ISB Pharma Summit Focuses on Access, Growth & Economics

ISB Pharma Summit Focuses on Access, Growth & Economics

Matai talked about the 'clutter' in this mushrooming sector. "In India there are 500,000 chemists and 25,000 brands (19,000 brands in pain therapy alone), 17,300 hospitals, a very wide price index, host of regional and local players - all of these factors and more contribute to the clutter that this industry witnesses."

Some of the concerns of this sector, due to the growing clutter, he pointed out, were sub-optimal share of voice, brand recall, customer retention and expansion, etc. To rise above this clutter, Matai shared with the audience an internal strategy of Novartis India - an exercise in brand building, which rested on facts like innovation, action, speed, relationship, pride in brand, etc.

Viraj Gandhi, CEO, Medicine Shoppe, focused on creating access at the bottom. Giving an example of Sehat, the low income health care centre initiative of Medical Shoppe, he said, "We have taken a solution focused approach rather than a product focused one. We believe in going beyond prescriptions." The focus of Sehat is to 'target this top and middle of the bottom of the pyramid and lowering the cost of getting well'.

The Second Session of the day emphasized on issues of Growth. As the Indian Pharma market is projected to triple by the year 2015 to US $ 20 billion, this session surveyed the industry through the lens of marketing and branding on one hand, and distribution and supply chain on the other. Speakers discussed the key trends and drivers contributing to this growth and also about the emerging patterns in Contract Research Organisations (CRO), and how they will contribute to the growth of Indian Pharma.

Priyanka Aggarwal, Healthcare Practice, McKinsey & Company, categorized six factors that will fuel the growth of this industry - 'growth in income, increase in health insurance coverage, growth in medical infrastructure, rising prevalence of chronic diseases, patent legislation and, lastly, aggressive market creation by local players'. "Shift focus from market share to market creation, adopt different business models for different opportunities and ensure continued access to products," she cued in for the local players. "For the MNCs, they need to clarify aspirations for the Indian businesses and invest in local organisations," Aggarwal said.

Speaking on Contract Research Services, Dr. Mark A. Goldberg, President, Clinical Research Services, PAREXEL International, said, "Pharma growth is under pressure globally due to reasons like R&D inefficiencies, pricing pressure, failure of the block-buster model and major pending patent expirations." He added that clinical trails are growing in the Asia Pacific regions because of factors like lower costs, increased outsourcing, large markets for products, rapid patient recruitment, etc. He noted that India and China are the most attractive destinations to perform clinical trials outside the US and that India’s attractiveness is going to grow with expected regulatory improvements.

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Contributed by -
Ms. Bhuvana Ramalingam,
Director - Communications,
Indian School of Business, Hyderabad.

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