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Anti-Diabetic Pharmaceuticals Market – India July 2015
Executive Summary Market
Anti-diabetic pharmaceuticals market in India is valued at INR x bn in 2014 Market is expected to grow at a CAGR of x% from 2013 to 2018 Anti-diabetes therapeutic segment is the second fastest growing segment, after oncology
Drivers: Drivers & Challenges
Drug Regulation and Patents
Challenges:
Increase in the number of diabetic patients Introduction of newer and better drugs Increasing aging population Comprehensive health insurances policies covering diabetes
Price regulation in insulin market Use of complementary and alternative medicines Maintenance of healthy lifestyle to avoid diabetes
Phases of clinical trial Approval and licensing of drugs Patents Major Players Company A
Company C
Company E
Company B
Company D
Company F
Competition
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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•Macroeconomic Indicators •Introduction •Market Overview •Drivers & Challenges •Government Initiatives •Market Value Chain •Regulation and Patents •Competitive Landscape •Strategic Recommendation •Appendix ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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SAMPLE
Macroeconomic Indicators (x/x) Lending Rate: Annual a b
c
d
e
Trade Balance: Annual f
g
h
i
j
k
l
% Per Annum INR tn
x1
d
2011-12 y1
d
x1 x2
b
x4
x3
a
x2 2012-13
2010-11 2011-12 N.B.: 2012-13 encompasses figure for Apr2012-13 – Nov 2012
y2
2013-14
FDI: Annual x3 2013-14 y3
INR bn y1 a
x4
b
2014-15
y3 y4 y2
y4 c Min
Max
Commercial Bank Rates: Key Lending Rates as Prescribed by RBI (All Commercial Banks including SBI) - Minimum Rate General
d 2009-10
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
2010-11
2011-12
2012-13
4
The total diabetes market can be broadly classified into two parts
SAMPLE
Diabetes Market
X
XX
Y
YY
• Anti-diabetic pharmaceuticals occupy around x-y% of the market share, with oral drugs constituting around ab% of the market share • Pharmaceutical sector is expected to be the largest source of product revenue over the next ten years • Medical devices segment is composed of instruments for diagnosis and monitoring of the disease, and a range of devices for administering insulin
Oral anti-diabetic drug segment presents a huge opportunity for market players
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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The anti-diabetes pharmaceuticals consists of mainly six classes of drugs
SAMPLE
Anti-diabetic medications treat Diabetes Mellitus by lowering glucose levels in the blood
Generic name
Trade name
How they work
A
a1
a2
a3
B
b1
b2
b3
C
c1
c2
c3
D
d1
d2
d3
E
e1
e2
e3
F
f1
f2
f3
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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Increasing prevalence of diabetes is ensuring rapid growth for the global diabetes market
SAMPLE
Global Market – Overview
Market Size and Growth
• XX
INR tn
• XX
d
• XX
c
• XX
b
A x1
x2
2013
2014
x3
x4
2015e
2016e
x6
x5
a
0
People Living With Diabetes (2013)
2018e
Market Segmentation
mn C
2017e
2013
x1
x
2015e
y
B x2
x
x3 A
x4
x5
x6
x7
SACA
AFR
x y
y
0 WP
SEA
EUR
NAC
MENA
Note: AFR – Africa, SACA – South & Central America, MENA – Middle East & North Africa, NAC – North America & Caribbean, EUR – Europe, SEA – South East Asia, WP – Western Pacific
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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India’s diabetes market is poised to grow over the coming years
SAMPLE
Indian Market – Overview
Market Size and Growth
• XX
INR bn
• XX
B
XX XX
A
XX
x6
X x1
x2
2013
2014
x4
x3
x5
0
Growth in therapeutic segments(2010) a oncology diabetes CVS CNS respiratory pain gastro anti-infectives
b
c
d
e
f
g
2016e
2017e
2018e
Market Segmentation
h x1
2015e
x
2010
%
y
2015e
x2 x3
x
x4 x5 x6 x7 x8
y x y
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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The incidence of diabetes is higher in developed countries because of unhealthy lifestyles
SAMPLE
