India Primed for Future Growth
Despite the weakening US dollar and increasing rates of inflation in the US, Europe, and India, the Indian biotech industry is seeing continued growth.
A combination of a weakened currency and an urgent need to cut costs at big pharma companies is driving a surge of drug development and manufacturing business for India. The Wall Street Journal says bad times in Big Pharma are spurring a boom for operators in India as well as China. And about the only near-term switch that could blunt the wave would be a decision to engineer a more valuable rupee.
But analysts caution that Indian developers find the transition from manufacturing generic drugs to devising new therapies can be hard.
Source: The Wall Street Journal, August 14, 2008.
India’s Top 10 Pharmaceutical Companies
The Indian pharmaceutical industry is the second-fastest growing industry sector in the country. It has shown a revenue growth of 27.32 per cent (as per the latest data available) to touch Rs 25,196.48 crore (Rs 251.96 billion) in 2006-07. The industry also saw Indian drug companies buying out many small firms the world over as they expand their reach, markets and muscle.
India’s Top 10 Pharmaceutical companies are:
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Ranbaxy: Ranbaxy is India's largest pharmaceutical company with a 2007 turnover of Rs 4,198.96 crore (Rs 41.989 billion) by sales. Ranbaxy however is in the sale block.—see related story.
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Dr Reddy's Labs: with a 2007 turnover of Rs 4,162.25 crore (Rs 41.622 billion), is India's second largest drug firm by sales.
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Cipla Pharma: Cipla is India's third largest pharmaceutical firm. Its 2007 revenues stood at Rs 3,763.72 crore (Rs 37.637 billion).
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Sun Pharma: Sun Pharma is 4th largest pharma company at a 2007 revenue Rs 2,463.59 crore (Rs 24.635 billion).
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Lupin Labs: Lupin Labs is India's 5th largest drugs firm. Its 2007 revenue was at Rs 2,215.52 crore (Rs 22.155 billion).
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Aurobindo is India's 6th largest pharma firm by sales. Its 2007 revenues stood at Rs 2,080.19 crore (Rs 20.801 billion).
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GSK Pharma: GSK is India's 7th largest drug company with a turnover of Rs 1,773.41 crore (Rs 17.734 billion) for 2007
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Cadila: Cadila's 2007 revenue was Rs 1,613.00 crore (Rs 16.13 billion), which makes it India's 8th largest pharma firm.
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Aventis Pharma: Aventis Pharma, with a 2007 revenue of Rs 983.80 crore (Rs 9.838 billion) is the 9th largest Indian drug company
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IPCA: At a revenue of Rs 980.44 crore (Rs 9.804 billion), IPCA is India's 10th largest pharma firm by sales.
Source: Rediff.com
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Daiichi Sankyo buys into Ranbaxy
Emerging markets and generics are the future for the drug industry. Japan's Daiichi Sankyo has capitalized on both trends by buying a majority stake in India generics giant Ranbaxy.
The deal values Ranbaxy's shares at 737 rupees a piece, a 31 percent premium over yesterday's close. Ranbaxy will become a subsidiary of Daiichi but Malvinder Singh will remain its CEO. In a statement, the companies outlined several reasons for the merger. Daiichi said the move allows it to diversify into generics; it also gets its foot in the door with the fast-growing emerging markets that so many drug developers are targeting. In addition, Daiichi gains access to the affordable Indian R&D and manufacturing facilities Ranbaxy brings to the table.
"The combination of the two companies will give Ranbaxy access to Daiichi's expertise in research while the Jap anese company will benefit from low-cost production on the sub-continent, amid a deepening profits crisis in Japan's drugs industry," observes the Times Online. Last year Daiichi announced a surprising sales-growth target: a whopping 60 percent over the next three years, based on its hopes for Azor and two other meds coming up the pipeline.
"This complementary combination represents a perfect strategic fit and delivers a considerable opportunity for the future growth of the new Daiichi Sankyo Group," said Takashi Shoda, CEO of Daiichi Sankyo.
Source: Fiercebiotech, June 11, 2008, Daichii, Ranbaxy.
GSK to Launch Tykerb in India in 2008
GlaxoSmithKline's is set to launch the breast-cancer drug Tykerb in India in 2008.
The company is reported to be lining up critical care and cardio-vascular drugs for the Indian market through two, yet-to-be formalised, in-licensing deals.
According to Dr Hasit Joshipura, vice president (South-Asia) and managing director (India) of GlaxoSmithKline Pharmaceuticals, the company is in the process of signing deals on the critical care and cardiovascular drugs, and should hopefully be ready with an announcement by the end of the year. One of these drugs is reportedly a patented drug.
The in-licensing strategy is unique to the Indian market. GSK has eight in-licensing deals in place, which reportedly accounted for around 20 per cent of the company's growth last year. GSK previously brought in Eisai's anti-ulcer drug Parit, and Novartis' anti-fungal drug Terbenafine through the in-licensing route.
The oncology product Tykerb goes by the generic name is lapatinib. GSK reportedly has received approval to market it, and is waiting for site registration, basis which it is confident of launching the drug in India sometime in the first two quarters of 2008. Also lined up for launch is GSK's rotavirus vaccine, related to gastroenteritis, which will come to the Indian market almost simultaneously.
The company's six-in-one combination vaccine - Infanrix hexa, which immunizes against six diseases, is also reportedly ready to be rolled-out during the same period, and will be one of the products from the yet-to-be signed in-licensing deals.
GSK's break-through cervical cancer vaccine is reportedly coming to India by 2009.
According to Dr Joshipura, Tykerb is for patients who had failed Herceptin treatment, a medicine from Roche, and is for a very clearly defined patient group.
Source: prdomain.com. |
