Healthcare Sector in India Monthly Update September 2012
Top Story 348 drugs to come under NLEM Indian government has for the first time decided to put a price ceiling on essential drugs that will bring relief to huge section of population. 348 such drugs have been identified by a group of ministers, the proposal of which has been passed on 27th Sep 2012. Drugs that will soon come under the National List of Essential Medicines (NLEM) include some of the most critical disease medications like AIDS and cancer apart from a multitude of painkillers, anti‐ tuberculosis drugs, sedatives, lipid lowering agents and steroids. The identified drugs that comprise 60% of domestic market will be sold at a price fixed by the government once it gets the approval of the cabinet. The initiative by the Indian government is praise worthy but its speedy implementation is what will bring out the true effectiveness of the plan. Unnecessary delays due to bureaucratic involvement could ruin the impact of the initiative. Thus, the cabinet and group of ministers must quicken the proposal assessment for mass benefit. News Update
General
Electronic health cards to be launched by Prime India Chennai based medical tourism and healthcare recruitment company Prime India Healthcare Pvt. Ltd. is in plans to launch electronic health cards. The health card will be used to document patient disease and health records of the patient as well as his family. The electronic health cards that come with a USB drive would be highly beneficial for doctors to administer the right treatment with minimum loss of time. Prime India is already providing the health cards to foreign clients as part of its medical tourism business and is now eager to launch the same for Indian patients through collaboration with hospitals, pharmacy retail chains and beauty wellness centres. The product will be launched first in Chennai within a month and 20 other cities soon after. In 3‐4 months time it is expected to be launched in 7 cities inclusive of top metro cities and tier II towns. BCG Group to invest on healthcare facilities development The healthcare division of Kochi based BCG Group; BCG Healthcare is in plans to develop 2 healthcare projects worth INR 3.35 bn. The healthcare division is eager to set up a health village and a super specialty hospital at Ernakulam in Kochi. The healthcare village valued to be approximately INR 2.25 bn has been specifically conceived for the aged in Kerala that forms almost 13% of the state population. Healthcare Sector – Monthly Update
The village will be providing traditional healing, cultural facilities and a club house for recreation. On the other hand BCG has already completed the construction of 100‐bed super specialty hospital at Palarivattom in Kochi that is approximately valued at INR 1.1 bn. The healthcare village is expected to be completed by 2015 while the multispecialty hospital will be completed in 2013. LifeCell partners with Sequel Logistics Chennai based the stem cell bank LifeCell International has entered into collaboration with Sequel Logistics for personalized delivery service of the umbilical cord blood and tissue samples. Sequel will aid in shipment of stem cells of new born through its partner airlines to LifeCell's processing and storage facility in Chennai. The shipment will be completed within 24 hours from metro cities and 36 hours from non‐metro cities. The partnership has been etched out specifically to avoid the long wait hours at airports. LifeCell will have provision of the service throughout its country wide network in over 100 cities and towns. Stem cells have to be sent to the processing and storage facility within 48 hours in order to achieve the highest quality stem cells. The partnership happens to be first of its kind which is expected to help LifeCell reap the benefits of a speedy transport facility.
News Update Regulatory
92 drugs to be pulled out from OTC segment The Drugs and Cosmetics Rules has notified a new schedule H1 to include over the counter (OTC) drugs that Indians are gradually becoming resistant to or could become resistant to. The H1 schedule comprises of 92 such antibiotic and anti‐tuberculosis drugs that will be restricted and would be made available only on presentation of prescription. The Drug Controller General has already brought the issue to the notice of Union Health Ministry that will take upon the necessary action. AIIMS conducting clinical trial of vivax malaria vaccine AIIMS has been conducting clinical trail of vivax malaria vaccine for its malaria afflicted patients. The synthetic malaria vaccination that AIIMS has been administering to its patients was launched by a private pharmaceutical company on 25th April 2012 slated as the World Malaria Day. The vaccine is not yet available in the open market and is being administered only to patients admitted in AIIMS emergency. 300 such malaria afflicted patients have been administered the vaccine, the clinical trial results of which are being kept undisclosed by the hospital.
