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ERVAS PHARMACEUTICALS HAVE NATURAL LIVE NATURAL MISSION: ERVAS’ MISSION IS TO MAKE HERBAL -WELLNESS A PART OF EVERY HOME AND TO CREATE BELIEF THAT GOOD HEALTH SHOULD BE ACCESSIBLE TO EVERYONE

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Page 1: SUN PHARMA &  PHARMA INDUSTRY 2015

ERVAS PHARMACEUTICALS HAVE NATURAL LIVE NATURAL

MISSION: ERVAS’ MISSION IS TO MAKE HERBAL -WELLNESS A PART OF EVERY HOME AND TO CREATE BELIEF THAT GOOD HEALTH SHOULD BE ACCESSIBLE

TO EVERYONE

Sabarinath Suryaprakash
Page 2: SUN PHARMA &  PHARMA INDUSTRY 2015

GROUP MEMBERS

PRAVEEN KUMARAZHARDEENSABARINATH D.SSYED MOHAMMEDMOHAMED ABUBACKERvIGNESHWARAN

Page 3: SUN PHARMA &  PHARMA INDUSTRY 2015

PHARMACEUTICAL INDUSTRY

Page 4: SUN PHARMA &  PHARMA INDUSTRY 2015

PHARMACEUTICAL INDUSTRY

The Indian Pharmaceutical Industry currently tops the chart amongst India’s Science based Industries with wide ranging capabilities in the complex field of drug manufacture and technology.

A highly organized sector, the Indian Pharmaceutical Industry is expected to expand at a CAGR of 23.9% by 2020.

It ranks very high among all the third world countries, in terms of technology, quality and the vast range of medicines that are manufactured

Page 5: SUN PHARMA &  PHARMA INDUSTRY 2015

DEVELPOMENT OF PHARMACEUTICAL INDUSTRY IN INDIA INDIAN PHARMACEUTICAL MARKET HAS REACHED 10TH PLACE IN THE

WORLD MARKET

Page 6: SUN PHARMA &  PHARMA INDUSTRY 2015

INCREMENTAL GROWTH OF INDIA-2015INDIAN PHARMACEUTICAL INDUSTRY HAS REACHED TOP 3RD IN INCREMENTAL GROWTH OF THE SECTOR AS COMPARED TO US(1ST PLACE) AND CHINA(2ND PLACE)

Page 7: SUN PHARMA &  PHARMA INDUSTRY 2015

CAGR REPORT-2015 ON INDIAN PHARMA MARKET

INDIAN PHARMA MARKET IS LIKELY TO TRIPLICATE BY 2015

Page 8: SUN PHARMA &  PHARMA INDUSTRY 2015

Between 2012-2018, the “patent cliff" will wipe an estimated $148 billion off pharmaceuticals industry revenues due to many drugs coming out of patents

Rising cost of R&D, the cost of bringing a molecule to market globally is estimated to be from $800 million to $4 billion.

On average, out of every 10,000 molecules been developed; only one or two are likely to reach the market.

Increasing government pressure, with harsher price controls and taxes.

European Medical Agency (EMA) and the US Food and Drug Administration (USFDA) are focusing on risk management; thereby putting pressures on profitability of pharmaceutical companies.

Issues for the Industry

Page 9: SUN PHARMA &  PHARMA INDUSTRY 2015

SWOT Analysis Of Indian Pharmaceutical Industry

Strengths Weaknesses Opportunities Threats•Low cost of skilled manpower•Access to large pool of highly trained scientists•Strong marketing and distribution network•Proven track record in design of high technology manufacturing devices•Low cost of innovation, manufacturing and operations

•Stringent pricing regulations•Poor transport and medical infrastructure•Lack of data protection•Very competitive environment•Poor health insurance coverage•Production of low quality drugs tarnishes image of industry abroad•Low investment in innovative R&D

•Increase in per capita income•Global demand for generics rising•Increasing population with more sedentary lifestyle•Increasing health insurance sector•Significant investment from MNCs•Medical tourism•Cheap, diverse clinical trials•Global outsourcing hub due to low cost of skilled labor

•Other low cost countries affecting demand•Government regulations changing•Expanding of Drugs Price Control Order•Lack of investment in infrastructure•Wage inflation•R&D restricted by lack of animal testing and outdated patient office•Counterfeiting threat

Page 10: SUN PHARMA &  PHARMA INDUSTRY 2015

GENERIC INDUSTRYTHE FOLLOWING ARE SOME OF THE GENERIC DRUG MANUFACTURERS Actavis Acura pharmaceuticals Apotex Aspen Pharmacare Bio pharma EMS Galex Getz pharma Hikma Pharmaceuticals Hospira Incepta Phamraceuticals Medinfar

North China pharmaceuticals group corp

Perrigo Ranbaxy Laboratories Saidal Simcere Pharmaceuticals Stada Arzneimittrl Sun Pharmaceuticals Synthon Teva Pharmaceuticals Torque Pharmaceuticals

