REFERENCE CODE GDHC003PLR | PUBLICATION DATE JULY 2013
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 2 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Executive Summary
Boom in the Indian Pharmaceutical Industry
The Indian pharmaceutical industry is in a period of
rapid growth. This is evidenced by the significant
increase in the attention being received by the
market from multinational pharmaceutical
companies seeking to improve their financial
performance. Indeed, various factors, including
financial austerity measures in Europe, slowed
economic growth in the US, a growing aging
population and an associated increase in the
demand for healthcare in countries such as Japan,
are forcing governments to drastically reduce their
healthcare expenditures. Pharmaceutical
companies are often the parties on the receiving
end of these austerity measures, while generic
manufacturers reap the noteworthy benefits, as
their products enjoy improved sales. Consequently,
the India pharmaceutical market, which is primarily
a generics market characterized by a significantly
low cost of production, has recently risen to global
prominence.
The Indian pharmaceutical industry was worth
approximately $6.3 billion in 2005 and increased to
$14.9 billion in 2011. The market is expected to
continue growing at a Compound Annual Growth
Rate (CAGR) of 15.4% to reach $54.1 billion by
2020. Some of the key drivers of this growth are
government initiatives, increased access to
healthcare, and a shift in the country’s disease
profile towards “lifestyle” diseases such as
diabetes, obesity, and cardiovascular diseases.
The figure below shows the forecast growth in the
Indian pharmaceutical market through 2020.
Forecast Growth in the Indian Pharmaceutical Market, 2013–2020 ($bn)
0
10
20
30
40
50
60
2013 2014 2016 2018 2020
Mar
ket S
ize
($bn
)
Market Size
CAGR of 15.4% through 2020
Source: GlobalData, 2012
India-Based Pharmaceutical Companies Picking Big Pharma’s Deep Pockets
Generic pharmaceutical manufacturers, including
those based in India, have been quick to capitalize
on the misfortunes of their branded pharmaceutical
counterparts by increasing their Abbreviated New
Drug Application (ANDA) filings in a bid to capture
market share in the highly competitive global
pharmaceuticals space. In 2012, the top 10 India-
based pharmaceutical companies covered in this
report collectively witnessed an average year-to-
year (YTY) growth of 25.5%, from almost $1.1
billion in 2011 to about $1.4 billion in 2012.
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 3 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Executive Summary
While many multinational branded pharmaceutical
companies, including Novartis, Eli Lilly, and Pfizer,
recorded declines in 2012 sales, most generics
manufacturers witnessed surges in their revenues
during the year. In India, the trio of Sun
Pharmaceuticals, Lupin, and Glenmark led the
pack in terms of YTY revenue growth in 2012,
posting increases of 47.6%, 34.1%, and 26.5%,
respectively, from 2011 sales.
The figure below presents an illustration of the
competitive landscape of the top 10 Indian
pharmaceutical companies in 2012, based on
corporate revenue YTY growth versus operating
income growth.
Competitive Landscape of the Top 10 Pharmaceutical Companies in India, 2012
Torrent
Aurobindo
Cipla
Zydus Cadila
Dr. Reddy's
Wockhardt
Glenmark
Ranbaxy
Lupin
Sun
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0% 10% 20% 30% 40% 50% 60%2012
Ope
ratin
g In
com
e Y
TY G
row
th
2012 Revenue YTY Growth
Torrent Aurobindo Cipla Zydus Cadila Dr. Reddy's
Wockhardt Glenmark Ranbaxy Lupin Sun
Average 2012 YTY Operating Income Growth = 35.7%
Average 2012 Revenue YTY Growth = 25.5%
Source: Company data Note: Sphere size depicts size of revenue
The Biosimilars Opportunity in India
Pharmaceutical companies in India have
recognized the emerging opportunity in the
biosimilars market and are taking steps to capture
a significant portion of it. For instance, Cipla has
been acquiring facilities in India and China to
develop biosimilars. In August 2012, the company
rejigged some of its investments in China to divert
more funds towards biosimilars by reducing its
49% stake in Desano Holdings, its Chinese
partner, and reinvesting the funds in three of the
Desano Group’s business units involved in
manufacturing biosimilars and active
pharmaceutical ingredients (APIs). Already,
companies such as Dr. Reddy’s, Reliance Life
Sciences, Biocon, and Wockhardt market various
biosimilars, including filgrastim, rituximab, and
darbepoetin, in India and other emerging markets.
