Page 15 - 2 Director Reports (Annexure) 2021.cdr

60-61

ANNEXURE 'G'
MANAGEMENT DISCUSSION AND ANALYSIS opportunities in the pharmaceutical sector, especially US$ 65 billion by 2024 and further expand to reach
India. ~US$ 120-130 billion by 2030. The Indian
GLOBAL PHARMACEUTICAL SCENARIO increase in the patient pool drove the demand for biotechnology industry is expected to reach US$ 150
pharmaceuticals used in the treatment of these diseases, In generic market, India is facing high competition from
The global pharmaceutical market has experienced billion by 2025 from existing value at around US$ 64
significantly impacting market growth during this period. China for the supply of APIs at lower cost. India imports
significant growth in recent years. As of end-2020, the billion.
70% of the API needs from China. This created a lot of
total global pharmaceutical market was valued at about Oncologic is the top therapeutic class for drug sales hardship to some of the domestic pharmaceutical firms MOREPEN'S STRATEGY
1.27 trillion U.S. dollars. This is a significant increase globally, followed by antidiabetics. However, the sales of
manufacturing certain key APIs. India's health security
from 2001 when the market was valued at just 390 drugs for autoimmune diseases and diabetes have ACTIVE PHARMACEUTICAL INGREDIENDTS (API)
was under threat due to heavy dependence on China
billion U.S. dollars. The market is expected to reach experienced some of the largest growth in spending in The company is having significant presence in the fields
coupled with shortage in supply of key APIs.
$1.70 trillion in 2025 at a CAGR of 8%. The recent years. of Anti-histaminic, Anti-asthmatic, Anti-hypercholester-
pharmaceutical market plays a key role in how people The healthcare sector faced numerous challenges in Some of the key APIs were crucial to mitigate the burden olemia, Anti-hypertensive & Anti-diabetic drugs and has
get medications and what people pay for medication. of accelerating disease like tuberculosis, diabetics and been servicing customers both in export as well as
2020. Some of them were predictable, while others
However, some markets are better for pharmaceutical cardiovascular diseases in India. The current domestic markets from many years. The USDMFs for
seemed to come out of the blue. New medicines are
companies than others. dependence of Indian pharmaceutical companies on latest and already commercialized anti-diabetic drugs of
becoming harder and more expensive to produce.
Chinese APIs created a serious concern for national
The growth is mainly due to the companies rearranging Increased cost has led to the reduced demand for health security, prompting the GoI to set up a taskforce 'gliptin' series i.e., Saxagliptin Hydrochloride Dihydrate,
their operations and recovering from the COVID-19 prescription medicine. Anhydrous Sitagliptin phosphate & Linagliptin Form C
for reviewing the internal API sector.
impact, which had earlier led to restrictive containment were filed during the current year for early launch in
Loss of exclusivity is increasing steadily. The rise of
measures involving social distancing, remote working DOMESTIC PHARMACEUTICAL MARKET various markets. The USDMF filing for another
applications for biosimilars in the US and Europe is one
and the closure of commercial activities that resulted in India enjoys a key position in the global pharmaceutical commercialized products under this category i.e.,
of the current trends in the pharmaceutical industry.
operational challenges. industry. It is the largest provider of generic drugs Vildagliptin & Alogliptin Benzoate has been planned for
These medical products have no clinically meaningful the current calendar. The USDMF filing of Amorphous
Following the 2020 pharmaceutical trends, developed differences from already-approved biomedicine. As a globally. Indian pharmaceutical sector supplies over Dapagliflozin of 'Gliflozin' series is planned for the
countries show steady growth in spending on medicine result, they are cheaper to develop and obtain approval 50% of global demand for various vaccines, 40% of current year. The company has also planned USDMF
in 2021. The spending is expected to exceed $1.4 trillion for, and consequently, cost less than name-brand drugs. generic demand in the US and 25% of all medicine in the filing of Ertugliflozin, another new drug of this series, for
by the end of 2021. This represents a steady increase in COVID-19 did not reshape the whole industry. On the UK. The country is the world's largest supplier of current financial year as it seems to have good market
comparison to prior years. generics, accounting for 20% of global exports. Globally,
contrary, it only fueled the development of pre-existing potential. The USDMFs for latest commercialized
India ranks 3rd in terms of pharmaceutical production by
The growth is primarily backed by new products and trends, most notably in the areas of patient engagement blockbuster anti-coagulant drugs of 'xaban' series i.e.,
volume and 14th by value.
