1. PHARMA SECTOR
September, 2011 Domestic
• Growth in domestic pharma
industry to slow down to 12-13% in
2011 due to weak macro factors
and increase in competition from
unlisted players and MNC pharma
companies
• Cut down the domestic growth
estimates by 3-7% and earnings
estimates by 2-9% for FY12 for
Cipla, Cadila, Dr. Reddy, IPCA and
WARNING
Torrent .
• Buy - Glenmark, IPCA
Accumulate - Sun Pharma, Lupin
Hold - Ranbaxy, Cipla, Dr. Reddy,
Cadila, Torrent and Unichem
CHALLENGES
Deepak Malik
AHEAD
Senior Research Analyst
deepak.malik@emkayglobal.com
+91 22 66121257
Ashish Thavkar
Research Associate
ashish.thavkar@emkayglobal.com
+91 22 66121254
Bhavita Nagrani
Research Associate
bhavita.nagarani@emkayglobal.com
+91 22 66242486

2. Pharma Sector
Contents
Pharma Sector
Synopsis ......................................................................................................................................................................... 3
Valuation ......................................................................................................................................................................... 4
Domestic Formulations ................................................................................................................................................... 6
Domestic Formulations: Taking a breather .................................................................................................................. 7
Performance of Top Pharma companies ..................................................................................................................... 9
Company specific issues - What management has to say? ..................................................................................... 10
Pharma Industry : Recent Trends ............................................................................................................................. 11
Key Factors Driving The Slowdown ................................................................................................................................ 12
Weakening macro factors to impact Indian Pharma growth ................................................................................. 13
Increase in competition has led to ramp-up of sales force ................................................................................... 14
MNCs getting aggressive .................................................................................................................................... 15
Pricing pressure on top brands ............................................................................................................................ 18
Anti-Infective Category – Therapy bifurcation ....................................................................................................... 20
National List of Essential Medicines .............................................................................................................................. 22
Impact of challanges ..................................................................................................................................................... 25
Indian Pharma growth slowing down .................................................................................................................... 26
Stress-Test on the profile of pharma companies .................................................................................................. 28
Rivision of estimates for domestic growth ............................................................................................................ 32
Significance of domestic business - Cash Cow ................................................................................................... 33
Revise in earnings estimates ............................................................................................................................... 34
Conclusion and Recommendation ....................................................................................................................... 35
Companies
Cadila Healthcare .......................................................................................................................................................... 37
Cipla Ltd ....................................................................................................................................................................... 41
Dr. Reddy's Lab ............................................................................................................................................................. 45
Glenmark Pharma ......................................................................................................................................................... 49
GlaxoSmithKline Pharma .............................................................................................................................................. 53
Ipca Laboratories Ltd ..................................................................................................................................................... 56
Lupin Ltd. ...................................................................................................................................................................... 60
Pfizer Ltd ...................................................................................................................................................................... 64
Ranbaxy Labs ............................................................................................................................................................... 67
Sun Pharma .................................................................................................................................................................. 71
Torrent Pharma .............................................................................................................................................................. 76
Unichem Labs ............................................................................................................................................................... 80
Emkay Research 26 September, 2011 2

3. Pharma Sector
Synopsis
Last year, Indian Pharma industry grew by 16%, one of the highest growth rates in the
world Pharma market. In the first two quarters Indian Pharma market growth has slowed
Growth in domestic down to 13% from 16% in 2010. Domestic Indian companies are the ones which are
pharma industry to impacted most by this slowdown in growth.
slow down to 12-13%
in 2011 due to weak In our report, "Domestic Pharma market", we have diagnose the challenges faced by
macro factors and the Indian Pharma market, which was valued at USD 12 billion in 2010 and tried to
increase in competition answer the following questions.
from unlisted players
What are the reasons for decline in the growth rate of Indian Pharma industry in
and MNCs
the first half of 2011?
What is the impact of these factors on different pharma companies?
Find out which company will outperform the industry growth rate?
Our analysis shows that there is a high degree of correlation between macro factors,
economic growth and Indian pharma industry growth. When the pace of economic reforms
and economic growth slows down it impacts the pharma industry growth. Other reason
was, every company has increased the strength of MRs in last two years and as a result
there was a spurt of growth last year which is tapering down this year. Impact of slowdown
in growth is more pronounced in mid and small cap companies and the companies
which have more exposure in GP therapies, which is more susceptible to competition.
Competition is increasing from low cost players like Mankind & Alkem labs in the mass
product therapies like anti-infective. MNCs which were focused more on acute categories
till now are increasingly launching products in chronic space & that too at competitive
prices.
To analyse the impact of these challenges on pharma companies’ domestic portfolio, we
have devised the “4 Step Stress Test “ to find out how various companies will get impacted.
Even though domestic business is only 20%-50% of the overall revenues, its contribution
to the base business earnings is higher at 50%- 70%. ROCE of domestic business is
much higher at 40%-60% compared to other businesses which have less than 20% and
as a result multiples are mainly driven by domestic business. Our analysis suggests that
Cut down the domestic any change in the domestic revenue has an amplified impact on the earnings and multiples
growth estimates by 3-7% of the companies.
and earnings estimates
Pharma Companies which are mainly focused on domestic business will be the one
by 2-9% for FY12 for
which will get impacted the most like - Cipla, Torrent, IPCA and Unichem. Other pharma
Cipla, Cadila, Dr. Reddy,
companies which have sizeable opportunities in form of Para IVs and FTF in US will able
IPCA and Torrent
to cushion the impact like Ranbaxy and Dr. Reddy. Sun and Lupin have superior portfolio
in domestic business with more focus on Chronic category and good opportunities in
form of Para IV and FTFs.
We have cut down the domestic growth estimates for Cadila, Cipla, Dr. Reddy, IPCA,
Torrent and Unichem for FY12 and FY13 by 3% to 7% and earnings growth estimates by
2% to 9% & retained the growth and earnings estimates for Lupin, Ranbaxy, Sun, GSK
and Pfizer.
Buy - Glenmark and IPCA
Accumulate – Lupin and Sun Pharma
Hold - Cadila, Cipla, Dr. Reddy, Ranbaxy, Torrent and Unichem
Emkay Research 26 September, 2011 3

