...enjoyed steady growth in recent years, despite a global economic downturn. But with patent expiries, stricter regulations, and U.S. healthcare reforms, the pharmaceutical industry is increasingly under pressure to maintain its steady revenue flow. With the patent cliff looming through 2014, many pharmaceutical companies are restructuring to reestablish their industry dominance. They are reinventing themselves through mergers and acquisitions, or are signing licensing deals in order to survive. Real Publishing presents a study of key pharma industry trends. This report offers an analysis of the impact of those trends, and reforms and regulations, particularly in the U.S. and the EU. Key Trends Explored: - Generic drug manufacturers are gearing up to take advantage of the opportunities presented by the many patent expiries - What trends are impacting the leading generic drug manufacturers such as Teva, Sandoz, and others - What government regulations and policies will effect pharma company bottomlines in 2012 and beyond? - How are pharma companies using mergers and acquisitions to maintain a competitive edge? - What is the state of the current global pharmaceutical industry and where is it growing? - Pharmerging countries contribute approximately half of growth, with China as third-largest market Global Pharma Industry Trends Examined: - Challenge of Patent Expiries - Challenges Facing the Generic Market - Cost-savings with Generics -...
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...Issue 5 / China’s chronic disease challenge Features from our global market research experts Free Thinking China’s chronic disease challenge Marc Yates, Director of Emerging Markets, looks at the chronic disease challenge in China and asks what it means for China’s healthcare policy and to global pharmaceutical companies looking to operate in this double-digit growth market. In 2012 the urban population exceeded the rural population for the first time. Urbanisation brings significant benefits such as improved sanitation, greater affordability and increased access to healthcare. It also changes the disease paradigm with a reduction of infectious diseases but an increase in diseases of affluence, such as cardiovascular diseases and diabetes. The diabetes problem Research from Peking University suggests that China now has more diabetes patients than even India and it is hitting the country hard. In 2007 almost 600,000 adult deaths in China were directly attributable to diabetes, and there was a significant gender difference, with males accounting for 57% of all diabetes-related deaths. And the diabetes problem is not getting any easier. The International Diabetes Federation predicts the health expenditure to increase by an average of 20% between 2007 to 2025 across the Western Pacific region. However during the same period spending on diabetes in China is forecasted to grow by 49%. Health expenditure for diabetes 2007 US$ (‘000) 2025 US$ (‘000) % Increase China Western Pacific...
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...Following the de-licensing of the pharmaceutical industry, industrial licensing for most of the drugs and pharmaceutical products has been done away with. Manufacturers are free to produce any drug duly approved by the Drug Control Authority. Technologically strong and totally self-reliant, the pharmaceutical industry in India has low costs of production, low R&D costs, innovative scientific manpower, strength of national laboratories and an increasing balance of trade. The Pharmaceutical Industry, with its rich scientific talents and research capabilities, supported by Intellectual Property Protection regime is well set to take on the international market. (b) Major competitors (Indian andGlobal): Indian Competitors 1. Aventis Pharma 2. GlaxoSmithKline 3....
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...The American Healthcare system has a history of chaos and unruliness. Despite the recent implementation of the Patient Protection and Affordable Care Act (commonly called the Affordable Care Act or Obamacare) costs of pharmaceuticals continue to rise. In addition to the spiraling costs of the health care system, pharmaceutical companies continue to benefit from high profit margins while Americans are left paying three times as much for the same medications as other nations across the globe (Picchi 2015). In order for the Obama Administration to achieve their goal of healthcare for every American, legislation must be implemented that allows price negotiation among medical providers, the federal government and the pharmaceutical companies. Despite the persistent claims by many high ranking elected officials, such as former Senate Majority Leader John Boehner, that America has the best health care system in the world, there's insufficient evidence that Americans are getting higher-quality medical treatment or enjoying healthier lives than our counterparts abroad (Jacobson 2012). According to the Commonwealth Fund, Healthcare in America costs more than in other industrialized nations and Americans aren't getting the world's best care for their dollars, according to a new study. The United States spent $7,960 per capita on health care in 2009, the most of 13 industrialized nations in the Organization for Economic Cooperation and Development. That's almost three times the amount...
