Healthcare Sector in India Monthly Update August 2012
Top Story Aurobindo Pharma and Glenmark to set their footprint in US market The US FDA has lent approval for manufacturing and marketing of generic version of montelukast sodium tablets to Aurobindo Pharma and Glenmark. The companies are already finalizing distribution of asthma and allergies related drug in US market. Aurobindo Pharma has been granted approval for marketing of montelukast sodium tablets of 10mg strength and chewable version of 4mg and 5mg strength. Glenmark on the other hand has been granted abbreviated new drug approval (ANDA) for the 10mg strength tablet. The aforementioned drug is the generic version of Merck & Co's Singulair tablets that is prescribed for asthma, allergic rhinitis and prophylaxis. The launch of generic version of the drug can benefit US patients by the cost curtailment that generics offer. News Update
General
Cognosys launches CogHMS solution Cognosys Technologies has recently launched the BI version of its Hospital Management Premier Suite named as CogHMS in India. The hospital information system has been designed for integrating hospital chains and related wellness centres integrate seamlessly. The CogHMS has been developed by IBM Certified Healthcare Software Sales Professionals team from Cognosys and has been certified by Microsoft Azure and HP Convergence Infrastructure Cloud. The software has been built keeping in mind the rapid progress that is taking place in the IT world as it can be accessed from a single browser through tablets, self service kiosks and is equipped with biometric recognition and electronic medical record (EMR). It can help in powerful integration of all the essential departments of the hospital that comprises of not only in‐house pharmacy, canteen, laundry, blood bank, financial transaction but also 3rd party insurance providers. Installation of the software help will help in drastically reducing cost of operation through its Software as a Service (SaaS) solution and making hospital operation and patient care more robust. Cipla to establish 3 new API manufacturing plants Mumbai based Cipla Ltd. is in plans to invest INR 5 bn for establishing active pharmaceutical ingredients (API) manufacturing facilities at Patalganga and Kurkumbh districts in Maharashtra and at Bengaluru in Karnataka. Cipla expects completion of establishment of facilities by 2012‐13. Cipla’s sole intension of setting up API manufacturing plants is specifically because of acceptance of its several dosage forms by US FDA and WHO. Healthcare Sector – Monthly Update
Cipla has been earning a major share of its revenue from international markets that is driving Cipla to focus on the products demanded in international markets. Neiss Wellness captures marketing rights of My Wish Hub in India The London based nutraceutical company My Wish Hub (MWH) will foray into Indian market through Mumbai based Neiss Wellness India Ltd. Neiss Wellness has been endowed with the responsibility of preparation and implementation of marketing strategies and generation of distribution network for MWH products. MWH primarily deals in over‐the‐counter (OTC) products, nutritional supplements as well as cosmetics. Apollo taking initiative to strengthen its owner label product portfolio Apollo Hospitals Enterprise is focusing at raising its number of owner label products in its retail pharmacy business segment. The enterprise has over 200 private label products and is set to augment its product portfolio by increasing its nutraceutical segment product base. By strengthening its pharmacy retail product base Apollo is targeting to enhance its total pharmacy sales from current 4% to 10% in 3‐4 years time. Private labels draw a comparatively higher profit margin which is encouraging retailers and super market operators to take initiative in scaling up sale of private label products. Gujarat attracting investments from major healthcare companies US based Abott Laboratories is in plans of establishing a manufacturing plant at Jhagadia in Gujarat. The manufacturing plant will cater to manufacture of its neutraceutical range of products that comprises of brands like Ensure and PediaSure. The company has already acquired 45 acres of land and will be set up with an initial investment of INR 3.6 bn. With establishment of the Gujarat plant it will be the second neutraceutical manufacturing plant apart from the one located at Mumbai in Maharashtra. Gujarat has been attracting investments from various healthcare companies – Israel based Teva Pharmaceutical Industries in collaboration with US based Procter & Gamble has invested INR 5bn. Scotland based Mark Dolan and Singapore based Biosensors International are among other key investors. Religare to launch IPO Religare Healthcare Trust will launch an initial public offering (IPO) of INR 22 bn in Singapore that will help Indian hospital group Fortis Healthcare to reduce its debt level. The premarketing of the IPO is expected to be initiated in Sep 2012. The IPO will be offering a minimum yield of 8.5% to its investors that are being structured as a business trust. Fortis Group is also considering the launch of IPO for its Indian diagnostic business SRL Diagnostics Ltd.