4. Emkay Research
Valuations
Mcap EPS PE(x) EV/ EBITDA (x) ROCE (%) ROE (%) P/BV
26 September, 2011
Company Name Rating (Rs bn) FY11 FY12e FY13e FY11 FY12e FY13e FY11 FY12e FY13e FY11 FY12e FY13e FY11 FY12e FY13e FY11 FY12e FY13e
Cadila Healthcare Hold 165 33 36 45 25 22 18 17 15 12 29 29 31 39 31 30 7 6 5
Cipla Hold 228 12 14 18 24 20 16 17 15 12 17 18 20 16 16 17 3 3 3
Dr. Reddy's Lab Hold 252 73 69 91 20 21 16 16 14 11 24 21 25 31 25 26 6 5 4
Glenmark Pharma Buy 87 17 24 24 19 13 14 18 10 10 11 20 18 21 28 22 4 3 3
Lupin Acc 212 19 22 26 25 22 19 19 15 13 24 25 25 30 27 25 6 5 4
Ranbaxy Labs Hold 200 25 31 41 19 15 12 15 10 8 17 18 22 35 21 22 4 3 2
Panacea Biotech Hold 8 22 15 12 6 8 11 6 7 7 14 10 9 20 13 10 1 1 1
Sun Pharma Acc 482 18 22 27 26 22 17 23 18 14 22 22 23 22 23 24 5 4 4
Torrent Pharma Hold 49 30 36 44 19 16 13 14 12 10 21 23 26 29 30 31 5 4 4
Unichem Labs Hold 13 11 9 13 14 16 11 9 10 7 20 15 19 16 13 17 2 2 2
IPCA Buy 34 18 22 28 15 12 10 11 9 7 21 21 23 24 24 24 3 3 2
Pfizer Acc 40 58 66 79 23 20 17 13 15 12 17 18 19 16 16 17 3 3 3
Glaxo Hold 170 68 78 86 29 26 23 17 15 13 47 48 50 30 32 34 9 8 8
Generics 149.2 31.0 34.2 41.1 20.3 18.0 15.0 15.0 12.7 10.5 21.8 22.2 23.8 25.2 22.9 23.0 4.6 3.9 3.3
Jubilant Life Sciences Buy 32 17 18 25 12 11 8 12 9 7 7 9 11 10 13 17 1 1 1
Divi's Lab Buy 96 32 38 46 22 19 16 19 15 12 27 29 30 26 25 25 5 4 4
Aurobindo Pharma Buy 39 18 18 23 7 7 6 9 7 6 18 16 18 24 21 24 2 2 1
Dishman Pharma Acc 5 5 8 10 11 8 6 8 7 6 5 6 7 10 7 8 1 1 1
CRAMS 42.8 18.2 20.4 26.0 13.2 11.4 9.0 11.9 9.6 7.8 14.5 15.2 16.5 17.5 16.6 18.3 2.2 2.0 1.6
Pharmaceuticals 96.0 28.0 31.0 37.5 18.6 16.4 13.6 14.2 11.9 9.9 20.1 20.6 22.1 23.4 21.4 21.9 4.0 3.4 2.9
Pharma Sector
Source: Emkay Research
4

5. Emkay Research
Valuations
Mcap Sales (Rs mn) EBITDA (Rs mn) EBITDA Margin (%) PAT (Rs mn) PAT Margin (%)
26 September, 2011
Company Name (Rs bn) FY10 FY11e FY12e FY10 FY11e FY12e
FY11 FY12e FY13e FY11 FY12e FY13e FY11 FY12e FY13e FY11 FY12e FY13e FY11 FY12e FY13e
Cadila Healthcare 165 45,925 51,563 60,618 9,885 11,495 13,581 21.5 22.3 22.4 6,733 7,452 9,159 14.7 14.5 15.1
Cipla 228 63,180 71,863 83,325 13,375 15,444 18,765 21.2 21.5 22.5 9,692 11,395 14,169 15.3 15.9 17.0
Dr. Reddy's Lab 252 76,558 86,552 97,044 17,121 18,008 22,407 22.4 20.8 23.1 12,314 11,695 15,374 16.1 13.5 15.8
Glenmark Pharma 87 29,491 36,475 39,323 5,923 9,520 9,437 20.1 26.1 24.0 4,532 6,477 6,413 15.4 17.8 16.3
Lupin 212 58,320 67,682 82,022 12,000 13,322 16,680 20.6 19.7 20.3 8,625 9,825 11,435 14.8 14.5 13.9
Ranbaxy Labs 200 85,355 97,660 118,963 14,136 18,602 24,310 16.6 19.0 20.4 10,347 13,147 17,206 12.1 13.5 14.5
Panacea Biotech 8 11,702 10,802 9,777 2,765 2,419 2,233 23.6 22.4 22.8 1,327 939 741 11.3 8.7 7.6
Sun Pharma 482 57,214 73,135 88,099 19,890 25,204 32,364 34.8 34.5 36.7 18,386 22,365 28,250 32.1 30.6 32.1
Torrent Pharma 49 21,825 24,201 28,242 3,652 4,470 5,352 16.7 18.5 19.0 2,536 3,051 3,738 11.6 12.6 13.2
Unichem Labs 13 8,240 9,322 10,846 1,500 1,403 1,915 18.2 15.1 17.7 951 817 1,210 11.5 8.8 11.2
IPCA 34 18,825 21,506 25,567 3,598 4,276 5,336 19.1 19.9 20.9 2,294 2,760 3,489 12.2 12.8 13.6
Pfizer 40 12,446 10,642 12,345 2,589 2,299 2,728 20.8 21.6 22.1 2,294 1,974 2,349 18.4 18.6 19.0
Glaxo 170 21,511 24,229 27,080 8,893 9,987 11,254 41.3 41.2 41.6 5,783 6,566 7,406 26.9 27.1 27.3
Generics 149.2 39,276 45,049 52,558 8,871 10,496 12,797 22.8 23.3 24.1 6,601 7,574 9,303 16.3 16.1 16.7
Jubilant Life Sciences 32 34,420 38,505 46,325 5,541 7,368 8,919 16.1 19.1 19.3 2,711 2,810 3,967 7.9 7.3 8.6
Divi's Lab 96 13,181 16,087 19,284 5,025 6,200 7,620 38.1 38.5 39.5 4,293 4,976 6,145 32.6 30.9 31.9
Aurobindo Pharma 39 41,257 47,741 57,047 7,040 8,179 10,263 17.1 17.1 18.0 5,185 5,364 6,725 12.6 11.2 11.8
Dishman Pharma 5 9,908 10,777 11,772 1,622 1,951 2,190 16.4 18.1 18.6 437 648 774 4.4 6.0 6.6
CRAMS 42.8 24,692 28,278 33,607 4,807 5,925 7,248 21.9 23.2 23.8 3,156 3,450 4,403 14.4 13.9 14.7
Pharmaceuticals 96.0 35,845 41,103 48,099 7,915 9,420 11,491 22.6 23.3 24.1 5,791 6,604 8,150 15.9 15.5 16.2
Pharma Sector
Source: Emkay Research
5

