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Pharma in China and India Market-Specific Social Risks and Opportunities
October 2013
Before we begin…
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with broad coverage of global capital markets.
150+ staff and more than 80 analysts
Over 20 years’ experience working with institutional investors to develop and implement
responsible investment policies and strategies.
What we do
Speakers
Hazel Goedhart, Sustainalytics
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Jayasree Iyer,
Access to Medicine
Pharma in China and India Market-Specific Social Risks and Opportunities
Hazel Goedhart
7 October 2013
The Need for Adaptation
• Old business models less profitable
• New business models required, adapting to societal needs
• Staying ahead of the regulatory curve
• Proactively addressing market-specific risks and opportunities access to key growth markets
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Focus on China and India
• China and India are key growth markets for the pharma industry
• Numerous growth drivers in emerging markets
• Europe and North America meanwhile face growth restrictions
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Key Issues per Market
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India: • Patenting & pricing • Ethical conduct
during clinical trials
China: • Product Quality &
Safety • Marketing Corruption
Assessing Company Performance: drug quality and safety - China
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Assessing Company Performance: patenting & pricing - India
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Recent Noteworthy Events
• GSK, July 2013 – Chinese corruption allegations
• Ranbaxy, Sept 2013 – product quality & safety
• New clinical trial regulations in India, on-going
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Conclusions
Range of market-specific social risks
Local companies: increase disclosure
MNCs: take local circumstances into account
Investors: include key issues in investment strategies,
urge for more disclosure, and reward best practice
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Access to Medicine in Emerging Markets
• NGOs
• Intergovernmental
Organizations
• Academics
Measuring opportunity management
New Markets Market Penetration
Market access management Licensing, Joint ventures and collaborations
Knowledge and management of outcome in segments Stakeholder engagement
Portfolio strengthening Improving efficiency
R&D portfolio assessment and management Product portfolio management
Supply chain: addressing country-specific priorities and issues in supply chain Enhancing sustainable & targeted drug supply and delivery
China and India
• Emerging markets
• Growing middle class
• Wide disparity in human development in these countries
• Increasing awareness and demand for safe and affordable medicines
• Challenges in supply, risk mitigation and product management faced by companies who operate there
Strategic models in emerging markets
Investing resources to improve health-seeking behavior among poor
Innovating within distribution channels and ensuring quality products and services reach underserved patients
Defining new or refining products to respond to local needs
Operating models in Emerging markets
• Knowledge of submarket segments
• Intercountry similarities (replicate pilots)
• Global penetration, making products and practices locally relevant
• React effectively and quickly
• Monitor access via output, value and impact
Questions?
Jay Iyer
Head of Research
Access to Medicine
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Hazel Goedhart
Associate Analyst, Research Products
Sustainalytics
