5 minute read
Growth Markets
4th
largest generic company in Australia
2nd
in Philippines reference market
2nd
in Mexico Ophthalmic Reference Market (Units)
6th
in Brazil Reference Market (Units)
Asia Pacific (APAC)
With a market size of USD 257 Billion, the APAC region accounts for more than 20% of the global pharmaceutical market. Lupin is present directly in major markets of Australia and Philippines. In markets of Japan and South Korea we operate through our local business partners. The APAC region accounts for 5% of Lupin’s global sales. In FY22, we recorded a growth rate of 27.8% in the region, while the market grew at 5.5%.
Japan
Lupin continues to cater to the market by supplying existing products, APIs, and select new products, through a licensing agreement with Kyowa Pharmaceutical Industry Co. Limited. In addition, we are also committed to our partnership with Yoshindo and Nichi-Iko for a biosimilar Etanercept that was launched in Japan in H2 FY20. We will continue to selectively introduce complex generics to the Japanese market, partnering to maximize value for the company. We will continue to selectively introduce complex generics to the Japanese market, partnering to maximize value for the company.
Australia
In 2022, the Australian pharmaceutical market is valued at USD 13.6 Bn with a growth rate of 5.5%. The generics segment in Australia has experienced consolidation in recent times and is growing at a faster rate of 7.5% due to Government support. Generic Health, Lupin’s Australian subsidiary, ranks fourth in the region among generic players and supplies generic prescriptions and OTC medicines to pharmacies and hospitals. Generic Health had entered into a definitive agreement to acquire 100% of shares of Southern Cross Pharma Pty Ltd (SCP) in December 2021 and the acquisition was completed in February 2022. SCP is incorporated in Melbourne, Australia, and is engaged in developing, registering, and distributing generic products. As a part of the acquisition, Generic Health will now offer over 60 registered products with sales exceeding AUD 30 Mn (approximately USD 22 Mn). As a result, Lupin’s value proposition and market share in the Australia will significantly increase. The combined revenues of Generic Health and SCP (post acquisition) were AUD 74 Mn, which corresponds to a strong closing in FY22.
Acquired Southern Cross Pharma to enhance Lupin’s value proposition in the Australian Market.
The Philippines
The pharmaceutical market in the Philippines is valued at USD 4.9 Billion, with a growth rate of 15.1% in 2022 following a decline of 5% in 2021. Lupin’s subsidiary in the Philippines, Multicare Pharmaceuticals Philippines Inc., is a premium branded generics company with strong presence in the rheumatology, gastrointestinal and diabetes segments. Within the reference market, we are ranked second among branded generic companies. With new strategies in place, Multicare demonstrated strong resilience against the COVID outbreak and ended the year with a total revenue of PHP 1,881 Mn, recording a 35% increase – twice the growth recorded by the pharmaceutical market in Philippines.
China
With China’s growing commitment to affordable and accessible healthcare, Lupin is committed to serving the healthcare needs of the Chinese population by providing high quality generics and complex generic drugs. Lupin successfully closed its first China partnership deal with Shenzhen Foncoo Pharmaceutical Co. Ltd. The Company also closed another strategic partnership with Yabao Pharmaceuticals Co. Inc. by leveraging its pediatric portfolio and catering to the growing needs of patients in China. Data Source: IQVIA Global MIDAS MAT Dec 2021 & Philippines IQVIA local Data Feb, 2022.
LATAM
At USD 50 Bn, the pharmaceutical market in the LATAM region grew by 17.6% in FY22, driven by the private market and innovations in select therapeutic areas. In FY22, our LATAM business recorded 5% sales growth compared to the prior year and contributed 4% to our overall revenues.
Brazil and Mexico, the two largest markets in the region, accounted for 63% of the LATAM market in size and recorded a growth of 13% in FY22. The region also includes exports from India. As a result of signing distribution agreements with key players in Chile, Peru and Colombia, we have now expanded our presence into these markets. Additionally, the region entered into an out-licensing agreement with Biomm for sales of Peg-Filgrastim in Brazil.
Mexico
With a market size of USD 10.7 Bn, Mexico is the second largest pharmaceutical market in Latin America. Despite pandemic-driven macroeconomic headwinds, the market registered strong growth of 13% in 2021.
Laboratorios Grin (Lab Grin), Lupin’s subsidiary in Mexico, reported a 15% increase in sales, while continuing to rank second in the ophthalmic reference market (by units). This growth is essentially coming from the private Branded channel fueled by a strong innovative pipeline. Lab Grin’s portfolio includes 50 ophthalmic products and ten primary care products. We are continually seeking opportunities to introduce innovative products to the ophthalmic market. By leveraging our global product pipeline, we plan to expand beyond the ophthalmic segment by launching products in the respiratory and CNS segments. We are committed to transforming Lab Grin’s portfolio into one that consists of innovative and branded generics products across therapy areas.
Brazil
With a market size of USD 24 Bn, the Brazilian pharmaceutical industry is the largest in the LATAM region, accounting for 44% of the region’s salesThe Brazilian pharmaceutical market in 2021 reported a growth rate of 12.3%, driven by the volume growth of essential medicines as well as the recovery of key therapy areas. Price pressures and higher input costs adversely affected profitability.
MedQuimica, Lupin’s Brazilian subsidiary, is now ranked 8th in terms of value and the 6th largest in terms of volume (in reference market), commanding a 3.92% market share and increasing by 11% compared to the last year. We are well-positioned to emerge stronger in the coming quarters with our efficient manufacturing platform and an optimal commercial structure.
Data Source: IQVIA Global MIDAS MAT Dec 2021 & BRA and MEX IQVIA local Data Feb, 2022
Outlook
We remain focused on increasing our presence in Growth Markets; increasing market share in the existing markets by launching a combination of in-house and in-licensed products, biosimilars and injectables, and entering new markets by building suitable partnerships, exploring acquisitions opportunities or identifying and launching products/ offerings catering to local existing unmet/growing patient needs.