6. Pharma Sector
Domestic Formulations: Taking a breather
Performance of Top Pharma companies
Domestic Formulations Company specific issues - What management
has to say?
Pharma Industry : Recent Trends
Emkay Research 26 September, 2011 6

7. Pharma Sector
Domestic Formulations: Taking a breather
Indian pharma market (IPM), which had grown by 16% in 2010 has slowed down to 13.5%
in the first half of 2011. This is as per AIOCD data, which is collected from secondary
sources. However, if we see the performance of most of the pharma companies in the
domestic space in the first half of 2011, then everybody has shown considerable decline
growth. Primary data shows that the decline is much steeper.
Most of the pharma
IPM growth showing downward trend in the recent months
companies have
shown considerable 20.0
decline in growth in first 16.2
14.9 14.2 15.0 14.5
16.0 13.9 13.5
half of 2011
12.0 10.4
8.0
4.0
0.0
2006 2007 2008 2009 2010 MAT Q - Mar'11 Q - Jun'11
Jul'11
Source: AIOCD AWACS, Emkay Research
Therapy-wise growth trend
FY10 Q-Mar'11 Q-Jun'11
Chronic 19.2 16.0 16.4
Acute 14.9 12.9 12.2
Overall 16.2 13.9 13.5
Source:Company, Emkay Research
Slowdown in growth is visible across the Chronic and Acute categories even though the
reasons are different for both the categories.
In Acute segment, the therapies which are more commoditized in nature have seen
Acute segment - The
increased competition and price pressures, whereas in Chronic segment, it has been
therapies which are more
more due to macro economic factors. In the last 2 years everybody has increased its MR
commoditized in nature
strength and as a result, there is an increase in competition which is now taking its toll.
have seen increased
MNC pharma companies are expanding very aggressively in India and have very high
competition and price
aspirations for their Indian businesses. They are rapidly expanding their field force to
pressures, whereas in
extend their geographical reach. MNCs which have strong foothold in acute therapies, are
Chronic segment, it was
now aggressively moving into chronic therapies. In some of the products which are not
more due to macro
core to their business, they are entering with extremely competitive pricing versus Indian
economic factors
companies. All these factors together with weak macro economic outlook is adding to the
slowdown in growth.
Emkay Research 26 September, 2011 7

8. Pharma Sector
Top 10 categories growth rate
Rs Cr % Share YoY Growth (%)
MAT' Jul'11 MAT'Jul 11 MAT'Jun 11 Jan'11 Feb'11 Mar' 11 Apr'11 May'11 Jun'11 M-Ju1'11
Anti Diabetic 3358 6% 22.0 21.6 19.3 22.4 25.2 24.2 22.1 17.4
Anti-Infectives 9681 17% 11.3 11.8 9.9 9.3 8.6 9.6 8.0 5.8
Cardiac 6597 12% 18.2 17.1 17.2 17.4 17.6 19.3 17.5 14.6
Derma 2813 5% 13.1 12.7 12.0 11.2 13.2 12.0 11.9 9.2
Gastro intestinal 6563 12% 13.8 12.5 11.7 11.9 12.1 12.8 7.9 5.2
Gynaecological 3538 6% 15.8 12.3 13.2 11.8 9.6 10.8 8.5 10.6
Neuro / CNS 3463 6% 14.2 14.3 13.3 12.3 13.6 14.8 12.1 9.5
Pain / Analgesics 4488 8% 14.1 19.8 11.1 6.7 10.9 13.6 12.2 7.6
Respiratory 4469 8% 11.4 14.7 10.2 12.7 12.2 13.8 7.6 6.3
Vitamins / Minerals 4678 8% 13.9 13.7 12.3 10.2 12.1 13.1 12.4 11.5
Total 56483 14.5 14.7 13.0 12.4 12.8 14.3 12.1 9.6
Source: AIOCD AWACS, Emkay Research
If we evaluate the performance of the Indian pharma companies w.r.t different therapies,
then anti-infective, pain, gynecology and gastro, show visible slowdown in growth. Anti-
infective, pain and gastro which together contribute ~1/3rd of the total pharma market, are
Anti-infective, pain, witnessing lot of competition from un-listed Indian companies such as Mankind. MNCs,
gynecology and gastro which have strong hold in these categories, are now moving aggressively towards chronic
show visible slowdown therapies, due to superior growth rate and higher entry barriers associated with this
in growth category.
Emkay Research 26 September, 2011 8

9. Pharma Sector
Performance of top pharma companies
Performance of top pharma companies
Mankind 24% 22%
Astra 34% 22%
Pfizer 11% 14%
Grow th in Q4'11 & Q1'12
Aventis 13% 12%
YoY Grow th %
GSK 11% 13%
Torrent 9% 9%
Ipca 5% 12%
Dr. Reddy 5% 6%
Lupin 37% 17%
Glenmark 21% 20%
Sun 15% 12%
Ranbaxy 11% 8%
Cadila 23% 8%
Cipla 15% 10%
Q4FY11 Q1FY12
Source: Emkay Research
From the corporate performance of Indian Pharma companies in last two quarters, mid &
small cap companies, have been the most impacted.
MNC pharma companies continue to grow in line with industry growth of ~13%, except
Astra which has grown by more than 20%. These MNCs are aggressively investing in
branded generics and moving into newer therapies like CVS, CNS and anti diabetes. In a
bid to increase their presence in some of the branded generics, MNCs have aggressively
priced their products below their Indian counterparts. While this has not significantly
dented market share, it is a precursor to the competitive intensity in the future.
In small and mid cap companies - Unichem, IPCA and Torrent are the ones which have
been impacted the most. And in large cap companies - Dr. Reddys, Ranbaxy & Cipla have
been impacted. For the last 3-4 years barring 2009, most of these companies were
growing above or in-line with the market growth on back of strong macro environment.
Now unfavorable macro enviroment coupled with intense competition from unlisted players
in some therapies of acute segment has made the market even more competitive.
Emkay Research 26 September, 2011 9

