HEALTHCARE SECTOR

Healthcare sector in India

A growing healthcare sector Healthcare is one of Indias largest sectors, in terms of revenue and employment, and the sector is expanding rapidly. During the 1990s, Indian healthcare grew at a compound annual rate of 16%. Today the total value of the sector is more than $34 billion. This translates to roughly 6% of GDP. By 2012, Indias healthcare sector is projected to grow to nearly $40 billion and by 2020 it will be around US $280 billion. The private sector accounts for more than 80% of total healthcare spending in India.

DRIVERS OF HEALTHCARE SECTOR

Growing population and economy

One driver of growth in the healthcare sector is Indias booming population, currently 1.2 billion and increasing at a 2% annual rate. By 2030, India is expected to surpass China as the worlds most populous nation. By 2050, the population is projected to reach 1.6 billion. The growing elderly population will place an enormous burden on Indias healthcare infrastructure.

Opportunities within Healthcare sector

Medical Tourism
Medical Tourism refers to patients going to a different country for either an urgent or elective medical procedure It is fast becoming a multibillion-dollar industry Trade in global medical tourism was estimated at $20 billion and is expected to double by 2010 India has several advantages in favor of medical tourism like infrastructure, technology, cost effective medical care and hospitalization qualified and skilled doctors.

Predicted growth of medical tourism in India

30000

25000

25000

20000

15000

10000

7000
5000

2000 500
0
1 2007 2 2012 3 2017 4 2022

By 2012 India is likely to become the top medical destination

Sub sectors in health care

Pharmaceutical research
Pharmaceutical research is one area that is expected to achieve tremendous growth in the coming decade due to1. Indias huge and growing population, 2. Low per capita drug usage, 3. increasing incidence of disease.

Manufacturing
India has emerged as a major supplier of several bulk drugs, producing these at lower prices compared to formulation producers worldwide. The US Food and Drug Administration (FDA) already has approved 85 Active Pharmaceutical Ingredient (API) and formulation plants in India, the highest such number outside the US. By 2012, India could be producing 15% of the worlds bulk pharmaceuticals and drug intermediates.

Pharmaceutical industry opportunities

Despite widespread poverty and inadequate public healthcare provision, India has much to offer the leading drug makers. An increase in lifestyle diseases resulting from the adoption of unhealthy western diets, will provide new opportunities for global pharmaceutical firms.

Medical equipment market

The rebuilding of Indias healthcare infrastructure, combined with the emergence of medical tourism and telemedicine, will drive strong demand for medical equipment, such as xray machines, CT scanners and electrocardiograph (EKG) machines. The government is encouraging the growth of this market, through policies such as a reduction in import duties on medical equipment and a number of other tax incentives.

Medical tourism Revenue Model

Over 3,00,000 patients have so far come to India for medical treatment from over 30 countries this year and India earned over Rs8,500 core revenue Revenue can be generated from infrastructure Best amenities Best medical practices and modern equipments. Satisfy the foreign people and more revenue from outside India. Advertisement and give brief features about medical tourism . Medical tourism is expected to generate revenue of Rs10,000 core by 2012 and over 3,50,000 patients from across the world are expected to come to India for treatment.

Revenue model for Pharmaceutical

Defining a revenue model for your business will help you: Stay focused on a niche and a target audience on particular segment Give you a foundation for your product or service development plans. Provide a foundation for your marketing plans Begin a line of credit or get a loan Raise capital through capital market.

 High revenue can be generate through huge investment on R&D. Exporting drugs to foreign countries Expansion and diversification of companies Large customer share Marketing plan Revenue can generate through innovative products and equipments .

Revenue model for Pharmaceutical research and equipments

Value chain analysis health care model

Evolving technologies and fluctuating consumer trend makes both patients and regulatory compliances increasingly demand that providers, payers, life sciences companies, and suppliers leverage technology to have innovative technical and care delivery solutions in healthcare and life science. Healthcare Solutions Testing has presented many challenges by way of knowledge specialization and retention, effective testing strategies and regulatory conformance. the healthcare industry and providing testing solutions quickly, costeffectively, and with best-in-class quality. QA consulting and software testing services to hospitals, pharmaceuticals, and Health science centres, Laboratories, diagnostic centres and physicians.

Value chain analysis of pharmaceutical

pharmaceutical market in Asia has undergone a paradigm shift in the past few years. The major global pharmaceutical companies have shifted their focus to this region to drive their revenue growth. Moreover, the domestic companies in Asia are also actively participating in the global drug development process. At present, the pharmaceutical market in the region is challenging due to changes in the competitive landscape increasing R&D costs and the need to develop the right marketing strategies.

Pharmaceutical R & D value chain

Value chain analysis

IP service providers - consulting firms, patent attorneys, and technology services providers Financial institutions involved in the healthcare sector Biotech and pharmaceutical companies including contract research organizations (CROs) and contract manufacturer organizations (CMOs) Medical equipment manufacturers Healthcare providers, pharmacies

Company analysis with the respect to value chain analysis and revenue analysis of cipla

VALUE CHAIN
The company has entered into a development and supply agreement with Drugs for Neglected Diseases Initiative (DNDi), a global nonprofit organisation, for a new anti-malarial combination drug. The drug, a new fixed dose combination of artesunate and mefloquine, will be manufactured by Cipla using the technology developed by DNDi. -The agreement is for development and commercialisation of a new fixed dose combination of artesunate and mefloquine (AS+MQ) indicated for the treatment of uncomplicated Falciparum malaria. -The product technology is coming from DNDi. Cipla will manufacture and make the product available in southeast Asia and other parts of the world at affordable pre-agreed prices.

