Oncology Pharmaceuticals Market-India
August 2011
Oncology Pharmaceuticals Market in India September 2014
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Executive Summary Market
Oncology pharmaceuticals market in India is valued at INR x bn in 20— Fourth largest in volume, eighth largest in value in the world market Market is expected to grow at a CAGR of y% from20-----
Drivers: Drivers and Challenges
Government Initiatives
Drug regulation and patents
Competition
Challenges:
Increasing number of cancer cases Changes in the treatment scenario Development of alternative cancer therapies Increase in cancer insurances Increase in FDI
Increased competition Drug patents problem Drug Portfolio management
Reforms in tax structure Reduction in drug prices Public –Private Partnership (PPP) programmes Drug control programmes
Phases of clinical trial Approval and licensing of drugs Patents Highly fragmented market with large number of players Major public players in the market include Company A,Company B, Company C, Company D, Company E, Company F, Company G, Company H, Company I, Company J Major private companies include Company K, Company L, Company M ONCOLOGY PHARMACEUTICALS MARKET IN INDIA 2014.PPT
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•Macro-Economic Indicators •Introduction •Market Overview •Export-Import •Market Value Chain •Drivers & Challenges •Government Initiatives •Regulations •Competitive Landscape •Recent Developments •Strategic Recommendations •Appendix ONCOLOGY PHARMACEUTICALS MARKET IN INDIA 2014.PPT
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Economic Indicators (1/3) GDP at Factor Cost: Quarterly INR tn 15
13
d1 c1 b1
12
a1
14
c4 b4 a4
c3 b3 a3
d2 c2 b2 a2
11
Q1
Q2 2010-11
2011-12
2012-13
Q3 2013-14
Q4
Inflation Rate: Monthly % 2 1
p
r
s
q
0 -1
t
-2
Jul 2013 - Aug 2013
Aug 2013 - Sep 2013
Sep 2013 - Oct 2013
Oct 2013 - Nov 2013
ONCOLOGY PHARMACEUTICALS MARKET IN INDIA 2014.PPT
Nov 2013 - Dec 2013 4
Indian oncology pharma market has grown enormously over the last few years Indian market-overview
Market size
•Fourth largest in volume, eighth largest in value in the world market •Expected to reach INR y bn in 20-•Cancer is the second largest cause of death in the country •According to the National Cancer Registry Program (NCRP) there are z mn cancer patients at any point of time •There occurs X cancer related deaths each year •Oral and lung cancer are the most common in males, while in females, cervical, followed by breast and ovarian cancer are the most common •Availibilty of xx oncologists per yy people in India
INR unit
50
g
m%
40 30 20
a
b
c
20--
20--
20--e
d
f e
10 0 20--e
20--e
20--e
20--e
Increase in Cancer Cases In ‘000
1,200 1,000 800 600 400 200 0
n%
x
20--
y
20--e
Source: ONCOLOGY PHARMACEUTICALS MARKET IN INDIA 2014.PPT
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A huge volume of cancer drugs is exported to many countries… Exports of Oncological Pharmaceuticals
Total Exports
• Highly fragmented market with many domestic manufacturers lead to huge volume of exports
INR units
4,000
• India currently exports to more than 115 countries
3,000
• Between 20-- - 20-- and 20-- - 20-- the value of export of oncology pharmaceuticals rose by m%
2,000
• Country A accounted for the highest exports in 20-- 20-- while Country B ranked highest in 20-- - 20--
1,000
E1% B1% D1% C1%
e4
e3 e2
e1
20–to 20-- 20– to 20-- 20– to 20-- 20– to 20-- 20– to 20--
Exports – Region wise (20-- - 20--) Country A Country B Country C Country D Country E Country F Country G
G1%
P%
0
Exports – Region wise (20-- - 20--)
A1%
e5
A2% G2%
Source: Ministry of Commerce: Export-Import Data Bank ONCOLOGY PHARMACEUTICALS MARKET IN INDIA 2014.PPT
B2%
F2%
E2% D2% Note: All figures are for financial year
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Drivers & Challenges - Summary
Challenges Drivers
Increased competition
Increasing number of cancer cases Changes in the treatment scenario Development of alternative cancer therapies
Drug patent problems Drug portfolio management Lack of affordability
Increase in cancer insurances Increase in the amount of FDI
ONCOLOGY PHARMACEUTICALS MARKET IN INDIA 2014.PPT
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Government initiatives
Reforms in tax structure
Public-Private-partnership (PPP) projects
Government Initiative
Cancer control programmes
Reduction in drug prices
ONCOLOGY PHARMACEUTICALS MARKET IN INDIA 2014.PPT
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Porter’s Five Forces Analysis
SAMPLE