10. Pharma Sector
Company specific issues - What management has to say?
Cadila Pfizer
Sales in Q1FY12 were lower as the company pushed inventory Above industry growth was led by volume increase (11% growth)
into the market in Q4FY11 (registered YoY growth of 23%) in and price increase (3% growth). Although the anti-infective
order to achieve US$1bn revenue target. segment witnessed 12.5% growth on account of 3 new launches
viz. Getex, Getex Suspension and Cefixime, management has
Cipla admitted to increased competition in the anti-infectives and
Growth was below industry rate as the Acute segment the Vitamins/ Minerals segment.
witnessed intense competition from industry peers during the
quarter. Respiratory segment continues to do well for the Ranbaxy
company. India business (contributed 20%) grew below industry rate at
6% YoY, mainly led by anti-infective and gastro segment, which
Dr. Reddys witnessed lower traction due to increased competition from its
India business which contributed 15%, grew at a lower rate of peers.
6% compared to industry rate of 14% due to ongoing issues of
DCGI on the company's top selling pain brand Nise Sun Pharma
(nimusulide). Domestic branded formulations grew 12% YoY due to
discontinuation of third party sales and netting of VAT. Adjusting
Glenmark for third-party sales, domestic revenues grew by 18% YoY.
India revenues grew 20% YoY led by market share gains in key
therapies of anti-infectives, cardiac, respiratory, diabetes and Torrent
dermatology & 2 new product launches i.e. Doriglen and Vorth The chronic portfolio, which contributes 60% of domestic
TP in orthopedic segment. Management has guided for portfolio reported strong growth of 17-18% during Q1FY12.
increased competitive pressures from unlisted players. As a However, acute therapy almost remained flat due to increased
result, growth going ahead is expected to be in the range of 16- competition mainly in anti-infective and pain segments.
17%.
Unichem
Ipca Unichem has initiated inventory rationalization at the distributor
Lower growth was mainly due to decline in Anti bacterial (down level in order to improve internal processes and reduce inventory
13%) and Cardiac segment (up 6%). Regrouping of sales rep by 21-30 days. This has led to 5% YoY decline in domestic
and brands and high attrition rate also impacted growth. formulation revenues in Q1FY12. Among the company's top 10
brands, 6 brands reported negative YoY growth. Management
Lupin admits to increased competitive pressures from local as well
17% growth was on account of new product launches and as MNC players.
improved performance from the company's chronic portfolio.
Emkay Research 26 September, 2011 10

11. Pharma Sector
Pharma Industry : Recent trends
Key trends
Increase in Geographical Shifting disease Acquisition by
Strategic tie-ups
MR strength expansion profile MNCs
Indian companies are Expanding their
All companies, including Increasing prosperity & Acquisitions by MNCs to
entering in to strategic presence in rural
MNCs, have increased changing lifestyle - gain quick foothold in
tie-ups with MNCs to markets (67% of the
their field force in the propelling higher growth the fastest growing
strengthen their product total population)
last one year in the chronic segment Indian pharma market
portfolio
Source: Emkay Research
Sun - Merck JV Lupin -Lilly
Sun and Merck have formed a JV to develop, manufacture and Eli Lilly India and Lupin have entered into a strategic
commercialize new combinations and formulations of collaboration to promote and distribute Lilly's Huminsulin
innovative, branded generics in the Emerging Markets. The range of products. Lupin will promote and distribute the range
partnership will use Sun Pharma Advanced Research of products in India and Nepal and will double the number of
Company Ltd's proprietary platform technologies, and Sun sales representatives behind the diabetes care product.
Pharma's world-class manufacturing network. Merck will use
its clinical development and registration expertise to
commercialize the products. Under the JV, Sitagliptin and
Sitagliptin + Metformin have already been commercialized in
the Indian markets.
Cadila - Bayer JV Biocon - Pfizer
Cadila and Bayer have formed a JV to distribute medicine in Biocon and Pfizer have entered into a strategic collaboration
the Indian market. About 600 employees from both companies to commercialize Biocon's bio-similar version of Insulin and
will work for the venture. The venture will sell brands from Insulin analogue products such as recombinant human
both companies, such as Bayer's blood thinner Xarelto and insulin, Glargine, Aspart and Lispro. Pfizer will have the
Cadila's Euglim for diabetes exclusive rights to commercialize these products globally
including co-exclusive rights with Biocon in Germany, India
and Malayasia.
Universal Medicines- Aventis
Sanofi Aventis has acquired Universal Medicines for over
US$100mn. This acquisition is in-line with Sanofi-Aventis
global strategy to expand its foot-print in the Emerging Markets.
Universal Medicare manufactures markets and distributes
branded nutraceutical formulations in India, including its
popular cod liver oil capsules. This will help Sanofi to boost
its over-the-counter business in India.
Emkay Research 26 September, 2011 11

12. Pharma Sector
Weakening macro factors
Increase in competition
Key Factors driving
MNC's getting aggressive
the slowdown
Competition from unlisted players
Pricing pressure in anti-infectives
National List of Essential Medicines - Future impact
analysis
Emkay Research 26 September, 2011 12

13. Pharma Sector
Weakening macro factors impacting Indian pharma growth
IPM has a strong correlation with India GDP growth
10.0% 9.8% 9.5% 15.0% 16.2%
16.0%
9.0% 14.9% 12.6% 14.0%
14.2% 8.9%
With rising interest rate, 10.4% 12.0%
7.6%
the Indian economy is 8.0%
10.0%
slowing down, resulting in 7.4%
7.0% 7.2%
slower growth in Indian 8.0%
pharma also 6.0% 6.0%
2006 2007 2008 2009 2010 2011 *
GDP Gr % (LHS) IPM Gr % (RHS)
* Project numbers based on historic GDP average and Emkay Economics
Rise in disposable income and favorable income demographies are the major catalyst
responsible for the growth of the Indian pharma industry. Within this, increase in disposable
income is a larger contributor (approx. 40%). However, with rise in interest rate scenario,
the Indian economy is slowing down and is expected to grow by 7.6% during 2011 as
compared to 8.9% in 2010. Home loan EMIs are going up, salary growth has slowed
down; as a consequence, the disposable income has also got impacted resulting in
slowing the pace of the Indian pharma industry. According to Mckinsey report on Indian
Pharma, rise in disposable income and upward shift in income demographies account
for 40% of the Indian pharma market growth, as depicted below.
IPM growth largely driven by rise in income levels
15%
Rise in interest rates have
impacted disposable 40% 10%
income, which is the largest
15%
growth driver of the Indian
20%
pharma industry
Others Increase in prevalence Insurance penetration
Medical Infrastructure Income Grow th
Source: Mckinsey Report on Indian Pharma
With increase in interest rate, the capital expenditure for new medical infrastructure will
also slow down as it is a capital intensive segment. Growth in insurance penetration will
also slow down resulting in overall slow down in the growth of Indian Pharma.
Emkay Research 26 September, 2011 13