For Indian pharmaceutical companies, particularly
the relatively larger ones with significant
manufacturing scale and technological capabilities,
the biosimilars market offers a natural route of
diversification. However, the development of
biosimilars is a relatively more expensive and time-
consuming endeavor than the development of
small-molecule generics.
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 4 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Executive Summary
The Indian government is currently taking steps to
create a fully-regulated market for biosimilars in the
country, as well as upgrade and maintain the
quality of biosimilar products that are manufactured
in India. In July 2012, the Department of
Biotechnology (DBT) published India’s guidelines
on biosimilars, outlining specific requirements for
pre-marketing and post-marketing data, as well as
data requirements for preclinical and clinical trials.
However, the effects of the country’s establishment
of biosimilar guidelines will be somewhat
dampened in the EU because previously-approved
biosimilars in India were not subjected to the same
rigorous controls, nor did they undergo direct
comparison to the reference product through
clinical trials, as demanded in Europe by the
European Medicines Agency (EMA).
Consequently, according to the EMA’s definition of
a biosimilar, these products are not biosimilars.
GlobalData’s Top 10 Pharmaceutical Companies in India Benchmark Report Leader: Sun Pharmaceuticals
The market leader in GlobalData’s Top 10
Pharmaceutical Companies in India Benchmark
Report is Sun Pharmaceuticals, with a score of
7.07. The company led the pack due to an
impressive performance across the financial
management (FM) and capital management (CM)
metrics utilized in this report. The company’s
aggregated CM composite score was 8.58,
significantly greater than the peer group average of
5.0. Furthermore, Sun Pharmaceuticals’ FM
composite score was 8.81, higher than the peer
average of 5.06. However, Aurobindo rounded up
the list of the top 10 companies with a score of
4.10, which was attributable to the company’s
relatively poor CM and FM when benchmarked
against its peers.
The table below shows the benchmark rankings for
GlobalData’s top 10 India-based pharmaceutical
companies in 2012 and their composite scores.
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 5 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Executive Summary
GlobalData’s Benchmark Rankings, Top 10 Pharmaceutical Companies in India, 2012
Rank Company Financial Management
Expenses Management
Capital Management
Resource Management
Overall Score
1 Sun Pharmaceuticals 8.81 5.45 8.58 5.46 7.07
2 Wockhardt 6.00 6.98 5.95 5.29 6.06
3 Cipla 5.21 5.04 6.79 5.00 5.51
4 Lupin Pharmaceuticals 5.60 4.51 4.76 4.94 4.95
5 Zydus Cadila 4.52 5.30 4.24 4.94 4.75
6 Glenmark 4.48 5.08 4.16 4.94 4.66
7 Ranbaxy 4.72 4.59 3.48 4.81 4.40
8 Torrent 3.21 4.93 4.36 4.92 4.36
9 Dr. Reddy’s Laboratories
4.82 2.91 4.44 4.94 4.28
10 Aurobindo 3.19 5.22 3.24 4.77 4.10
Source: GlobalData, 2013 Green represents an area that significantly boosted the company’s overall score. Red represents an area that significantly reduced the company’s overall score. Note: Scale = 1.00 – 10.00, Average Score = 5.00
The table below displays GlobalData’s benchmark
rankings of the top 10 India-based pharmaceutical
companies in 2012 and their overall scores.
GlobalData’s Benchmark Rankings, Top 10 Indian Pharmaceutical Companies, 2012
Rank Company Overall Score
1 Sun Pharmaceuticals 7.07
2 Wockhardt 6.06
3 Cipla 5.51
4 Lupin Pharmaceuticals 4.95
5 Zydus Cadila 4.75
6 Glenmark 4.66
7 Ranbaxy 4.40
8 Torrent 4.36
9 Dr. Reddy’s Laboratories 4.28
10 Aurobindo 4.10
Source: GlobalData, 2013 Note: Scale = 1.00–10.00, Average Score = 5.00
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 6 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Table of Contents
1 Table of Contents
1 Table of Contents ......................................................................................................................... 6
1.1 List of Tables ........................................................................................................................ 12
1.2 List of Figures ....................................................................................................................... 14
2 Introduction ................................................................................................................................ 16
2.1 Report Scope ....................................................................................................................... 16
2.2 Upcoming Related Reports ................................................................................................... 18
2.3 Recently Published Reports ................................................................................................. 18
2.4 GlobalData’s Benchmarking Methodology ............................................................................ 19
3 India’s Pharmaceutical Industry Dynamics ................................................................................. 20
3.1 Overview .............................................................................................................................. 20
3.2 Intellectual Property Rights in India ...................................................................................... 20
