Indian Pharma Will it Dominate the Para IV Space?

Nimish Mehta, CFA nimish@mpadvisor.com +1.480.263.9400

Indian Pharma Macro Overview

Manushi Naik, M.Sc, DIPR manushi@mpadvisor.com +1.480.263.9400

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Most of the Big Para IVs With Indian Cos

Indian Cos. Presence in Para IV of Top 20 Products
Rank 1 2 6 8 10 15 16 17 18 19 20 Drug Name Lipitor Plavix Diovan Nexium Zyprexa Seroquel Singulair Actos Effexor XR Atacand Gleevec/Glivec Innovator Pfizer Bristol Myers Novartis Astrazeneca Eli-Lilly Astrazeneca Merck Takeda Wyeth Astrazeneca Novartis Sales 09 $m 5785 5223 2500 2800 466 900 4336 3000 520 3702 1088 Indian Cos. As FTFs Ranbaxy Apotex Ranbaxy Ranbaxy Dr Reddys Teva Teva Ranbaxy Teva Sandoz/Teva/ Mylan Sun Pharma

Source: Para IV Plus, MP Advisors

Of the top 20 products, Para IVs are already filed on 11. Indian cos. own 6 FTFs (single or shared) of these 11 Para IVs with most of them settled!

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Small Cos. Too Entering the Space Targeting Big Products

Indian Companies Comprehensive Para IV List
Company Sun Pharma Lupin Dr. Reddys Ranbaxy Wockhardt Glenmark Aurobindo Orchid Cadila Torrent Natco Intas Total No. of Para Ivs 30 35 22 15 12 11 9 7 7 6 4 6 164 Confirmed Para IV 10 10 11 12 4 5 3 4 2 2 0 2 65 Probable Para IV 19 25 10 5 7 6 6 3 6 4 4 4 99 Net Profit from Para IV as % of Market Cap 5.44% 5.80% 3.16% 22.67% 18.04% 4.62% 1.16% 1.03% 0.44% 0.90% 51.80% Major Products Gleevec, Cymbalta Geodon, Cymbalta Zyprexa, Propecia, Fosamax Plus D Lipitor, Caduet, Nexium, Actos, Diovan Stalevo, Comtan, Cymbalta Tarka, Zetia None Lunesta, Boniva Astelin Actos, Requipp XL Copaxone, Revlimid Seroquel XR (150 mg)

Source: Para IV Plus, MP Advisors

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Rich Para IV Pipeline

Indian Pharma companies are involved in 50% of the ongoing Para IV litigations!

Natco Torrent Intas

Company Name

Orchid Cadila Aurobindo Glenmark Wockhardt Ranbaxy Dr. Reddy Sun Pharma Lupin 0 5 10 15 20 25 30 35 40 No. of Products

No. of Products
Source: Para IV Plus , MP Advisors

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Rich in terms of FTFs & Settlements too

Total No. of Para IVs, FTFs and Settlements

Natco Intas Torrent

Company Name

Cadila Orchid Aurobindo Glenmark Wockhardt Ranbaxy Dr. Reddy Sun Pharma Lupin 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 Settlement FTF No. of Products

Total No. of Products, FTFs and Settlements

Source: Para IV Plus , MP Advisors

Wockhardt & Ranbaxy have most of their FTFs settled.

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Higher No. Does Not Always Imply Higher Value

Value of Total Products, FTFs and Settlements

Orchid Natco Intas Glenmark

Company Name

Torrent Cadila Wockhardt Aurobindo Lupin Ranbaxy Dr. Reddy Sun Pharma 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 22000 24000 26000 28000 30000

Settlement Sales FTF Sales Total Sales

Sales in $ million
Source: Para IV Plus , MP Advisors

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Though Lupin has higher number of Para IVs, it lacks behind Sun Pharma, Ranbaxy & Dr Reddys in value. Dr Reddys focuses on long term, low competition opportunities unlike Lupin.
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Para IV Launches Bunches Up As Patent Cliff Nears

Timeline of Product Launches - Volume
Undisclosed Wockhardt 2016 Torrent Sun Pharama Ranbaxy Orchid 2014 Natco Lupin Intas 2013 Glenmark Dr. Reddy 2012 Cadila Aurobindo 2011 0 1 2 3 4 5

Year of Launch

2015

No. of Products
Source: Para IV Plus, MP Advisors

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Most of the High Value Product To Face Erosion By 2014

Time Line of Product Launches - Value
Undisclosed

2016

Wockhardt Torrent Sun Pharama

Year of Launch

2015

Ranbaxy Orchid Natco

2014

Lupin Intas Glenmark Dr. Reddy Cadila

2013

2012

Aurobindo

2011

1000

2000

3000

4000

5000

6000

7000

8000

Sales in $ million
Source: Para IV Plus, MP Advisors

Ranbaxy clearly leads the race in terms of number and value of the Para IV launches every year.

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Thank You

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