14. Pharma Sector
Increase in competition has led to ramp-up of sales force
Pharma companies have ramped up their field force...
7500 4.8 Marketing Representatives Grow th Sales per MR
Rates in % in numbers (at top of bar)
6000 1
21% . 4 4 3
4500 14% . . 2
Sales Forcce Numbers
13% 12% 47% 6 8 4
3000 3
7%
23% 4% 32%
1500 10%
8% 38% 36% 56% 26% 24% 4% 4% 5% 11%
0
Cipla Ipca Cadila Ranbaxy Lupin Torrent GSK Sun DRL Glen
FY10 FY11
...leading to pharma companies clocking good growth
30000 28 Domestic Revenues in Rs bn Grow th in domestic revenues in %
25000 24
Domestic Sales
14% 19 19
20000 16 16 17%
15000 12
20% 14%
8% 15% 8 8
10000 7 15%
10% 16% 15% 15% 12%
5000 14% 18% 10%
25% 11% 17% 20% 18%
0
Cipla Ipca Cadila Ranbaxy Lupin Torrent GSK Sun DRL Glen
FY10 FY11
Some of the initiatives adopted by the Indian pharma companies in the domestic business –
Pfizer Ranbaxy
The company has launched two new The company launched Project Viraat
divisions CNS and Diabetes and has in order to ramp up its presence across
added 300 people across two the country, especially in rural areas.
divisions. The company plans to launch This included introduction of new
insulin products from Biocon’s portfolio products, increasing its field force and
in the next quarter. This will help the targeting more than 350,000 doctors.
company focus on branded generics
and fill portfolio gaps.
During the past 2 years, most of the Indian pharma companies have resorted to strong
addition of MRs in order to give a boost to its domestic business. For e.g. Ipca Labs has
added around 1,800 MRs to its force taking the total to 5,000 MRs, which is one of the
highest in the industry. As a result, its domestic formulation business grew by 21% CAGR
over FY09-11 to Rs7bn. Similarly, Cadila added around 1,550 MRs to its field force taking
the total to 4,500 MRs by end of FY11, resulting in its domestic formulations business
growing by 17% CAGR to Rs22bn. In contrast, dispite a meagre addition of just 200 MRs
(taking its field force to 2,700) in last 2 years buy Sun pharma, its domestic formulation
business has grown by 16% CAGR to Rs24bn.
Going ahead, we believe all the domestic companies who have strengthed the field force
to spurt up the growth will eventually witness a slowdown in domestic growth rates. In
order to sustain higher growth rates of 15-16%, companies will have to increasingly focus
on improving MR productivity by expanding to new therapies, newer markets and new
launches. Companies like Sun pharma and Lupin with strong brand equity are likely to
outperform.
Emkay Research 26 September, 2011 14

15. Pharma Sector
MNCs getting aggressive
MNC pharma companies continue to growing in line with industry growth of ~13% except
AstraZeneca which has grown by more than 20%. Major chunk of the portfolio of these
MNCs is from acute category. In acute category, they are able to withstand the competition
because of their superior brand strength. Going forward, competition will hot-up even in
chronic category as these MNC’s are now increasingly focussing on chronic therapies.
Pfizer GSK
Pfizer's current portfolio derives strength from Respiratory, Anti- GSK derives its strength from anti-infective, dermatology, pain
infective and Vitamins/ Minerals segment. The acute segment & vaccines segments. GSK is the leader in the vaccine
(contributes 87% of the domestic sales) is growing by 20% segment in India with an effective market share of ~20%. GSK's
and the chronic segment (13% of domestic sales) is growing strategy has been to create portfolio of high value products.
by 25%. With a view to improve focus on chronic therapy, Pfizer GSK has 4 business verticals namely, Vaccines, Specialties,
has recently launched two new divisions - CNS and Diabetes Mass specialties and Mass markets. Glaxo Plc, the parent
and has added 300 people across these divisions. The company, has outlined one of the most aggressive growth
company will also be launching insulin products from Biocon's plans for emerging markets, with India being one of the key
portfolio in FY12. This will help the company focus on branded markets. The acute segment (contributes 95% of the domestic
generics and fill the gaps in its portfolio. The company's six sales) is growing by 12% and the chronic segment (5% of
key brands are in the list of top 100 in the industry. Becosules domestic sales) is growing by 12%. GSK has launched 2
and Corex are ranked # 1 in their respective therapeutic patented products from its parent's portfolio i.e. Revolade (drug
segments. for low platelets) and Votrient (metastatic renal cell carcinoma)
in the oncology segment. Earlier, GSK had successfully
launched an Onco product Tykerb in India in May 2008.
According to the management, within the first year of its launch
it self Tykerb has clocked revenue of Rs70-80mn according to
the management and is expected to gain.
MNC Pharma - Currently focussed on acute therapy
100%
80% 44%
60% 87% 82%
95%
40%
56%
20%
13% 18%
0% 5%
GSK Pfizer Novartis Aventis
Chronic % Acute %
Source: AIOCD AWACS, Emkay Research
MNC pharma companies continue to grow in line with industry growth of ~13%, except
Astra which has grown by more than 20%. These MNCs are aggressively investing in
branded generics and moving into newer therapies like CVS, CNS and anti diabetes. In a
bid to increase their presence in some of the branded generics, MNCs have aggressively
priced their products below their Indian counterparts. While this has not significantly
dented market share, it is a precursor to the competitive intensity in the future.
Emkay Research 26 September, 2011 15

16. Pharma Sector
Exhibit 5: MNCs are adopting aggressive pricing strategies in many of the new products
Indian Company Brands
MNC Molecules Therapy Brand Name Pricing Company Brand Name Pricing Pack
GSK Atorvastatin Cardio Lilo Rs43 Ranbaxy Storvas Rs180 10 tablets
10 tablets Intas Lipicor Rs125 10 tablets
Dr. Reddys Atocor R Rs110 10 tablets
Cipla Atorlip - 5 Rs157 10 tablets
Pfizer Rabeprazole Gastro Above 5 Rs24 Intas Raium Plus Rs55 15 tablets
7 tablets Cipla Rabicip - 10 Rs64 15 tablets
Dr. Reddys RZ 20 Rs70 10 tablets
Sanofi Metoprolol Cardio Sitelol Rs30 Cipla Metolar-XR Rs39 10 tablets
10 Capsules USV Metzok Rs30 10 tablets
Sun Pharma ProlometXR Rs40 10 tablets
Lupin Topol XL Rs40 10 tablets
Source: CIMS, Emkay Research
Emkay Research 26 September, 2011 16

