Pharmaceutical. Indian. Industry. Steel. otel. Pesticides. oal. nking Express Service. The. Banking. Power Generation Pa.

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Marjorie Summers
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2 (IPI) is globally the 3rd largest in terms volume and 13th largest in terms value. total market size Rs. 1,233 bn includes domestic consumption market Rs.600 bn (contributing ~48.6%) and the exports market being Rs. 633 bn (contributing ~51.4%). CARE Research believes that the industry is expected to grow at a robust CAGR 15.1% during FY Huge export potential and changing disease pattern to boost industry growth Increasing penetration Medical Facilities India has one the lowest density doctors, but it is growing at a swift pace with the introduction new medical colleges over the years. Increase in the number doctors in the country will drive the prescrption growth in the country. Government expenditure on healthcare will play a major role in increasing the healthcare penetration especially in rural regions the country. density government hospitals in rural areas is increasing in India, resulting into higher rural healthcare penetration. India is witnessing an increase in the incidences people suffering from chronic diseases, on the back increase in income levels, urbanization, unhealthy dietary habits, environmental degradation coupled with sedentary lifestyle. Medicines belonging to the chronic therapeutic segments are generally higher margin products, which will further enhance the pritability the pharmaceuticals companies. Increasing prevalence chronic diseases Rising per capita income directly related to rising helathcare expenditure re is a direct correlation between per capita income and healthcare expenditure, including spends on pharmaceuticals. India has one lowest per capita healthcare expenditure in the world at present, but it is expected to witness significant growth at a CAGR 6.6% during FY e on the back increase in per capita income Growth in the exports pharmaceutical products from India will be driven by patent expiries the major branded drugs across the world, particularly in the US market. India exports pharmaceutical products to more than 200 countries with US continuing to remain the single largest exports market among all the countries. growth in the US market will be led by increasing generic penetration and healthy ANDA (Abbreviated New Drug Application) pipeline pharma players. Patent expiry to drive exports Challenges to Despite numerous growth potential industry face multiple challenges. USFDA approval timelines have stretched from ~16 months during CY2003 to more than 30 months in CY2011. This delays the launch products, making them commercially less viable, thus adversely impacting the pharma players.furthermore, the pharma players face many compliance issues related to current good manufacturing practice (cgmp) USFDA which can result in i) delay in new product approvals, ii) delay in manufacturing and sale drugs, and iii) companies being levied financial penalty and thereby required to incur higher operating costs to ensure compliant manufacturing practices. Government India (GoI) issued National s Pricing Policy 2012 in December 2012, which brings all strengths and dosages 348 drugs under price control. MNC pharma companies are expected to be largely impacted compared to the domestic players by the new pricing policy, as the prices for their products are generally higher and derive major portion their revenues from the domestic market.

3 Outlook and Challenges Table Outlook on the Outlook on the Domestic Consumption Market Outlook on the Imports Market Outlook on the Exports Market Outlook on the Margins Key Challenges Overview (IPI) Major market segments IPI Market size IPI Leading pharmaceutical companies in India Overview Exports Market US Europe Japan Emerging Markets Characteristics Low cost advantage and skilled manpower Exports oriented Availability raw materials/api market Domestic demand and Key growth drivers Section- I Care Research's Outlook Section- II Section Growth in middle class population and rapid urbanization Changing demographics and increase in per capita income Increasing prevalence lifestyle related diseases Increasing health insurance penetration Outsourcing opportunity fered by big pharma MNCs Large generic opportunity from significant patent expiries Exports & Imports Exports Imports Regulatory Landscape FDI Major regulatory bodies and applicable acts, policies Price Control Compulsory licensing Code marketing practices Key proposals Union Budget Pharma R&D Pharma R&D Global Pharma R&D

4 Table Biosimilars and biopharmaceuticals opportunity Overview vaccines market diagnostics and therapeutics markets CRAMS (Contract Research & Manufacturing Services) Market SWOT Analysis Glossary Terms Aurobindo Pharma Ltd Biocon Ltd Revenue mix % Composition formulations sales ANDA pipeline Novel molecules pipeline SECTION- III Company Section Cadila Healthcare Ltd Biosimilar product pipeline NCE Pipeline