3.3 Quality Manufacturing Facilities Create an Ideal Environment for Pharmaceuticals to Thrive ...
....................................................................................................................................... 22
3.4 Inter-Firm Competition Enables Capabilities Development ................................................... 24
3.5 Government Policies and Initiatives Drive Demand .............................................................. 24
3.6 Increased ANDA Filings by Indian Drug Companies ............................................................. 25
3.7 Cost Effect of GDUFA on Indian Drug Companies................................................................ 30
3.8 A Budding Biosimilars Market ............................................................................................... 31
3.8.1 Gradual Transition from a Semi-Regulated to a Regulated Market ................................. 31
3.8.2 Marketed Biosimilars in India .......................................................................................... 32
4 Company Analysis...................................................................................................................... 34
4.1 Sun Pharmaceuticals: The Benchmark Leader ..................................................................... 34
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 7 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Table of Contents
4.1.1 Business Overview ......................................................................................................... 34
4.1.2 SWOT Analysis .............................................................................................................. 35
4.2 Wockhardt ............................................................................................................................ 39
4.2.1 Business Overview ......................................................................................................... 39
4.2.2 SWOT Analysis .............................................................................................................. 40
4.3 Cipla ..................................................................................................................................... 43
4.3.1 Business Overview ......................................................................................................... 43
4.3.2 SWOT Analysis .............................................................................................................. 44
4.4 Ranbaxy ............................................................................................................................... 47
4.4.1 Business Overview ......................................................................................................... 47
4.4.2 SWOT Analysis .............................................................................................................. 48
4.5 Lupin Pharmaceuticals ......................................................................................................... 52
4.5.1 Business Overview ......................................................................................................... 52
4.5.2 SWOT Analysis .............................................................................................................. 53
4.6 Zydus Cadila ........................................................................................................................ 56
4.6.1 Business Overview ......................................................................................................... 56
4.6.2 SWOT Analysis .............................................................................................................. 57
4.7 Glenmark .............................................................................................................................. 60
4.7.1 Business Overview ......................................................................................................... 60
4.7.2 SWOT Analysis .............................................................................................................. 61
4.8 Torrent Pharmaceuticals....................................................................................................... 65
4.8.1 Business Overview ......................................................................................................... 65
4.8.2 SWOT Analysis .............................................................................................................. 66
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 8 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Table of Contents
4.9 Dr. Reddy’s........................................................................................................................... 70
4.9.1 Business Overview ......................................................................................................... 70
4.9.2 SWOT Analysis .............................................................................................................. 71
4.10 Aurobindo Pharmaceuticals .................................................................................................. 75
4.10.1 Business Overview ......................................................................................................... 75
4.10.2 SWOT Analysis .............................................................................................................. 76
5 GlobalData’s Benchmark Rankings ............................................................................................ 78
5.1 Sun Pharmaceuticals: India’s Leading Pharmaceutical Company ......................................... 78
6 Financial Management ............................................................................................................... 80
6.1 Competitive Framework ........................................................................................................ 80
6.2 Overview .............................................................................................................................. 80
6.3 Financial Management: Heat Map ........................................................................................ 82
6.4 Financial Metrics .................................................................................................................. 83
6.4.1 Revenue Leaders ........................................................................................................... 83
6.4.2 Revenue Laggards ......................................................................................................... 85
6.4.3 Revenue Growth Leaders ............................................................................................... 86
6.4.4 Revenue Growth Laggards ............................................................................................. 88
6.4.5 Operating Income Leaders ............................................................................................. 90
6.4.6 Operating Income Laggards ........................................................................................... 91