17. Pharma Sector
New products launched by MNCs during the last 1 year
New Launches Sales (Rs Cr)
COMPANY BRAND Therapy MAT July 11
GSK Rosutec Hormones 1.80
(17 pdts) Calpol T Pain 1.53
Ansolar SPF Onco 1.28
Lilo 0.67
Modvate 3 Derma - antibiotics 0.43
Modvate AF Derma - antibiotics 0.22
Metlead Anti-diabetic 0.04
Total 5.98
PFIZER LTD Jetex Hormones 1.34
(29 pdts) Dolonat Derma 1.12
My Pal 0.99
Debrit 0.36
Vicon Iron supplements 0.32
Cytosar Onco 0.23
Maxtorin Hormones 0.21
Prostin VR Hormones 0.16
Atubri 0.12
Tuvace 0.12
Levefree 0.11
IMEDIAB M Anti-diebetics 0.10
Aivo 0.08
Imediab Anti-diebetics 0.07
Bidiab Anti-diebetics 0.04
Felban AL Hormones 0.02
Total 5.42
SANOFI-AVENTIS Solian 1.94
(18 pdts) Rejusite AI 0.59
Telsite h CVS 0.55
Multaq GI 0.52
Cardace Protect CVS 0.42
Amaryl P Anti-diabetic 0.41
Sitelol 0.18
Sofrahext 0.14
Sitestat F 0.11
Vitahext Vitamins 0.07
Menomune Onco 0.06
Fasturtec Onco 0.05
Sitelol am CVS 0.03
Cetapin V Anti-diebetics 0.02
Shanchol AI 0.02
Total 5.11
NOVARTIS Pactel CNS 2.05
(16 pdts) Aclasta Onco 0.86
Onbrez Breezhaler 0.85
Tacsant AI 0.11
Macalvit New Vitamins 0.09
Vingose 0.08
Afinitor Onco 0.05
Tminic Cold 0.03
Sacsecure 0.03
Calc(i)ayur 0.02
Certican 0.02
Calc(c)ayur 0.02
Total 4.20
Source: AIOCD AWACS, Emkay Research
Emkay Research 26 September, 2011 17

18. Pharma Sector
Pricing pressure on top brands
Top Brands Company Year of Therapy Market MAT YoY
MAT Jul 2011 Launch Share (%) ‘Jul 11 Gr. %
Corex Pfizer 1993 Respiratory 0.5 210 -0.2
Human Mixtard Novo Nordisk 1994 Anti-Diabetic 0.4 196 10.4
Monocef Aristo Pharma 2001 Anti-Infective 0.3 187 11.9
Voveron Novartis 1986 Pain 0.4 185 5.5
Augmentin GSK 1992 Anti-Infective 0.4 177 6.1
Revital Ranbaxy 1989 Vitamins 0.4 151 10.5
Taxim - O Alkem 1998 Anti-Infective 0.3 150 17.7
Taxim Alkem 1990 Anti-Infective 0.3 149 11.2
Dexorange Franco Indian 1990 Vitamins 0.3 143 9.0
Betadine Win Medicare 1990 Derma 0.3 142 10.7
Asthalin Cipla 1993 Respiratory 0.3 142 11.5
Storvas Ranbaxy-Stancare 1999 Cardiac 0.2 138 7.6
Calpol GSK 1995 Pain 0.2 137 6.8
Phensydyl Cough Piramal 1996 Respiratory 0.4 134 -25.8
Zifi FDC 1999 Anti-Infective 0.3 134 6.2
Liv - 52 Himalaya 1989 Gastro 0.3 123 22.4
Becosules Pfizer 1989 Vitamins 0.3 119 13.4
Zinetac GSK 1986 Gastro 0.2 117 5.3
Mox Ranbaxy 1997 Anti-Infective 0.3 115 -2.1
Source: AIOCD, Emkay Research
Growth in Anti-Infective segment has slowed down during the past 2 quarters due to
increase in competition and pricing pressure both from local peers as well as MNCs.
Competition in the top 20 brands in Indian Pharma market is also increasing with average
growth slowing down to single digit.
Most of the products, which feature in the top 20 list belong to acute therapy. Companies
like Mankind are increasingly targeting these products and launching cheaper alternatives.
Not only Mankind Pharma but even MNCs have been launching many drugs at considerably
lower prices.
Pricing pressure in Ranbaxy's Mox (Anti-Infective) -250mg Pricing pressure in GSK's Augmentin (Anti-Infective) -
15 strip capsules Amoxcillin + Clavulanic Acid combination
90 90
80 80
70 73% premium 70 34% premium
60 24% premium
60
50 25% premium
86 50
40
70 40
30 54 53 67
50 30
20 54 50
10 20
0 10
Mox- Novamox- Moxydil- Lupimox- Glamoxin- 0
Ranbaxy Cipla Solvay Lupin GSK Augmentin-GSK Clavam-Alkem Moxikind-Mankind
Source: CIMS, Emkay Research
Emkay Research 26 September, 2011 18

19. Pharma Sector
Pricing pressure in NovoNordisk's Human Mixtrad Pricing pressure in Abbotts Phaensedyl & Pfizer's Corex
(Anti-Diabetic) - 70:30 Isophane/ Soluble Insulin Syrup - 100ml SYR
250 80
200
79% premium 60
74% premium
150 37% premium 9% premium
40
100 218 70 64
159 45
122 20 40
50
0 0
Insuman Rapid- Human Mixtard Insugen-Biocon Phensedyl- Corex Ascoril- Codocuf-
Sanofi Abbott Glenmark Zydus
Source: CIMS, Emkay Research
Doctor Visit – Key Notables
We visited set of doctors who are providing services in big hospitals in Mumbai and also had their private practice.
During our visit to some of the General Practitioners in Mumbai, we found that for most of the infections and general illness, they
was prescribing Mankind medicines. E.g. most of anti-infective prescribed belonged to penicillin’s and cephalosporin’s category.
During our interaction, we understood that Mankind gives superior incentives for each prescription written by the doctor. If the
patients case is very serious, then higher class of anti-infectives i.e. Penem’s were prescribed by the doctors and that too only
MNC brands. The reason cited was – MNC
brands are original research molecules and so
doctors comfort level is usually higher when
prescribing these medicines.
The line of treatment action begins with
prescribing penicillin’s and cephalosporin’s
(Mankind is the preferred company in the anti-
infective space) and higher treatment uses
penem’s where MNC drugs are preferred.
Emkay Research 26 September, 2011 19