SWOT ANALYSIS
STRENGTHS - Ranks #2 in the retail prescription market in India; - 18 brands that feature among the top-300 brands; - Large basket of 1,500 formulations; and - Partnered 8 leading generics companies in the US for nearly 125 projects.

WEAKNESSES - Impact of IPR regime.

OPPORTUNITIES - Bio therapeutics A new and promising area; - Agreement with Avesthagen; and - Venturing towards areas of cardiology and anti-cancer

Profit margin across globe

Particulars

Financial analysis 2009-2010

2009 2009 changes% 2010 2010 change

Net sales 11,221 13,667 21.8% Expenditure 9,190 10,076 9.6% Operating Profit (EBITDA)2,031 3,592 Operating Profit Margin (%) Other income 153 155 Interest 46 133 Depreciation 367 557 Profit before tax 1,771 (250) 428 1,795 18.1% 1.0% 191.0% 51.8% 3,057 100 88.5% 2,529 18.5%

42,185 52,705 24.9% 33,571 39,873 18.8% 76.9% 8,614 12,832 49.0% 26.3% 527 117 1,307 72.6% (667) 1,369 40.9% 16.6% 20.4% 678 335 1,757 7,717 2,318 1,423 7,014 14.6% 24.3% 28.8% 186.9% 34.4% 11,419 48.0% 3.9% 7,678

Forex loss/(gain) Tax 227 Profit after tax/(loss)

9.5%

Net profit margin (%) 16.0%

Company analysis
compound annual growth rate (CAGRs) over periods of several years to analyze growth trends over longer periods of time. see forecasting sales growth of cipla it has been changing towards growth path as compare previous sales and expenditure .the net sale value is much more. Operating profit ratio is good for company ,which may help further gaining profits margins.

Profit after tax is maintained decent margins. Profit ratio Depreciation Eps p/E Inventory ratio Assets ratio Current assets ratio as per ratio analysis and profits and balance sheet returns are consolidated profits . In cipla return on investment was much more than investment Cash and flow statements were maintained approximately meeting working capital.

 . revenue growth was much higher in certain periods 2009-10 than others, we need to understand. a large acquisition or new customer add a significant new revenue source for the current year's revenue projection is the immediate historic trend. Reading recent filings can help investors to understand factors that might be affecting top-line performance today. If a company has been growing revenue at a 18% annual rate in the past few quarters it might be a stretch to assume revenue can grow at a 24.9% annual rate in the current year unless some fundamental change in the business has occurred that will drive this faster growth. if a company's top line has been revenues and profits are growing faster than its end user markets then the company might be gaining market share

Future profit Growth

conclusion

aspects of company analysis. First, historic financial analysis and revenue analysis which may to get yield return in Parma sector Second, it is important to examine the characteristics of growth in end-user markets because these are the source of all company revenue in the first place and for this cipla currently is doing value added services to customers . Thirdly, examining the competitive environment and the demand characteristics for the company's products can help you understand revenue growth rate might be faster than its competitors.

RANBAXY LABORTITES
The company is to achieve significant business in proprietary products by 2012 with a strong presence in developed markets. It also aspires to be amongst the Top 5 generic players withUS $ 5 billion in sales, by 2012. Revenue targeted by Rs. 23,520 crore ($ 5 billion)December 2012 Total revenue : Rs. 5,188 crore Global revenue : Rs. 3,819 crore Market cap : Rs. 15,077 crore The Globalization Strategy Growth Strategy and rapidly growing company. API Development And Production Dosage Form Development And Manufacturing Contract manufacturing

Siemens health care

Scope for returns : Total revenues, end users, and company shares. Market shares of all the key competitors are very low. Key pipeline products that are set to shape the market, broken down by sector. Information on the top medical equipment companies in the sector country covering business description, strategic analysis, and financial information. Healthcare structure, regulatory environment, approval process, pricing trends and reimbursement. Product and brand updates, strategy changes, R&D projects, corporate Customer, hospitals and physicians data.

Swot analysis
weakness Opportunities & threats

understand and respond to your competitors business structure and strategies, and capitalize on their weaknesses. Stay up to date on the major developments affecting the company.

Opportunities that the company can explore and exploit are sized up and its growth potential assessed in the profile. Competitive and/or technological threats are highlighted.

DR.REDDY

Dr reddy countries are forecast to grow at a 15% to 17% in 2011, to somewhere between US$ 170 and US$ 180 billion. Many of these are expected to high return investment. The Company's consolidated revenues increased by 6% to Rs. 74,693 millions (US$ 1.7billion) in 2010-11. Revenues from Global Generics increased by 10% while PSAI revenues decreased by 4%. Industry leading chemistry skills and development processes which have resulted in monetizing several niche product opportunities. leverages value opportunities through strategic partnerships. The Company ranks amongst the global leaders in Drug Master Filings (DMF), with 486 global DMFs as of 31March 2011. The Company enjoys critical business mass in key markets such as North America, Russia and India.