Monday December 18, 2017

Indian drug makers to go for more overseas buys

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photo credit: www.indiatrendingnow.com

By NewsGram Staff Writer

Chennai: Indian pharmaceutical majors are expected to be on a search for greater overseas purchase as domestic drug makers have entered the consolidation phase in the global pharma industry, a research report from Jefferies stated.

photo credit: www.businesstoday.in
photo credit: www.businesstoday.in

In its research report on the Indian healthcare sector, Jefferies said the global pharma consolidation has continued unabated this year.

In 2015, there has been mergers and acquisitions (M&A) worth $110 billion which is on track to exceed last year’s record M & A of $140 billion, Jefferies said.

“Over the past year Indian companies have also joined the consolidation phase with Cipla and Lupin announcing large US generic acquisitions,” the report said.

According to the report, Indian players have done M & A worth $2 billion in 2015.

“With global players like Teva, Mylan increasing their size and relevance, Indian players also need to inorganically grow their portfolios. We expect players like Lupin, Dr Reddy, Torrent to be on the lookout for more acquisitions. Valuations though would be a major concern as price of assets have seen a sharp rise in past couple of years,” the Jefferies report stated.

According to the report with the pace of US Food and Drug Administration (USFDA) approvals remaining muted and the global consolidation progressing unabated, M and A by Indian drug companies has increased and the trend is expected to continue.

Though the USFDA approvals have picked up pace it is well below the requirements.

The abbreviated new drug application (ANDA) approvals by USFDA has remained strong for the past five months with 49 ANDAs approved every month against the historical average of 37, the report said.

According to Jefferies, the preference is for Indian companies that are not dependent on US approvals or inorganic drivers for growth.

“Sun Pharma remains our preferred pick among the large caps as we expect earnings to improve going forward led by improvement in Halol supplies and lower Ranbaxy integration expenses. We remain cautious on Lupin as we believe growth will be muted and risks of acquisition at premium valuations are high,” the report said.

While the depreciation of Indian currency is positive for the domestic pharma sector, the benefits have been offset by the appreciation of Indian rupee against European currencies, the research report added.

(With inputs from IANS)

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India, the pharmacy to the developing world, serves distressed foreign patients as well

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Image source: keweenawhealth.com

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West African market to be tapped by Indian pharma companies

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Accra: The two-day IPHEX Africa trade exhibition in the Nigerian commercial capital of Lagos will witness the arrival of a 70-member team from India, looking for opportunities to tap into the pharmaceutical sector of Western Africa. The team will be aiming to increase their exports there.

The Pharmaceutical Export Promotion Council of India(Pharmexcil) told reporters in an email exchange that the February 18-19 exhibition aims to showcase “the advanced technologies that are being developed by Indian pharmaceutical companies and also to enable the Indian companies to renew their contacts with Nigerians and also with neighbouring countries.”

The exhibition comes at a time when international consulting firm McKinsey said in a report last year that “the value of Africa’s pharmaceutical industry jumped to $20.8 billion in 2013 from just $4.7 billion a decade earlier. That growth is continuing at a rapid pace”, and predicted that “the market will grow into a $40 billion to $65 billion by 2020”.

McKinsey said the projected growth was good news for pharmaceutical companies seeking new areas of growth as developed markets stagnate, adding that it was equally so for “patients who have gained access to medicines previously unavailable on the continent”.

Mckinsey’s projected that between 2013 and 2020, prescription drugs are expected to grow at a compound annual growth rate (CAGR) of six per cent, generics at nine percent, over-the-counter medicines at six percent and medical devices at 11 percent.

What is likely to work in favour of the Indian companies is Mckinsey’s projection that Africa’s population dispersal is undergoing a massive shift. “By 2025, two-fifths of economic growth will come from 30 cities of two million people or more; 22 of these cities will have GDP in excess of $20 billion. Cities enjoy better logistics infrastructure and healthcare capabilities and urban households have more purchasing power and are quicker to adopt modern medicines,” the report added.

It said that “between 2005 and 2012, Africa added 70,000 new hospital beds, 16,000 doctors and 60,000 nurses. Healthcare provision is becoming more efficient through initiatives such as Mozambique’s switch to specialist nurse anesthetists and South Africa’s use of nurses to initiate anti-retroviral drug therapy. The introduction of innovative delivery models is increasing capacity still further”.

“To create a more supportive environment for business, governments have introduced price controls and import restrictions to encourage domestic drug manufacture; required country-specific labeling to reduce counterfeiting and parallel imports; and tightened laws on import, wholesale, and retail margins,” the report said.

What this means is that Indian companies will now have to find a way of building partnerships to penetrate this growing market.

Indian companies can take a leaf from Mckinsey’s recommendations that “global pharmaceutical companies need local business partners, manufacturers, packaging companies, and distributors to help them navigate the continent’s many markets with their widely-varying consumer preferences, price points, manufacturing and distribution infrastructures”.

“In the absence of a pan-African pharma regulatory body, they also need to invest in local partnerships to understand varying regulatory environments. Partnerships with governments are equally important, whether they involve working with medical opinion leaders to guide research priorities and secure funding, or collaborating with health ministries and non-governmental organizations to provide public-awareness campaigns, health screening, treatment, equipment, and training for hospitals and clinics,” the report added.(Francis Kokutse, IANS)

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Dr Reddy’s subsidiary gets approval from USFDA

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Hyderabad: A subsidiary of Dr Reddy’s Laboratories Limited, Promius Pharma LLC has got an approval for (betamethasone dipropionate) Spray from the (USFDA) US Food and Drug Administration.


Sernivo Spray, a prescription topical steroid, is indicated for the treatment of mild to moderate plaque psoriasis in patients 18 years of age or older. The commercial launch of the product is planned for the coming quarter, Dr Reddy’s announced on Monday.

“The FDA approval of Sernivo Spray is a significant milestone for Promius as it validates our committed efforts and resources to developing differentiated dermatology products from concept to commercial launch. We are delighted to receive a first round of FDA approval of Sernivo Spray as we look to expand our portfolio of medical dermatology products available in the US market,” said GV Prasad, co-chairman and CEO, Dr Reddy’s Laboratories.

Raghav Chari, executive vice-president of Proprietary Products at Dr Reddy’s and president of Promius Pharma said, “As an emerging leader in the dermatology space, we are committed to developing innovative treatment options and support services for clinicians and patients. The approval of Sernivo emphasises our ongoing efforts and we look forward to a successful launch of Sernivo Spray in the coming quarter.”

Through its three business verticals-Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products, Dr Reddy’s offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars and differentiated formulations.

Promius conducted two successful multi-center, randomised, double-blind, vehicle-controlled clinical trials in subjects aged 18 years and older with moderate plaque psoriasis to evaluate the safety and efficacy of Sernivo Spray. In both trials, randomised subjects applied Sernivo Spray or vehicle spray to the affected areas twice daily for 28 days.

Enrolled subjects had body surface area of involvement between 10% to 20% and an Investigator Global Assessment(IGA) score of 0 to 1(clear or almost clear) and at least, a 2- scale reduction from baseline), according to the company.

On day 29, in studies 1 and 2, Sernivo achieved treatment success of 42.7% and 34.5% compared to vehicle success rates off 11.7% and 13.6%, respectively, it said.(IANS)(image: casewareanalytics.com)