Healthcare Sector – Monthly Update
Fortis Group has registered a consolidated net debt of INR 62.37bn as on Jun 2012 and in an effort to improve the company’s leverage ratios; the conversion from private to public enterprise has been chalked out as the best possible solution. Wockhardt acquires FDA approval for Felodipine Mumbai based Wockhardt Ltd. has earned approval from the Food and Drug Association (FDA) for its generic blood pressure drug. Wockhardt formulated felodipine which is the generic version of AstraZeneca high blood pressure drug named Plendil. The tablets will be made available at 2.5 mg, 5 mg and 10 mg strengths. Having gained the approval, Wockhardt plans to launch the drug immediately. The FDA approval for the hypertension drug will open a huge market base for Wockhardt that can reap sizeable revenue for the company.
News Update Regulatory
Clinical trials to be made compulsory for traditional drugs The department of Ayush (Ayurveda, Unani, Siddha and Homeopathy) has raised the proposal of establishing two separate drug controller generals for allopathic and traditional medicines. A proposal has been raised to make clinical trials mandatory for all new traditional medicines that will cater to only the new patented drugs. The rising export of AYUSH and herbal products and lack of any formal protocol on detection of safety standards of traditional drugs has led the department of Ayush to keep a tab on standard of ASU drugs. The implementation of clinical trials for traditional Ayurveda, Siddha and Unani medicines will mark the wider acceptance of these medications. New Drugs Advisory Committee rolls out permit for clinical trial proposal The newly formed expert advisory committee New Drugs Advisory Committee of Vaccine operating under Drug Controller General of India (DCGI) has rolled out permission for conducting Phase I clinical trial to vaccination proposals. The committee has permitted clinical trial application of diphtheria, tetanus; acellular pertussis (DTaP) vaccines to Pune based Serum Institute of India. The consent from the committee has been granted under the condition to submit the data for the patients to be enrolled for the clinical trial for the committee’s satisfactory evaluation. PCMC and MUHS join hands for establishment of medical institute The Pimpri Chinchwad Municipal Corporation (PCMC) and Maharashtra University of Health Sciences (MUHS) have joined hands to establish a post graduate medical institute. The Healthcare Sector – Monthly Update
institute will be established at Yashwantrao Chavan Memorial Hospital (YCMH) at Pimpri in Maharashtra. The setting up of the institute comes under the 'Vision 2030 ‐ health and medical services in Pimpri Chinchwad.' A MoU draft will be conceived by the participants shortly that will be sent to civic body for required modifications and will go into the approval table on Sep 11, 2012. India aids Sri Lanka The Indian government is assisting the Sri Lankan government in setting up a 200 bedded ward complex at Vavuniya District Hospital that will cater to the needs of indoor patients of Vavuniya and its adjoining districts. The Indian government will be providing full grant assistance by payment of INR 200 mn for establishment of the unit. It is being implemented by joint effort of the Health Ministry and the Northern Province Indigenous Medicine Ministry that is expected to start operation post Feb 2014. The proposal for the unit was submitted by the Health and Indigenous Medicine through the External Resources Department in Feb 2012. Apart from Vavuniya District Hospital, India has also aided Sri Lankan town of Dickoya in construction of 150 bedded hospital by providing a grant of INR 1.2 bn that is expected to initiate operation by Apr 2013. The development partnership between India and Sri Lanka for assistance in improvement of Sri Lanka’s health sector is proving beneficial for the island neighbor of India.