Page 11: SUN PHARMA &  PHARMA INDUSTRY 2015

NON GENERIC INDUSTRYTHE FOLLOWING ARE SOME OF THE NON GENERIC INDUSRTRY IN PHARMACEUTICAL SECTOR GLENMARK ABOTT INDIA BIOCON ALEMBIC PHARMA SANOFI INDIA WOCKHARDT PFIZER NECTAR LIFE AJANTA PHARMA SHARON BIO MEDI GRANULES INDIA UNICHEM LABS AARTI DRUGS

Page 12: SUN PHARMA &  PHARMA INDUSTRY 2015

US France UK Australia Japan Brazil Russia South Africa China India Indonesia kenya Ghana0

1000

2000

3000

4000

5000

6000

7000

8000

9000

0

2

4

6

8

10

12

14

16

18

20

132

4.1

Per Capita Spent on Healthcare

% GDP Spent on Healthcare

Per CapitaUS $ % GDP

Investment Comparison

Page 13: SUN PHARMA &  PHARMA INDUSTRY 2015

MODE OF ENTRIES OF FOREIGN PHARMAS TO INDIATHE FOLLOWING ARE SOME OF THE FOREIGN MULTINATIONAL PHARMACEUTICAL COMPANIES WHICH CAME TO INDIA THROUGH OUR INDIAN PHARMA COMPANIES . THEY ARE LISTED BELOW.

MULTINATIONAL PHARMA - INDIAN PHARMA

MERCK & CO - SUN PHARMACEUTICALS

PFIZER - AUROBINDO PHARMA, CLARIS LIFESCIENCES

STRIDES ARCOLABS

GLAXOSMITHKLINE - DR.REDDY’S LABORATORIES

ASTRAZENECA - TORRENT PHARMACEUTICALS , INTAS PHARMACEUTICALS , AUROBINDO PHARMA

DAICHII SANKYO - RANBAXY

ABOTT - PIRAMAL HEALTHCARE

SANOFI AVENTIS - SHANTHA BIOTECH

MYLAN - MATRIX

RECKITT BENCKISER - PARAS

HOSPIRA - ORCHID

FRESENIUS KABI - DABUR PHARMA

Page 14: SUN PHARMA &  PHARMA INDUSTRY 2015

MAJOR MEMBERS OF INDIAN PHARMA INDUSTRY

The following are the major pharma companies in India . They are CIPLA DR.REDDY’S LABS LUPIN CADILA HEALTH TORRENT PHARMA GLAXOSMITHKLINE JUBILANT LIFE IPCA LABS DIVIS LABS SUN PHARMA PIRAMAL ENTER

GLENMARK ABOTT INDIA BIOCON ALEMBIC PHARMA SANOFI INDIA WOCKHARDT PFIZER NECTAR LIFE AJANTA PHARMA SHARON BIO MEDI GRANULES INDIA UNICHEM LABS AARTI DRUGS

Page 15: SUN PHARMA &  PHARMA INDUSTRY 2015

OUR COMPANYOUR PROJECT IS ABOUT THE INDIAN PHARMACEUTICAL GIANT , SUN PHARMACEUTICALS

WHY SUN PHARMACEUTICALS ?ACTUALLY IT IS A MILLION DOLLAR QUESTION WHY WE TOOK SUN PHARMA THAN SOME OTHER COMPANY? SUN PHARMACEUTICALS IS NOW THE TOP PHARMACUTICAL COMPANY IN INDIA. BUT IN 1983, WHEN MR.DILIP SHANGHVI WHO WAS THE SON OF A DRUG WHOLESALE DEALER , HE SUDDENLY THOUGHT THAT WHY INSTEAD OF DEALING WITH DRUGS , WHY DON’T WE PRODUCE IT??THIS HAS MADE HIM TO START A PHARMACEUTICAL COMPANY WITH A VERY VERY SMALL CAPITAL OF JUST ₹ 10000 . BUT NOW IT HAS AN ASSET VALUE OF RS.9816 CRORES WITHIN A DECADE. AND MOREOVER , HE HAD MADE THE WHOLE WORLD TO TURN AROUND US AND MADE THEM FEEL THAT THERE IS AN INDIAN PHARMACEUTICAL COMPANY THAT CAN COMPETE THE WORLD MARKET.NOW , SUN PHARMACEUTICALS IS THE TOP 1ST PHARMACEUTICAL COMPANY IN INDIA AND TOP 5TH IN WORLD GENERIC PHARMACEUTICAL MARKET.THIS IS THE MAIN REASON WHY WE TOOK SUN PHARMACEUTICALS

Page 16: SUN PHARMA &  PHARMA INDUSTRY 2015

SUN PHARMACEUTICALS (P) LTDTAG LINE LEADERSHIP THROUGH FOCUSED RESEARCH MISSION MISSION OF GIVING AN IMPETUS TO RESEARCH & DEVELOPMENT IN INDIAVISION TO DEVELOP MEDICAL RESEARCH IN UPCOMING FUTURE

Page 17: SUN PHARMA &  PHARMA INDUSTRY 2015

SUN PHARMACEUTICALS SUN PHARMACEUTICALS LTD is a multinational Pharmaceutical company

headquartered in Mumbai, Maharashtra that manufactures and sells pharmaceutical formulations and Active Pharmaceutical Ingredients (API) primarily in India and in United States.

