1. Pharma Emerging
Markets Report 2011-12

2. Pharma Emerging Markets Report 2011-12
About eyeforpharma
eyeforpharma facilitates the change of pharmaceutical business
models that place the needs of patients for affordable and accessible
healthcare at the centre.
As an ‘eye’ for and on the industry, eyeforpharma exists to help
pharmaceutical companies stay clearly focused on the core reasons
they exist to give them the strategic tools they need to be successful in
truly serving patients with ingenuity and real value and to continue to
innovate to meet changing healthcare realities.
We have organised conferences and offered strategic advice for the
pharma industry since 2002 and have grown by an average of 50%
per year since then. Our mission continues to be the advancement of
communication and information exchange within this dynamic and
ever-changing facet of the healthcare industry.
Disclaimer Authors
The information and opinions in this report were prepared by Jerri-Lynn Scofield
eyeforpharma (FC Business Intelligence) and its partners. FC Business Andrew Tolve
Intelligence has no obligation to tell you when opinions or information
in this report change. eyeforpharma makes every effort to use reliable,
comprehensive information, but we make no representation that it is Piers French (Research Manager)
accurate or complete. In no event shall eyeforpharma (FC Business James Geary (Editor)
Intelligence) and its partners be liable for any damages, losses,
expenses, loss of data, loss of opportunity or profit caused by the use
of the material or contents of this report.
No part of this document may be distributed, resold, copied or
adapted without eyeforpharma prior written permission.
© FC Business Intelligence Ltd ® 2011
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3. Pharma Emerging Markets Report 2011-12
Foreword
“The report from eyeforpharma on the BRICM markets is an excellent overview based
on interviews with country experts offering a quick snapshot of the current state of
the five countries’ pharmaceutical markets, their growth opportunities and real life
case studies.
As the world becomes ever more connected and the pace of change ever more
vertiginous, successful companies are those that are not afraid to acknowledge that
they don’t know it all, and are continuously pursuing and experimenting with new
knowledge to maximize growth. This report provides marketing and sales insights to
increasing the odds in succeeding in these fast growing emerging markets.”
Pauline Ho, Consultant at AuPATH LLC and Former Vice-President, Strategic
Marketing, Latin America and Asia-Pacific.
Pauline is an accomplished senior executive in pharmaceuticals
with proven leadership in driving superior business results.
Executive trailblazer, one of the first emerging market executives
to run a global franchise VP for a multi-billion dollars product.
Widely recognized for her passion to mentor and develop talent
around the world. Born in the United States to Chinese parents,
raised in Hong Kong and Brazil; educated in Brazil and US making
her an ideal global leader with emphasis in Asia-Pacific, Japan and Latin America. Retired
from Johnson & Johnson in 2010, after over 30 years of service, she continues active in her
own business in management consulting, with focus on life and career management.
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4. Pharma Emerging Markets Report 2011-12
Acknowledgements
Thank you to all of the interviewees, peer reviewers and companies that contributed to the
creation of this report. Without their support this report would not have been made. Over 20
in-depth interviews were held with companies that include Abbott Laboratories, GSK and Eli Lilly.
Additionally a special thank you must be reserved for the following individuals who contributed
quotations and expertise directly:
Guillermo Arvizu Institutional Business Head at AstraZeneca.
Olga Bogdanovich Sales and Operations Analytics Manager at Janssen
Andre Bortoluci Vicente Market Access Group Manager at Takeda
Rafael Quintanilla Chong Director of Bayer’s Primary Care Business Unit
Daniel Ghozzi UCB’s Managing Director for the Commonwealth of
Independent States.
Carlos Grzelak. Jr Sales and Marketing Director, Glenmark.
Pauline Ho Consultant at AuPATH LLC and former Vice-President,
Strategic Marketing, Latin America and Asia-Pacific,
Johnson & Johnson.
Alberto Jaimes National Sales Manager of Merck’s sales pharmacy force.
Rajashree Sharma Partner, Corporate Law Group.
Rogerio Sperb Insulin Marketing Manager at Sanofi-Aventis
Bhavesh Vyas Regional Sales Manager, Merck.
Dr Susan Wang Strategic Director, Ricerca Biosciences.
Thank you to everyone who contributed to the research of this report, which includes the 688
people who answered the eyeforpharma Emerging Markets Survey, the peer reviewers and
everyone who spoke to Piers French to ensure that this report reflected the needs of the Pharma
community.
