Lisbon

16 June 2017

by

D G Shah

Secretary General

Indian Pharmaceutical Alliance

Joint 23rd Medicines for Europe – 20th IGBA Annual Conference

Unlocking Pharma Growth – Emerging Markets

1

Indian Pharmaceutical Alliance

IPA: 06/17

2

Indian Pharmaceutical Alliance

� Lupin

� Mylan

� Micro

� Natco

� Panacea Biotech

� Sun

� Torrent

� Unichem

� USV

� Wockhardt

� Alembic

� Alkem

� Cadila Healthcare

� Cadila Pharmaceuticals

� Cipla

� Dr Reddy’s

� Glenmark

� INTAS

� IPCA

� J B Chemicals

Current Members (20)

IPA: 06/17

3

Indian Pharmaceutical Alliance

Contribution

*Pharmatrack MAT Mar 2016

85%

• Of total private sector investment in pharmaceutical research and development

80%• Of exports of drugs and pharmaceuticals

46%• Of price controlled drugs (NLEM)

46%• Of domestic sales

IPA: 06/17

4

Indian Pharmaceutical Industry

Courtesy: McKinsey & Co.

Pharmacy of the World

IPA: 06/17

5

IPM Has Shown A Robust Growth Of 12% CAGR (2012-2016) and 15% in 2015Thereafter, YoY Growth Declined to 11% in 2016 and to 9% for MAT Feb17

YOY Gwth

Source: QuintilesIMS TSA Audit TSA Dec 2016, TSA Feb 2017

Va

lue

in

crs

Indian Pharmaceutical Industry

CAGR 5 yrs

+12%

+10%+12%

+15%+11% +9%*

*For the corresponding 12-month period

IPA: 06/17

6

McKinsey View of Indian Pharmaceutical Industry

Courtesy: McKinsey & Co.

1 Industry has grown to become 8th largest country globally and continues to have one of the highest growth rates

IPA: 06/17

7

McKinsey View of Indian Pharmaceutical Industry

Courtesy: McKinsey & Co.

IPA: 06/17

8

Drug Regulatory Regime

� FDC Ban

� Generic Prescribing

� Capability Building

Key Issues

1

Aligning With Global Agencies

IPA: 06/17

9

Pricing Policy2

Implementation Issues

Tilting Delicate Balance Between Access and Availability

� Tweaking Definition of Brand to Inflict Deeper Price Cuts

� Denying/Delaying Price Approvals

� Retrospective Pricing: Burden of Compliance

� Frequent Price Revisions

IPA: 06/17

10

Innovation 3

Courtesy: McKinsey & Co.

IPA: 06/17

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12

THANK YOUdgshah@vision-india.com

IPA: 06/17