The company offers formulations in various therapeutic areas such as cardiology, psychiatry, neurology, gastroenterology and diabology.

It also provides APIs such as warfarin, carbamazepine, etodolac, and clorazepate, as well as anticancer, steroids peptides, sex hormones and controlled substances

Pharmaceutical Giant SUN PHARMACEUTICALS LIMITED(NET PROFIT OF ₹ 2,828 CRORE IN FY14-15) has topped as No.1 Pharmaceutical Industry in India in 2015 against its best rivals CIPLA LABORATORIES (NET PROFIT OF ₹ 1,181 CRORE), LUPIN LABS (NET PROFIT OF ₹ 2,397 CRORES) DR.REDDY’S LABORATORIES (NET PROFIT OF ₹ 1,679 CRORES) AND ETC..

Page 18: SUN PHARMA &  PHARMA INDUSTRY 2015

HISTORY OF THE COMPANY Established by MR.DILIP SHANGHVI in 1983 in VAPI with

five products to treat psychiatry ailments. Cardiology products were introduced in 1987 followed by

Gastroenterology products in 1989. Today it is the largest chronic prescription company in India and

a market leader in psychiatry, neurology, cardiology, orthopedics, ophthalmology, and gastroenterology and nephrology

At present, SUN PHARMA has a net income of ₹2,828 crores and with Total Asset value of ₹9816 crores and the current market price of a share is ₹927.25 per share (as on 19/08/2015)

Page 19: SUN PHARMA &  PHARMA INDUSTRY 2015

BOARD OF DIRECTORS

ISRAEL MAKOV DILIP SHANGHVI SUDHIR V. VALIA SAILESH T. DESAI

HASMUKH S SHAH KEKI M MISTRY ASHWIN DANI MOHANCHAND

Page 20: SUN PHARMA &  PHARMA INDUSTRY 2015

ACQUISITION & JOINT VENTURES KNOLL PHARMACEUTICALS & MJ PHARMA – 1996 TAMIL NADU DADHA PHARMACEUTICALS LTD -1997 CARACO PHARMACEUTICALS – 1997 NATCO PHARMA – 1998 MILMET LABS & GUJARAT LYKA ORGANICS – 1999 PRADEEP DRUG COMPANY – 2000 PHLOX PHARMA – 2004 ABLE LABS – 2005 CHATTEM CHEMICALS – 2008 TARO PHARMACEUTICALS – 2010 MSD – 2011 DUSA PHARMACEUTICALS – 2012 INTREXON – 2013 RANBAXY LABORATORIES - 2014

Page 21: SUN PHARMA &  PHARMA INDUSTRY 2015

GLOBAL PRESENCE With global revenues of over US$ 4.5 billion, SUN PHARMA is the fifth

largest specialty generic pharmaceutical company in the world. They provide high quality affordable medicines trusted by healthcare professionals and patients in over 150 countries worldwide. Sun pharma also includes the largest and most trusted pharmaceutical company. Their global presence is supported by 45 manufacturing facilities across 5 continents.

In the US market contributes a significant share of or revenues, they are the leader in the generic dermatology segment,. They have strong capabilities in developing generic and complex products with a robust pipeline of 149 ANDAs including high value first-2-file (FTF) opportunities. They have an established presence in Europe and key high growth emerging markets like Russia , Romania , south Africa , brazil and , Malaysia.

Page 22: SUN PHARMA &  PHARMA INDUSTRY 2015

LOCATIONS HEADQUARTERS – GUJARAT CORPORATE OFF – MUMBAI FACTORY PLANTS - Dadra &Nagar havelli Gujarat Maharashtra Kanchipuram Andheri Jammu & Kashmir Ohio – US New jersey – US Michigan –US Bangladesh Hungary Sikkim Mexico

Page 23: SUN PHARMA &  PHARMA INDUSTRY 2015

PRODUCTS PRODUCED They produce drugs for the following categories of treatments. They are Psychiatry anti-infective Neurology Cardiology Orthopaedic Diabology Gastroenterology Ophthalmology Nephrology Urology Dermatology Gynaecology Respiratory, oncology, dental and nutritionals

Page 24: SUN PHARMA &  PHARMA INDUSTRY 2015

POLICIES & PROGRAMSSUN PHARMA has many policies and programs . Some of them are listed below Whistleblower policy for SPIL & Indian

Subsidiaries Whistleblower policy for Global Subsidiaries Ranbaxy Disclosure program Ranbaxy Disclosure policy.