6.4.7 Operating Income YTY Growth Leaders ......................................................................... 93
6.4.8 Operating Income YTY Growth Laggards ....................................................................... 94
6.4.9 Operating Margin Leaders .............................................................................................. 95
6.4.10 Operating Margin Laggards ............................................................................................ 97
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 9 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Table of Contents
7 Expense Management ............................................................................................................... 99
7.1 Competitive Framework ........................................................................................................ 99
7.2 Overview ............................................................................................................................ 100
7.3 Expense Management: Heat Map ...................................................................................... 103
7.4 Expense Metrics ................................................................................................................. 104
7.4.1 SG&A Spending Leaders .............................................................................................. 104
7.4.2 SG&A Spending Laggards ............................................................................................ 105
7.4.3 SG&A Expenditures as a Percentage of Revenue Leaders .......................................... 106
7.4.4 SG&A Expenditures as a Percentage of Revenue Laggards ........................................ 108
7.4.5 SG&A Spending YTY Change Leaders ......................................................................... 110
7.4.6 SG&A YTY Spending Change Laggards ....................................................................... 111
7.4.7 Operating Expenses as a Percentage of Revenue Leaders .......................................... 113
7.4.8 Operating Expenses Laggards...................................................................................... 114
8 Capital Management ................................................................................................................ 116
8.1 Competitive Framework ...................................................................................................... 116
8.2 Overview ............................................................................................................................ 116
8.3 Competitive Framework: Heat Map .................................................................................... 118
8.4 Capital Management Metrics .............................................................................................. 119
8.4.1 Debt Ratio Leaders ....................................................................................................... 119
8.4.2 Debt Ratio Laggards ..................................................................................................... 120
8.4.3 Cash Ratio Leaders ...................................................................................................... 121
8.4.4 Cash Ratio Laggards .................................................................................................... 124
8.4.5 Quick Ratio Leaders ..................................................................................................... 125
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 10 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Table of Contents
8.4.6 Quick Ratio Laggards ................................................................................................... 126
8.4.7 ROI Leaders ................................................................................................................. 127
8.4.8 ROI Laggards ............................................................................................................... 128
9 Resource Management ............................................................................................................ 130
9.1 Competitive Framework ...................................................................................................... 130
9.2 Overview ............................................................................................................................ 130
9.3 Resource Management: Heat Map ..................................................................................... 133
9.4 Financial Metrics ................................................................................................................ 134
9.4.1 Revenue per Employee Leaders ................................................................................... 134
9.4.2 Revenue per Employee Laggards ................................................................................. 135
9.4.3 Expenditure per Employee Leaders .............................................................................. 137
9.4.4 Expenditure per Employee Laggards ............................................................................ 138
10 Geographical Segmentation ..................................................................................................... 140
10.1 India ................................................................................................................................... 140
10.2 Europe, Middle East, and Africa ......................................................................................... 142
10.3 North America .................................................................................................................... 144
10.4 Rest of World...................................................................................................................... 146
11 Strategic Outlook ...................................................................................................................... 147
11.1 Current Growth in the Indian Pharmaceutical Industry Expected to Continue ..................... 147
11.2 Increased Focus on R&D.................................................................................................... 148
11.3 Government’s Pricing Revision Will Further Reduce Margins ............................................. 148
11.4 Stiff Competition from Multinationals May Stymie Development of Smaller Domestic Players ..
..................................................................................................................................... 149
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 11 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Table of Contents
11.5 Growing Pressures on Indian Patent Laws Could Challenge Domestic Companies............ 150
12 Appendix .................................................................................................................................. 151
12.1 Bibliography........................................................................................................................ 151
12.2 Abbreviations...................................................................................................................... 153
