UR Associates has come out with its report on pharma sector. As per the research firm, Indian pharma companies are expected to make a good use of the below mentioned opportunities although they might not provide significant one time upside for them.
Drugs worth about $192 billion are expected to go off-patent during the period 2012-15, according to Evaluate Pharma. Out of the $192 billion, a record $67 billion worth of drugs are expected to face generic competition in 2012 alone. Some of the key drugs that have or will become off-patent this year are Plavix (Sanofi & Bristol-Myers Squibb), Seroquel (AstraZeneca), Diovan (Novartis), Singulair (Merck), Actos (Takeda) and Lexapro (Forest Labs). The combined worldwide sales of these six products itself is a staggering $34.6 billion (Source: Evaluate Pharma). Although these expiries mean significant loss of revenues for the big pharma innovator companies, they are a blessing for the generic pharma companies and the general public who now have to pay significantly less for the generic versions of the drugs. Once the drugs go off-patent it is extremely difficult for the big pharma companies to maintain their market share as was evident in the case of Lipitor, the biggest blockbuster drug of all time that went off-patent in November last year. Pfizer had employed a very aggressive strategy to protect its sales but still could not counter the onslaught of generic players and had to eventually yield ~47% of market share to Ranbaxy by June 2012.
Indian pharma companies are expected to make a good use of the above mentioned opportunities although they might not provide significant one time upside for them. Apart from Ranbaxy, which has the first-to-file status for Diovan and could enjoy 180-day exclusivity, none of the other Indian drug firms have or will be able to have the privilege of 180-day exclusivity for the key patent expiry opportunities. The revenues from these products will add to their base business and will be in the nature of recurring revenues.
The US generic market will continue to be the major growth driver for Indian pharma companies as significant opportunities are expected to persist in the future with $29 billion worth of drugs going off-patent in year 2013, $40 billion in 2014 and $56 billion in 2015.
Alembic Pharma settles patent litigation concerning Rivastigmine Tartrate with Novartis
Breckenridge Pharmaceuticals and Alembic Pharmaceuticals have settled their Para IV patent litigation with Novartis concerning Rivastigmine Tartrate Capsules, a generic version of Exelon. The generic drug has also received US FDA approval. Rivastigmine Tartrate is indicated for the treatment of mild to moderate dementia of the Alzheimer’s type and mild to moderate dementia associated with Parkinson’s disease. Alembic will launch the generic immediately well before the patent expiry of the drug which is due in February 2014. The market size of the drug according to the company is $46 million. There are currently three other generic players Sun Pharma, Dr. Reddy’s and Watson Labs who are selling the drug in the US market. Sun Pharma was the first-to-file generic player for the drug and launched the generic version of the drug in 2010 with 180-day exclusivity.
Venus Remedies gets US patent for antibiotic
Venus Remedies has received patent from the US Patent Office for new antibiotic product which targets drug resistant infections. The product, CSE 1034, has been found to be effective against a wide range of drug resistant infections, including the 'superbugs,' the company said in a statement. Venus Medical Research Centre VP Mufti Suhail Sayeed said: "The US patent of CSE 1034 is a landmark development for initiating the process of commercialisation of this novel drug, designed specifically to target growing bacterial resistance mechanisms".
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