Page 62 - FBL AR 2019-20

Fermenta Biotech Limited
Annual Report 2019-20

Management

Discussion and Analysis

Global economic overview mere 0.9% in 2019 due to trade tensions the fifth-largest world economy in 2019
The global economy grew 2.9% in 2019 and slower economic growth. and jumped 14 places to 63 in the 2020
compared to 3.6% in 2018, the result of Indian economic review World Bank’s Ease of Doing Business
an increase in trade disputes globally ranking. The country climbed 79
and slowdown of the manufacturing Indian economy slowed to 4.2% in positions in five years and was among
sector, coupled with a global financial FY 2019-20, compared to 6.1% in FY the top 10 performers for the third year
crisis and Brexit. Global trade also grew a 2018-19. However, India emerged as running.

Growth of India’s GDP in FY 2019-20
Q1, FY 2019-20 Q2, FY 2019-20 Q3, FY 2019-20 Q4,FY 2019-20
Real GDP growth (%) 5.2 4.4 4.1 3.1
(Source: Economic Times, CSO, Economic Survey, IMF, RBI, Franklin Templeton, PIB)

Global pharmaceutical industry overview

The global pharmaceutical market was to global sales growth was expected to grow by 3% each year, reaching roughly
estimated at ~USD 1,437.48 billion in 2018, rise to almost 35% in 2019. North America USD 203.9 billion by 2024. As per World
driven by an improvement of treatment is expected to account for the leading Population Prospects by United Nations,
concepts, the optimisation of medical market share (45.33%) in 2023, followed by the worldwide population is likely to cross
measures, the acceleration of new drug Asia Pacific with a market share of 24.07%. 9.3 billion by 2050 and around 21% of this
access, improvement of medical service Latin America and Middle East and Africa population is expected to be aged 60 years
quality and the dynamic adjustment of (MEA) are expected to remain at 7.53% and and above.
medical insurance access. 2.96% in 2023. (Source: Asian Times, Global News wire)
The major developed markets would This growth is driven by the growing
remain the dominant contributor; the and ageing population in key markets.
emerging markets’ overall contribution Overall R&D spending is expected to

Global API industry overview Percentage of API manufacturing
Active Pharmaceutical Ingredients (APIs) are portions of drugs, which are biologically facilities for all drugs by country or
active in nature. The APIs have significant use in the manufacturing of effective and region, August 2019
safe medicines. The global active pharmaceutical ingredient market stood at USD 182.2
billion in 2019 on the back of an increasing incidence of chronic diseases coupled with
a growing importance of generics and an increasing uptake of biopharmaceuticals.
The API market is classified into two segments, namely prescription drugs and over-
the-counter (OTC) drugs. According to the FDA, there are a total of 1,079 API facilities
worldwide that make the 370 drugs on the WHO list, marketed across US. Of these
1079 facilities, 166 (15%) are in China, 221 (21%) are in the United States, and 687 (64%)
are spread across rest of the world.
(Source: Markets and markets, FDA)

China 13% EU 26% India 18%
USA 28% Canada 2%
Rest of the World 13% (Source: Statista)

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