12.3 Research Methodology ....................................................................................................... 158
12.3.1 Coverage ...................................................................................................................... 158
12.3.2 Secondary Research .................................................................................................... 158
12.3.3 Expert Panel Validation................................................................................................. 159
12.4 About the Authors ............................................................................................................... 160
12.4.1 Analyst .......................................................................................................................... 160
12.4.2 Director of Healthcare Industry Dynamics ..................................................................... 160
12.4.3 Global Head of Healthcare Research and Consulting ................................................... 161
12.5 About the Industry Dynamics Team .................................................................................... 162
12.6 About GlobalData ............................................................................................................... 162
12.7 Disclosure Information ........................................................................................................ 162
12.8 Disclaimer .......................................................................................................................... 163
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 12 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Table of Contents
1.1 List of Tables
Table 1: First-Time Generic Drug Approvals, 2012 - Part 1 ......................................................................... 26
Table 2: First-Time Generic Drug Approvals, 2012 – Part 2 ........................................................................ 27
Table 3: First-Time Generic Drug Approvals, 2012 – Part 3 ........................................................................ 28
Table 4: First-Time Generic Drug Approvals, 2012 – Part 4 ........................................................................ 29
Table 5: Biosimilars Currently Marketed in India ......................................................................................... 33
Table 6: Wockhardt’s Product Pipeline ....................................................................................................... 41
Table 7: Lupin’s Product Pipeline ............................................................................................................... 54
Table 8: Glenmark: Novel Drugs Pipeline ................................................................................................... 63
Table 9: Torrent Pharmaceuticals’ Current Discovery Portfolio ................................................................... 66
Table 10: Dr. Reddy’s Currently Marketed Biosimilars .................................................................................. 73
Table 11: GlobalData’s Benchmark Rankings, Top 10 Pharmaceutical Companies in India, 2012 ................. 79
Table 12: Top 10 Indian Pharmaceutical Companies’ FM Composite Scores and Overall FM Scores, 2012.. 82
Table 13: Revenue-Leading Companies’ FM Composite Scores and Overall FM Scores, 2012 .................... 83
Table 14: Top Three Revenue Laggards in 2012 .......................................................................................... 85
Table 15: Top Three Revenue Growth Leaders in 2012 ............................................................................... 86
Table 16: Top Three Revenue Growth Laggards in 2012.............................................................................. 89
Table 17: Top Three Operating Income Leaders in 2012 .............................................................................. 90
Table 18: Top Three Operating Income Laggards in 2012 ............................................................................ 91
Table 19: Top Three YTY Operating Income Growth Leaders in 2012 .......................................................... 93
Table 20: Top Three YTY Operating Income Growth Laggards in 2012 ........................................................ 94
Table 21: Top Three Operating Margin Leaders in 2012 ............................................................................... 95
Table 22: Top Three Operating Margin Laggards in 2012 ............................................................................. 97
Table 23: Top 10 Indian Pharmaceutical Companies’ Composite and Overall EM Scores, 2012 ................. 103
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 13 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Table of Contents
Table 24: Top SG&A Spending Leaders in 2012 ........................................................................................ 104
Table 25: Top SG&A Spending Laggards in 2012 ...................................................................................... 105
Table 26: Top SG&A Spending as a Percentage of Revenue Leaders, 2012 .............................................. 107
Table 27: Top SG&A Spending as a Percentage of Revenue Laggards, 2012 ............................................ 108
Table 28: Top SG&A Spending YTY Change Leaders ................................................................................ 110
Table 29: Top SG&A Spending YTY Change Leaders ................................................................................ 111
Table 30: Top Operating Expenses as a Percentage of Revenue Leaders ................................................. 113
Table 31: Top Operating Expenses Laggards as a Percentage of Revenue................................................ 114
Table 32: Top 10 Indian Pharmaceutical Companies’ Composite and Overall CM Scores, 2012 ................. 118
Table 33: Top Debt-to-Assets Leaders in 2012 ........................................................................................... 119
Table 34: Debt-to-Assets Laggards in 2012 ................................................................................................ 120
Table 35: Cash Ratio Leaders in 2012 ....................................................................................................... 122
Table 36: Cash Ratio Laggards in 2012 ..................................................................................................... 124
Table 37: Quick Ratio Leaders in 2012....................................................................................................... 125
Table 38: Quick Ratio Laggards in 2012 ..................................................................................................... 126
Table 39: ROI Leaders in 2012 .................................................................................................................. 127
Table 40: ROI Laggards in 2012 ................................................................................................................ 128