In 2013, there were ~x mn diabetics in the world, which is expected to increase to ~y mn by 2035 Europe 2013: x mn 2035e: y mn North America and Caribbean 2013: x mn 2035e: y mn
South and Central America 2013: x mn 2035e: y mn
Middle East and North America 2013: x mn 2035e: y mn
Africa 2013: x mn 2035e: y mn
South East Asia 2013: x mn 2035e: y mn
Western Pacific 2013: x mn 2035e: y mn
SEA and the Western Pacific Region together account for over x% of all people with undiagnosed diabetes
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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Huge increase in the number of diabetic patients promotes growth of the anti-diabetics pharmaceutical industry
SAMPLE
Increase in the number of diabetic patients
Impact
• XX • XX Xx Xx Xx
• XX • XX • XX
Top 10 countries for number of people with diabetes (20-79 years) a China India USA Brazil RF Mexico Indonesia Germany Egypt Japan
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
q
r
s
t
u a1
mn
a2 a3 a4 a5 a6 a7 a8 a9 a10
It is expected to increase to ~x mn by 2035
Note: RF refers to Russian Federation
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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Price regulation in the insulin market and competition from alternative diabetes treatment hinders growth Price regulation in insulin market
SAMPLE
Impact
• XX Xx Xx Xx Xx Xx xx
Competition from complementary and alternative medicines • XX Xx Xx Xx Xx Xx
• XX
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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Various initiatives taken by the government is providing a boost to this market
SAMPLE
• XX • XX
Indian Council for Diabetic Care
• Xx • Xx • Xx • Xx • Xx
• XX NPCDCS
NRHM
• Xx • Xx • Xx • Xx
• XX • XX
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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Pharmaceutical value chains involve the entire process from drug discovery to drug marketing
SAMPLE
A pharmaceutical value chain is a chain of activities which are involved in producing drugs, starting with raw materials and ending with the delivered product
X
XX
X
XX
X
XX
X
XX
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
X
XX
13
CDSCO, under the Ministry Of Health and Family Welfare, controls the drug control administration
SAMPLE
Functions undertaken by Central Government
• XX • XX • XX • XX • XX
Functions undertaken by the State Governments
• XX • XX • XX • XX • XX
The licensing and registration of pharmaceuticals in India controlled in a regulated way helps in the proper marketing of the drug continued
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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SAMPLE
Some of the drugs approved for marketing in India (x/x) 2014 A B
• XX • XX • XX
2013 C D E F
• XX • XX • XX • XX
2012 G H
• XX • XX
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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Porter’s Five Forces Analysis
SAMPLE
Threat of New Entrants
Impact X
•X
Impact X
Bargaining Power of Suppliers •X
Impact X
Impact X Competitive Rivalry
Bargaining Power of Buyers
•X
•X
Impact X Threat of Substitutes •X
Note: CRO refers to contract research organization
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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Competitive Benchmarking (x/x) Public Trading Comparables (FY 20--) – Top 3 Companies
SAMPLE
Company A
Company B
Company C
Market Capitalization (INR mn)
X
X
X
Share Price (INR)
X
X
X
EV/EBITDA (INR mn)
X
X
X
EV/Revenue (INR mn)
X
X
X
PE Ratio
X
X
X
Note: Top 3 Public companies based on the Market Capitalization; Share Price and PE ratio is as of 10/02/2015 ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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SAMPLE
Competitive Benchmarking (x/x)
Key Ratios of Top 3 Companies – Operational Basis (FY 20--) (x/x) Operating Margin
% x1
20
x2
Net Margin y1
y2 z1
10 0 -10
z2
-20 Company A
Company B
Company C
• XX • XX • XX
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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SAMPLE
Public: Domestic Company – Company A (1/4) Company Information
Corporate Address
XX
Tel No.
