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Anti-Diabetic Pharmaceuticals Market India

July 2015

Executive Summary
Market

Anti-diabetic pharmaceuticals market in India is valued at INR x bn in 2014

Market is expected to grow at a CAGR of x% from 2013 to 2018
Anti-diabetes therapeutic segment is the second fastest growing segment, after oncology

Drivers:
Drivers &
Challenges

Drug
Regulation and
Patents

Challenges:

Increase in the number of diabetic

patients
Introduction of newer and better drugs
Increasing aging population
Comprehensive health insurances
policies covering diabetes

Price regulation in insulin market

Use of complementary and alternative
medicines
Maintenance of healthy lifestyle to avoid
diabetes

Phases of clinical trial

Approval and licensing of drugs
Patents
Major Players
Company A

Company C

Company E

Company B

Company D

Company F

Competition

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

Macroeconomic Indicators
Introduction
Market Overview
Drivers & Challenges
Government Initiatives
Market Value Chain
Regulation and Patents
Competitive Landscape
Strategic Recommendation
Appendix
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

SAMPLE

Macroeconomic Indicators (x/x)

Lending Rate: Annual
a b

Trade Balance: Annual

f

%
Per Annum
INR tn

x1

2011-12
y1

x1
x2

x4

x3

x2
2012-13

2010-11
2011-12
N.B.:
2012-13 encompasses
figure for Apr2012-13
Nov 2012

y2

2013-14

FDI: Annual
x3
2013-14
y3

INR bn
y1
a

x4

2014-15

y3
y4
y2

y4
c
Min

Max

Commercial Bank Rates: Key Lending Rates as Prescribed by RBI (All

Commercial Banks including SBI) - Minimum Rate General

d
2009-10

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

2010-11

2011-12

2012-13

The total diabetes market can be broadly classified into two

parts

SAMPLE

Diabetes Market

XX

YY

Anti-diabetic pharmaceuticals occupy around x-y% of the market share, with oral drugs constituting around ab% of the market share
Pharmaceutical sector is expected to be the largest source of product revenue over the next ten years
Medical devices segment is composed of instruments for diagnosis and monitoring of the disease, and a range
of devices for administering insulin

Oral anti-diabetic drug segment presents a huge opportunity for market players

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

The anti-diabetes pharmaceuticals consists of mainly six

classes of drugs

SAMPLE

Anti-diabetic medications treat Diabetes Mellitus by lowering glucose levels in the blood

Generic name

Trade name

How they work

a1

a2

a3

b1

b2

b3

c1

c2

c3

d1

d2

d3

e1

e2

e3

f1

f2

f3

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

Increasing prevalence of diabetes is ensuring rapid growth

for the global diabetes market

SAMPLE

Global Market Overview

Market Size and Growth

XX

INR tn

XX

XX

XX

A
x1

x2

2013

2014

x3

x4

2015e

2016e

x6

x5

People Living With Diabetes (2013)

2018e

Market Segmentation

mn
C

2017e

2013

x1

2015e

B
x2

x3
A

x4

x5

x6

x7

SACA

AFR

x
y

0
WP

SEA

EUR

NAC

MENA

Note: AFR Africa, SACA South & Central America, MENA Middle East & North Africa, NAC North America & Caribbean, EUR Europe, SEA South East Asia, WP Western Pacific

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

Indias diabetes market is poised to grow over the coming

years

SAMPLE

Indian Market Overview

Market Size and Growth

XX

INR bn

XX

XX
XX

XX

x6

X
x1

x2

2013

2014

x4

x3

x5

Growth in therapeutic segments(2010)

a
oncology
diabetes
CVS
CNS
respiratory
pain
gastro
anti-infectives

2016e

2017e

2018e

Market Segmentation

h
x1

2015e

2010

2015e

x2
x3

x4
x5
x6
x7
x8

y
x
y

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

The incidence of diabetes is higher in developed countries

because of unhealthy lifestyles

SAMPLE

In 2013, there were ~x mn diabetics in the world, which is expected to increase to ~y mn by 2035
Europe
2013: x mn
2035e: y mn
North America and
Caribbean
2013: x mn
2035e: y mn

South and Central

America
2013: x mn
2035e: y mn

Middle East and

North America
2013: x mn
2035e: y mn

Africa
2013: x mn
2035e: y mn

South East Asia

2013: x mn
2035e: y mn

Western Pacific
2013: x mn
2035e: y mn

SEA and the Western Pacific Region together account for over x% of all people with undiagnosed diabetes

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

Huge increase in the number of diabetic patients promotes

growth of the anti-diabetics pharmaceutical industry

SAMPLE

Increase in the number of diabetic patients

Impact

XX
XX
Xx
Xx
Xx

XX
XX
XX

Top 10 countries for number of people with diabetes (20-79 years)

a
China
India
USA
Brazil
RF
Mexico
Indonesia
Germany
Egypt
Japan

u
a1

mn

a2
a3
a4
a5
a6
a7
a8
a9
a10

It is expected to increase to ~x mn by 2035

Note: RF refers to Russian Federation

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

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Price regulation in the insulin market and competition from

alternative diabetes treatment hinders growth
Price regulation in insulin market

SAMPLE

Impact

XX
Xx
Xx
Xx
Xx
Xx
xx

Competition from complementary and alternative medicines

XX
Xx
Xx
Xx
Xx
Xx

XX

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

11

Various initiatives taken by the government is providing a

boost to this market

SAMPLE

XX
XX

Indian Council
for Diabetic Care

Xx
Xx
Xx
Xx
Xx

XX
NPCDCS

NRHM

Xx
Xx
Xx
Xx

XX
XX

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

12

Pharmaceutical value chains involve the entire process

from drug discovery to drug marketing

SAMPLE

A pharmaceutical value chain is a chain of activities which are involved in producing drugs, starting with raw
materials and ending with the delivered product

