Cardiovascular Pharmaceuticals Market - India

June 2014
2 CARDIOVASCULAR PHARMACEUTICAL MARKET IN INDIA 2014.PPT
Drivers:
Increasing patient base
Patent expiry of blockbuster drugs
Increasing disposable income
Introduction of new drugs
Drug regulation
and patents
 Cardiovascular pharmaceuticals market in India is valued at INR X bn in 20--
 The market is expected to grow at a CAGR of y% from 20-----
 CVD segment is the second largest contributor to domestic sales, contributing around x %
Challenges:
 Strong competition
 Competition from complementary and
alternative medicines
 Drug value chain
 Phases of clinical trial
 Approval and licensing of drugs
 Patent approvals
Competition
 Highly fragmented market with large number of players
Drivers and
Challenges
Market
Executive Summary
Government
initiatives
 Reduction in drug prices
 Changes in tax structure
 Control Programmes
Major Public Companies Major Private Companies
Company 1 Company 4 Company 7 Company 10
Company 2 Company 5 Company 8 Company 11
Company 3 Company 6 Company 9 Company 12
Company 1 Company 4
Company 2
Company 3
 Cardiovascular pharmaceuticals market in India is valued at INR X bn in 20--
 The market is expected to grow at a CAGR of y% from 20-----
 CVD segment is the second largest contributor to domestic sales, contributing around x %
Market
3
•Macro-Economic Indicators
•Introduction
•Market Overview
•Market Value Chain
•Drivers & Challenges
•Government Initiatives
•Regulation and Patents
•Competitive Landscape
•Recent Developments
•Strategic Recommendations
•Appendix
CARDIOVASCULAR PHARMACEUTICAL MARKET IN INDIA 2014.PPT
4
Indian cardiovascular pharma market is expected to witness
huge growth in the coming years
Indian Market – Overview Market Size and Growth
Source:
0
50
100
150
INR bn
y%
2015e
x6
2014e
x5
2013e
x4
2012e
x3
2011e
x2
2010
x 1
Top Pharmaceutical Segments – 20--
0 2 4 6 8 10 12 14 16 18
%
oncology Y 10
urology y 9
gynaecology Y 8
pain y 7
diabetes Y 6
respiratory Y 5
CNS Y 4
gastro Y 3
CVD Y 2
anti-infectives Y 1
• Cardiovascular therapeutic segment belongs to the
chronic segment (comprising of cardiovascular, anti
diabetics and neuro pshychiatry), which together
account for around A% of the total pharma market
• Cardiovascular segment is the second largest
contributor to domestic pharmaceuticals market
sales, with a share of x%
 Within the cardiovascular segment, antihypertensive drugs
account for almost m% of revenue
 Cholesterol lowering drugs account for one third of sales
• Presently the market has a size of INR X bn and is
expected to grow at a CAGR of y% from 20-- to 20-- to
reach INR Y bn
• Annually, B million Indians die of cardiovascular
diseases
• According to WHO estimates, by 2020, almost a% of
cardiac patients worldwide will be Indian
CARDIOVASCULAR PHARMACEUTICAL MARKET IN INDIA 2014.PPT
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Drivers & Challenges - Summary
Drivers
Increasing patient base
Patent expiry of blockbuster drugs
Increasing disposable income
Introduction of new drugs
Challenges
Strong competition
Competition from complementary and
alternative medicines
CARDIOVASCULAR PHARMACEUTICAL MARKET IN INDIA 2014.PPT
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Government Initiatives – Summary
Government
Initiatives
Reduction in drug prices
Control programs Changes in tax structure
CARDIOVASCULAR PHARMACEUTICAL MARKET IN INDIA 2014.PPT
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Porter’s Five Forces Analysis
Competitive Rivalry
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Bargaining Power of Buyers
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Threat of New Entrants
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texttext texttext Impact
Low to
Medium
Impact
Medium to
High
Impact
High
Bargaining Power of Suppliers
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Impact
Low to
