biotech & pharma market july 2009
TRANSCRIPT
Opportunities in the Pharma/ Biotech Sector 2009
- Market Analysis
byNapoleon Samarasam
SUB-SECTORS :: MARKET SHARE :: GROWTH TRAJECTORY
Imbued with Passion... Muscled by Reason…!!!
Plans fail for lack of counsel, but with many advisers
they succeed…
SUB-SECTORS :: MARKET SHARE :: GROWTH TRAJECTORY
Sub-sectors of the Pharma / Biotech Industry….
SUB-SECTORS :: MARKET SHARE :: GROWTH TRAJECTORY
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
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
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
Drug Types – Global Market Segmentation
DRUGS CLASSIFICATION :: MARKET SEGMENTATION
►Global Pharma/Biotech Market - $770 billion in 2008
2007 Sales – 663.5 B$
DRUGS CLASSIFICATION :: MARKET SEGMENTATION
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
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
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
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
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
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
An Interlude…
A Peek into the different stages of Drug Development…
PHASES OF DRUG DEVELOPMENT
Different Phases of Drug Development
Domains Involving Biological/Biomedical Research
Image Source: Biocon Inc
PHASES OF DRUG DEVELOPMENT
Image Source: Jubilant Biosys
Drug Discovery Phase of Drug Development
DRUG DISCOVERY SEQUENCE
Drug Discovery Sequence…
Source: Biocon Inc
DRUG DISCOVERY SEQUENCE
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
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
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
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
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
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
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
CRAMS :: WORLD MARKET – A PROGNOSIS
Involves Biological Testing & Validation
CRAMS :: MARKET SEGEMENTATION
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
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
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
Comparative advantages of India
►R&D facilities
►knowledge
►skills, and
►cost effectiveness
BIOTECH INDUSTRY :: INDIAN SCENARIO
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
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
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
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
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
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
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
8.Lab Research Chemicals & Equipments
►Customers: Industry & Academia►Current Size:- 3,621 crores (0.94 Billion USD)
Source: Biospectrum
BIO-SUPPLIERS :: INDIAN SCENARIO
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
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
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
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]