Page 25: SUN PHARMA &  PHARMA INDUSTRY 2015

COMPETITORSSUN PHARMA has large number of competitors throughout the world . Some of them are mentioned here and they will be briefed in upcoming slides

Page 26: SUN PHARMA &  PHARMA INDUSTRY 2015

LUPIN PHARMACEUTICALS

RANKING - 2ND INCORPORATED - 1968CEO - VINITA GUPTASTOCK PRICE - ₹1877.80REGISTERED OFFICE - MUMBAIFACTORY/PLANT - THANE , MADHYA PRADESH, GUJARAT,

AURANGABAD, PUNE, GOA, JAMMU,

NAGPURPRODUCTS PRODUCED - CARDIOLOGY, ORTHOPEDIC, NEUROLOGY , DIABOLOGY, GASTROENTEROLOGY,

OPTHALMOLOGY, NEUROLOGY

Page 27: SUN PHARMA &  PHARMA INDUSTRY 2015

BOARD OF DIRECTORS-LUPIN DESH BANDHU GUPTA – CHAIRMAN KAMAL K SHARMA – VICE CHAIRMAN M D GUPTA – EXECUTIVE DIRECTOR NILESH GUPTA – MANAGING DIRECTOR VINITA GUPTA – CEO K U MADA – DIRECTOR R A SHAH - DIRECTOR VIJAY KELKAR – DIRECTOR RICHARD ZAHN – DIRECTOR R V SATAM – COMPANY SECRETARY DILEEP C CHOKSI – DIRECTOR SREERAM PADMANABHAN – DIRECTOR

Page 28: SUN PHARMA &  PHARMA INDUSTRY 2015

DR.REDDY’S LABORATORIESRANKING - 3RD INCORPORATED - 1984CEO - G.V.PRASADSTOCK PRICE - ₹4227.40REGISTERED OFFICE - TELENGANAFACTORY/PLANT - TELENGANA , ANDHRA PRADESH,

PONDICHERRY , HIMACHAL PRADESH PRODUCTS PRODUCED - GASTEROENTEROLOGY , NEUROLOGY ,

RHEUMATOLOGY ,

UROLOGY , NEUROLOGY , DERMATOLOGY

Page 29: SUN PHARMA &  PHARMA INDUSTRY 2015

BOARD OF DIRECTORS G.V.PRASAD JAY KOWLES SATHISH REDDY SAUMEN CHAKRABORTY

Page 30: SUN PHARMA &  PHARMA INDUSTRY 2015

CIPLA PHARMACEUTICALS

RANKING - 4TH

INCORPORATED – 1935CEO - SUBHANU SAXENASTOCK PRICE - ₹697.40REGISTERED OFFICE - MAHARASHTRAFACTORY/PLANT - KARNATAKA , GOA , SIKKIM , HIMACHAl

MADHYA PRADESH PRODUCTS PRODUCED -GASTEROENTEROLOGY , NEUROLOGY,

RHEUMATOLOGY , UROLOGY ,

NEUROLOGY , DERMATOLOGY

Page 31: SUN PHARMA &  PHARMA INDUSTRY 2015

BOARD OF DIRECTORS - CIPLA DR.K.A.HAMIED – FOUNDER DR.YUSUF K HAMIED – CHAIRMAN M.K.HAMIED – NON EXECUTIVE VICE CHAIRMAN SUBHANU SAXENA – MD & GLOBAL CEO RADHAKRISHNAN – WHOLETIME DIRECTOR SAMINA VAZIRALLI – EXECUTIVE DIRECTOR ASHOK SINHA – NON EXECUTIVE/INDEPENDENT DIRECTORS DR.PETER MUGYENYI – NON EXECUTIVE/INDEPENDENT DIRECTORS ADIL ZAINULBHAI – NON EXECUTIVE/INDEPENDENT DIRECTORS PUNITA LAL – NON EXECUTIVE/INDEPENDENT DIRECTORS

Page 32: SUN PHARMA &  PHARMA INDUSTRY 2015

AUROBINDO PHARMA

RANKING : 5TH INCORPORATED : 1986CEO : ARAVIND VASUDEVASTOCK PRICE : ₹804.40REGISTERED OFFICE : TELENGANAFACTORY/PLANT : TELENGANA , ANDHRA PRADESH ,

TAMILNADU ,RAJASTHAN PRODUCTS PRODUCED : GASTEROENTEROLOGY , NEUROLOGY ,

RHEUMATOLOGY , UROLOGY , NEUROLOGY ,

DERMATOLOGY

Page 33: SUN PHARMA &  PHARMA INDUSTRY 2015

BOARD OF DIRECTORS-AUROBINDO K. RAGHUNANTHAN – INDEPENDENT & NON EXECUTIVE DIRECTOR K.NITHYANANDA REDDY – WHOLETIME DIRECTOR & VICE CHAIRMAN PV.RAMAPRASAD REDDY – NON EXECUTIVE DIRECTOR M.SIVAKUMARAN – WHOLETIME DIRECTOR M.MADHAN MOHAN REDDY – WHOLETIME DIRECTOR N.GOVINDARAJAN – MANAGING DIRECTOR M.SITARAMA MURTHY – INDEPENDENT DIRECTOR D.RAJAGOPALA REDDY – INDEPENDENT DIRECTOR P.SARATH CHANDRA REDDY – NON EXECUTIVE DIRECTOR DR.AVNIT BIMAL SINGH – INDEPENDENT DIRECTOR

