Isp Final Gr Presentation
- 1. Gedeon RichterProducing the Next Generation of GenericsErica Chau | Andy Chiu | Nicole Lee | Lisa Liu | Haonan Zhang
- 2. AgendaThe CompanyThe IndustryThe ChallengesRecommendationsConclusionThe CompanyThe IndustryThe ChallengesRecommendationsConclusion
- 3. Market PositionComposition of Global Pharmaceutical MarketCAGR 2004-08 (%)PfizerBayer40Servier30Gedeon RichterGlaxoSmith Kline20Sales growth 2007-08 (%)The CompanyThe IndustryThe ChallengesRecommendationsConclusionZentivaNovartisSanofi-Aventis10Krka5 10 15 20 25
- 4. Sales CompositionThe CompanyThe IndustryThe ChallengesRecommendationsConclusion
- 5. SWOT AnalysisStrengthsOpportunitiesWeaknessesThreatsTop 10 generics player in Europe
- 7. Strong position in gynecological drug market
- 8. Early investor in biotech
- 9. Long-term value in biosimilars
- 10. Potential growth in branded products and OTC medicines
- 11. Increasing focus on generic drugs
- 12. Size of firm limits extensive global expansion
- 13. Sales are highly correlated with stability of CIS region
- 14. Stricter governmental policies and regulations
- 16. Increasing competition in generic market and downward pricing pressuresThe CompanyThe IndustryThe ChallengesRecommendationsConclusion
- 17. Rising Health Care CostsThe CompanyThe IndustryThe ChallengesRecommendationsConclusion
- 18. Industry Structure Shift Traditional Pharmaceutical IndustryNew Pharmaceutical IndustryThe CompanyThe IndustryThe ChallengesRecommendationsConclusionLicensing deals & alliances
- 19. Industry Growth ComparisonThe CompanyThe IndustryThe ChallengesRecommendationsConclusion
- 20. Business ConcernsCompany facing increased pressure from the trend toward biosimilarsCustomers demanding less expensive generic drugsThe CompanyThe IndustryThe ChallengesRecommendationsConclusion
- 21. Our RecommendationsPrepare Gedeon Richter for industry trend toward biosimilarsCompany facing increased pressure from the trend toward biosimilarsCustomers demanding less expensive generic drugsThe CompanyThe IndustryThe ChallengesRecommendationsConclusionPartner with biotech firm to develop biosimilar businessOutsource generics manufacturing to India
- 22. Why Biosimilars?The CompanyThe IndustryThe ChallengesRecommendationsConclusion
- 23. What Are Biosimilars?The CompanyThe IndustryThe ChallengesRecommendationsConclusion
- 24. GR Experience in BiotechManagement made a decision in 2006 to start recombinant biotechnological activitiesGedeon Richter and Helm AG acquired Strathmann Biotech for R&D laboratory, pilot plant, and manufacturing unitThe CompanyThe IndustryThe ChallengesRecommendationsConclusionConstructed a biotechnology plant in Budapest, operational in 2009Made a greenfield investment in manufacturing plant in Debrecen for mammalian cell development
- 25. Potential PartnersThe CompanyThe IndustryThe ChallengesRecommendationsConclusionYesNo
- 26. Shifting FocusThe CompanyThe IndustryThe ChallengesRecommendationsConclusion
- 27. Outsource Generics to IndiaWhy Outsource?Frees current resources to focus on biosimilarsLow costs help GR compete in generics market The CompanyThe IndustryThe ChallengesRecommendationsConclusionMaintains current generics business line
- 28. Outsource Generics to IndiaWhy India?Large pool of skilled labor for low cost to reduce production costs by approximately 40%Indian government building facilities that are compliant to Western standards The CompanyThe IndustryThe ChallengesRecommendationsConclusionProduces 30% of world’s generics – high capacity and capabilitySubstantial export potential with well-established connections to other countries
- 29. Financial ResultsActual DCFThe CompanyThe IndustryThe ChallengesRecommendationsConclusion
- 30. Financial ResultsProforma DCFThe CompanyThe IndustryThe ChallengesRecommendationsConclusion
- 31. Strategy AnalysisPotential Risks/WeaknessesHow We Address the ConcernPotential of relationship with partners failingPerform extensive analysis of potential biotech partnersIndia has strength in generic manufacturing and distribution; perform frequent quality controlCompromising quality of generics businessMaintain well-diversified portfolio; have higher rate of success by partnering; by entering the biotech market which is outpacing the traditional pharma marketFailure to realize return on biosimilar investmentThe CompanyThe IndustryThe ChallengesRecommendationsConclusionIncrease potential of earning moreSharing profitsExtensive analysis of countries prior to enteringCountry risk
- 32. Implementation TimelineEnter into negotiations with potential biotech partners
- 33. Finalize the contract with the pharmaceutical manufacturing company
- 34. Develop new biosimilar to produceBy year endWithin 9 yearsWithin 3 yearsWithin 11 yearsNowThe CompanyThe IndustryThe ChallengesRecommendationsConclusionVisit biotech companies for potential partnership
- 35. Examine facilities of viable generics manufacturing options in India
- 36. Start negotiations with the Indian companies
- 37. Finalize the contract with the biotech firm
- 38. Get drug approvedQuestions?The CompanyThe IndustryThe ChallengesRecommendationsConclusion
- 39. Leasing out Property & EquipmentThe CompanyThe IndustryThe ChallengesRecommendationsConclusion
- 40. Timeline of Patent ExpiriesThe CompanyThe IndustryThe ChallengesRecommendationsConclusion
- 41. Problems with BiosimilarsThe CompanyThe IndustryThe ChallengesRecommendationsConclusion
- 42. Biotech partnering with RGBenefits for Biotech FirmStrong trend towards partnershipsDecreases risk of unsuccessful discovery process and increases financial supportThe CompanyThe IndustryThe ChallengesRecommendationsConclusionKnowledge on regulations in the EUIncreases international reach and marketing skills