Analysis of Pharma Sector in India
Analysis of Indian Pharmaceutical Industry
Dr. Reddy Laboratories
Table of Contents Acknowledgement 4 1. Industry Analysis 5 1.1 Porter’s Five Forces Analysis 5 2. DRL’s Present Strategy 6 2.1Riding on Generics 6 2.2Focusing on depth rather than breadth 7 2.3 Leveraging strategic partnerships to reduce risk and investment 8 2.4 Para IV filings 9 2.5 Focusing on selected therapeutic areas 9 3. Key Issues faced by DRL 10 3.1 Poor positioning in India 10 3.2 Russian Opportunity 11 3.3 Failed Betapharm acquisition 11 3.4 Reducing margins in EU market 12 3.5 Lack in high-end R&D expertise 12 3.6. Glaring gaps in drugs portfolio 12 3.7 Low gross margins and ROE 12 4 Key Recommendations 13 4.1 Regional Level Strategy 13 4.2 R&D Strategy 13 4.3 New Businesses Strategy 13 4.4 Product Level Strategy 13 5. Basis of Recommendations 14 5.1 Consolidate in India 14 5.2 Expanding presence in Russia 15 5.3 Withdraw R&D and Manufacturing from Germany 15 5.4 Expand into emerging markets of South Africa, Mexico and Japan 15 5.5 Increased focus on Collaborative Research 16 5.6 Aggressive focus on CRAMS 17 5.7 Invest early into BioSimilars 19 5.8 Expand Drug portfolio 19 5.9 Expand into patented drugs market 20 6. Implementation Schedule and Timeline 20 7. Alternatives Considered 21 8 Key Business Risks and Contingency Plan 22 9. Appendix 23 9.1 DRL Business Overview 23 9.1.1 Overview 23 9.1.2 Business Description 23 9.1.3 Key therapeutic areas 23 9.1.4 Key Products 23 9.2 DRL Business Segment Overview 23 9.2.1 Pharmaceutical Services & Active Ingredients (PSAI) 23 9.2.2 Global Generics 24 9.2.3 Proprietary products 24 9.3 DRL Financial Analysis 25 9.4 VRIN Analysis for DRL 26 9.5 TETRA THREAT FRAMEWORK FOR DRL 26 THE THREAT OF IMITATION 26 THREAT OF SUBSTITUTION 27 THE THREAT OF HOLDUP 27 THE THREAT OF SLACK 27 9.6 Indian Pharmaceutical Market Overview 28
Dr. Reddy Laboratories
Table of Contents Acknowledgement 4 1. Industry Analysis 5 1.1 Porter’s Five Forces Analysis 5 2. DRL’s Present Strategy 6 2.1Riding on Generics 6 2.2Focusing on depth rather than breadth 7 2.3 Leveraging strategic partnerships to reduce risk and investment 8 2.4 Para IV filings 9 2.5 Focusing on selected therapeutic areas 9 3. Key Issues faced by DRL 10 3.1 Poor positioning in India 10 3.2 Russian Opportunity 11 3.3 Failed Betapharm acquisition 11 3.4 Reducing margins in EU market 12 3.5 Lack in high-end R&D expertise 12 3.6. Glaring gaps in drugs portfolio 12 3.7 Low gross margins and ROE 12 4 Key Recommendations 13 4.1 Regional Level Strategy 13 4.2 R&D Strategy 13 4.3 New Businesses Strategy 13 4.4 Product Level Strategy 13 5. Basis of Recommendations 14 5.1 Consolidate in India 14 5.2 Expanding presence in Russia 15 5.3 Withdraw R&D and Manufacturing from Germany 15 5.4 Expand into emerging markets of South Africa, Mexico and Japan 15 5.5 Increased focus on Collaborative Research 16 5.6 Aggressive focus on CRAMS 17 5.7 Invest early into BioSimilars 19 5.8 Expand Drug portfolio 19 5.9 Expand into patented drugs market 20 6. Implementation Schedule and Timeline 20 7. Alternatives Considered 21 8 Key Business Risks and Contingency Plan 22 9. Appendix 23 9.1 DRL Business Overview 23 9.1.1 Overview 23 9.1.2 Business Description 23 9.1.3 Key therapeutic areas 23 9.1.4 Key Products 23 9.2 DRL Business Segment Overview 23 9.2.1 Pharmaceutical Services & Active Ingredients (PSAI) 23 9.2.2 Global Generics 24 9.2.3 Proprietary products 24 9.3 DRL Financial Analysis 25 9.4 VRIN Analysis for DRL 26 9.5 TETRA THREAT FRAMEWORK FOR DRL 26 THE THREAT OF IMITATION 26 THREAT OF SUBSTITUTION 27 THE THREAT OF HOLDUP 27 THE THREAT OF SLACK 27 9.6 Indian Pharmaceutical Market Overview 28