Best Practices of the Indian Pharmaceutical Intermediates Market Recognized by Frost & Sullivan

Cansaulim, Goa, India , 2006-05-23

Global growth consulting company Frost & Sullivan presented its Best Practices Awards for the Indian Pharmaceutical Intermediates Market 2005, on May 23rd 2006 at its annual event, “Opportunities in Life Sciences: Global Partnership Summit”, held at the Park Hyatt, Goa.

The two-day summit preceding the Best Practices ceremony saw leading speakers from the global lifesciences industry addressing the gathering on the challenges facing the Indian industry such as expanding outsourcing in the drug discovery market and securing created value in the context of the new Indian patent regime. Dr. David Floyd, Executive VP and CSO, Pharmacopeia, USA, Mr. Dinesh Dua, President, Biotechnology, Wockhardt and Mr. Jeff Schnack, Director, Pharmaceutical Planning (Intl), Otsuka Pharmaceuticals, Japan were some of the key speakers.

Four awards were conferred at the Best Practices ceremony recognizing companies that have excelled in different areas within the Indian Pharmaceutical Intermediates Market. These recipients were identified on the basis of an extensive study conducted by Frost & Sullivan in the Indian Pharmaceutical Intermediates market, which will be published shortly.

“Frost & Sullivan estimates that the Indian market for Pharmaceutical Intermediates is currently valued at $590 million. Of this, intermediates catering to six major therapy areas, Antiinfectives, Cardiovascular, Oral antidiabetics, Central Nervous System, Antiulcerants, Antiinflammatory, and antirheumatic drugs, accounted for the lion’s share at $373.7 million. Exports account for a large share of this market, with many manufacturers exporting up to 60 or 80 percent of their production,” commented Anand Rangachary, Director, Frost & Sullivan.

As part of this study, Frost & Sullivan conducted detailed interviews with key manufacturers, end users and industry veterans. Companies were administered a semi-structured questionnaire pertaining to the overall industry as well as their own processes and performance in the year 2005. These responses as well as extensive secondary research and validation through other industry participants, were used to evaluate these companies on the specific criteria for each award.

Due to intense competition, technology or expertise in specific chemistries is emerging as one of the ways for companies to differentiate themselves. Mergers and acquisitions, as well as strong product strategies to enter new markets are other means of growth. A strategic analysis of these factors has not only aided Frost & Sullivan in identifying a set of Best Practices followed, but also companies who have been the leaders in some of these initiatives. The four companies who received these prestigious awards were:

Jupiter Bioscience Ltd was awarded the “Entrepreneurial Company in the Indian Pharmaceutical Intermediates Market Award” in recognition of second-generation entrepreneur Mr. Venkat. R. Kalavakolanu’s successful efforts in building a formidable business in the area of peptide chemistry. The company today competes with the global top 10 peptide chemistry specialists, and is poised to grow from strength to strength, as the global market for peptide-based APIs grows.

Anu’s Laboratories Ltd was awarded the “Market Penetration Leadership in the Indian Pharmaceutical Intermediates Market Award” for its singular focus on customer needs and gearing internal processes towards catering to these. These Best Practices have enabled the company to successfully increase its market share from 1.5percent in 2003 to 5 percent in 2005. The award was received by Mr. Hari Babu, Managing Director, Anu’s Laboratories Ltd.

Atul Ltd was awarded the “Technology Excellence in the Indian Pharmaceutical Intermediates Market Award” for its successful implementation of a Phosgenation facility that has added value to Indian API manufacturers by providing a viable alternative to imports. Phosgenation being a hazardous chemistry at a commercial scale, the implementation required high skill in the areas of using high-risk chemicals and processes, operating the plant under highly corrosive conditions and storing and handling hazardous cargo. The award was received by Mr. J. L. Shah, Executive Director, Atul Ltd.

Lastly, Dishman Pharmaceuticals & Chemicals Ltd was awarded the “Competitive Strategy Leadership in the Indian Pharmaceutical Intermediates Market Award” recognizing the company’s successful strategy of attuning the product portfolio towards higher profitability and aggressively identifying newer markets. Dishman has adopted a multi-pronged strategy for growth including technology transfer to emerging markets, in the APIs and intermediates space. and is actively pursuing acquisitions and alliances to compete in developed markets.

About Frost & Sullivan Awards:

Frost & Sullivan Awards are presented to companies that demonstrate excellence in their industry, commending diligence, commitment and innovative business strategies required to advance in the global marketplace. Frost & Sullivan rigorously analyzes specific criteria to determine award recipients in a variety of regional and global markets. These awards recognize the superior planning and execution of product launches, strategic alliances, distribution strategies, technological innovations, customer service and mergers and acquisitions. A host of other crucial marketing factors such as leadership, strategy, service, innovation, integration and development are also recognized. The companies that are commended as award recipients are those with the diligence, perseverance, and dedication required to develop a successful business plan and excel in the increasingly competitive global marketplace.

About Frost & Sullivan:

Frost & Sullivan a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com.

Contact

Surbhi Dedhia, Frost & Sullivan, + 91 (022) 40013431
[email protected]