Industrial Development: State’s Ranking

Gujarat tops among states in project investment approved by

Financial Institutions in 2007-08

1

Global Pharmaceutical Industry

Much of the growth can be attributed to increasing incidence

of lifestyle-related diseases in the global population

North America remains the largest pharmaceutical market with

49% share followed by Europe and Asia-Pacific

Global pharmaceutical market is witnessing increased

opportunities in the area of

biopharmaceuticals, pharmacogenomics and biologics market

Major players in global pharmaceutical market include

Pfizer, Johnson and Johnson, Wyeth, Novartis, Merck &

Co., GlaxoSmithKline, Astra Zeneca and Sanofi Aventis

among others

Source: Extract from RNCOS World Pharmaceutical market 2007, IMS 2008 Global Pharmaceutical Market forecast

47.70%

29.90%

9.30%

8.60%4.50%

North America (USA & Canada) Europe

Japan Africa, Asia (excluding Japan) & Australia

Latin America

Fig 1: World pharmaceutical market – (2006 sales)

IMS MIDAS, MAT December 2006

Global pharmaceutical industry has toched US$ 727 billion in 2008 registering a growth of 5-6%

2

Indian Pharmaceutical Industry

Indian Pharmaceutical Industry has grown at a CAGR of 13% from 2002-2007 and

is expected to grow at a CAGR of 16% over 2007-2011

0

2

4

6

8

10

12

14

2001-02 2006-07 2011-12

Valu

e (

US

D B

n)

CAGR

13%

CAGR

16%

Estimate

Fig 2: Indian pharmaceuticals growth trend

Indian pharmaceutical industry ranks 4th in terms of volume and 15th in terms of value

In value-terms, Indian pharmaceutical industry is over US$8 billion

The industry holds 8% share in global volume sales and 1% share

in global value sales

Indian pharmaceutical companies meet almost 70% of country’s

demand for bulk drugs

India is among the top five API producers and world’s third largest

manufacturing industry

Foreign direct investment into country’s pharma industry is over

US$170 million

Indian companies – global forays

Zydus Cadila Nippon Universal

Ranbaxy

Jubilant

Organosys

Wockhardt Ltd.

Be-tabs

Pharmaceuticals

Forest

Laboratories

Negma

Laboratories

Japan

South Africa

USA

Paris

Source: KPMG Pharma summit 2007, IBEF Pharma report 3

Gujarat: Pharmaceuticals- The centre of Gravity

Gujarat

pharmaceutical

industry

Value proposition

RegulatoryEnablers

Facts

• Established chemical industry

• Backward linkages

• Well-developed medical equipment industry

• Well-developed IT capabilities

• Well-developed pharma machinery industry and

pharma packaging

• Large number of CROs

• Academic and research institutes

• Cost-competitive research base

• Large and skilled workforce

• Skills in process chemistry

• Globally harmonised regulations

• Presence of pharma clusters & Special economic

zones

• 5424 Manufacturing licensees

• 42% of India’s pharma turnover

• 22% of India’s pharma exports

• Employs 55,000 people

• Large domestic market

• FDA approved plants

• Product Patent Regime

• 310 World Health Organisation (WHO)

compliant manufacturing units

• cGMP compliance of International standards

• Government supported incentives and subsidies

0

2

4

6

8

10

12

India Gujarat

US

D b

illio

n

Gujarat Pharma Industry vis-à-vis India

2002-03 2006-07

Gujarat - The Pharmaceutical Hub

42% 22% 55,000103years of

excellence

of India’s pharma

sector turnover

of India’s pharma

exports

people employed in the

sector are in Gujarat

40%of India’s CRAMS

companies

CAGR 18.3%

Gujarat, an established manufacturing base for bulk drugs and formulations with its

inherent competitive advantages is poised to capture emerging global opportunities to

become a Global Pharmaceuticals Hub.

CAGR 87.7%

0

1

2

3

4

5

6

7

8

9

2002-03 2003-04 2004-05 2005-06 2006-07 total

US

D B

illio

n

Capital Investment

5

2332

90

135

0

20

40

60

80

100

120

140

160

Vadodara Surat Ahmedabad Rest

US

D m

illio

nGujarat - Key Statistics

All manufacturing units are compliant with Schedule M

310 license holders with WHO GMP certification

42+ units with international certification

100+ New Drug Applications (NDA) filed by various companies

109+ pharmacy colleges in Gujarat

Gujarat – export hub with exports to 200+ countries

Gujarat – R & D hub with presence of world class centers of companies like

Sun, Torrent, Intas, Zydus

Gujarat has around 26,232 wholesalers and retailers base

Gujarat Sales Break up as per MAT June ‘08 Type II DMF Filings from Gujarat

6

Gujarat – Key Features

60%40%

Gujarat's Pharma Exports (2008-09)

Formulation Bulk Drugs

Manufacturer of maximum number of dosages in the country

Only state to issue sales license through I.T. application

Only manufacturer of a digestive enzyme, Pink Papain, in the world

Only manufacturer in the country of ranitidine hydrochloride, with long shelf life. It is exported to US

and Europe

Safe from the menace of spurious drugs and hence it has better acceptance among medical fraternity

178

2,054

-

500

1,000

1,500

2,000

2,500

2003-0

4

2008-0

9

US

D m

illio

n

Pharma Exports from Gujarat

10

56

%in

cre

ase

in

exp

ort

s

93

29

US FDA Approved Companies

Other states Gujarat

24%

7

No. Name of Firm Category Circle / District

1 Dishman Pharmaceuticals Ltd. API Ahmedabad

2 Concord Biotech Limited API Ahmedabad Rural

3 Dishman Pharmaceuticals Ltd. API Ahmedabad Rural

4 Unimark Remedies Ltd. API Ahmedabad Rural

5 Aventis Pharma Ltd. API Bharuch

6 Cadila Healthcare Ltd. API Bharuch

7 Cadila Pharmaceuticals Ltd. API Bharuch

8 Glenmark Pharmaceuticals Ltd. API Bharuch

9 J. B. Chemicals & Industries Ltd. API Bharuch

10 Sun Pharmaceuticals & Industries Ltd. API Bharuch

11 Wockhardt Ltd. API Bharuch

12 Alembic Ltd. API Godhara

13 Torrent Pharmaceuticals Ltd. API Mehsana

14 CTX Lifesciences Ltd. API Surat

15 Cadila Healthcare Ltd. API Vadodara

US FDA approved Units in Gujarat (20 API + 9 Formulations)

8

No. Name of Firm Category Circle / District

16 Sun Pharmaceuticals & Industries Ltd. API Vadodara

17 Tonira Pharma Ltd. API Vadodara

18 Megafine Pharma Pvt. Ltd. API Valsad

19 UCB India Private Ltd. API Valsad

20 Unimark Remedies Ltd. API Valsad

21 Cadila Healthcare Ltd. Formulation Ahmedabad Rural

22 Claris Life sciences Ltd. Formulation Ahmedabad Rural

23 Intas Pharmaceuticals Ltd. Formulation Ahmedabad Rural

24 Zydus Hospira Oncology Pvt. Ltd. Formulation Ahmedabad Rural

25 J. B. Chemicals & Industries Ltd. Formulation Bharuch

26 Alembic Ltd. Formulation Godhara

27 Sun Pharmaceuticals & Industries Ltd. Formulation Godhara

28 Torrent Pharmaceuticals Ltd. Formulation Mehsana

29 Astral Pharmaceuticals Industries Formulation Vadodara

US FDA approved Units in Gujarat (20 API + 9 Formulations)

9