Sep 28, 2000|
Pharma: A fragmented industry consolidates
The pharmaceutical industry is one of the most fragmented industries in India. There are almost 20,000 manufacturers catering to the $ 3.1 bn Indian market. However, the impending changes in the patent law seems to galvanised the industry into action.
The industry is witnessing a consolidation phase with Indian pharma companies increasingly looking at stepping up growth by acquiring companies/brands. Simultaneously, bulk drug capacities are being hived off. MNC companies are also willing to hive off their tail end brands and focus on products/therapy areas of the future including respiratory, anti–virals and cardiovascular.
Over the last three years the number of deals of brands/companies changing hands has gone up manifold. While the buyers have been the relatively bigger Indian players such as Ranbaxy, Dr. Reddy’s, Wockhardt and Nicholas Piramal, the sellers have been either MNCs such as Glaxo, Hoechst or the smaller players such as Lyka Labs, Dai Ichi Karkaria, Sol Pharma, American Remedies etc.
||Reckitt & Colman
|Natamox, Coldact, Splanz, Zofer
|Macraberin, Multivite FM
|Dinoripe Gel, Deviprost, PG Tab
||Dai Ichi Karkaria
Another factor leading the change is the impending merger of international giants. This would lead to further lead to consolidation among the MNC’s themselves. For instance while Glaxo–SmithKline and Aventis would be big players in the prescription products, Pfizer would dominate the over the counter markets for products such as cough syrups.
The third factor leading to a consolidation are the co–marketing alliances among similar sized companies. For instance Ranbaxy and Glaxo have a co–marketing alliance for the anti–biotic cephalexin. Similarly Glaxo and Lupin have a co–marketing alliance for their anti–TB products. The co–marketing alliances would further consolidate the hold of the established players in the market.
More Views on News
Aug 14, 2017
A challenging environment and one-time expense pushes Sun Pharma into a loss in the first quarter.
Aug 14, 2017
GST impact coupled with price erosion in US leads to lower profits for the quarter.
Aug 8, 2017
Profits plunge due to higher raw material costs.
Jun 16, 2017
Here's what you can expect from The 5 Minute Wrapup in the coming months and years.
Jun 23, 2017
Net Profit lower due to exceptional items in the previous year.
More Views on News
Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 7, 2017
Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407