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● Pfizer India has significantly stepped up launch of branded
generics (products sourced from other Indian peers) now with total
launches expected to almost double this year compared to 20
launches in the last year. Even next year, Pfizer hopes to maintain
a similar launch rate. In 2Q12, Pfizer launched 11 branded
generics vs four launches in 1Q12.
● These launches are part of Pfizer’s strategy to fill portfolio gaps in
the existing therapies (such as anti-infectives and CNS) and also
to enter new therapies such as anti-diabetes (already entered oral
form through branded generics and insulin through Biocon).
● Pfizer has been more aggressive than GSK Pharma on both
number of launches (GSK aiming at 3-5 branded generics launches
per year) and on pricing. As discussed in CS sector report on 18-
Oct-11 ‘Stay the course,’ we do not view impact of MNCs expansion
as a near-term risk for larger Indian firms and the impact should be
offset/diluted by market share gains from smaller companies. Our
discussions with doctors suggest that they at least take 1-2 years to
switch medicines in chronic therapies.
● Sun should report a strong 2Q12 quarter as Hospira in its results
mentioned yesterday that price erosion on Taxotere has been only
55% vs CS assumption of 70% (vs 45% in the Jun-11 quarter). Our
published net profit expectation for the quarter is Rs4,714 mn.
Pfizer India gets more aggressive on branded generics
Pfizer India has significantly stepped up launch of branded generics
(products sourced from other Indian peers) now with total launches
expected to almost double this year compared to 20 launches in the
last year. Even next year, Pfizer hopes to maintain a similar launch
rate. In 2Q12, Pfizer launched 11 branded generics vs four launches
in 1Q12. These launches are part of Pfizer’s strategy to fill portfolio
gaps in the existing therapies (such as anti-infectives and CNS) and
also to enter new therapies such as anti-diabetes (already entered
oral form through branded generics and Insulin through Biocon).
Pfizer is more aggressive than GSK on pricing
Pfizer has been more aggressive than GSK Pharma on both number
of launches (GSK aiming at 3-5 branded generics launches per year)
and on pricing (Figures 1 and 2). Pfizer believes that its success rate
in branded generics has been 60% so far and that is a good rate to
continue with the strategy. Branded generics constitute 4% of sales
currently for Pfizer and it expects the contribution to double in the next
4-5 years. On drugs under price control, Pfizer mentioned that gross
margins are in the area of 15-25% and currently 18% of Pfizer sales
are under price control. On a like-for-like basis, growth for the pharma
business in the Sep-11 quarter for Pfizer was 13%, in line with the
industry growth, but excluding muted performance of Corex and
Becosules, the growth was strong at 17%-plus.
MNC expansion is not a near-term risk like price control
As discussed in CS sector report on 18-Oct-11, ‘Stay the course,’ we
do not view impact of MNCs expansion as a near-term risk for larger
Indian firms and the impact should be offset/diluted by market share
gains from the smaller companies. Our discussions with doctors
suggest that they take at least 1-2 years to switch medicines in
chronic therapies and therefore it is early to write off or give due credit
to MNCs.
Sun: Price erosion on Taxotere lower than expected
Hospira in its Sep-11 results yesterday mentioned that price erosion
on Taxotere (Docetaxel) has been just 50-55% vs 45% in the Jun-11
quarter and against our assumption of 70% for the Sep-11 quarter.
This implies that our Rs 4,714 mn profit estimate for the Sep-11
quarter for Sun has potential upside. Hospira mentioned that 40% of
its Taxotere sales in the Sep-11 quarter were related to chargeback
reversals and hence we estimate that Sun/Sandoz should have been
able to take away some more share from Hospira in the last quarter.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
● Pfizer India has significantly stepped up launch of branded
generics (products sourced from other Indian peers) now with total
launches expected to almost double this year compared to 20
launches in the last year. Even next year, Pfizer hopes to maintain
a similar launch rate. In 2Q12, Pfizer launched 11 branded
generics vs four launches in 1Q12.
● These launches are part of Pfizer’s strategy to fill portfolio gaps in
the existing therapies (such as anti-infectives and CNS) and also
to enter new therapies such as anti-diabetes (already entered oral
form through branded generics and insulin through Biocon).
● Pfizer has been more aggressive than GSK Pharma on both
number of launches (GSK aiming at 3-5 branded generics launches
per year) and on pricing. As discussed in CS sector report on 18-
Oct-11 ‘Stay the course,’ we do not view impact of MNCs expansion
as a near-term risk for larger Indian firms and the impact should be
offset/diluted by market share gains from smaller companies. Our
discussions with doctors suggest that they at least take 1-2 years to
switch medicines in chronic therapies.
● Sun should report a strong 2Q12 quarter as Hospira in its results
mentioned yesterday that price erosion on Taxotere has been only
55% vs CS assumption of 70% (vs 45% in the Jun-11 quarter). Our
published net profit expectation for the quarter is Rs4,714 mn.
Pfizer India gets more aggressive on branded generics
Pfizer India has significantly stepped up launch of branded generics
(products sourced from other Indian peers) now with total launches
expected to almost double this year compared to 20 launches in the
last year. Even next year, Pfizer hopes to maintain a similar launch
rate. In 2Q12, Pfizer launched 11 branded generics vs four launches
in 1Q12. These launches are part of Pfizer’s strategy to fill portfolio
gaps in the existing therapies (such as anti-infectives and CNS) and
also to enter new therapies such as anti-diabetes (already entered
oral form through branded generics and Insulin through Biocon).
Pfizer is more aggressive than GSK on pricing
Pfizer has been more aggressive than GSK Pharma on both number
of launches (GSK aiming at 3-5 branded generics launches per year)
and on pricing (Figures 1 and 2). Pfizer believes that its success rate
in branded generics has been 60% so far and that is a good rate to
continue with the strategy. Branded generics constitute 4% of sales
currently for Pfizer and it expects the contribution to double in the next
4-5 years. On drugs under price control, Pfizer mentioned that gross
margins are in the area of 15-25% and currently 18% of Pfizer sales
are under price control. On a like-for-like basis, growth for the pharma
business in the Sep-11 quarter for Pfizer was 13%, in line with the
industry growth, but excluding muted performance of Corex and
Becosules, the growth was strong at 17%-plus.
MNC expansion is not a near-term risk like price control
As discussed in CS sector report on 18-Oct-11, ‘Stay the course,’ we
do not view impact of MNCs expansion as a near-term risk for larger
Indian firms and the impact should be offset/diluted by market share
gains from the smaller companies. Our discussions with doctors
suggest that they take at least 1-2 years to switch medicines in
chronic therapies and therefore it is early to write off or give due credit
to MNCs.
Sun: Price erosion on Taxotere lower than expected
Hospira in its Sep-11 results yesterday mentioned that price erosion
on Taxotere (Docetaxel) has been just 50-55% vs 45% in the Jun-11
quarter and against our assumption of 70% for the Sep-11 quarter.
This implies that our Rs 4,714 mn profit estimate for the Sep-11
quarter for Sun has potential upside. Hospira mentioned that 40% of
its Taxotere sales in the Sep-11 quarter were related to chargeback
reversals and hence we estimate that Sun/Sandoz should have been
able to take away some more share from Hospira in the last quarter.
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