XX

XX

XX

XX

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

XX

13

CDSCO, under the Ministry Of Health and Family Welfare,

controls the drug control administration

SAMPLE

Functions undertaken by Central Government

XX
XX
XX
XX
XX

Functions undertaken by the State Governments

XX
XX
XX
XX
XX

The licensing and registration of pharmaceuticals in India controlled in a regulated way helps in the proper
marketing of the drug continued

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

14

SAMPLE

Some of the drugs approved for marketing in India (x/x)

2014
A
B

XX
XX
XX

2013
C
D
E
F

XX
XX
XX
XX

2012
G
H

XX
XX

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

15

Porters Five Forces Analysis

SAMPLE

Threat of New Entrants

Impact
X

Impact
X

Bargaining Power of Suppliers

X

Impact
X

Impact
X
Competitive Rivalry

Bargaining Power of Buyers

Impact
X
Threat of Substitutes
X

Note: CRO refers to contract research organization

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

16

Competitive Benchmarking (x/x)

Public Trading Comparables (FY 20--) Top 3 Companies

SAMPLE

Company A

Company B

Company C

Market Capitalization (INR mn)

Share Price (INR)

EV/EBITDA (INR mn)

EV/Revenue (INR mn)

PE Ratio

Note: Top 3 Public companies based on the Market Capitalization; Share Price and PE ratio is as of 10/02/2015
ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

17

SAMPLE

Competitive Benchmarking (x/x)

Key Ratios of Top 3 Companies Operational Basis (FY 20--) (x/x)

Operating Margin

%
x1

20

x2

Net Margin
y1

y2
z1

10
0
-10

z2

-20
Company A

Company B

Company C

XX
XX
XX

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

18

SAMPLE

Public: Domestic Company Company A (1/4)

Company Information

Corporate Address

XX

Tel No.

XX

Fax No.

XX

Website

XX

Year of Incorporation

XX

Ticker Symbol

XX

Stock Exchange

XX

Offices and Centers India

Mumbai

Head Office

Products and Services

Category

Pharmaceutical
Products

Products/Services

XX

Key People
Name

Designation

XX

XX

XX

XX

XX

XX

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

19

SAMPLE

Public: Domestic Company Company A (2/4)

Financial Snapshot
Total Income

INR bn
20

2.3

15

Net Profit / Loss

INR bn
2.7

1.8

3
2

10
5

1.9

Key Ratios

11.8

14.2

17.7

16.5

1
0

2010

2011

2012

2013

Financial Summary

Particulars

y-o-y change
(2013-12)

2013

2012

2011

2010

3.21

17.30%

14.09%

16.04%

17.00%

4.31

15.02%

10.71%

13.48%

19.51%

4.70

20.56%

15.86%

20.03%

19.78%

5.02

19.69%

14.67%

17.12%

22.75%

3.01

21.68%

18.68%

19.86%

19.83%

6.97

59.72%

52.75%

73.42%

24.53%

2.32

16.57%

14.25%

15.14%

14.28%

-62.36

36.61%

98.97%

121.08% 114.11%

-3.13

82.09%

85.22%

82.52%

82.42%

-1.53

0.00%

1.53%

1.78%

2.24%

-0.07

0.02%

0.09%

0.03%

0.25%

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

The company earned a net profit of INR 2.7 bn in FY 2013, as compared to

net profit of INR 1.8 bn in FY 2012
The company reported total Income of INR 17.7 bn in FY 2013, registering
an increase of 7.05% over FY 2012
The company earned an operating margin of 17.30% in FY 2013, an
increase of 3.21 percentage points over FY 2012
The company reported a current ratio of 2.18 in FY 2013, an increase of
1.66% over FY 2012

Key Financial Performance Indicators

Indicators

Value (02/10/2015)

Market Capitalization (INR mn)

Total Enterprise Value (INR mn)
EPS (INR)
PE Ratio (Absolute)

78,450.5
75,574.5
103.44
32.96

Operating costs (% of Sales)

Administration costs (% of
Sales)
Interest costs (% of Sales)

Liquidity Ratios
Current Ratio
Cash Ratio

1.66%

2.18

2.14

1.87

3.08

-45.26%

0.61

1.11

0.66

1.66

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

360.14%

764.00

166.04

541.62

69.58

-69.48%

2.04

6.70

6.93

6.49

-4.07%

0.93

0.96

0.87

0.81

-5.24%

1.80

1.90

1.95

0.94

-6.57%

3.33

3.57

4.20

1.40

-3.00%

1.27

1.31

1.17

1.13

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

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

Decline

20

SAMPLE

Public: Domestic Company Company A (3/4)

Key Business Segments

Key Geographic Segments

India

Pharmaceuticals

100%

100%
80%
60%
40%
20%
0%

Outside India

100%
80%
XX

60%
40%
20%
0%

2013

82%

83%

75%

18%

17%

25%

2011

2012

2013

Business Highlights
Description

News

Overview

XX

Diabetes Management

XX

Key Initiatives

XX

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

21

Public: Domestic Company Company A SWOT

Analysis (4/4)

SAMPLE

XX

XX

XX

T
XX

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

22

Strategic Recommendations

SAMPLE

In a highly competitive pharmaceutical industry, effective strategic decisions will help the
players to gain a competitive advantage over others

Insulin
Market

XX

Drug
Market

XX

ANTI-DIABETIC PHARMACEUTICALS MARKET IN INDIA 2015

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Thank you for the attention

The Anti-Diabetic Pharmaceuticals Market India report is part of Netscribes Healthcare
Industry Series.
For more detailed information or customized research requirements please contact:
Phone:
E-Mail:

+91 22 4098 7600

info@netscribes.com

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