Healthcare Sector – Monthly Update
Depending on the results of the trial the vaccine will be made available in government hospitals at subsidized rates. The vaccination is expected to bring about a welcome change for patients since the disease till date has no dependable medication. DBT funds inStem for its research initiative The Department of Biotechnology (DBT) will be investing INR 950 mn in collaboration with National Centre for Biological Sciences (NCBS) and Tata Institute of Fundamental Research for a new initiative by the Institute for Stem Cell Biology and Regenerative Medicine (inStem). inStem is being funded for its initiative in the area of chemical biology and molecular therapeutics in Bengaluru. inStem – NCBS would be collaborating with UK based University of Cambridge for carrying out research in cancer and biomedical research. HLL initiates fair price outlet at Government Eye Hospital HLL Lifecare, a mini ratna public sector undertaking in collaboration with Kerala state government has established a fair price ophthalmic products outlet at Regional Institute of Ophthalmology. The outlet will be supplying products like spectacles, lenses and frames with a rebate in the range of 20% to 60% in comparison to open market prices. Non‐existence of any price regulation for ophthalmic products where prices are fixed as per the private players, there was urgent need of ophthalmic products subsidization. The company that strives to provide quality products at affordable prices will be a boon for the poor.
News Update Expansion Plans
Wockhardt launches generic anti depressant Wockhardt has acquired approval for marketing Bupropion HCl tablets from United States Food & Drug Administration (US FDA). The anti depressant drug is the generic form of Wellbutrin® SR that is marketed in the USA by GlaxoSmithKline. Following the approval, Wockhardt plans to launch the product with immediate effect. The pharmaceutical and biotechnology major developed the anti depressant drug technology in‐house and manufactured the same at its Waluj facility in Maharashtra. The approval sums up to Wockhardt’s 6th Abbreviated New Drug Application (ANDA) approval within a phase of 2 weeks and the generic drug happens to be one of Wockhardt’s product based on extended‐release technology. Global rise in the number of depression patients is facilitating companies to launch anti depressants especially generic versions that have 2‐way benefit for pharma companies as well as patients. Healthcare Sector – Monthly Update
EMAGIC® Plus stent forays into India Opto Eurocor Healthcare Limited (OEHL) has launched its first Sirolimus Drug Eluting Stent (DES), E‐MAGIC® Plus following the approval from Drug Controller General of India (DCGI). The product launched by OECL has a choice of 2 drug coatings. The launch of the product makes OECL one of the very few companies to have dual drug coating DES product. The stent has particularly been designed with an extra edge with soft tip technology to provide smooth access to the lesion site ensuring minimal trauma to the vessel wall. The newly launched product will bring relief to patients as the stent will help in reducing drug consumption significantly. The innovation by OEHL will help patients in India to opt for better products that would otherwise have to be imported. Osmotica forms an alliance with Panacea Biotec Wilmington based Osmotica Pharmaceutical Corp. has joined hands with Indian biotechnology company Panacea Biotec Ltd. with the aim to launch more drugs in North American market. The alliance will see Panacea focusing on product development and manufacturing while Osmotica will deal in product registration, legal matters, attaining approvals for the drugs and preparing for launch of products in the market. The deal that was signed on 11th Sep, 2012 will be beneficial for both the companies as both can stimulate their business extensively. The partnership will help them in tapping the US market that is currently projecting an ever increasing demand for high‐quality pharmaceutical products. Stem cell research institute to be set up in Surat The Gujarat state health minister, Jay Narayan Vyas announced the setting up of a Stem Cell Research Institute in Surat at the 2‐day Regional Science Congress meet. The research institute has been estimated to be approximately worth INR 1 bn and is expected to start operation by the end of 2013. The research institute at Surat is being