Page 34: SUN PHARMA &  PHARMA INDUSTRY 2015

CADILA PHARMA RANKING – 6TH

INCORPORATED – 1951CEO – DR.RAJIV I . MODISTOCK PRICE -RS.1827.35REGISTERED OFFICE - GUJARATFACTORY/PLANT – GUJARAT , GOA , MAHARASHTRA,

HIMACHAL PRADESH PRODUCTS PRODUCED- NATURAL STREPTOKINASE ,

HYALURONIC ACID ,

CARDIOVASCULAR DISEASES

Page 35: SUN PHARMA &  PHARMA INDUSTRY 2015

BOARD OF DIRECTORS – CADILA RAJIV I MODI S– CHAIRMAN & MD INDRAVADAN AMBALAL MODI – FOUNDER SHREYAS PARIKH – COMPANY SECRETARY SHILABEN I MODI – BOARD OF DIRECTORS PRADIP N KHANDWALLA – BOARD OF DIRECTORS DN. KHURANA – BOARD OF DIRECTORS SANJAY SINHA – BOARD OF DIRECTORS

Page 36: SUN PHARMA &  PHARMA INDUSTRY 2015

ENTRIES OF PHARMA COMPANIES COMPANIES - YEARCIPLA - 1935 CADILA PHARMA - 1951 LUPIN PHARMACEUTICALS - 1968 ALKEM LABORATORIES - 1973MICRO LABS - 1973NMC HEALTHCARE - 1975INTAS PHARMACEUTICALS - 1976SUN PHARMACEUTICALS - 1983AUROBINDO PHARMA - 1986ASTER DM HEALTHCARE - 1987DIVI’S LABORATORIES - 1990MANKIND PHARMACEUTICALS - 1995

Page 37: SUN PHARMA &  PHARMA INDUSTRY 2015

EXIT OF PHARMA COMPANIES ADVANCE LIFE SCIENCE

EXIT – MAY 2009

REASON – THEY COULD NOT OBTAIN RESPONSE FROM US FOOD & DRUG ADMINISTRATION FOR TREATMENT OF PNEUMONIA

ALTAIR THERAUPETIC INC

EXIT – 2009

REASON – SINCE THE INHALED ANTISENSE ASTHMA DRUG DIDN’T SHOW ANY BENEFIT

AMBRILIA BIOPHARMA

EXIT – 2008

REASON – TRIALS FOR A DRUG TO TREAT ACROMEGALY WAS PUT ON HOLD BY MERCK FOR LONG YEARS

ARYx THERAUPETICS

EXIT - 2010

REASON – SINCE THE BLOOD CLOTTING COMPOUND SHOWED NO IMPROVEMENT AND FDA DELAYED IN GIVING LICEMSE

PHENOMIX CORPORATION

EXIT – 2010

REASON – FOREST LAB WITHDREW ITS DEAL

Page 38: SUN PHARMA &  PHARMA INDUSTRY 2015

EXIT OF COMPANIES (CONTD) PEPTIMUNE

EXIT –

REASON – SINCE MERCK SERENO BOUGHT THE FULL RIGHTS OF PI-2301

TOLERX

EXIT – 2007

REASON – THE DRUG NAMED OTELIXIZUMAB DIDN’T SHOW ANY POSITIVE DEVELOPMENT

TRANSDEL PHARMACEUTICALS

EXIT –

REASON - WENT TO BANKRUPTCY AFTER SLOW DECLINE OF OTS PRODUCTS

Page 39: SUN PHARMA &  PHARMA INDUSTRY 2015

MERGERS OF PHARMA COMPANIESDEFINITION : THE COMBINING OF TWO OR MORE CMPANIES , GENERALLY BY OFFERING THE STOCKHOLDERS OF ONE COMPANY’S SECURITIES IN THE AQUIRING COMPANY IN EXCHANGE FOR THE SURRENDER OF THEIR STOCK

Page 40: SUN PHARMA &  PHARMA INDUSTRY 2015

TYPES OF MERGERS Horizontal merger Horizontal merger is a business consolidation that occurs between firms who operate in the

same space, often as competitors offering the same good or service.

Vertical Merger A vertical merger occurs when two or more firms, operating at different levels within an

industry's supply chain, merge operations. Most often the logic behind the merger is to increase synergies created by merging firms that would be more efficient operating as one.

Conglomerate merger A merger between firms that are involved in totally unrelated business activities. There are

two types of conglomerate mergers: pure and mixed. Pure conglomerate mergers involve firms with nothing in common, while mixed conglomerate mergers involve firms that are looking for product extensions or market extensions.

