PHARMA INDUSTRY
As promised daily I will be providing some data for you to analyze on this blog.
The global pharma industry is around 800 billion USD, whereas Indian pharma industry is only 8 billion USD. However contrast to it is Indian Pharma Industry is growing annually at 10% whereas Global Pharma Industry is growing at 7%.
Indian pharma companies are doing good in generic area. The acquisition of Piramal Healthcare’s domestic formulations business by American pharma major Abbott Laboratories has altered the landscape of the Indian pharmaceutical market in more ways than one. Not only has it taken Abbott to the top of the table with a market share of 7%—way ahead of current market leader Cipla—it also heralds the dominance of the domestic pharma market by multinationals. Three of the top five companies in terms of market share are now multinationals. This includes Abbott, Ranbaxy (now a Daiichi-Sankyo company) and GlaxoSmithKline. With a market share of 4.9%, Ranbaxy is in the third spot followed by GSK at 4.3%.
Cipla (5.4% market share) and Zydus Cadila (3.7% market share) are now the only two Indian firms in the top five. Compare this to 2007, when only two pharma MNCs figured in the top 10 list. According to pharma industry analysts, the share of MNCs in the Rs 40,051 crore Indian pharmaceutical market will continue to rise from the current 25%.The Abbott deal—it includes a $2.12 billion upfront payment and an additional $400 million paid annually for four years—is a shot in the arm for the American pharma major. Not only does it expand Abbott’s India portfolio, it also significantly enhances its sales network. While Abbott India’s portfolio includes drugs in areas like gastroenterology, urology, pain and metabolic disorders, the acquired business consists of antibiotics, respiratory drugs and cardiovascular products. Abbott India employs 2,500 people. It will now have an additional workforce of 5,000 from the acquired Piramal unit.
The global pharma industry is around 800 billion USD, whereas Indian pharma industry is only 8 billion USD. However contrast to it is Indian Pharma Industry is growing annually at 10% whereas Global Pharma Industry is growing at 7%.
Indian pharma companies are doing good in generic area. The acquisition of Piramal Healthcare’s domestic formulations business by American pharma major Abbott Laboratories has altered the landscape of the Indian pharmaceutical market in more ways than one. Not only has it taken Abbott to the top of the table with a market share of 7%—way ahead of current market leader Cipla—it also heralds the dominance of the domestic pharma market by multinationals. Three of the top five companies in terms of market share are now multinationals. This includes Abbott, Ranbaxy (now a Daiichi-Sankyo company) and GlaxoSmithKline. With a market share of 4.9%, Ranbaxy is in the third spot followed by GSK at 4.3%.
Cipla (5.4% market share) and Zydus Cadila (3.7% market share) are now the only two Indian firms in the top five. Compare this to 2007, when only two pharma MNCs figured in the top 10 list. According to pharma industry analysts, the share of MNCs in the Rs 40,051 crore Indian pharmaceutical market will continue to rise from the current 25%.The Abbott deal—it includes a $2.12 billion upfront payment and an additional $400 million paid annually for four years—is a shot in the arm for the American pharma major. Not only does it expand Abbott’s India portfolio, it also significantly enhances its sales network. While Abbott India’s portfolio includes drugs in areas like gastroenterology, urology, pain and metabolic disorders, the acquired business consists of antibiotics, respiratory drugs and cardiovascular products. Abbott India employs 2,500 people. It will now have an additional workforce of 5,000 from the acquired Piramal unit.
Few important M & A of recent times in pharma industry in India are :
Sr. No. | Company (Acquirer) | Company (Target) | For Amount | Segment Involved |
1. | Biocon | Axicorp (German) | $ 30 million | Biosimilars |
2. | Dr. Reddy’s Labs | Trigenesis Therapeutics (USA) | $ 11 million | Speciality Drugs |
3. | Wockhardt | Esparma (German) | $ 11 million | Branded Generics |
4. | Wockhardt | C. P. Pharmaceuticals (UK) | Rs. 83 crore | Healthcare Products |
5. | Wockhardt | Negma Laboratories (France) | $ 265 million | R&D |
6. | Wockhardt | Morton Grove Pharma (USA) | $38 million | Liquid Generics |
7. | Zydus Cadilla | Alpharma (France) | 5.5 million Euros | Formulation Business |
8. | Ranbaxy | RPG Aventis (France) | $ 70 million | Generic Drugs |
9. | Nicholas Piramal | Biosyntech (Canada) | $4.85mn | Regenerative-Heel Pain |
Other major global takeovers in the pharmaceutical sector are shown in the following table:
Sr. No. | Company (Acquirer) | Company (Target) | For Amount | Segment Involved |
1. | Roche (Swiss) | Genentech (USA) | $46.8bn | R&D, Cancer Drugs |
2. | Daiichi Sankyo (Japan) | Ranbaxy (India) | $4.2bn | Generic Drugs |
3. | Fresenius Kabi (German) | Dabur Pharma (India) | Rs.1000 Cr. | Oncology |
4. | Abbot (USA) | Wockhardt (India) | $22.5mn | Nutrition |
5. | Merck (USA) | Schering Plough (USA) | $41.1bn | Cardiovascular Meds |
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