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...Siamack Shojai Economic Analysis 6090, William Paterson University December 15th, 2015 The pharmaceutical industry has experienced tremendous growth over the past few decades, with a substantial change in the market dynamic from a provider, healthcare plan & patient perspective. Medical advancements coupled with research & development efforts have expanded the product base in terms of a variety of new treatments across numerous therapeutic classes. As depicted in the illustration below, the total global pharmaceutical sales reached $1,057,000,000 in 2014; based on the past 10 years we can expect the forecast to show a similar increase over the next few years. IMS Health Market Prognosis, May 2015 Of all the changes visible within the pharmaceutical market, there are a few that are truly revolutionizing the market: US healthcare reform, emergence of specialty product markets, price strategy & mergers & acquisitions. The healthcare market has changed under Obama, opening healthcare coverage to more patients & bringing forth treatment & medication to a larger population. The emergence of specialty products pose an entirely new challenge to the market in terms of the doctor’s prescribing habits, healthcare plan coverage & out-of-pocket cost to the patient. This along with other economic pressures brings an entirely new perspective to pharmaceutical manufacturers in terms of pricing strategy & overall price elasticity of demand. Additionally...
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... This is in part due to the 15% reduction in Pfizer-Wyeth’s combined workforce. After the merger, Pfizer will operate through a patient-centric business units in two major areas, biopharmaceuticals and diversified businesses. Its biopharmaceutical business units are emerging markets Where as Pfizer currently has one of the largest sales forces in the industry, Wyeth’s antibiotics and specialty drugs will not require a lot of marketing to consumers, and Pfizer may regard that as a big advantage. Another benefit in Pfizer acquiring Wyeth is its strong presence in biotech drugs as Pfizer has had little success in this area of pharmaceuticals. For too long the majority of Pfizer’s drug portfolio has personified the representative Big Pharma product set of small molecule cardiovascular drugs. The merger with Wyeth will bring a positive...
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...STRATEGIC HEALTHCARE MARKETING Indian School of Business Term 7 January 6th – February 16th 2014 Thani Jambulingam Ph.D Associate Professor Pfizer Fellow, Arrupe Center Research Fellow Department of Pharmaceutical & Healthcare Marketing Saint Joseph’s University Philadelphia, PA 19131 THANI JAMBULINGAM PH.D. Associate Professor in the Department of Pharmaceutical and Healthcare Marketing at St. Joseph's University, Erivan K. Haub School of Business, Philadelphia, PA. Currently he teaches in Executive Pharmaceutical and Healthcare MBA program (both traditional and online formats, MBA program and undergraduate program in Pharmaceutical and Healthcare Marketing. Thani was instrumental in starting the undergraduate and online programs at SJU. He served as the chair of the pharmaceutical and healthcare marketing department from 2003-2010. Ranbaxy in sales and at Glaxo Inc. in sales and marketing for several years before he returned to school and completed his Ph.D. at University of Wisconsin, Madison. His research interests are in health care marketing, strategy, supply chain and pricing. His work has been published in several journals, such as the, International Journal of Pharmaceutical and Healthcare Marketing, Journal of Medical Marketing, Journal of Pharmaceutical Marketing and Management, Journal of Commercial Biotechnology, Journal of Research in Pharmaceutical Economics Journal of International Marketing, Journal of Operations Management...