News Update Expansion Plans
Stempeutron to mark its launch in 2015 Bangalore based Stempeutics Research Pvt. Ltd. is expected to launch its product Stempeutron by mid 2015. Stempeutron is currently undergoing phase II clinical trial for indication of critical limb ischemia (CLI), osteoarthritis (OA) and liver sclerosis. On receipt of clearance of phase II clinical trial the drug that is expected to be issued in 6 months, it will enter phase III trial by early 2013. The clinical trial has enrolled patients on a pan India basis with 126 patients registered for CLI and 60 patients each for OA and liver sclerosis. The Mission Hospital Group to enter Ranchi Durgapur based The Mission Hospital (TMH) is in plans of investing INR 1 bn in setting up a 200 bedded super specialty hospital at Tupudana Industrial Area in Ranchi. The Jharkhand government will provide 3.7 acres plot on a long term lease basis for 30 years followed by
Healthcare Sector – Monthly Update
renewal for the same period. The lease will be granted by the Ranchi Industrial Area Development Authority (RAIDA). The project will come up as a public private partnership (PPP) between the TMH and the Jharkhand government. TMH already has presence in Durgapur, Asansol, Siliguri and Gangtok – and with this hospital it shall be able to expand its network to Jharkhand too. Royapettah Hospital to set up cancer unit Chennai located Government Royapettah Hospital will establish a cancer treatment centre that is estimated to be worth INR 170 mn. The state government of Tamil Nadu under the aegis of Chief Minister J Jayalalithaa has decided to sanction a grant worth INR 99.3 mn. The amount allocated by the state government will be directed towards the purchase of new medical equipments and creation of 83 medical and para‐medical vacancies. The establishment of cancer unit in the government hospital will be beneficial for the under privileged population section as the chief minister has directed for the expansion of the realm of "Chief Minister's Comprehensive Health Insurance Scheme" to include members registered under the Farmers' Protection Scheme. Pluristem Therapeutics to conduct clinical trial in India The Indian Ministry of Health has granted permission for conducting Phase II clinical trial to the Israel based therapeutics company Pluristem Therapeutics Ltd. The company will be carrying out clinical trial for placental expanded cells for treatment of Buerger's disease. Buerger's disease causes blockage of blood vessels of the hands and feet. The successful completion of Phase II trial will be followed up by a multi‐national Phase III trial in USA, Europe and India. The rare but common disease in India that affects 45%‐63% of patients suffering from peripheral artery disease will find a solution that currently has no remedy. The urgent need for a certified treatment has led the Indian Health Ministry to give nod for the clinical trial. S3V Vascular Technologies increasing its number of manufacturing plants Bangalore based S3V Vascular Technologies Pvt. Ltd. will initiate operation of a new manufacturing plant at Bangalore by end of 2012. The company has made an investment of INR 14 bn for initiation of this manufacturing plant. The company is also in plans of expanding its medical devices product line for which it is eyeing location at Vishakhapatnam to set up a facility by 2014. It aims to develop futuristic products in fields of intervention cardiology, neurology, peripheral and endovascular treatments. The product line would include catheters, disposables and other devices used in various angiographic procedures in radiology and cardiology. Healthcare Sector – Monthly Update
Cipla pacts with Aspen Pharmacare Mumbai based Cipla has signed a pact with South Africa based Aspen Pharmacare for marketing its products in Australia. Cipla partnered with the supplier of branded and generic pharmaceuticals company Aspen as it has a marketing network in over 100 countries. Cipla would be developing the generic products that Aspen would be marketing in Australia. The deal was struck after Aspen’s recent acquisition of Australian drug maker Sigma Pharmaceuticals’s OTC and pharmaceutical divisions. Mylan forays into India market USA based Mylan Pharmaceuticals has initiated its Indian operations and will be focusing especially on HIV/AIDS drugs for now. The company will be launching 18 antiretroviral drugs in Indian market. Aiming to provide quality medication to the huge population the company has decided to initiate marketing of its broad portfolio of antiretroviral drugs. Moolchand Healthcare in expansion spree Moolchand Healthcare Pvt. Ltd. is in plans of expanding its base through acquisitions. The company has set aside INR 5 bn for acquisition of hospital chains, in‐vitro fertilization (IVF) clinics and pathological laboratories. The healthcare institute has tied up with private equity firm Sequoia Capital for funding the expansion. The enterprise will invest about INR 2 bn on buyout of IVF clinics, INR 50 bn for lab acquisitions with INR 1 bn being funded by Sequoia Capital and the remaining from internal accruals and debt. The expansion programme will be initiated with hospitals in the northern and eastern parts of India and for IVF clinics and pathological labs expansion will be targeted in tier II and tier III towns and cities. Industry Expert Speak Gujarat attracting investments from major healthcare companies Ankit Suri, Associate Vice President, Tecnova India "A foreign company looks at state government's investment friendly policies, labor availability and customer base in the region. Gujarat is a perfect destination for foreign pharma companies as the state offers single‐window approval, low cost of land, skilled labor and is a hub for pharma and generic medicines.” Pluristem Therapeutics to conduct clinical trial in India Zami Aberman, Chairman, President and CEO "The information gathered in this trial will be a valuable step towards our goal of successfully developing a PLX cell‐based product for the treatment of the entire spectrum of peripheral vascular diseases."
