Partners in Globalisation UK Trade & Investment
British Business Group in Mumbai & Pune
Dr. Brian W Tempest
Chief Mentor & Executive Vice Chairman of the Board
Ranbaxy Laboratories Limited, Delhi, India
Ranbaxy Case StudyMumbai – Thursday 27th September 2007
DR. BRIAN W. TEMPEST CSci, CChem, MRSC, BSc, PhD
Brian Tempest has worked in the pharma industry for the last 36 years. During this time he has worked for several pharma majors, including Glaxo, Beecham &
Searle, around the world and joined Ranbaxy 12 years ago. During this period Ranbaxy has transformed from a small company focused on the India domestic
market, to a top 10 global generic company. Dr. Tempest has lived in New Delhi, India for the last 8 years, and has been President, Managing Director & Chief
Executive Officer and Chief Mentor & Executive Vice Chairman of the Board. Dr. Tempest retires from Ranbaxy in December 2007 having reached 60.
Dr. Tempest is one of a few westerners to have held a leadership position in an Indian blue chip MNC, and has an unusual insight into India.
Dr Tempest is also a Honorary Professor of the Management School at Lancaster University, UK, and he sits on the Editorial Board of the Journal of Generic Medicines and the Advisory Board of the India Fund held by JM Financial
Investment Managers Ltd n Mumbai.
[email protected] / [email protected] +91-98100-91192 / Tel:+44 1753 864 616
Asia’s Share of the World GDP (at PPP in %)
Year 1870 1913 1950 1973 2001 China 17% 9% 5% 5% 12% India 12% 8% 4% 3% 5% Japan 2% 3% 3% 8% 7%
Rest of Asia 7% 5% 7% 9% 13% Total Asia 38% 25% 19% 25% 37%
Source – WEF
- was 59% in 1820 with India 16%, China 33%
Asia on the Rise
Source – FT
A race to prosperity
The Productivity Advantage
India a usa Pharma view USA India a usa Pharma view USA
1 chemist Better education x 1.3 1 chemist 1 chemist Better education x 1.3 1 chemist
70 hours/week Longer working time x 1.3 50 hours/week 70 hours/week Longer working time x 1.3 50 hours/week
$ 800 monthly Lower cost x 20 $ 12,000 monthly $ 800 monthly Lower cost x 20 $ 12,000 monthly
Sources: IPHMR Conferences, New Delhi August 2004
The Education Advantage
The Education Advantage
Engineers/Science graduates p.a – India 0.7m, China 0.5m, EU 0.5m, USA 0.4m, Japan 0.3m
The Pharma Plants Advantage
Active Pharmaceuticals Facility, Mohali Dosage Forms Facility, Paonta Sahib
Generics – API’s
USA DMF filings by India % Share of USA DMF filings
India China 2004 27% 9% 2005 37% 10% 2006 44% 14%
Q1’07 48% 17%
Source: US FDA / J P Morgan, 2 May 2007
Source: US FDA, Credit Suisse
India China 2004 187 48 2005 252 87 2006 357 128
Source: US FDA / J P Morgan, 6th August 2006
- One in every four ANDAs filed by Indian Companies in top USA FDA filers Source: KPMG
- No Chinese generic company has yet filed a USA FDA ANDAbut expected in 2008
Generics - ANDAs
0
50
100
150
200
250
300
2002 2003 2004 2005 2006
2446
64
144
ANDA Filings in USA by Indian Companies
250
Patient Recruitment
Cost Advantage China IndiaCost 40 16Patients/site 250 500
Based on USA at 100 Index
Source: BCG report ‘Looking Forward 2006’
Country USAIndia
Sites 22 8
Subject 626 896
Source: Andy Lee Pfizer Global, head clinical study and data management. Business India, August 13, 2006
“………..The Country’s World Class skills in Chemistry & IT and it’s large treatment naivepatient population provides added allure” Boston Consultancy Group
Harnessing the power of India 2006
The Pharma Clinical Advantage
Medical Tourism
Cardiac Surgery $000s USA 30 Singapore 20 Thailand 14 India 5-7Source: Business world, 18th Dec’2006
Patients
- Naïve untreated patients- HIV 50m- Diabetes 32m- HT 5m
Ranbaxy Today
Amongst the top 10 Global Gx companies
Ground presence in 49 countries,
products sold in > 125
International business ~ 80% of sales
Ranked # 1 in the Indian Pharma industry
Manufacturing locations in 9 countries
> 11,000 employees, 51 nationalities
Strong Generics & Innovative research
capabilities
2001 2003 2006
$ 553
$ 972
$ 1340*
CAGR 19 %
Global Sales
Worldwide Presence
* Unaudited
Research & Development
Dedicated facilities for Gx & Rx research
Over 1400 people, ~ 300 Doctorates
Strong IP & Global Regulatory expertise
R&D I
R&D III
R&D II
R&D IV
2006
$ 85 Mn R&D spend6.5% - 7% sales
2006 Sales by Geography
Europe & CIS25%
API8%
Americas33%
Asia27%
Africa7%
$ 1.34b
1990
Only Trading companies in:
Nigeria
Malaysia
Thailand
The Role of the UK
1995
First Trading company in the West:
UK
Today
Worldwide President office European Regional Director
office UK domestic operation Sales in 125 countries
“The Indian System looks ramshackleand improvised. But at its best it is capable of brilliance”
“When we say the Silicon Valley isbuilt on ICs we don’t mean integratedcircuits – we mean Indians & Chinese”
“The UK needs to wake up to whatIndia is becoming”
Source: DEMOS report – January 2007
Perceptions of India
Thank You