Medium
Threat of Substitutes
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Impact
Low
SAMPLE
CARDIOVASCULAR PHARMACEUTICAL MARKET IN INDIA 2014.PPT
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Competitive Benchmarking (1/5)
Public Trading Comparables (FY 20--) – Top 4 Companies
Company 1 Company 2 Company 3 Company 4
Market Capitalization (xx)
Share Price (xx)
EV/EBITDA (xx)
EV/Revenue (xx)
PE Ratio
Note: Top 3 Public companies based on the Market Capitalization, Share Price and PE ratio is as of 24/03/2014
CARDIOVASCULAR PHARMACEUTICAL MARKET IN INDIA 2014.PPT
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Public: Domestic Company – A Company (1/4)
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address
X Road
Bangalore
Tel No. +91 xx xxxxx xxxxx
Fax No. +91 xx xxxxx xxxxx
Website www.ppp.com
Year of Incorporation 19--
Ticker Symbol xxxxxx
Stock Exchange NNN
Name Designation
Person M Founder
Person N CFO
Person O Head
Person Q President
City A
Products and Services
Head Office
Source:
Category Products/Services
Pharmaceutical
CVD, CNS, respiratory, dermatology,
orthopedics, nutritional, urology, anti-
infectives
Molecule
Development
Infectious diseases, metabolic diseases,
inflammatory/respiratory diseases, and
oncology
CARDIOVASCULAR PHARMACEUTICAL MARKET IN INDIA 2014.PPT
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Source:
Key Ratios
Financial Summary
Public: Domestic Company – A Company (2/4)
• The company incurred a net loss of INR xx mn in FY 20--, as
compared to net profit of INR yy mn in FY 20--
• The company reported total income of INR xx bn in FY 20--,
registering an increase of yy per cent over FY 20--
• The company earned an operating margin of x per cent in FY 20-- a
decrease of y percentage points over FY 20--
• The company reported debt to equity ratio of x in FY 20--, an
increase of y per cent over FY 20--
Financial Summary
Profit / Loss
Revenue
Profit
INR mn
p
n
0
-m
Revenue
INR mn
0
20--
t
p
20--
s
o
20--
r
n
20--
q
m
10,000
5,000
Indicators Present Value
Market Capitalization (INR) X units
Total Enterprise Value (INR) Y units
EPS (INR) Z units
PE Ratio (Absolute) A
Particulars y-o-y change 20-- 20-- 20-- 20--
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)
Liquidity Ratios
Current Ratio
Cash Ratio
Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved Decline
Financial Snapshot
CARDIOVASCULAR PHARMACEUTICAL MARKET IN INDIA 2014.PPT
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Public: Domestic Company – A Company (3/4)
y
x
20--
z
y
x
20--
z
y
x
20--
z
y
x
20--
z
o n m
Key Business Segments
20--
z
y
x
20--
z
y
x
20--
z
y
x
20--
z
y
x
x y z
Key Geographic Segments
Source:
Key Recent Developments
Description News
Overview
• Company A is an integrated research based company that produces a wide range of generic medicines
• Serves customers in over 100 countries with manufacturing facilities in several countries
Cardiovascular
Pharmaceuticals
• Products include include Product 1 and Product 2
Key Initiatives
• Is making consistent effort for continual improvement in rural areas with respect to accessibility of
medicines
CARDIOVASCULAR PHARMACEUTICAL MARKET IN INDIA 2014.PPT
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Public: Foreign Company – XX (4/4)
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CARDIOVASCULAR PHARMACEUTICAL MARKET IN INDIA 2014.PPT
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Private: Domestic Company – XXXXX XXXXX Ltd. (1/5)
Key People
Products and Services
Company Information Offices and Centres – India
Corporate Address
Xxxxx xxxxxx xxxxx
xxxxxx Road
xxxxxxxxx 3--------
Gujarat
Tel No. +91 xx xxxx xxxx
Fax No. +91 xx xxxx xxxx
Website www.hhh.com
Year of Incorporation 19--
Category Products/Services
Pharmaceutical
Products
Therapeutic areas like neurology,
psychiatry, cardiology, pain
management, gastroenterology etc.