Healthcare Sector – Monthly Update
Transaction Detail (Jun – Aug 2012)
Date
Buyer
Target
Deal Size (INR mn)
% stake
Deal Status
Type of Transaction
23rd Aug 2012
India Innovation Fund & Indian Angel Network
Consure Medical
N.A.
N.A.
Completed
Private Equity
21st Aug 2012
India Equity Partners
Axiss Dental
N.A.
N.A.
Planned
Private Equity
13th Aug 2012
Somerset Indus Capital Partners
Express Clinics Pvt. Ltd.
N.A.
N.A.
Completed
Private Equity
13th Aug 2012
Goldman Sachs & New Enterprise Associates
Nova Medical Centres
2969.35
N.A.
Completed
Private Equity
13th Aug 2012
Sun Taro Pharmaceutical Pharmaceutical Industries Ltd. Industries
32,552.9
34%
Planned
M&A
30th Jul 2012
Sequoia Capital
Practo Technologies Pvt. Ltd.
250
N.A.
Completed
Private Equity
23rd Jul 2012
Signet Healthcare Partners
Claris Lifesciences
227.6
2.20
Completed
Private Equity
19th Jul 2012
Medtronic Inc.
Trivitron Healthcare
5498.70
N.A.
Planned
Private Equity
13th Jul 2012
Evolvence India Life Sciences Fund
Dr. Agarwal's Healthcare
600
25
Completed
Private Equity
Healthcare Sector – Monthly Update
4th Jul 2012
Rajasthan Venture Capital Fund
International Oncology Services Pvt. Ltd.
200
N.A.
Completed
Private Equity
14th Jun 2012
Jacob Ballas Capital & IFC
Super Religare Laboratories (Fortis Healthcare)
3700
N.A.
Planned
Private Equity
Annual Financial Results – Revenue (INR mn) – Major Healthcare Companies Companies
FY ’09
FY ’10
FY ’11
FY’ 12
Biocon Ltd.
16,492.50
23,932.70
27,947.70
21,483.0
Blue Star Ltd.
25,026.2
25,249.7
29,536.8
27,888.5
Cadila Healthcare Ltd.
29,066.00
35,780.00
44,671.00
50,899.7
Cipla Ltd.
52,876.20
56,704.00
63,850.70
68,477.0
Dabur India Ltd.
28,122.40
33,958.00
40,817.40
52,832.0
69,441.00
70,277.00
74,693.00
96,737.4
19,757.6
23,693.3
27,688.6
28,857.3
21,241.20
25,291.30
29,490.70
40,206.4
Jubilant life Sciences Ltd.
35,491.00
38,047.80
34,484.40
42,539.5
Lupin Ltd.
38,508.30
48,318.10
57,851.90
70,829.1
Nestle India Ltd.
51,395.5
62,609.4
74,994.6
77,409.0
Opto Circuits (India) Ltd.