20. Pharma Sector
Anti-infective category – therapy bifurcation
Rs Cr YoY Growth % MAT’Jun 11 Gr. Contributors
Groups MAT’ % MAT’ Sept’ 10 Dec’ 10 Mar’11 Jun’11 Vol Price NP
Jun11 Share Jun11 GR GR GR
Systemic Antibacterials 8,596 91% 11.7 13.0 12.9 10.4 8.2 6.6 0.3 4.8
Cephalosporins 4,191 44% 14.2 19.4 14.6 11.5 10.3 8.8 -0.5 5.9
Broad spectrum penicillins 1,618 17% 9.5 14.4 5.1 9.2 9.4 6.5 -0.8 3.8
Macrolides and similar types 1,092 12% 14.6 20.0 9.9 14.2 14.8 10.0 0.5 4.2
Fluoroquinolones 1,070 11% 4.3 8.6 4.3 5.9 -2.5 -1.2 1.9 3.6
Tetracyclines and combinations 123 1% 9.7 14.0 11.8 7.4 5.1 -2.0 2.8 9
Others 502 5% - -26.3 71.1 6.8 -0.5 - - -
Anti - fungals 237 3% 23.3 15.5 16.6 38.0 27.0 18.8 -2 6.4
Antimyco - bacterials 395 4% 10.5 12.7 6.7 11.6 11.0 8.7 1.2 0.6
Anti - virals 211 2% 19.1 13.8 15.6 25.2 21.9 8.7 0.2 10.2
Total Sales 9,428 100% 12.0 13.0 12.8 11.3 9.1 6.7 0.5 4.8
Source: AIOCD AWACS, Emkay Research
Growth in anti-infective category is mainly coming from volume growth and new product
launches. Failure to launch new products will make it difficult for the companies to match
the industry growth. Cephalosporins which contribute ~ 44% to the Anti-Infective category
was impacted most.
Reasons for the slowdown in Anti Infective category are
Weather patterns – Heat wave was not that strong in North
Decline in API prices of Cephalosporins due to dumping in China
Pricing pressure due to Increase in competition
Lower success rate of new product launches
Top Companies in the Anti-Infective Category (Rs bn)
Rs bn YoY Gr. (%)
Anti-Infective MAT’Jun 11 MAT’Jun 11 Nov’10 Dec’10 Jan’11 Feb’11 Mar’11 Apr’11 May’11 Jun’11
Ranbaxy 8.6 13.0 11.7 13.7 25.1 16.8 19.2 25.9 21.3 14.7
Alkem 8.4 20.2 20.4 10.6 13.2 9.9 14.8 13.0 14.9 16.2
GSK Pharma 6.6 10.0 7.0 4.9 10.0 13.9 8.5 12.7 14.9 10.4
Cipla 6.4 8.3 15.7 0.1 3.2 2.2 5.2 -0.7 -7.6 -3.8
Mankind 5.4 22.2 27.3 21.4 24.8 19.4 13.2 14.2 17.0 9.2
Lupin 3.1 7.8 5.9 4.8 5.9 5.9 6.4 -0.3 3.5 -4.2
Glenmark 1.5 10.5 6.8 4.3 9.0 15.1 -2.6 -0.8 11.8 1.1
Zydus Cadila 1.2 -6.5 1.2 -7.4 -13.7 -18.4 -15.8 -2.5 -7.0 -8.9
Dr. Reddys 1.1 6.7 7.4 8.3 21.3 9.9 6.2 -7.3 -1.6 -6.7
Total AI 96.3 12.0 11.6 9.0 11.8 9.9 9.3 8.6 9.6 8.0
Source: AIOCD AWACS, Emkay Research
Most of the companies in Anti infective category barring Ranbaxy have been erratic in their
growth. Ranbaxy, the largest company in category, grew in line with the industry, on the
back of higher volumes (driven by increse in field force and new launches). Industry
growth is mainly driven by unlisted players like Mankind and Alkem - evident from top 10
brand performance in this catagory.
Emkay Research 26 September, 2011 20

21. Pharma Sector
Top brands in anti-infective in Rs bn
Brand Company Name MAT Value MAT Value YoY Gr. YTD YTD YoY Gr.
June 11 June 10 (%) June 11 June 10 (%)
Monocef Aristo Pharma 1.9 1.6 15.5 0.5 0.4 7.6
Augmentin GSK 1.8 1.7 5.4 0.4 0.4 11.4
Taxim O Alkem Lab 1.5 1.2 19.2 0.4 0.3 18.1
Taxim Alkem Lab 1.5 1.3 12.5 0.4 0.3 1.9
Zifi FDC 1.3 1.3 6.2 0.3 0.3 4.5
Clavam Alkem Lab 1.2 1.0 24.9 0.3 0.2 29.5
Mox Ranbaxy Lab 1.2 1.2 -0.3 0.2 0.2 -4.7
Mikacin Aristo Pharma 1.1 1.0 10.9 0.3 0.3 -7.3
Ceftum GSK 1.0 1.0 9.5 0.3 0.2 12.8
Moxikind CV Mankind Pharma 1.0 0.8 20.9 0.2 0.2 20.5
Total 96.3 85.9 12.0 22.3 20.3 9.7
Top brands of Mankind – Strategic pricing has led to intense competition
Other Indian Company Brands
Brand Therapy Pricing Company Brand Name Pricing Pack
Moxikind CV Anti-Infective Rs114 Ranbaxy Moxclav Rs403 10 tablets
6 tablets Aristo Mega CV Rs99 6 tablets
Cipla Novaclav Rs240 6 tablets
Abbott Nuclav Duo Rs206 6 tablets
Bandy Plus Anti Parasitic Rs6 Zydus Biwom Rs11 1 tablet
1 tablet Lupin Lupibend Rs12 1 tablet
Ipca Nemozole Rs12 1 tablet
Dr. Reddy’s Rediout Rs35 5 tablets
Unwanted Kit Gynaec Rs335 Cipla MT Pill Rs331 1 tablet
1 tablet Zydus Mifegest Rs370 10 tablets
FDC Undo Rs367 3 tablets
Nurokind Plus Vitamins Rs36 Lupin Matilda Forte Rs103 10 Capsules
6 Capsules Zuventus Mecovon Rs90 10 Capsules
Manforce Stimulants Rs142 Ranbaxy Caverta Rs173 4 tablets
4 tablets Lupin Enthusia Rs108 4 tablets
Zydus Penegra Rs124 4 tablets
Cipla Progra Rs108 4 tablets
Mankind has been pricing its products at relatively lower rates as compared to other
pharma companies in India. Mankind is particularly strong in commoditized therapies
such as the anti-infectives, gynaecology and gastro which together contribute more than
50% of the domestic revenues.
Mankind Pharma - Therapy-wise Revenue breakup
Rs bn FY11 MAT MAT YoY
% Contr. Jul’11 Jul’10 Gr.
Anti-infectives 29.0% 5.4 4.5 19.4%
Gastro 13.1% 2.4 2.0 23.3%
Gynaecology 10.2% 1.9 1.4 30.8%
Vitamins 7.8% 1.4 1.1 26.9%
Stimulants 6.9% 1.3 1.1 15.6%
CVS 5.8% 1.1 0.8 28.4%
Pain 5.0% 0.9 0.8 17.8%
Anti-Diabetic 3.3% 0.6 0.4 37.5%
CNS 2.8% 0.5 0.4 22.2%
Others 99.2% 18.4 14.6 25.7%
Acute 86.4% 16.0 12.8 24.7%
Chronic 13.6% 2.5 1.9 32.0%
Total Sales 100.0% 18.5 14.7 25.7%
Source: AIOCD AWACS, Emkay Research
Emkay Research 26 September, 2011 21