Threat of New Entrants • Texttext texttext texttext texttext texttext texttext texttext • Texttext texttext texttext texttext texttext texttext texttext Impact Low to Medium
Bargaining Power of Suppliers • Texttext texttext texttext texttext texttext texttext texttext • Texttext texttext texttext texttext texttext texttext texttext • Texttext texttext texttext texttext texttext texttext texttext
Impact Medium to High
Impact High Competitive Rivalry • Texttext texttext texttext texttext texttext texttext texttext • Texttext texttext texttext texttext texttext texttext texttext
Impact Low to Medium Bargaining Power of Buyers • Texttext texttext texttext texttext texttext texttext texttext • Texttext texttext texttext texttext texttext texttext texttext
Impact Low Threat of Substitutes • Texttext texttext texttext texttext texttext texttext texttext • Texttext texttext texttext texttext texttext texttext texttext
ONCOLOGY PHARMACEUTICALS MARKET IN INDIA 2014.PPT
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Competitive Benchmarking (1/5) Public Trading Comparables (FY 2013) – Top 3 Companies Company A
SAMPLE Company B
Company C
Value
Value
Market Capitalization (INR mn)
Value
Share Price (INR)
Value
Value
Value
EV/EBITDA (INR mn)
Value
Value
Value
EV/Revenue (INR mn)
Value
Value
Value
PE Ratio
Value
Value
Value
Note: Top 3 Public companies based on the Market Capitalization, Share Price and PE ratio is as of 18/05/2014 ONCOLOGY PHARMACEUTICALS MARKET IN INDIA 2014.PPT
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SAMPLE
Competitive Benchmarking (1/4)
Key Ratios of Top 3 Companies – Operational Basis (FY 20--) (1/3) Operating Margin
%
Net Margin q3
10 p1
0
q1
-10 -20
q2
p2
-30 Player A
Player B
Player C
•X •X
ONCOLOGY PHARMACEUTICALS MARKET IN INDIA 2014.PPT
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Public: Domestic Company – Company A (1/3) Company Information
Offices and Centres – India
Corporate Address
X Road Bangalore
Tel No.
+91 xx xxxxx xxxxx
Fax No.
+91 xx xxxxx xxxxx
Website
www.ppp.com
Year of Incorporation
19--
Ticker Symbol
xxxxxx
Stock Exchange
NNN
Products and Services
City A
Category
Products/Services
Pharmaceutical
CVD, oncology, CNS, respiratory, dermatology, orthopedics, nutritional, urology, anti-infectives
Molecule Development
Infectious diseases, metabolic diseases, inflammatory/respiratory diseases, and oncology
Head Office
Key People Name
Designation
Person M
Founder
Person N
CFO
Person O
Head
Person Q
President
Source: ONCOLOGY PHARMACEUTICALS MARKET IN INDIA 2014.PPT
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Public: Domestic Company – Company B (2/3) Financial Snapshot
Key Ratios
Revenue INR mn 10,000
Profit INR mn
Revenue q
r Profit / Loss s
5,000 n
m
o
0 20--
20--
20--
p n p t
0 -m
20--
Financial Summary
• The company reported total income of INR xx bn in FY 20--, registering an increase of yy per cent over FY 20-• The company earned an operating margin of x per cent in FY 20-- a decrease of y percentage points over FY 20-• The company reported debt to equity ratio of x in FY 20--, an increase of y per cent over FY 20--
Financial Summary Market Capitalization (INR) Total Enterprise Value (INR) EPS (INR) PE Ratio (Absolute)
y-o-y change
20--
20--
20--
20--
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 incurred a net loss of INR xx mn in FY 20--, as compared to net profit of INR yy mn in FY 20--
Indicators
Particulars
Present Value X units Y units Z units A
Operating costs (% of Sales) Administration costs (% of Sales) Interest costs (% of Sales)
Liquidity Ratios Current Ratio Cash Ratio
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
Source:
Improved
ONCOLOGY PHARMACEUTICALS MARKET IN INDIA 2014.PPT
Decline
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Public: Domestic Company – Company C (3/3) Key Business Segments m
n
o
y
20--
z
x
y
z
20--
y
z
20--
y
20--
y
z x
x
x
y
y
y
z
z
z
z
20--
20--
20--
20--
x
x
x
x
x z
Key Geographic Segments
y
Key Recent Developments Description
News
Overview
• Company A is an integrated research based company that produces a wide range of generic medicines • Serves customers in over 100 countries with manufacturing facilities in several countries
Oncology Pharmaceuticals
• Products include include Product 1 and Product 2
Key Initiatives
• Is making consistent effort for continual improvement in rural areas with respect to accessibility of medicines
Source: ONCOLOGY PHARMACEUTICALS MARKET IN INDIA 2014.PPT
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