Page 41: SUN PHARMA &  PHARMA INDUSTRY 2015

EXAMPLES OF MERGERSYEAR ANNOUNCED ACQUIRER/RESULTANT

COMPANYTARGET/MERGING COMPANIES

ANNOUNCEDTOTAL VALUE($.bn)

2000 GLAXOSMITHKLINE

SMITHKLINEBEECHAM+GLAXO WELLCOME

72.4

1998 ASTRAZENECA ASTRA+ZENECA 30.41996 NOVARTIS CIBA-

GEIGY+SANDOZ29

1999 PHARMACIA PHARMACIA&UPJOHN+MONSANTO

25.2

       

Page 42: SUN PHARMA &  PHARMA INDUSTRY 2015

ACQUISITION OF PHARMA COMPANIESDEFINITION : When one company takes over another and clearly established itself as the new owner

TYPES OF ACQUISITION . Friendly Acquisition:

Both the companies approve of the acquisition under friendly terms. Reverse Acquisition:

A private company takes over a public company. Back flip Acquisition:

The purchasing company becomes a subsidiary of the purchased company

Page 43: SUN PHARMA &  PHARMA INDUSTRY 2015

EXAMPLES OF AQUISITIONAnnounced Date Value in $ million

Acquirer Acquired Firm

Name Country Name Target nation

18 Feb 2014 28,407 Actavis plc United States Forest Laboratories Inc United States

22 April 2014 54,652. Valeant Pharmaceuticals International Inc Canada Allergan Inc United States

22 April 2014 23,050 Novartis AG, GlaxoSmithKline plc

Switzerland, United Kingdom

GlaxoSmithKline's oncology portfolio, R&D activities & AKT inhibitor rights / Novartis' vaccines business

United Kingdom

6 May 2014 14,200 Bayer AG Germany Merck & Co Inc (Consumer Care Business) United States

20 June 2014 56,064.4 AbbVie Inc United States Shire plc United Kingdom

30 June 2013 10,248.2 Amgen Inc United States ONYX Pharmaceuticals Inc United States

19 May 2011 13,682 Takeda Pharmaceutical Co Ltd Japan Nycomed SCA SICAR Switzerland

21 July 2011 35,017.9 Express Scripts Inc United States Medco Health Solutions Inc United States

21 November 2011 11,017.1 Gilead Sciences Inc United States Pharmasset Inc United States

29 August 2010 24,476.7 Sanofi-Aventis SA France Genzyme Corp United States

Page 44: SUN PHARMA &  PHARMA INDUSTRY 2015

TAKE-OVERSDEFINITIONWhen an acquiring company makes a bid for a target company. If the takeover goes through, the acquiring company becomes responsible for all of the target company’s operations, holdings and debt. When the target is a publicly traded company, the acquiring company will make an offer for all of the target’s outstanding shares.

Page 45: SUN PHARMA &  PHARMA INDUSTRY 2015

TYPES OF TAKE-OVERSTYPES OF TAKE-OVERS : 'Friendly Takeover' - the company bidding will approach the directors of the other company

to discuss and agree an offer before proposing it to the shareholders of that company.

The bidding company will also have an opportunity to look at the accounts of the business they want to buy - a process known as due diligence.

'Hostile Takeover' - the company bidding has their offer rejected or does not approach the board of the company they wish to buy before making an offer to shareholders.

This also means they will not have access to private information about the company - increasing the risk of the takeover. Banks are usually more cautious about lending money for hostile takeovers.

'Reverse Takeover' - the final common type of takeover is the reverse takeover. This happens when a private (not traded on the stock market) company buys a publicly-traded company as a means of acquiring public status without having to list itself

Page 46: SUN PHARMA &  PHARMA INDUSTRY 2015

EXAMPLES OF TAKE-OVERS ZS PHARMA ACQUIRED ACTELION PFIZER AQUIRED GSK’S MENINGOCOCCAL ACWY VACCINES HORIZON PHARMA OF IRELAND ACQUIRED DEPOMED MYLAN OF NETHERLAND ACQUIRED PERRIGO CONCARDIA FROM CANADA ACQUIRED AMDIPHARM MERCURY US BASED PURDUE PHARMA ACQUIRED TRKA PROGRAM OF VM PHARMA CIPLA OF INDIA ACQUIRED INVAGEN AND EXELAN PFIZER AQUIRED HOSPIRA ALLERGAN TO ACQUIRE AQUESYS LANNET ACQUIRED UCB’S KREMER URBAN GENERIC UNIT AMICUS THERAUPETICS AQUIRED SCIODERM SUCAMPO PHARMACEUTICALS AQUIRED R-TECH UENO

Page 47: SUN PHARMA &  PHARMA INDUSTRY 2015

SUCCESSFUL ENTREPRENEURSMR.BINISH CHUDGARINTAS PHARMACEUTICALSINCORPORATED IN 1976HEAD OFFICE- AHMEDABADESTD.WEALTH - $2.79 BILLIONFINISHED FORMULATIONS AND BIOLOGICS

