►Current exports of top ten Pharma companies alone accounts to US $5.8 billion.

SMALL MOLECULE PHARMA INDUSTRY :: INDIAN SCENARIO

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Small Molecule Drug Companies

►Around 270 large R&D based pharmaceutical companies in India, including MNCs, government and private companies.

►Around 3,000 companies are involved in pharmaceutical production to cater to the market needs. (not all of them are up to international standards though)

SMALL MOLECULE PHARMA INDUSTRY :: INDIAN SCENARIO

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Brand Name drugs Vs Generics drugs

►Brand Name drugs have to carry out extensive R & D (pre-clinical drug discovery assays, Clinical trials [ Phases 1–4 ] testing) to test the efficacy/toxicity of the drugs.

►Generics drugs are drugs manufactured after a patent expires and are NOT required to do Pre clinical trials . They just directly perform Bioavailability /Bio-equivalent studies (i.e. Phase I of Clinical Trials).

SMALL MOLECULE PHARMA INDUSTRY :: INDIAN SCENARIO

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FDA -ANDA (Generics) Approvals for Indian Companies

Year Number2002 - 212003 - 262004 - 252005 - 522006 - 742007- 1242008 - 1342009 – 50 (Q1 )

FDA Approval for Indian Drugs on the

rise…!!!

SMALL MOLECULE PHARMA INDUSTRY :: INDIAN SCENARIO

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India Generics Future – (A News Excerpt )

►PATENT EXPIRY: RICH PICKINGS AHEAD

A boost for the Indian generic industry will come from the significant number of blockbuster branded products – many of them first-line therapies – that will lose patent protection in the next 5 years in the US. Over 49 such products will be affected by the end of 2013, including Topamax, Effexor XR, Lipitor, Plavix and Cymbalta.

Source : Research Study

SMALL MOLECULE PHARMA INDUSTRY :: INDIAN SCENARIO

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Biological Drug Testing in Core Pharma (small molecule drug companies)

►Core Pharma developing small molecule drugs perform Biological Testing & Validation as a part of the Pre-Clinical Testing.

►Fertile ground for Bioscience research.

SMALL MOLECULE PHARMA INDUSTRY :: INDIAN SCENARIO

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2. CRAMS :: Bio-Services

►CRAMS - Contract Research and Manufacturing Services.

►Overseas Companies have started to outsource their work to cut their cost from 40 – 70%.

►India – A favored destination.

►~98 Contract Research Organizations (both domestic & global) having operations in India.

CRAMS :: INDIAN SCENARIO

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CRAMS :: WORLD MARKET – A PROGNOSIS

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Involves Biological Testing & Validation

CRAMS :: MARKET SEGEMENTATION

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CRAMS market value - India

►$0.5bn - 2005 ► $0.9bn - 2006 ►$2.7bn - 2010

►Currently,80% of the contract work undertaken consists APIs and intermediates manufacturing.

►India has managed to attract $360m in drug discovery investment (expected to grow in the near future.)

CRAMS :: INDIAN SCENARIO

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Clinical Trials - Drug testing Market

►India is a growing clinical trial destination, for MNC’s to get approvals to test their new drugs in the country.

No of applications for conducting Clinical trials►100 - 2005►170 - 2006 ►200 - 2007►350 - 2008

CROs :: INDIAN SCENARIO

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Biotechnology in India :: Few Perspectives

►The Indian biotechnology sector is one of the fastest growing knowledge-based sectors in India.

►Currently, India holds two per cent share of the global market.

BIOTECH INDUSTRY :: INDIAN SCENARIO

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Comparative advantages of India

►R&D facilities

►knowledge

►skills, and

►cost effectiveness

BIOTECH INDUSTRY :: INDIAN SCENARIO

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Indian Biotech market

►The Indian biotech market was estimated at $ 2.80 billion USD in 2007–08

►Likely grow at a compound annual growth rate (CAGR) of 30 per cent.

►Ranked 4 th in the Asia Pacific region behind Japan, China & Australia.