XX
Fax No.
XX
Website
XX
Year of Incorporation
XX
Ticker Symbol
XX
Stock Exchange
XX
Offices and Centers – India
Mumbai
Head Office
Products and Services Category
Pharmaceutical Products
Products/Services
XX
Key People Name
Designation
XX
XX
XX
XX
XX
XX
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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SAMPLE
Public: Domestic Company – Company A (2/4) Financial Snapshot Total Income
INR bn 20
2.3
15
Net Profit / Loss
INR bn 2.7
1.8
3 2
10 5
1.9
Key Ratios
11.8
14.2
17.7
16.5
0
1 0
2010
2011
2012
2013
Financial Summary
Particulars
y-o-y change (2013-12)
2013
2012
2011
2010
3.21
17.30%
14.09%
16.04%
17.00%
4.31
15.02%
10.71%
13.48%
19.51%
4.70
20.56%
15.86%
20.03%
19.78%
5.02
19.69%
14.67%
17.12%
22.75%
3.01
21.68%
18.68%
19.86%
19.83%
6.97
59.72%
52.75%
73.42%
24.53%
2.32
16.57%
14.25%
15.14%
14.28%
-62.36
36.61%
98.97%
121.08% 114.11%
-3.13
82.09%
85.22%
82.52%
82.42%
-1.53
0.00%
1.53%
1.78%
2.24%
-0.07
0.02%
0.09%
0.03%
0.25%
Profitability Ratios Operating Margin Net Margin Profit Before Tax Margin Return on Equity Return on Capital Employed Return on Working Capital Return on Assets Return on Fixed Assets
Cost Ratios
• The company earned a net profit of INR 2.7 bn in FY 2013, as compared to net profit of INR 1.8 bn in FY 2012 • The company reported total Income of INR 17.7 bn in FY 2013, registering an increase of 7.05% over FY 2012 • The company earned an operating margin of 17.30% in FY 2013, an increase of 3.21 percentage points over FY 2012 • The company reported a current ratio of 2.18 in FY 2013, an increase of 1.66% over FY 2012
Key Financial Performance Indicators Indicators
Value (02/10/2015)
Market Capitalization (INR mn) Total Enterprise Value (INR mn) EPS (INR) PE Ratio (Absolute)
78,450.5 75,574.5 103.44 32.96
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios Current Ratio Cash Ratio
1.66%
2.18
2.14
1.87
3.08
-45.26%
0.61
1.11
0.66
1.66
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
360.14%
764.00
166.04
541.62
69.58
-69.48%
2.04
6.70
6.93
6.49
-4.07%
0.93
0.96
0.87
0.81
-5.24%
1.80
1.90
1.95
0.94
-6.57%
3.33
3.57
4.20
1.40
-3.00%
1.27
1.31
1.17
1.13
Leverage Ratios Debt to Equity Ratio Debt to Capital Ratio Interest Coverage Ratio
Efficiency Ratios Fixed Asset Turnover Asset Turnover Current Asset Turnover Working Capital Turnover Capital Employed Turnover
Improved
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
Decline
20
SAMPLE
Public: Domestic Company – Company A (3/4) Key Business Segments
Key Geographic Segments India
Pharmaceuticals
100%
100% 80% 60% 40% 20% 0%
Outside India
100% 80% XX
60% 40% 20% 0%
2013
82%
83%
75%
18%
17%
25%
2011
2012
2013
Business Highlights Description
News
Overview
• XX
Diabetes Management
• XX
Key Initiatives
• XX
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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Public: Domestic Company – Company A – SWOT Analysis (4/4)
SAMPLE
• XX
• XX
• XX
S
W
O
T • XX
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015
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Strategic Recommendations
SAMPLE
In a highly competitive pharmaceutical industry, effective strategic decisions will help the players to gain a competitive advantage over others
Insulin Market
• XX
Drug Market
• XX
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