Table 41: Top 10 Indian Pharmaceutical Companies’ Composite and Overall RM Scores, 2012 ................. 133
Table 42: Top Three Revenue per Employee Leaders in 2012 ................................................................... 134
Table 43: Top Three Revenue per Employee Laggards in 2012 ................................................................. 135
Table 44: Top Three Expenditure per Employee Leaders in 2012 ............................................................... 137
Table 45: Top Three Expenditure per Revenue Laggards in 2012 .............................................................. 138
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 14 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Table of Contents
1.2 List of Figures
Figure 1: Value of Pharmaceutical Exports from India, 2002–2012 ............................................................. 23
Figure 2: Sun Pharmaceuticals: SWOT Analysis ........................................................................................ 35
Figure 3: Wockhardt: SWOT Analysis ........................................................................................................ 40
Figure 4: Cipla: SWOT Analysis ................................................................................................................. 44
Figure 5: Ranbaxy: SWOT Analysis ........................................................................................................... 48
Figure 6: Lupin Pharmaceuticals: SWOT Analysis ..................................................................................... 53
Figure 7: Zydus Cadila: SWOT Analysis .................................................................................................... 57
Figure 8: Glenmark: SWOT Analysis.......................................................................................................... 61
Figure 9: Torrent Pharma: SWOT Analysis ................................................................................................ 66
Figure 10: Dr. Reddy’s: SWOT Analysis ...................................................................................................... 71
Figure 11: Aurobindo Pharmaceuticals: SWOT Analysis .............................................................................. 76
Figure 12: Competitive Assessment of the Top 10 Pharmaceutical Companies in India, 2012 ...................... 81
Figure 13: Leading Pharmaceutical Companies in India by Revenue in 2011 and 2012................................ 86
Figure 14: Leading Pharmaceutical Companies in India by YTY Revenue Growth in 2012 ........................... 89
Figure 15: Leading Pharmaceutical Companies in India by Operating Income ($m), 2011 and 2012 ............ 92
Figure 16: Leading Pharmaceutical Companies in India by YTY Operating Income Growth .......................... 95
Figure 17: Leading Pharmaceutical Companies in India by Operating Margin in 2011 and 2012 ................... 98
Figure 18: Competitive Landscape of the Top 10 Pharmaceutical Companies in India in 2012 – SG&A Expenses as a Percentage of Revenue vs. Operating Expenses as a Percentage of Revenue .. 101
Figure 19: Leading Pharmaceutical Companies in India by SG&A Spending as a Percentage of Revenue, 2011 and 2012 .......................................................................................................................... 102
Figure 20: Leading Pharmaceutical Companies in India by SG&A Spending, 2011 and 2012 ..................... 106
Figure 21: Leading Pharmaceutical Companies in India by SG&A Spending as a Percentage of Revenue, 2012 ......................................................................................................................................... 109
Figure 22: Leading Pharmaceutical Companies in India by SG&A Expenditures YTY Change, 2012 .......... 112
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 15 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Table of Contents
Figure 23: Leading Pharmaceutical Companies in India by Operating Expenses as a Percentage of Revenue, 2011 and 2012 .......................................................................................................... 115
Figure 24: Competitive Landscape of the Top 10 Players in the Indian Pharmaceutical Industry — Debt Ratio vs. Cash Ratio, 2012 ....................................................................................................... 117
Figure 25: Leading Pharmaceutical Companies in India by Debt Ratio, 2011 and 2012 .............................. 121
Figure 26: Leading Pharmaceutical Companies in India by Cash Ratio, 2011 and 2012 ............................. 124
Figure 27: Leading Pharmaceutical Companies in India by Quick Ratio, 2011 and 2012 ............................ 127
Figure 28: Leading Pharmaceutical Companies in India by ROI, 2011 and 2012 ........................................ 129
Figure 29: Global Headcount of the Top 10 Players in the Indian Pharmaceutical Industry ......................... 131
Figure 30: Competitive Landscape of the Top 10 Players in the Indian Pharmaceutical Industry ................ 132
Figure 31: Leading Pharmaceutical Companies in India by Revenue per Employee, 2011 and 2012 .......... 136
Figure 32: Leading Pharmaceutical Companies in India by Expenditure per Employee, 2012 ..................... 139
Figure 33: Forecast Growth in the Indian Pharmaceutical Market, 2013–2020 ($bn) .................................. 140
Figure 34: Competitive Landscape of the Top 10 Domestic Pharmaceutical Companies in India, 2012 ...... 141
Figure 35: Competitive Landscape of the Leading India-based Pharmaceutical Companies in the EMEA Region, 2012 ............................................................................................................................ 144
Figure 36: Competitive Landscape of the Leading Indian Pharmaceutical Companies in North America, 2012 ......................................................................................................................................... 145
Figure 37: Competitive Landscape of the Leading Indian Pharmaceutical Companies in the ROW, 2012 ... 146
Figure 38: Forecast Growth in the Indian Pharmaceutical Market, 2013–2020 ($bn) .................................. 147
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 16 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Introduction
2 Introduction
2.1 Report Scope
GlobalData’s Top 10 Pharmaceutical Companies in India Benchmark Report – Competitive
Analysis of the Leading Players in 2013, is an essential source of information and analysis on the
Indian pharmaceutical industry. Using detailed company data, financial analysis, corporate
strategy, and market trends analysis, GlobalData has highlighted 10 companies in the Indian
pharmaceuticals space, forming a basis for in-depth analysis of the current and future growth
drivers of the domestic pharmaceuticals market. The report discusses the key factors shaping and
driving the Indian pharmaceutical industry, and provides insight on the competitive landscape and
emerging strategies that are expected to significantly alter the market position of the industry
leaders.