The appreciation and thanks of eyeforpharma are extended to Global Demographics Healthcare
Ltd for compiling data to be specifically included in this report. Global Demographics Healthcare
Ltd provides Health Industry and Disease Market forecasts to 2031, for over 70 markets, 32
states and 50 cities of India plus 31 Provinces and 2178 cities of China. They build proprietary
models to forecast different aspects of the health industry, through combining health and
epidemiology parameters with demographic and socioeconomic factors. These forecasts, ranging
from epidemiology (disease or health condition), affordable market, price sensitivity to healthcare
expenditure, macroeconomics and wellness, assist clients to master their market and optimize
different stages of their business planning, whether new product entry, pricing, health economics,
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5. Pharma Emerging Markets Report 2011-12
Contents
About eyeforpharma 2 4 Russia 40
Foreword 3 4.1 Market Overview 40
Acknowledgements 4 4.2 Key Issues: 40
Contents 5 4.2.1 Retraining and retaining reps 40
Executive Summary 7 4.2.2 Russia’s localized imports 42
Introduction & Methodology 12 4.2.3 Corruption and compliance 43
Prospects for Growth 15 4.2.4 Digital opportunities 44
Market Insights 5 India 46
1 Brazil 19 5.1 Market Overview 46
1.1 Market Overview 19 5.2 Key Issues: 48
1.2 Key Issues: 20 5.2.1 Intellectual property and branding 48
1.2.1 Generics 20 5.2.2 Advertising 49
1.2.2 Marketing 22 5.3 Case Studies: 50
1.2.3 Advertising 24 5.3.1 Wockhardt’s Ace-proxyvon 50
1.3 Case Studies: 24 Demographic Analysis 52
1.3.1 Sanofi Aventis’s Lantus 24 Global Industry Learnings 54
2 China 26 References 57
2.1 Market Overview 26 Appendices 58
2.2 Key Issues: 27 List of Abbreviations 62
2.2.1 Government regulation 27 Thank You 64
2.2.2 Intellectual property 28
2.3 Case studies 29
2.3.1 Bayer’s Nexavar 29
2.3.2 Huasun Group’s Licartin 31
2.3.3 Bristol-Myers Squibb’s Baraclude 32
3 Mexico 34
3.1 Market Overview 34
3.2 Key Issues: 34
3.2.1 Sales force versus generics 34
3.2.2 Securing physician support 35
3.2.3 Volume versus price 36
3.2.4 Multi-channel strategies 37
3.3 Case Studies: 37
3.3.1 Merck’s point of sales unit 37
3.3.2 Segmentation strategy 38
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6. Pharma Emerging Markets Report 2011-12
Index of Graphs and Tables
Graphs:
Figure 1 Total healthcare expenditure in Brazil, Russia, India, China and Mexico in 2006, 2011 and 2016
forecasts
Figure 2 CAGR in total healthcare expenditure in Brazil, Russia, India,
China and Mexico between 2006-2011
Figure 3 The percentage breakdown in population between BRICM nations in 2011
Figure 4 Median age of the populations of Brazil, Russia, India, China and Mexico in 2001, 2011 and 2021
forecasts
Figure 5 The growth in sales in the Brazilian generics market between 2008 and 2011
Figure 6 Targeting the Brazilian pharmacy sector
Figure 7 Forecast of pharma imports into the Russian market
Figure 8: Change in percentage of BRICM population aged over
Figure 9 GDP per capita in 2011 for BRICM
Tables:
Table 1 Executive summary table: challenges and strategies present in Brazil, Russia, India, China and Mexico
Table 2: Total healthcare expenditure in Brazil, Russia, India, China and Mexico in 2006, 2011 and 2016
forecasts
Table 3 Total Populations for BRICM in 2001, 2011 and forecasted population in 2021
Table 4 Median age of the populations of Brazil, Russia, India, China and Mexico in 2001, 2011 and 2021
forecasts
Table 5 Brazil’s key statistics
Table 6 Brazil’s total healthcare expenditure
Table 7 Revenues per annum of major pharmacy chains in Brazil
Table 8 China’s Key statistics
Table 9 China’s Total Healthcare expenditure
Table 10 Revenues for Lictarin in China 2007-2009
Table 11 Mexico’s Key statistics
Table 12 Mexico’s total healthcare expenditure
Table 13 Russia’s key statistics
Table 14 Russia’s total healthcare expenditure
Table 15 India’s key statistics
Table 16 India’s total healthcare expenditure
Table 17 Total public/private healthcare expenditure in BRICM in 2011
Table 18 Demographic changes in population over 39 year olds within BRICM
Table 19 Demographic changes in population between 45-65 year olds within BRICM
Table 20 Demographic changes in population aged over 64 within BRIC
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7. Pharma Emerging Markets Report 2011-12
Thank you
Thank you for taking the time to read this pharma report on emerging markets. I hope you
found it useful and provide some of the information you need to meet the challenges that
emerging markets present.
This report is intended as an overview of the Brazilian, Russian, Indian, Chinese and
Mexican markets, providing easily comparable information on the most dynamic
pharmaceutical markets. For associated articles on this topic and others please visit the
eyeforpharma website.
Eyeforpharma and myself, are constantly looking to engage with pharma executives to
provide business critical information. If you would like to provide guidance on where we
should research, are interested in peer reviewing or being profiled in a pharma report then
I would enjoy talking to you further.
In addition, I have created pharma reports that provide a thorough analysis of Key Account
Management and eMarketing, for more information, please get in touch.
This report is only the start of the emerging markets discussion and if you are interested
in talking further about this report, emerging markets or the needs of the pharmaceutical
market generally then please don’t hesitate to contact me.
Piers French
Business Research Manager
Eyeforpharma
E: pfrench@fcbusinessintelligence.com
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