Transcript Japan ppt - Brian Tempest

India – The Pharma Advantage
Dr. Brian W Tempest
Chief Mentor & Executive Vice Chairman of the Board
Ranbaxy Laboratories Limited, Delhi, India
Tokyo – 14th June’06
Disclaimer
Except for the historical information contained herein, statements in this presentation and
the subsequent discussions, which include words or phrases such as “will”, “aim”, “will
likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”,
“intend”, “plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “likely”, “project”,
“should”, “potential”, “will pursue” and similar expressions or variations of such
expressions
may
constitute
"forward-looking
statements".
These
forward-looking
statements involve a number of risks, uncertainties and other factors that could cause
actual results to differ materially from those suggested by the forward-looking statements.
These risks and uncertainties include, but are not limited to our ability to successfully
implement our strategy, our growth and expansion plans, obtain regulatory approvals, our
provisioning policies, technological changes, investment and business income, cash flow
projections, our exposure to market risks as well as other risks. Ranbaxy does not
undertake
any obligation to update forward-looking statements to reflect events or
circumstances after the date thereof.
Davos 2006
Source – FT
The Productivity Advantage
India
1 chemist
70 h/week
$ 800 monthly
a usa Pharma view
Better education x 1,3
Longer working time x 1,3
Lower cost x 20
USA
1 chemist
50 h/week
$ 12,000 monthly
Sources: IPHMR Conferences, New Delhi August 2004
The R&D Investment Advantage
Most attractive R&D Investment locations:
1.
2.
3.
4.
5.
China
USA
India
Japan
UK
Source – UNCTAD 2005
The R&D Investment Advantage
-reasons why India

Qualified Scientists & Engineers

Global India players with Alliances

English speaking

TRIPs compliant – first patent March 2006

IIT, IIM & other scientific institutions
Source – UNCTAD 2005
Investment by top 15 Indian Domestic
Pharmaceutical Companies
2000
2001
2002
2003
2004
2005
$m
110
160
200
250
400
450
- Leading to even more Pharma R&D facilities and factories
Source – Citigroup
Investment by foreign Pharma companies
The Global Generic Market
– growing everywhere
$b
2004
2009
USA
W Europe
Japan
Rest of America
ROW
15
9
3
6
25
27
14
4
9
40
Total
58
94
Source: Frost & Sullivan
“India could soon dominate the entire production chain for
generics”
IMS prediction No 4 Scrip April 5 2006
The Pharma Advantage
Competitive Advantage – Aggressive Home Market
The Pharma Advantage
Competitive Advantage - Cost of Manufacture
Active Pharmaceuticals Facility, Mohali
Dosage Forms Facility, Paonta Sahib
Highest number of FDA approved plants outside the US
No. of FDA approved plants:
Exports ($m):
1990
2005
2010E
15%
45%
70%
1990
1995
2000
2004
1
10
44
105
Source: IPA
Source: Crisil / IPA
Add wallmart award slide
The Pharma Advantage
Competitive Advantage - Cost of Innovation
R&D I
R&D II
R&D III
R&D IV
The Pharma Advantage – API’s
USA DMF filings by India
1990
1995
2000
2004
Source: Crisil
1
4
36
162
Chindia filings
1999
2000
2001
2002
2003
2004
13%
17%
20%
30%
35%
40%
Source: Citigroup
*DMF – Drug Master Files
Q1 2006 India alone 43%
The Pharma Advantage - ANDAs
Annual USA ANDA Filings
Ranbaxy
Sun
Orchid
Lupin
DRL
Cadilla
29
22
18
14
13
12
Source: Pharmabiz 8th Sept’ 2005
- One in every four ANDAs filed by Indian Companies
-
-
Source: KPMG
- 29 ANDAs p.a ranks in top 3 filers
Leading Generic Companies
Annual Sales (US$ Millions)
7000
6000
5000
4000
3000
2000
1000
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Source : Company /Financial reports & presentations
Thank You