8,185.197
10,775.826
15,855.631
23,568.543
Piramal Healthcare Ltd.
32,478.20
36,276.30
25,157.70
20,838.3
Ranbaxy Laboratories Ltd.
75,970.40
89,607.70
101,614.1
117,153.2
Dr. Reddy’s Laboratories (DRL) GlaxosmithKline Consumer Heathcare Ltd. Glenmark Pharmaceuticals Ltd.
Healthcare Sector – Monthly Update
Siemens India Ltd.
93,070.2
96,272.4
119,718.1
124,657.9
Strides Arcolab Ltd.
13,101.6
16,958.4
25,245.2
25,645.1
42,723.00
38,086.30
57,214.30
80,056.6
16,306.60
19,160.40
22,264.80
26,959.2
3,6294.4*
36,477.60
37,633.50
46,138.0
Sun Pharmaceuticals Industries Ltd. Torrent Pharmaceuticals Ltd. Wockhardt Ltd.
Annual Financial Results – Income (INR mn) Major Healthcare Companies Companies
FY ’09
FY ’10
FY ’11
FY’ 12
931.2
2,932.40
3,675.20
3,384.0
Blue Star Ltd.
1,802.9
2,114.9
1,609.6
‐1,051.0
Cadila Healthcare Ltd.
3,031.00
5,051.00
7,110.00
6,525.9
Cipla Ltd.
7,710.20
10,825.90
9,895.70
11,442.4
Dabur India Ltd.
3,905.00
5,010.80
5,685.70
6,449.0
Dr. Reddy’s Laboratories (DRL)
‐5,168.00
1,068.00
11,040.00
14,262.1
Glaxosmithkline Consumer Healthcare Ltd.
2,327.8
2,998.5
3,552.1
3,765.6
Glenmark Pharmaceuticals Ltd.
1,916.60
3,244.70
4,532.10
4,603.5
Jubilant life Sciences Ltd.
2,831.80
4,214.60
2,297.20
145.6
Lupin Ltd.
5,015.40
6,816.30
8,625.50
8,676.5
Nestle India Ltd.
6,550.0
8,186.6
9,615.5
9,815.7
Biocon Ltd.
Healthcare Sector – Monthly Update
Opto Circuits (India) Ltd.
2,087.3
2,603.0
3,672.5
5,718.8
Piramal Healthcare Ltd.
3,162.50
4,819.00
128,833.60
1,115.0
Ranbaxy Laboratories Ltd.
2,964.90
14,967.50
‐28,997.3
‐19,573.5
Siemens India Ltd.
7,046.0
7,577.7
8,677.5
7,300.6
Strides Arcolab Ltd.
1,096.80
1,224.50
2,244.8
8,258.4
Sun Pharmaceuticals Industries Ltd.
18,177.30
13,510.80
18,160.60
25,872.5
Torrent Pharmaceuticals Ltd.
1,843.70
2,312.00
2,701.70
2,840.4
Wockhardt Ltd.
‐4,355.4*
‐9,804.20
905.2
3,427.1
Quarterly Financial Results – Revenue (INR mn) – Major Healthcare Companies Companies
JulSep 2011
OctDec 2011
JanMar 2012
AprJun 2012
Biocon Ltd.
5,084.40
5,171.90
5,892.2
N.A.
N.A.
5,896.9
N.A.
N.A.
12,196.40
13,524.60
14,633.9
N.A.
N.A.
17,580.00
N.A
N.A.
12,623.30
14,526.80
13,858.3
N.A.
22,678.00
27,692.00
26,584.0
N.A.
7,200.7
6,854.0
8,608.7
7,869.6
10,554.50
10,310.90
10,751.2
N.A.
Blue Star Ltd. Cadila Healthcare Ltd. Cipla Ltd. Dabur India Ltd. Dr. Reddy’s Laboratories (DRL) Glaxosmithkline Consumer Healthcare Ltd. Glenmark Pharmaceuticals Ltd.
Healthcare Sector – Monthly Update
Jubilant life Sciences Ltd.
10,480.80
10,871.70
12,235.9
N.A.