set up in the framework of Stem Cell Research at Vellore, Tamil Nadu but will be equipped with latest facilities. Stem cell therapy known to be beneficial for treatment of wide array of critical ailments like heart ailments, kidney disorders, blood cancer, and thalassaemia is getting prominence in Indian medical circuit. The Surat research institute that is being financed by the health department will thus be making treatments of such critical diseases accessible. Trivitron inks pact with Johari Chennai based Trivitron Healthcare has entered into a strategic alliance with Jodhpur based Johari Digital Healthcare to capture global medical devices market. The allies will engage themselves in manufacture and marketing of physiotherapy, diagnostic care products and also focus on acquiring patents in physiotherapy genre. The joint venture has been labeled as Johari Trivitron Medical Innovations Pvt. Ltd. that would look into contract designing and engineering of the products. The firm would also carry out contract R&D from global partners. The venture will be established at Trivitron Research Park within IIT Madras. Healthcare Sector – Monthly Update
The products are being designed keeping India, South and South East Asia, Middle East and African geographies in mind which demand cost effective high quality products. The deal will see Johari manufacturing the products and Trivitron dealing with its marketing and sales. NVP invests in Thyrocare Technologies Norwest Venture Partners (NVP) has invested INR 1.2 bn in Mumbai based Thyrocare Technologies. As per the deal structure, the investment will bring in NVP’s managing director Sohil Chand as Thyrocare’s board member. The investment will initiate Thyrocare to explore global markets for its medical diagnostic products. Thyrocare has its presence through a network of 20,000 service centers across 1,000 cities and towns, and 100,000 doctors through 600 franchisees. Its wide presence is expected to be accelerated further to reach globally with the new investment. Industry Expert Speak DBT funds inStem for its research initiative Professor Ashok Venkitaraman, Ursula Zoellner, professor of Cancer Research, University of Cambridge and director, Medical Research Council Cancer Cell Unit “The research will now improve our fundamental understanding of the cellular abnormalities that cause human diseases like cancer but also to translate this information for the benefit of patients” Trivitron inks pact with Johari Dr. GSK Velu, Founder and MD of Trivitron Healthcare "This partnership is an important step towards taking Indian medical technology solutions at a global level."
Transaction Detail (Jul – Sep 2012)
Date
Buyer
Target
Deal Size (INR mn)
% stake
Deal Status
Type of Transaction
27th Sep 2012
Norwest Venture Partners
Thyrocare Technologies
1200
10%
Completed
Private Equity
Healthcare Sector – Monthly Update
12th Sep 2012
Avigo Capital Partners
Super Religare Laboratories
2,916.79
N.A.
Planned
Private Equity
12th Sep 2012
IndoUS Venture Partners
Vyome Biosciences Pvt Ltd.
185
N.A.
Planned
Private Equity
11th Sep 2012
Norwest Venture Partners
Thyrocare Technologies Ltd
1166.71
10%
Planned
Private Equity
250
N.A.
Completed
Private Equity
11125.89
100%
Completed
Acquisition
5th Sep 2012
Norwest Venture Partners
NationWide Primary Healthcare Services Pvt. Ltd. Orchid Chemicals and Pharmaceuticals Ltd. Penicillin and Penem API business
30th Aug 2012
Hospira
29th Aug 2012
Pfizer
Strides Arcolab Injectable Drug Unit
94600
100%
Planned
Acquisition
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
Healthcare Sector – Monthly Update
13th Aug 2012
Sun Pharmaceutical Industries Ltd.
Taro Pharmaceutical 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
4th Jul 2012
Rajasthan Venture Capital Fund
International Oncology Services Pvt. Ltd.
200
N.A.
Completed
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
Dr. Reddy’s Laboratories (DRL)
69,441.00
70,277.00
74,693.00
96,737.4
Healthcare Sector – Monthly Update
GlaxosmithKline Consumer Healthcare Ltd. Glenmark Pharmaceuticals Ltd.
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
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
Biocon Ltd.
Healthcare Sector – Monthly Update
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
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
Healthcare Sector – Monthly Update
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
5,770.0
N.A.
5,896.9
N.A.
N.A.
