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The USA-India Chamber of Commerce mission is to provide a pro-active & professional platform for high ranking policy makers, senior business executives, academicians, and investors in the United States and India to network, facilitate and promote trade, investments & economic cooperation. USAIC’s four point agenda is: Trade, Investment, Policy and Advocacy.
Position Paper: Indian Bio-Pharma

USA-India Chamber of Commerce commissioned McKinsey & Company Position Paper: Thought Starters to Spur US-India Biopharma Collaboration



Contact us for this paper: info@usaindiachamber.org (Members only)
Go back to US India BioTech Summit 2008
Click here to register online for US India BioPharma & Healthcare Summit 2010


USA India Chamber of Commerce
Preface
  1. This position paper is part of an ongoing effort by McKinsey & Company's Pharmaceutical and Medical Products (PMP) practice to identify "Opportunities to Spur Innovation by Leveraging Emerging Markets"
  2. The project was managed by Timothy deGavre, an Engagement Manager in New Jersey. We would like to recognize the efforts of Malti Prabhu, a Healthcare Practice Expert in McKinsey's Delhi office, Akhil Verma, a Research Analyst in McKinsey's Knowledge Center in India, and Gregory Michnikov, a Business Analyst in New York.
  3. Numerous McKinsey experts contributed to this report, including: Ajay Bakshi, Roy Berggren, Vikas Bhadoria, Bhaskar Chakravorti, Yougang Chen, Peter DeYoung, Adheet Gogate, Maria Gordian, Bill Huyett, Gautam Kumra, Franck Le Deu, Palash Mitra, Rajesh Parekh, Nav Singh and Rodney Zemmel
  4. This position paper highlights thought starters to enhance US-India biopharma collaboration as well as roadblocks that may prevent their successful implementation. The basis of this work was McKinsey proprietary knowledge, external reports and interviews with investors, pharma executives and government representatives, including many of the attendees at the conference. Its focus is human biopharma and does not include agro-biotech, medical devices, hospital or payor opportunities. This position paper also benefited from McKinsey's close association with India's transformation over the last 15 years, especially in healthcare, as well as our extensive work with both Indian and US healthcare companies.
  5. This work was commissioned by and has been completed with the assistance of the USA-India Chamber of Commerce. We would like to thank Karun Rishi, President of the USA-India Chamber of Commerce, for organizing this summit and for giving us the opportunity to share this position paper with you.

      6. Ajay Dhankhar
      Principal
      McKinsey & Company
      New Jersey      		 Ramesh Srinivasan
      Principal
      McKinsey & Company
      New York      		 Alka Goel
      Associate Principal
      McKinsey & Company
      New York
      USA India Chamber of Commerce
      Contents

      Chapter 1: Indian pharma, poised for growth

      Chapter 2: Thought starters to spur US-India biopharma collaboration
      Chapter 3: Thought starters to drive growth
      • A. Accelerate Indian acquisition of subscale US companies
      • B. Enhance value of multi-nationals' (MNCs') mature portfolios
      • C. Facilitate partnerships with Indian companies for market access
      • D. Roll up subscale Indian companies or brands
      • E. Develop biologics capability in India
      Chapter 4: Thought starters to increase productivity
      • F. Substantially increase scale of discovery innovation in India
      • G. Create for-profit institutions to train India's biopharma talent
      • H. Maximize use of India as a base for R&D support services
      • I. Increase pharma research at academic institutions
      • J. Develop a drug from research to NDA for $100 MM
      Chapter 5: Ideas for industry and government
      USA India Chamber of Commerce

      USA India Chamber of Commerce

      * Including institutional sales
      Source: IMS Midas; "India Pharma 2015: Unlocking the Potential of the Indian Pharmaceuticals Market" McKinsey Report

      USA India Chamber of Commerce

      Source: IMS Midas; "India Pharma 2015: Unlocking the Potential of the Indian Pharmaceuticals Market" McKinsey Report

      USA India Chamber of Commerce

      * Includes fund raising (6%) and patent challenge settlement (2%)
      Source: Windhover

      USA India Chamber of Commerce

      Source: Sandhill.com, Private Equity Intelligence, Company Web sites

      USA India Chamber of Commerce

      Source: McKinsey analysis

      USA India Chamber of Commerce

      USA India Chamber of Commerce

      USA India Chamber of Commerce

      USA India Chamber of Commerce

      Source: Windhover

      USA India Chamber of Commerce

      Source: Press Research

      USA India Chamber of Commerce

      * For retail sales
      ** Including vitamins and anti-diabetes drugs
      Source: IMS Midas; McKinsey analysis

      USA India Chamber of Commerce

      * Blackstone invested $50 MM and acquired 25% stake in Emcure in June 2006
      API: Active Pharmaceutical Ingredient; DMF: Drug Master File; ANDA: Abbreviated New Drug Application; TRIP: Trade Related Intellectual Property
      Source: Company reports, McKinsey analysis

      USA India Chamber of Commerce

      * Include Australia, Canada, Israel
      Source: Press searches

      USA India Chamber of Commerce

      * Half-year sales
      Source: Secondary press search; IMS MIDAS

      USA India Chamber of Commerce

      Source: Dealogic; IMS Midas; press search; McKinsey analysis

      USA India Chamber of Commerce

      * Based on the assumption that 35% of the total vaccine revenues in 2004 are domestic and all biosimilar therapeutics revenues are domestic
      ** Includes IFNs, GCSF, GMCSF
      ***Updated market data was not available
      Source: Biospectrum-ABLE Annual Surveys, CygnUS-Indian biopharma report 2007

      USA India Chamber of Commerce

      * Based on the assumption that 35% of the total vaccine revenues in 2004 are domestic and all biosimilar therapeutics revenues are domestic
      ** Includes IFNs, GCSF, GMCSF
      ***Updated market data was not available
      Source: Biospectrum-ABLE Annual Surveys, CygnUS-Indian biopharma report 2007

      USA India Chamber of Commerce

      USA India Chamber of Commerce

      Source: McKinsey analysis

      USA India Chamber of Commerce

      USA India Chamber of Commerce

      Source: McKinsey analysis

      USA India Chamber of Commerce

      * Tuberculosis facility
      Source: Press searches

      USA India Chamber of Commerce

      Source: Press searches; company Web site

      USA India Chamber of Commerce

      Source: US Patent and Trademark Office 2001-05

      USA India Chamber of Commerce

      USA India Chamber of Commerce

      USA India Chamber of Commerce

      Source: Company Web site; Forbes

      USA India Chamber of Commerce

      Source: McKinsey analysis, "Risk Management and Drug Development Projects," Parexel sourcebook 2003-2004

      USA India Chamber of Commerce

      Source: McKinsey analysis

      USA India Chamber of Commerce

      USA India Chamber of Commerce

      USA India Chamber of Commerce

      USA India Chamber of Commerce

      USA India Chamber of Commerce
      Contact us for this paper: info@usaindiachamber.org
      Go back to US India BioTech Summit 2008
      Click here to register online for US India BioPharma & Healthcare Summit 2010
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