This report applies GlobalData’s proprietary ranking methodology to compare the competitive
position of 10 India-based pharmaceutical companies on 15 financial metrics. The performance of
each of these companies is analyzed based on their financial performance, cost-containment,
capital structure, and efficiency to illustrate the different strategies these companies are using to
increase shareholder value and capture market share from branded pharmaceuticals
manufacturers. In addition to the financial metrics, this report presents competitive landscapes of
the various markets in which these companies operate, as well as detailed company profiles,
including SWOT analyses, of these major players. It also describes the operations strategies of
these companies.
Throughout the report, GlobalData’s analysts provide you with expert insight, expanding on each
strategy and factor discussed, with the aim of providing you with the tools you need to make
informed business decisions.
Key Questions Answered
What are the drivers of the Indian pharmaceutical industry?
What is the forecast for the Indian pharmaceutical market to 2020?
What specific strategies are pharmaceutical companies in India employing to capture market
share from branded and generic pharmaceutical companies worldwide?
How are these companies dealing with cost-containment to increase their margin?
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 17 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Introduction
How does my assets utilization and overall manufacturing efficiency match up with theirs?
How are these pharmaceutical companies maximizing their capital spending to attain a
competitive advantage?
Key Benefits
This report will enable you to:
Understand the key factors driving the substantial growth being witnessed in the Indian
pharmaceutical industry and the market’s outlook through 2020
Benchmark your company’s performance against other pharmaceutical companies in India to
identify strengths that can be leveraged and/or areas of possible improvement
Plan your entry and/or expansion activities involving the Indian pharmaceutical market by
understanding the market dynamics and identifying possible partners and/or acquisition targets
Analyze and track the strategies that successful pharmaceutical companies in India are using
to gain share in the increasingly competitive market
Understand the underlying financial metrics that differentiate certain companies from the pack
in terms of growth and profitability, spending, asset structure, and efficiency
Use this information as an independent source for your due diligence and transaction strategy
GlobalData Selection Criteria
After extensive exploratory research, GlobalData identified 10 pharmaceutical companies in India,
primarily based on their revenue size. GlobalData believes these 10 companies comprise a
representative cross-section of the pharmaceutical companies that are headquartered in India and
vary by market focus and corporate strategy, thereby providing a foundation for strategic
discussion and analysis. GlobalData’s coverage examines these drug makers through a unique
company-centric lens, combining financial performance, leverage, and efficiency with M&A activity
to assess each company’s overall strategy. This type of coverage is unlike any other analysis
currently available and will deliver a consistent view into the evolution of these companies’
corporate growth. Moving forward, GlobalData plans to update this list of 10 India-based
companies based on market dynamics and customer feedback to provide our clients with the most
current information and analysis on the major players in the rapidly growing Indian market.
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 18 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Introduction
The 10 companies covered in this report are: Aurobindo, Cipla, Dr. Reddy’s, Glenmark, Lupin,
Ranbaxy, Sun, Torrent, Wockhardt, and Zydus Cadila.
If there is a specific company you would like GlobalData to cover and include in our next report,
kindly contact GlobalData’s Industry Dynamics Team directly, and we will make every attempt to
add it to our coverage.