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...9 -3 1 3 -0 1 6 REV: AUGUST 1, 2014 REGINA E. HERZLINGER NATALIE KINDRED Shanghai Pharmaceuticals With 2011 revenues of $8.67 billion, 1 Shanghai Pharmaceuticals (SPH), a vertically integrated Chinese pharmaceutical conglomerate, produced active pharmaceutical ingredients (APIs), chemical and biological drugs, and traditional Chinese medicines (TCMs); distributed its own and other drug makers’ products to hospitals and other customers; and operated a chain of retail pharmacies. The company—essentially a collection of subsidiaries operating under a unified management structure— was formed through the 2009 merger of several state-owned enterprises (SOEs), part of a broad policy effort in China to streamline state assets, consolidate the fragmented pharmaceutical sector, and enhance the global competitiveness of domestic firms. Emblematic of China’s hybrid economic policies, SPH had both government and private shareholders and competed in a historically statecontrolled industry that was adapting to the growing influence of market forces. SPH’s initial public offering (IPO) on the Hong Kong Stock Exchange in 2011 marked an important step in its quest to transform from a traditional SOE into a market-oriented company. While working to expand SPH’s domestic footprint, the company’s leadership was also considering a potential acquisition of a U.S. or European drug producer, an unusual move for a Chinese company. SPH could leverage such an acquisition to learn from Western research...
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...of the global recession. The industry is made up of several enterprises engaging in the research, development, manufacture and marketing of medicines, vaccines, medical devices, and nutritional products for humans and animals. Though, this multi-billion dollar industry includes large ethical drug multi-nationals (often referred to as Big Pharma), mid-sized specialty pharmaceutical companies, manufacturers of generics, small biotechnology and biopharmaceutical firms, and service companies, 1 for the purpose of this paper, the emphasis will be mainly on drug makers. 2. History/Overview of the Industry The pharmaceutical industry of today is a far cry from its humble beginnings in the nineteenth century of physicians mainly prescribing plant extracts to being technology intensive, dominated by a few large companies with significant research and development (R&D) budgets, and significant government oversight. Over the past five years, the industry has been characterized by mega-mergers and acquisitions, company reorganizations, regulatory reform, expiring patent protection, and the growth of generics. Figure 1. Big Pharma Top 10 for 2010 The United States is the largest...
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...Pharmaceuticals and Life Sciences Global pharma looks to India: Prospects for growth Table of contents Introduction 03 Background 04 A fast growing economy An expanding pharmaceutical market Government-provided healthcare improving, but private healthcare dominates Domestic market overview 09 Background Consolidation underway, despite challenges Contract manufacturing Vaccines Over the counter market holds significant potential Reaching the untapped rural market Growing Research & Development 15 Overview Clinical trials Biotech and biosimilars on track for growth Other growth areas Bioinformatics 20 Stem cell research Medical devices Global Pharma’s evolving business models and options in India 23 Background Export-oriented business (Contract Research and Manufacturing Services) Licensing Franchising Joint ventures Wholly-owned subsidiaries Practical concerns 27 Infrastructure Tax environment Counterfeiting Intellectual property Conclusion 30 Related reading: Pharma 2020 31 References 32 Acronyms 38 Introduction The pharmaceutical industry’s main markets are under serious pressure. North America, Europe and Japan jointly account for 82% of audited and unaudited drug sales; total sales reached US$773 billion in 2008, according to IMS Health. Annual growth in the European Union (EU) has slowed to 5.8%, and sales are increasing at an even more sluggish rate...
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...1211132 Tanveer Mohd Ansari-1211151 Contents Introduction .................................................................................................................................................. 3 Global Pharma Industry ............................................................................................................................ 3 Major players of the world pharmaceutical industry ................................................................................... 5 Major Players ............................................................................................................................................ 6 Pfizer Inc................................................................................................................................................ 6 GlaxoSmithKline .................................................................................................................................... 6 Sanofi-Aventis ....................................................................................................................................... 6 Novartis ................................................................................................................................................. 6 Indian Pharma Industry................................................................................................................................. 7 Drivers of the Demand ........................................................