MR.PV.RAMPRASAD REDDYAUROBINDO PHARMAINCORPORATED IN 1986HEAD OFFICE – HYDRABADESTD.WEALTH - $2.26 BILLIONBULK AND FINISHED GOODS

MR.MURALI.K.DIVIDIVI’S LABORATORIESINCORPORATED IN 1990HEAD OFFICE – HYDERABADESTD.WEALTH - $1.93 BILLIONAPIs AND INTERMEDIATES

Page 48: SUN PHARMA &  PHARMA INDUSTRY 2015

SUCCESSFUL ENTERPRENEUR(Contd.)MR.SAMPRADA SINGHALKEM LABORATORIESINCORPORATED IN 1973HEAD OFFICE – MUMBAIESTD.WEALTH - $1.69 BILLIONPHARMACEUTICAL FINISHED FORMULATIONS

DR.AZAD MOOPENASTER DM HEALTHCAREINCORPORATED IN 1987HEAD OFFICE – KOCHIESTD.WEALTH - $1.54 BILLIONHOSPITALS AND DIAGNOSTIC CENTRES

MR.DILIP SURANAMICRO LABSINCORPORATED IN 1973HEAD OFFICE – CHENNAIESTD.WEALTH- $1.49 BILLIONBRANDED DRUGS AND APIs

Page 49: SUN PHARMA &  PHARMA INDUSTRY 2015

PRODUCTS OF SUN PHARMATHERAUPETIC AREAS PRODUCTSNEUROLOGY&PSYCHIATRY ACAMPROL

ADCAPONEALCOLIVAMIXIDE

CARDIOLOGY AMLOBETAZTOR EZAQUAZIDE 12.5ANGIZEM 30

ORTHOPAEDIC BENZADAY 15GASTEROENTEROLOGY ALCAINE-MPS 200ML 1 BTLUROLOGY TROFAME XRGYNOCOLOGY AFDURARESPIRATORY AB PHYLLINE

AQUAMET NASAL SPRAAB PHYLLINE SYRUP

Page 50: SUN PHARMA &  PHARMA INDUSTRY 2015

BRANDS OF SUN PHARMATHE MAJOR BRANDS OF SUN PHARMA ARE AS FOLLOWS

Page 51: SUN PHARMA &  PHARMA INDUSTRY 2015

GOVERNMENT POLICIES ON PHARMA INSUSTRY PHARMACEUTICAL POLICY 2002 INDUSTRIAL LICENSING FOREIGN INVESTMENT FOREIGN TECHNOLOGY AGREEMENTS (FTA) IMPORTS PRICING QUALITY ASPECTS PHARMA EDUCATION AND TRAINING NATIONAL PHARMACEUTICAL PRICING POLICY 2012 DRUG POLICY 1986

Page 52: SUN PHARMA &  PHARMA INDUSTRY 2015

POLICY MODEL

Page 53: SUN PHARMA &  PHARMA INDUSTRY 2015

IMPACT OF REGULATIONS ON PHARMA INDUSTRYRECENT REGULATIONS OF THE GOVERNMENT THAT HAS IMPACT ON THE PHARMA INDUSTRY ARE LISTED BELOW Move to establish an integrated regulatory system through the

constitution of a National Drug Authority so that quality regulation and price control is performed by the same agency

Establishment of pharmacy vigilance centres at national, zonal and regional levels to monitor adverse drug reactions

Move to bring nearly 374 bulk drugs under price control  and regulate trade margins

Capability strengthening to monitor clinical trials, including the setting up of  the Clinical Trials Registry of India (CTRI)

Page 55: SUN PHARMA &  PHARMA INDUSTRY 2015

INFLATIONDEFINITION:Inflation is the percentage change in the value of the Wholesale Price Index (WPI) on a year-on year basis. It effectively measures the change in the prices of a basket of goods and services in a year. In India, inflation is calculated by taking the WPI as base.CAUSES OF INFLATION:DEMAND PULL INFLATION Depreciation on rate change Monetary stimulus to the economy Fast growth in other countriesCOST PUSH INFLATION Component cost Rising labor cost Higher indirect taxes A fall in the exchange rate

Page 56: SUN PHARMA &  PHARMA INDUSTRY 2015

Inflation & Its Impacts on Pharma Industry

Shift towards a Networked business model. Increasing M&A and alliances Consolidation in the market

INCREASE INVESTMENTS & MNC ACTIVITY

Seen as the next volume driver, though costs of operation is high due to poor health infrastructure

INCREASE REACH IN NON METRO

MARKETSThough delayed from its April 2010 implementation date, GST will add significant efficiencies to economy and lead to an overhaul of supply chain

GOODS & SERVICES TAX

More numbers of patients will be coming in for treatmentGROWING

INSURANCE

Shift towards biotech & speciality therapies, • increased investment in R&D and acute disease segment will sustain strong growth

CHANGING DISEASE PROFILE

Use of technology & IT for innovation in healthcare delivery • e.g. Mobile clinics