2.2 Upcoming Related Reports
Report titles are subject to change:
GlobalData (2013). PharmaLeaders: Contract Research Organizations Benchmark Report –
Financial Benchmarking & Competitive Assessment of Leading CROs, July 2013,
GDHC004PLR
GlobalData (2013). PharmaSphere (2013): Global Deal-making Trends and Operations
Strategies in the CRO Market, August 2013, GDHC005PSR
GlobalData (2013). US Healthcare Policy Update, August 2013, GDHC003PSR
GlobalData (2013). Deal-making Trends in the APAC, August 2013, GDHC004PSR
GlobalData (2013). Benchmarking the Top 10 Domestic Players in the BRICS Markets,
September 2013, GDHC004PLR
GlobalData (2013). Early-Stage Biotech Funding and Strategy, November 2013,
GDHC005PSR
2.3 Recently Published Reports
GlobalData (2013). PharmaSphere: Global Biosimilars Strategy – Regulatory Landscape, Key
Drivers, Markets and Trends in 2013, May 2013, GDHC002PSR
GlobalData (2013). PharmaSphere: Early-Stage Technology Transfer Collaborations, April
2013, GDHC003PSR
GlobalData (2013). PharmaSphere: Global Generics Strategy – Key Drivers, Markets and
Trends in 2013, March 2013, GDHC001PSR
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 19 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Introduction
GlobalData (2013). PharmaLeaders: Generic Manufacturers Benchmark Report – Financial
Benchmarking & Competitive Analysis of the Leading Players in 2013, March 2013,
GDHC001PLR
GlobalData (2013). PharmaLeaders: Innovative Mid-Cap Biotechnology Benchmark Report –
Financial Benchmarking, Pipeline Assessment & Competitive Analysis of Innovative Biotechs,
January 2013, GDHC001SAC
2.4 GlobalData’s Benchmarking Methodology
GlobalData’s Top 10 Pharmaceutical Companies in India Benchmark Report – Competitive
Analysis of the Leading Players in 2013 report ranks 10 India-based pharmaceutical companies on
15 financial metrics. These metrics include company-specific data such as revenues, margins,
expenses, and balance sheet ratios, which are weighted and combined into an aggregate
composite score that leads to a rank of each company’s overall financial performance. The ranking
scale ranges from 1.00 to 10.00, with the average being 5.00, and higher rankings representing
better overall performance. Please note that GlobalData placed more emphasis on company
growth and efficiency. Consequently, revenue size — one of the financial metrics utilized in this
report — was weighted less than revenue growth, thereby rewarding companies that are more
efficient in their operations and growing faster than their peers in the industry.
GlobalData believes that one of the many strengths of our proprietary ranking methodology is that
company rankings are data-driven and empirical, not subjective or whimsical. It is important to note
that these rankings are retrospective and are intended to help illustrate the strategies that
companies are using to succeed financially, and should not be considered as an endorsement by
GlobalData, or as a recommendation to purchase any securities. It is essential to recognize that
there are many factors that determine the success of any company, not just financial performance,
such as clinical pipeline, management leadership, and organizational structure, which are not
accounted for directly in our methodology. The rankings are primarily intended to serve as an
impetus for analytical discussion and for examining a company’s relative competitive position in a
very dynamic industry.
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 162 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Appendix
12.5 About the Industry Dynamics Team
GlobalData’s Industry Dynamics Team specializes in tracking and analyzing the pharmaceutical
healthcare industry and all its sectors globally. GlobalData’s Pharma eTrack database provides
insightful analytical reports covering market, trends, companies, pipelines, diseases, technologies,
and real-time updates of key global events impacting the industry.
12.6 About GlobalData
GlobalData is a leading global provider of business intelligence in the healthcare industry.
GlobalData provides its clients with up-to-date information and analysis on the latest developments
in drug research, disease analysis, and clinical research and development. Our integrated business
intelligence solutions include a range of interactive online databases, analytical tools, reports, and
forecasts. Our analysis is supported by a 24/7 client support and analyst team.
GlobalData has offices in New York, Boston, London, India, and Singapore.
12.7 Disclosure Information
GlobalData is a product of GlobalData Ltd, a UK-registered company. GlobalData Ltd has no
current or intended investment banking or corporate finance relationships or operations. The
material presented in this report is provided for information purposes only and is not to be used or
considered as a recommendation to buy, hold, or sell any securities or other financial instruments.
No GlobalData Ltd directors, officers, or employees are on the Board of Directors of a covered
company, and no one at a covered company is on the Board of Directors of GlobalData Ltd.
Top 10 Pharmaceutical Companies in India Benchmark Report - Competitive Analysis of the Leading Players in 2013 163 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.
TOP 10 PHARMACEUTICAL COMPANIES IN INDIA BENCHMARK REPORT - COMPETITIVE ANALYSIS OF
THE LEADING PLAYERS IN 2013
Appendix
12.8 Disclaimer
All Rights Reserved.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any
form by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior
permission of the publisher, GlobalData.