►The sector is poised to generate US$ 13–16 billion by 2015.

BIOTECH INDUSTRY :: INDIAN SCENARIO

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Biotech Categories – Indian Market

►Bio-Pharma►Agri-biotech►Bio-informatics►Bio-industrial and►Bio-services

The first three are the most important segments according to their revenue contribution.

BIOTECH INDUSTRY :: CATEGORIES

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3. Bio-Pharma industry - India

►The bio-pharma industry accounted for almost 70 per cent (of the 2.8 Billion USD) of the overall revenues in 2007-08

►Likely to touch US$ 4.60 billion by 2012-13.

►Currently more than 40 % of the total 325 biotech companies in India are in the bio-pharma segment.

►Products from Fermentation/Animal Cell cultures etc…

►Growth is expected in the Bio-Generics space

BIO-PHARMA INDUSTRY :: INDIAN SCENARIO

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4. Bio-Industrial Segment - India

►Includes industry involved in the production of enzymes, and other products for agriculture, nutrition etc.

►Industry Size – $ 101 Million USD

BIO-INDUSTRIAL SEGMENT :: INDIAN SCENARIO

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5. Agriculture Biotech

►One of the fastest growing sectors in the industry.

► India became the fourth largest adopter of biotech crop in the world, by planting Bt cotton on 7.6 million hectares

►The companies that come in the top 20 are all involved in developing Bt hybrid varieties.

►Current Size - $ 318 Million USD

AGRI-BIOTECH INDUSTRY :: INDIAN SCENARIO

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6. Bioinformatics Companies

►A small section is involved in Bio-informatics approaches to help in drug discovery. (studying Structure Activity Relationship of drug-target etc…)

►$47 Million USD.

►Expected to grow considering India’s IT strength

BIO-INFO INDUSTRY :: INDIAN SCENARIO

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7. Diagnostics Kit Development

1. Diagnostic Kit Development

Biochemical Assays

Molecular Biology Applications

2. Bio medical Instruments used for Diagnosis like CT,MRI,PET

►Not a lot of R & D right now, but expected to Grow.

►Currently a billion dollar industry . Diagnostics subsectors are Heavily Fragmented.

DIAGNOSTICS :: INDIAN SCENARIO

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8.Lab Research Chemicals & Equipments

►Customers: Industry & Academia►Current Size:- 3,621 crores (0.94 Billion USD)

Source: Biospectrum

BIO-SUPPLIERS :: INDIAN SCENARIO

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Summary :: Indian Industry Market Size (08’-09’)

► Core Pharma Industry – 12.3 Billion USD (55K crores)

► CRAMS – Over 1 Billion USD

► Biotech – 2.8 Billion USD

► Diagnostics – 1.19 Billion USD

► Bio-Suppliers – 0.94 Billion USD

SUMMARY :: INDIAN MARKET

Overall Size ~ 18 Billion USD

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Summary :: Indian Industry

► Core Pharma Industry ► Huge Domestic Market. ► Increasing international presence in the Generics space. ► Appreciable consolidation across the globe in the last few years. ► Ranked 4 th in terms of Volume & 11 th in terms of Global Value share.

► CRAMS – Increasing Growth in the coming years due to outsourcing & cost reduction by 40 – 70%.

SUMMARY :: INDIAN MARKET

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Summary :: Indian Industry

► Biotech – A sunrise Industry, Picking up with a growth rate of 30% every year.

► Diagnostics – Heavily Fragmented. A 25% annual growth rate is expected in the coming years.

► Bio-suppliers – Domestic & MNC’s catering to the growing industry & economy.

SUMMARY :: INDIAN MARKET

Page 43: Biotech & Pharma Market July 2009

Inputs & Suggestions plz…

Thank You !!!

SUB-SECTORS :: MARKET SHARE :: GROWTH TRAJECTORY

Hi,This is just my small effort to understand the Biotech/Pharma Market in India. I am eagerly looking forward to your feedback. Please do email me your comments at [email protected]