5 Table Cipla Ltd Growth strategy Divi's Laboratories Ltd Growth strategy Dr. Reddy's Laboratories Ltd Glenmark s Ltd Novel drugs pipeline Jubilant Life Sciences Ltd

6 Table Lupin Ltd rapeutic revenue break up Ranbaxy Laboratories Ltd Sun Inds. Ltd rapy wise ANDA pipeline Torrent s Ltd rapeutic revenue break up

7 Table Section- IV Annexures Leading country wise global pharma spending Top 20 global therapeutic segment by sales SEZ approvals ANDA approvals granted to the pharma players during CY2012 ANDA approvals granted during CY

8 Credit Analysis & Research Ltd. (CARE), promoted in 1993 by some the leading banks and financial institutions including Industrial Development Bank India (IDBI), Canara Bank and others is amongst the premier credit rating agencies in India and provides credit rating, research and information services. CARE Ratings is well equipped to rate all types debt instruments including Commercial Papers, Fixed Deposits, Bonds, Debentures, Hybrid Instruments, Preference Shares, Loans, Structured Obligations, Asset Backed Securities, Residential Mortgage Backed Securities etc. CARE's rating methodologies are in line with the best international practices. CARE Research & Information Services (CARE Research)is an independent division CARE. CARE Research services a variety business research needs with credible, high-quality research and analysis on various facets the Economy and Industries. Publications include Reports, Debt Market Review, Budget Analysis and other policy impact analysis and special commentaries on topical issues.care Research fers both subscription-based reports as also customized reports on request. reports by CARE Research provide insightful data and analysis on various industry sectors and CARE's outlook on the same. one-year subscription to the report on ' ' by CARE Research includes access to monthly updates from the date subscription. To view list industries under our coverage you can visit For any queries regarding the content & scope the report kindly reach us at careresearch@careratings.com To place an order, please contact: Manish Sukhija Business Development - CARE Research Credit Analysis & Research Ltd. 503, Kaledonia, Sahar Road, Off Western Express Highway, Andheri (E), Mumbai Cell: , Tel.: (Direct), (Board) CORPORATE OFFICE MUMBAI Credit Analysis & Research Ltd. 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai Tel: , Fax: , care@careratings.com 503, Kaledonia, Sahar Road, Off Western Express Highway, Andheri (E), Mumbai Tel.: REGIONAL OFFICES AHMEDABAD 32, Titanium, Prahaladnagar Corporate Road, Satellite, Ahmedabad Tel: Fax: BENGALURU Unit No , 11th Floor, Prestige Meridian II, No.30, M. G. Road, Bangalore Tel: , Telefax: CHANDIGARH 2nd Floor, S.C.O , Sector 34-A, Chandigarh CHENNAI Unit No. O-509/C, Spencer Plaza, 5th Floor, No. 769, Anna Salai, Chennai Tel : / Fax: HYDERABAD 401, Ashoka Scintilla, , Himayat Nagar, Hyderabad Tel: Fax: JAIPUR 304, Pashupati Akshat Heights, Plot No. D-91, Madho Singh Road,Near Collectorate Circle, Bani Park, Jaipur Tel: / 14 KOLKATA 3rd Floor, Prasad Chambers, (Shagun Mall Building), 10A, Shakespeare Sarani, Kolkata Tel: / 02 Fax: NEW DELHI 3rd Floor, B-47, Inner Circle, Near Plaza Cinema, Connaught Place, New Delhi Tel: / / Fax: PUNE 9th Floor, Pride Kumar Senate, Plot No. 970, Bhamburda, Senapati Bapat Road, Shivaji Nagar, Pune Tel: MALDIVES 4th Floor, CHAMPA Center Point, Chandhanee Magu, Male' Republic Maldives. Tel: / Mobile: / Fax:

Indian CRAMS Industry. Steel. The. otel. Pesticides. Tracto. nking Express Service. Power Generation Pa. Hospital Industry. Express Service Cr

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