Lupin Ltd.
17,416.6
17,917.0
20,063.7
N.A.
Nestle India Ltd.
19,631.00
19,633.2
20,558.7
19,865.8
Opto Circuits (India) Ltd.
5,620.4
6,112.9
6,627.0
N.A.
Piramal Healthcare Ltd.
4,775.80
5,518.30
8,858.0
N.A.
Ranbaxy Laboratories Ltd.
20,955.3
37,923.1
36,954.0
31,740.6
Siemens India Ltd.
N.A.
N.A.
37601.432
N.A.
Strides Arcolab Ltd
7,693.10
6,864.7
5,274.7
5,082.9
Sun Pharmaceuticals Industries Ltd.
18,946.00
21,451.30
23,299.3
N.A.
6,833.3
6,965.9
6,686.8
N.A.
11,105.30
12,086.70
12,413.90
N.A.
Torrent Pharmaceuticals Ltd Wockhardt Ltd.
Quarterly Financial Results – Income (INR mn) Major Healthcare Companies
Companies Biocon Ltd. Blue Star Ltd. Cadila Healthcare Ltd. Cipla Ltd. Dabur India Ltd. Dr. Reddy’s Laboratories (DRL) Glaxosmithkline Consumer Healthcare Ltd.
JulSep 2011
OctDec 2011
JanMar 2012
AprJun 2012
857.0
848.50
978.0
N.A.
N.A.
(327.6)
N.A.
N.A.
1,026.80
1,492.10
1,708.8
N.A.
N.A.
2,699.10
N.A.
N.A.
1,738.6
1,728.20
1,705.1
N.A.
3,078.0
5,130.0
3,427.0
N.A.
1,030.3
591.0
1,319.7
1,066.0
Healthcare Sector – Monthly Update
Glenmark Pharmaceuticals Ltd.
558.6
461.20
1,482.7
N.A.
Jubilant life Sciences Ltd.
793.6
‐783.90
‐635.3
N.A.
Lupin Ltd.
2,668.70
2,350.60
1,556.4
N.A.
Nestle India
2,611.80
2,308.30
2,757.3
2,459.7
Opto Circuits (India) Ltd.
1,210.6
1,250.8
2,093.5
N.A.
Piramal Healthcare Ltd.
524.3
85.2
‐386.8
N.A.
‐4,645.8
‐29,827.7
12,467.6
‐5,857.3
Siemens India Ltd.
N.A.
N.A.
3,040.0
N.A.
Strides Arcolab Ltd
464.7
684.1
6,420.7
904.8
5,977.4
6,683.0
8202.1
N.A.
999.9
831.8
‐16.5
N.A.
1,275.80
2,128.10
‐1,916.4
N.A.
Ranbaxy Laboratories Ltd.
Sun Pharmaceuticals Industries Ltd. Torrent Pharmaceuticals Ltd Wockhardt Ltd.
* denotes a change in financial year
Events Calendar
Healthcare Bihar 2012 Date: 1st Sep, 2012 Venue: Hotel Maurya, Ashoka Banquet, South Gandhi Maidan at Patna Contact Person: Vijay Bhuller/ Dilip Kumar Contact No.: +91‐612‐6450301/+91‐612‐6450301 Fax No.: +91‐612‐2238572/ +91‐612‐2238572 Email: vijay.bhuller@cii.in / dilip.kumar@cii.in
25th Annual Conference of The Indian Society for Atherosclerosis Research ISARCON 2012 Date: 1st Sep – 3rd Sep, 2012 Venue: Chidambaram, Tamil Nadu Website: annamalaiuniversity.ac.in/biochem_conf sep12.htm Contact Person: P. Subramanian
2nd International Conference on Pediatrics & Gynecology Date: 24th Sep – 26th Sep, 2012 Venue: Hyderabad Marriott Hotel & Convention Centre, Hyderabad Website: www.omicsonline.org/pediatrics2012/ Contact No.: +91‐40‐27522999
Healthcare Sector – Monthly Update
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Healthcare Sector – Monthly Update