Annual Report 10-11 - Elder Pharmaceuticals Ltd.

Annual Report2010 - 11Company OverviewStrategic ReviewBOARD AND MANAGEMENT REPORTSFinancial Statements28 th US Pharmaceutical Marketanywhere between 4-7% through 2013. The growth in the industry is bound to bedriven on the basis of recovering global economy, changing mixture of variousthe healthcare sector and huge funding on market demand. (Source: IMS Health)US Pharmaceutical MarketThe US pharmaceutical market stood at around USD 310 billion in 2010. It isexpected to continue to remain the largest market in the world in 2011, having agrowth projection of 3-5% to reach USD 320-330 billion (Source: IMS Health).European Pharmaceuticals MarketThe European pharmaceutical market stood at close to USD 130 billion in 2010.Patent expiries and drug budget controls have led to a subdued growth amongbrands in developed markets, and will continue to do so this year also. In 2011, theexpected to grow at a collective pace of 1-3%. (Source: IMS Health).Middle East and African Pharmaceutical MarketThe Middle East and the African Pharmaceutical Markets are also on thegrowth trajectory. This growth can be attributable to rapid development ofinfrastructure in the region and rapidly changing regulatory environment.Further, the pharmaceutical sales are bound to only grow skywards on the backof high prevalence of diseases; a huge population base that resides in the region;respective government’s increased inclination towards heavy infrastructureinvestment to raise domestic production in the Middle East etc. Currently theregion is dominated by South Africa, Saudi Arabia and Israel. The combined MiddleEast and the African Pharmaceutical markets are estimated to grow at a CAGR ofaround 11% during 2010-2012.The global pharmaceuticals market will experience momentary shifts. The Asia-pharmaceutical market in near future. This positive shift can be attributed to lowcost manufacturing well supported by a favourable regulatory environment. Theindustry in this region is estimated to grow at a CAGR of 12.6% between 2010 and2012. It is well poised to become a global API production hub in a few years fromnow.Global PharmaceuticalMarket4-7% CAGR3-5% GrowthEuropean PharmaceuticalsMarket1-3% GrowthMiddle East and AfricanPharmaceutical Market11% CAGRMarket12.6% CAGRDue to the rise in disposable incomes, numerous health insurance schemes(that ensure sale of branded drugs), and a very healthy competitive environmentbecause of a presence of a large number of players, the pharmaceuticals sales aregrowing at a very fast pace in India, China, Malaysia, South Korea and Indonesia.The most notable one being China’s pharmaceutical market. It is expected togrow at a rate of 20% plus annually. It will contribute 21% of overall global growththrough 2013.INDIAN PHARMACEUTICAL INDUSTRY OVERVIEWThe Indian Pharmaceuticals market is primarily a branded generics marketwith a small percentage of unbranded generics. Within the emerging markets, itranked third at USD 11 billion after China at USD 16.2 billion and Turkey at USD11.2 billion in 2010. The industry is the third largest industry in the world in termsof volume and 14th largest in terms of value. Between January-December 2010,25