Biotechnology
Chronic diseases like oncology and
nephrology by subsidiary Intas
Biopharmaceuticals Ltd.
Name Designation
Person 1 Founder and Chairman
Person 2 MD
Person 3 CFO
Head Office
City A
14
Private: Domestic Company – XXXXX XXXXX Ltd. (2/5)
Shareholders of the Company Ownership Structure
Name No. of Shares held
Shareholder 1 47,---,---,---
Shareholder 2 11,---,---
Shareholder 3 6,---,---
Shareholder 4 6,---,---
Shareholder 5 6,---,---
Shareholder 6 6,---,---
Shareholder 7 6,---,---
Shareholder 8 21,---,---
Total 114,---,---
Note: Shareholding pattern as on AGM dated 31
st
Mar 2013
16.2%
46.4%
37.5%
Xxxxxx xxxxxxx xxxxx
Xxxxxx xxxxxx
Xxxxxxxx xxxxxx
CARDIOVASCULAR PHARMACEUTICAL MARKET IN INDIA 2014.PPT
15 CARDIOVASCULAR PHARMACEUTICAL MARKET IN INDIA 2014.PPT
Financial Snapshot Key Ratios
Financial Summary
• The company incurred a net loss of INR xx mn in FY 20--,
as compared to net profit of INR yy mn in FY 20--
• The company reported total income of INR xx bn in FY
20--, registering an increase of yy per cent over FY 20--
• The company earned an operating margin of x per cent in
FY 20-- a decrease of y percentage points over FY 20--
• The company reported debt to equity ratio of x in FY 20--,
an increase of y per cent over FY 20--
Particulars
y-o-y change
(2013-12)
2013 2012 2011 2010
Profitability Ratios
Operating Margin
Net Margin
Profit Before Tax Margin
Return on Equity
Return on Capital Employed
Return on Working Capital
Return on Assets
Return on Fixed Assets
Cost Ratios
Operating costs (% of Sales)
Administration costs (% of
Sales)
Interest costs (% of Sales)
Liquidity Ratios
Current Ratio
Cash Ratio
Leverage Ratios
Debt to Equity Ratio
Debt to Capital Ratio
Interest Coverage Ratio
Efficiency Ratios
Fixed Asset Turnover
Asset Turnover
Current Asset Turnover
Working Capital Turnover
Capital Employed Turnover
Improved Decline
Private: Domestic Company – XXXXX XXXXX Ltd. (3/5)
Profit / Loss
Revenue
Profit
INR mn
p
n
0
-m
Revenue
INR mn
0
20--
t
p
20--
s
o
20--
r
n
20--
q
m
10,000
5,000
16 CARDIOVASCULAR PHARMACEUTICAL MARKET IN INDIA 2014.PPT
Business Highlights
Description News
Overview
• Is a vertically integrated global pharmaceutical formulation development company
involved in manufacturing and marketing
• Operates 4 subsidiaries operating in different business segments
• Has presence in over xx countries with successful contract manufacturing and contract
marketing tie-ups across the world predominantly in xx, yy and zz
Cardiovascular
Pharmaceutical
• Has T products in its xx product segment under M10, N, O and P brand names
• Has xx products in its RR product segment under brand names like A, B, C, D, E, F, G, Q, R,
S, T, U, V, W, X, Y, and Z
Key initiatives
• XXX received an outstanding review for itself for developmental works like The Y Project
scholarships for students and V Journals
Private: Domestic Company – XXXXX XXXXX Ltd. (4/5)
17 CARDIOVASCULAR PHARMACEUTICAL MARKET IN INDIA 2014.PPT
Private: Domestic Company – XXXXX XXXXX Ltd. – SWOT
Analysis (5/5)
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