12,196.40
13,524.60
14,633.9
15,161.0
N.A.
17,580.00
N.A
N.A.
12,623.30
14,526.80
13,858.3
14,620.0
22,678.00
27,692.00
26,584.0
25,406.0
7,200.7
6,854.0
8,608.7
7,869.6
10,554.50
10,310.90
10,751.2
10,404.1
Jubilant life Sciences Ltd.
10,480.80
10,871.70
12,235.9
12,358.9
Lupin Ltd.
17,416.6
17,917.0
20,063.7
22,191.5
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
7,150.6
Piramal Healthcare Ltd.
4,775.80
5,518.30
8,858.0
7,102.9
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
26,581.4
6,833.3
6,965.9
6,686.8
7,356.0
11,105.30
12,086.70
12,413.90
14,258.2
Blue Star Ltd. Cadila Healthcare Ltd. Cipla Ltd. Dabur India Ltd. Dr. Reddy’s Laboratories (DRL) GlaxoSmithKline Consumer Healthcare Ltd. Glenmark Pharmaceuticals Ltd.
Torrent Pharmaceuticals Ltd Wockhardt Ltd.
Healthcare Sector – Monthly Update
Quarterly Financial Results – Income (INR mn) Major Healthcare Companies
JulSep 2011
OctDec 2011
JanMar 2012
AprJun 2012
857.0
848.50
978.0
790.0
N.A.
(327.6)
N.A.
N.A.
1,026.80
1,492.10
1,708.8
1,947.9
N.A.
2,699.10
N.A.
N.A.
1,738.6
1,728.20
1,705.1
1,494.0
3,078.0
5,130.0
3,427.0
3,360.0
1,030.3
591.0
1,319.7
1,066.0
558.6
461.20
1,482.7
782.8
793.6
‐783.90
‐635.3
50.1
Lupin Ltd.
2,668.70
2,350.60
1,556.4
2,803.9
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
1,380.2
Piramal Healthcare Ltd.
524.3
85.2
‐386.8
40.8
‐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
7,955.5
999.9
831.8
‐16.5
1,018.5
1,275.80
2,128.10
‐1,916.4
3,779.7
Companies Biocon Ltd. Blue Star Ltd. Cadila Healthcare Ltd. Cipla Ltd. Dabur India Ltd. Dr. Reddy’s Laboratories (DRL) GlaxoSmithKline Consumer Healthcare Ltd. Glenmark Pharmaceuticals Ltd. Jubilant life Sciences Ltd.
Ranbaxy Laboratories Ltd.
Sun Pharmaceuticals Industries Ltd. Torrent Pharmaceuticals Ltd Wockhardt Ltd.
* denotes a change in financial year
Healthcare Sector – Monthly Update
Events Calendar PreConference Workshops & International Conference on EVIDENCEBASED HEALTHCARE Pharma Legal & Compliance Summit 2012 Date: 6th – 8th Oct, 2012 Date: 5th Oct, 2012 Venue: Hotel Holiday Inn, Mumbai Venue: India International Centre, New Delhi Organizer: Lex Witness r: Clinical Epidemiology Unit of Organize All India Institute of Medical Sciences (AIIMS) Website: www.plcs2012.com Website: http://www.isehcon2012.com Contact Person: 01143440000 Contact Person: Dr. Kameshwar Prasa d Contact No. : +91‐8800841600 Contact No.: +91‐11‐26594436/26588434 Email: Neelima@WitnessLive.in Fax No.: +91‐11‐26588663/26588641 Email: isehcon2012@gmail.com Research on India (ROI) is a leading source for market research on various sectors in India that offers premium research content from worldwide publishers of market research reports. Contact us: W: https://www.researchonindia.com T: India (Toll Free): 1800 102 1133; International: +91 (33) 4027 6214/5 E: support@researchonindia.com Connect with Us Disclaimer: This monthly update is published for general information only based on press articles and company releases. Research on India has not independently verified any of information and is not responsible for any loss or damage arising from use of this document.
Healthcare Sector – Monthly Update