innovative technologies in leading pharmaceutical and digitalization. Apixaban Form N-1 and Apixaban Form H3 were filed
markets, such as China and the United States. This trend India is the only country with largest number of US-FDA during the current year for early launch in various
COVID-19: IMPACT ON PHARMACEUTICAL
will likely continue through 2023 despite the pandemic. compliant Pharma plants (more than 262 including APIs) markets whereas scale up and USDMF filing for another
BUSINESS outside of USA. India has more than 2000 WHO-GMP
North America was the largest region in the global blockbuster drugs of this series i.e., Rivaroxaban and
Many companies announced the postponing of the approved Pharma Plants, 253 European Directorate of
pharmaceuticals market, accounting for 46% of the Edoxaban Tosylate is planned for current financial year.
clinical trials that were underway to focus on the novel Quality Medicines (EDQM) approved plants with
market in 2020. Asia Pacific was the second largest These valuable additions would make 'Morepen' very
coronavirus. The postponement of R&D healthcare modern state of the art Technology.
region accounting for 26% of the global projects has led to the reduced demand for strong in Anti-histaminic, Anti-asthmatic, Anti-
pharmaceuticals market. Africa was the smallest region India is the source of 60,000 generic brands across 60 hypercholesterolemic, Anti-diabetic & Anti-Coagulant
pharmaceuticals that is affecting the growth of the
in the global pharmaceuticals market. therapeutic categories and manufactures more than drugs. The new product additions in aforesaid new
market. However, the increased spending in the
500 different Active Pharmaceutical Ingredients (APIs). categories are expected to bring additional business to
Pharmaceutical companies are offering drugs for healthcare sector, along with the rising focus on finding
The API industry is ranked third largest in the world the Company.
customized individual treatment for various diseases. a cure for the global pandemic is expected to bode well
contributing 57% of APIs to prequalified list of the WHO. The company is world leader in Loratadine produced in
Personalized medicine, also referred to as precision for the market in the near future.
medicine, aims to provide medical care according to the India holds 12% of all global manufacturing sites its USFDA approved facilities situated at Masulkhana,
A massive spurt in healthcare spending owing to the
patient's individual characteristics and genetic makeup. catering to US market. The cost of manufacturing in Himachal Pradesh and Baddi, Himachal Pradesh . The
burden of the treatment of chronic diseases and several
Precision therapies are increasingly being adopted as India is approximately 33% lower than that of the US. company has achieved leadership position; of being one
disorders for the past ten years has boosted the adoption
firms increasingly let go of the one-size-fits-all model for of pharmaceutical products globally. The pharma India's online pharmacy market is estimated to touch to of the largest suppliers of block buster drugs i.e., anti-
common medical conditions. $2.7 bn by 2023 from about $360 million in 2019. asthmatic drug, Montelukast Sodium produced in its
companies are aiming to provide affordable and USFDA approved Masulkhana facility along with
The population profile of most countries is becoming efficient treatment to the patients by focusing on India enjoys an important position in the global Desloratadine, another anti-histaminic drug.
older. According to the Population Reference Bureau, the innovating their products to cater to the rising demand. pharmaceuticals sector. The country also has a large
share of population over the age of 65 in the global pool of scientists and engineers with a potential to steer The company continues to be a prominent player in
The coronavirus pandemic and its resultant lockdown commercial production of block buster drugs
population had increased to 9% from 8% in 2015. The badly affected all major sectors of the economy, but it the industry ahead to greater heights. Presently, over
global population aged 65 years or over is expected to 80% of the antiretroviral drugs used globally to combat Atorvastatin calcium, Rosuvastatin calcium of anti-
has come as a boon in disguise to the Indian
rise by 34% reaching 1.4 billion by 2030. AIDS (Acquired Immune Deficiency Syndrome) are hypercholesterolemic series, Fexofenadine
pharmaceutical sector. Though some part of
supplied by Indian pharmaceutical firms. Hydrochloride of anti-histaminic series, Olmesartan of
This rise in the aging population increased the patient pharmaceutical business was affected such as supply anti-hypertensive series & their intermediates produced
pool of many chronic diseases such as rheumatoid chain and import of active pharmaceutical ingredients The domestic market is expected to triplicate in the next in its USFDA approved Baddi facility. Another block
arthritis, hypertension, diabetes and cancer. The from China, COVID-19 has provided some decade. India's domestic pharmaceutical market buster drugs Sitagliptin, Saxagliptin, Linagliptin,
estimated currently at US$ 42 billion is likely to reach