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...pharmaceutical industry is estimated at $8 billion in 2013 and had been growing at an average rate of 8–9 %. The industry was highly fragmented with more than 1000 players out of which 30% of market was controlled by top ten companies and the rest of 70% by small companies. The Global pharmaceutical industry was estimated at $ 600 billion in 2013. Indian pharmaceutical industry has become more innovative and enterprising with more investment in R&D especially since the WTO agreement was signed. Indian drug makers command 10 per cent share in the USD 30 billion US generic drug market and also has the highest (over 150) US Foods & Drug Administration (FDA) approved facilities. US accounts for one-fourth of the Indian drug exports. The share of Indian pharma companies in the total approvals for generic drugs called Abbreviated New Drug Application (ANDA) has risen steadily. From 32 per cent in 2009, it went up to 38.5 per cent in 2013. Increasing share of Indian companies in total ANDAs approved by the USFDA can be attributed to increase spending by them for research and development (R&D) activities. As per CMIE’s database, the industry’s R&D expenses to sales ratio jumped to around five per cent in 2012-13 from around three per cent in 2003-04. The export of drugs from India is expected to grow by 4.2 per cent to USD 15.2 billion in 2013-14. Around USD 16.3 billion of drugs are likely to be shipped from the country in 2014-15. This translates into a growth of 7.3 per cent. In 2015-16, drug...
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...Indian companies principally observe reverse engineering of the new processes for manufacturing drugs at low costs. Although some of the companies have taken baby steps towards innovating newer drugs, the industry as a whole tends to follow this business model. The lack of patent protection, on the other hand, makes India undesirable for multinational companies that have dominated the market. So the pharmaceutical market in India has a tremendous potential for indigenousness. In this context, comparing a global pharmaceutical company with its Indian counterpart becomes evident. GlaxoSmithKline and Ranbaxy: A Comparison GlaxoSmithKline is a British multinational pharmaceutical company also dealing in biologics, vaccines and consumer healthcare. Headquartered at London, it is the world’s sixth largest pharmaceutical company. The company was established in 2000 by the merger of Glaxo Wellcome and SmithKline Beckman Corporation. A giant with around 99,000 employees, GlaxoSmithKline recorded a revenue of 25.6 billion pounds in 2013. Net income was recorded 5.2 billion pounds, while operating income stood at 7.7 billion pounds. Ranbaxy Laboratories Limited is an Indian multinational pharmaceutical company incorporated in India in 1961. It is headquartered at Gurgaon, India. The company went public in 1973 and Japanese...
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... * Company Profiles (10 Companies) * Financial Ratio Analysis * DCF Valuation * Valuation Shares 8) Conclusion 74 9) Bibliography 76 RESEARCH OBJECTIVES Research Project Topic: “Analysis and Valuation of the Indian Pharma Sector” The research objectives of this specialization project are: 1) Identifying the key indicators of the Global Pharma Industry 2) Understand and analyze the Indian Pharma Industry and identify the prominent players. 3) To examine the trends in the pharma industry 4) Fundamental and Technical Analyses of the Top 10 pharma companies in India. The main objective of this study is: 1) Valuation of the Top 10 Pharma companies 2) Finding the correct share price of the company 3) Making investment decision of- Buying, Selling or Holding the stocks of the respective pharma company. EXECUTIVE SUMMARY * Global Pharma Industry is likely to grow at a CAGR of 5% to US $ 1...
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...Healthcare Trends in the National Market Franklin University Abstract Current studies by the Centers for Disease Control and Prevention indicate that age adjusted death rates are down for major causes of death like cancer and heart disease. Although these findings suggest the healthcare system is well regulated, Americans are not happy with it overall. Out of 12 concerns over healthcare in the United States each one seems just as important as the predecessor. Alzheimer’s disease linked deaths have spiked with unintentional incident related deaths climbing as well. These issues will surely be met by an adapting system as it reacts to the needs of a market. The industry is currently heavily regulated by the government but the citizens are calling for more change. Healthcare Trends in the National Market The Centers for Disease Control and Prevention (CDC) has near comprehensive data in a variety of areas including morbidity and mortality that give insight to important trends that have impacted the healthcare system in the United States of America. The system is and will continue to be ever changing and evolving as the United States has a reactive system that is prone to great sways as it is manipulated by trends in disease and treatments. The CDC reported data from a 10 year time span regarding deaths among males and females. The leading cause of death for both sexes was heart disease, which was examined along with cancer, strokes, chronic lower respiratory disease...
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