HEALTH CARE INNOVATION

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DEFLATIONDEFINITON:A general decline in prices, often caused by a reduction in the supply of money or credit. Deflation can be caused also by a decrease in government, personal or investment spending. The opposite of inflation, deflation has the side effect of increased unemployment since there is a lower level of demand in the economy, which can lead to an economic depression. Central banks attempt to stop severe deflation, along with severe inflation, in an attempt to keep the excessive drop in prices to a minimum.CAUSES OF DEFLATION: Change in structure of capital market Increased productivity Decrease in currency supplies Austerity measures

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Deflation & its Impacts on Pharma IndustryDuring the time of deflation, pharmaceutical industries face many problems. They are as follows: Deflation will reduce the Foreign Direct Investments (FDI) because usually none of the

investors will invest if there is a deflation in that country. Thus research & development on pharmaceutical sector will be reduced.

Deflation reduces the purchasing power of the people. At the time of inflation, income earned by the people will be reduced. Thus they cant afford to buy costly medicines. Thus the pharma companies have to reduce the price of the medicines. It will create loss to the company.

During deflation, the share prices of the pharmaceutical companies will be reduced. It will affect the global market scenario.

At the time of deflation, Government will reduce all the subsidies given to the pharmaceutical companies for research & development.

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RECESSIONDEFINITION:A significant decline in the activity across the economy, lasting longer than a few months. It is visible in industrial production, employment, real income, and wholesale retail trade. The technical indicator of a recession is two consecutive quarters of negative economic growth as measured by a country’s GDP.EFFECTS OF RECESSION: Uncertain exchange rate and a sudden increase in dollar value

against indian rupees. Delayed payment Pharmaceutical products also doesn’t decrease.

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STOCK MARKETStock market is the place where the shares are being traded by the people and the companies. The main regulatory of the stock market is SECURITIES EXCHANGE BOARD OF INDIA (SEBI).SECURITIES EXCHANGE BOARD OF INDIAThe following are some of the functions of SEBI. They are: Protective function It Checks Price Rigging  It Prohibits Insider trading  SEBI prohibits fraudulent and Unfair Trade Practices Development function Training to intermediaries promotional activities Regulatory function framed rules and regulations restrictive on private placements conducts inquiries

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SUN PHARMA – STOCK MARKET PROFILE

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STOCK MARKET (as on 09/10/2015)

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REGULATORY OF PHARMA INDUSTRYOBJECTIVE OF THE REGULATORY:The present study describes a brief review of various regulatory bodies of major developed and developing countries around the world and the scope and challenges of such pharmaceutical regulatory organizations in delivery of safe and effective healthcare productsMAJOR REGULATORY OF PHARMA INDUSTRYThe major regulatory of pharma industry in India is CENTRAL DRUG STANDARD CONTROL ORGANISATION

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REGULATORY AUTHORITYCountry Name of  Regulatory Authority

USA  Food and Drug Administration (FDA)

UK Medicines and Healthcare Products Regulatory Agency (MHRA)

Australia  Therapeutic Goods Administration (TGA)

India  Central Drug Standard Control Organization (CDSCO)

Canada  Health CanadaEurope European Medicines Agency (EMEA)

Denmark Danish Medicines Agency

Costa Rica Ministry of Health

New Zealand

Medsafe - Medicines and Medical Devices Safety Authority

Sweden Medical Products Agency (MPA)

NetherlandsMedicines Evaluation Board

Ireland Irish Medicines BoardItaly  Italian Pharmaceutical Agency

Nigeria  National Agency for Food and Drug Administration and Control (NAFDAC)

Ukraine  Ministry of Health

Singapore Centre for Pharmaceutical Administration Health Sciences Authority

Hong KongDepartment of Health: Pharmaceutical Services

Paraguay Ministry of Health

Sweden Medical Products Agency (MPA)Thailand  Ministry of Public HealthChina State Food and Drug Administration

Germany Federal Institute for Drugs and  Medical Devices

Malaysia National Pharmaceutical Control Bureau,Ministry of Health

Pakistan Drugs Control Organization, Ministry of HealthSouth Africa Medicines Control Council

Sri Lanka SPC,Ministry of Health

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CONCLUSIONINDIAN PHARMACEUTICAL INDUSTRY PLAYS A MAJOR ROLE IN INDUSTRIAL SECTOR IN DEVELOPING THE COUNTRY AS WELL AS MAKING THE WHOLE WORLD MARKET TO TURN AROUND TO SEE OUR COUNTRY.

SUN PHARMACEUTICALS HAS A MAJOR PART IN DEVELOPMENT OF INDIAN PHARMACEUTICAL INDUSTRY BY PRODUCING DRUGS FOR MAJOR THERAUPETIC TREATMENTS WHICH IS SUPPORTED BY MORE THAN 150 COUNTRIES AND 5 CONTINENTS. IT IS EXPECTED THAT SUN PHARMA WILL BECOME TOP 1ST PHARMACEUTICAL COMPANY IN THE WORLD MARKET BY 2020.