22. Pharma Sector
National List of Essential Medicines
What is NLEM?
Essential medicines are those that satisfy the priority healthcare needs of majority of the
population. The essential medicines list needs to be country specific addressing the
disease burden of the nation and the commonly used medicines at primary, secondary
and tertiary healthcare levels.
The medicines in National List of Essential Medicines (NLEM) should be available at
affordable costs and with assured quality. The medicines used in the various national
health programs, emerging and re-emerging infections should be addressed in the list.
The Government of India, Ministry of Health & Family Welfare (MOHFW) is mandated to
ensure quality healthcare by assuring availability of safe and efficacious medicines for
its population.
In a move that could bring more than half the country’s Rs 65,000-crore medicine market
under price control, the health ministry plans to enlarge the scope and size of the
National List of Essential Medicines (NLEM).
Following a Supreme Court directive to include all NLEM drugs under price control, the
central government is working out a new policy incorporating such changes. While the
current NLEM list, prepared in 2003, does not have too many drugs to be included in the
price control list, the revision will bring about a significant change.
According to rough estimate, the government currently controls the prices of about 20
per cent of the domestic drug market. The span of price control will go up to 35 per cent
once the drugs mentioned in the current NLEM gets included.
Main features of NLEM 2011
The medicines have been categorized according to therapeutic area. Therefore, it is
possible that a medicine with more than one indication appears in more than one
category.The issue of mentioning the strength of the medicine dose was deliberated. The
committee took the considered view that the strength should be mentioned in the NLEM.
For essentiality of requirement the medicines have been categorized as follows:
- P, S and T denote essentiality at Primary, Secondary and Tertiary levels respectively
while P, S, T (U in NLEM 2003) indicates essentiality at all the levels.
A total of 348 medicines (excluding repetitions) are present in NLEM 2011.
In the NLEM 2011, 181 medicines fall under the category of P, S and T, 106 medicines fall
under the category of S, T while 61 medicines are categorized as T only.
In comparison to NLEM 2003, number of medicines deleted is 47 and 43 medicines
have been added
Emkay Research 26 September, 2011 22

23. Pharma Sector
Recently 43 new medicines added to NLEM List
Medicines Cadila Cipla Dr. Reddy Glenmark Ipca Lupin Ranbaxy Sun Torrent Unichem GSK
Amoxicillin+Clavulinic Acid
Atorvastatin
Betamethasone
Carboplatin
Cefixime
Cetrizen
Chlorambucil
Clindamycin
Clopidogrel
Decarbazine
Daunorubicin
Diazepam
Enoxaparin
Famotidine
Fentanyl
Filgrastim
Hydroxychloroquine phosphate
Ifosfamide
Imatinib
Ipratropium bromide
Leflunomide
Lorazepam
Mefloquine
Mesna
Misoprostol
N-acetylysteine
Olanzapine
Oxaliplatin
Pantaprazole
Permethrin
Piperazine
Premix Insulin 30/70 Inj
Propofol
Stavudine+Lamivudine
Tramadol
Vecuronium
Zidovudine+Lamivudine
+Nevirapine
Total 15 14 6 4 2 10 5 7 6 4 6
Source: Emkay Research
Emkay Research 26 September, 2011 23

24. Pharma Sector
NLEM Impact Analysis
Category: Oncology
Medicines Added: Imatinib mesylate
Companies Impacted:
The medicines that would be enlisted in the revised NLEM include costly blood cancer
drug, imatinib mesylate, sold by Swiss multinational Novartis under the brand name
Glivec. Other medicines in the list are carboplatin, daunorubicin, filgrastim, ifosfamide,
mesna, oxaliplatin and clorambucil, manufactured by leading companies such as Bristol
Myers Squibb, GlaxoSmithKline, Amgen, Dr Reddys, Intas and Sun Pharma. All the cancer
medicines in the current NLEM list, which was prepared in 2003, have been retained
Category: Anti-Infective
Medicines Added: Amoxicillin + Clavulanic Acid and Cefixime
Companies Impacted:
Amoxicillin + Clavulanic Acid – Augmentin, Clavam and Moxikind are the top 10 brands
in the anti-infective category. These brands are owned by GSK, Alkem and Mankind Pharma
respectively. These 3 brands collectively contribute ~30% of the top 10 brand sales and
~4% to the anti-infective category.
Cefixime – Companies impacted are Alkem (Brand – Taxim) and FDC (Brand – Zifi) which
contribute ~32% to the top 10 brands and ~4% to the anti-infective category.
Category: Cardiovascular
Medicines Added: Atorvastatin
Companies Impacted:
Atorvastatin – Atorva and Strovas are the two brands owned by Cadila and Ranbaxy
Labs. These 2 brands contribute 3% to the Indian pharma CVS category and 27% of the
top 10 brands in the category.
Category: Hormones
Medicines Added: Betamethasone
Companies Impacted: GSK Pharma
Betnesol - N – This is a GSK Pharma product which, falls in the top 10 brands in the
Hormones category. It contributes 9% to the IPM and 16% to the top 10 category.
Category: CVS
Medicines Added: Enoxaparin
Companies Impacted: Lupin
Lupenox – Among our coverage companies, Lupin is the only company having a drug in
this category. Other notable companies are Sanofi Aventis and Biocon.
Category: Gastrointestinal
Medicines Added: Famotidine
Companies Impacted:
Most of the top Indian companies like Alkem, Sun Pharma, Cadila and Torrent Pharma
have an established presence in the gastro segment.
Emkay Research 26 September, 2011 24

25. Pharma Sector
Indian Pharma growth slowing down
4 Step Stress Test
Impact of challanges Revision of estimates for domestic growth
Significance of domestic business - Cash Cow
Conclusion and Recommendation
Emkay Research 26 September, 2011 25