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Pharmaceuticals & Healthcare

Pharmaceuticals & Healthcare. The Bigger Opportunity. Pharmaceutical Industry – Brief Overview. Market Overview. Growth Drivers. New Business Models. Skill Sets. Table Of Contents. Pharmaceuticals Industry ?

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Pharmaceuticals & Healthcare

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  1. Pharmaceuticals & Healthcare The Bigger Opportunity

  2. Pharmaceutical Industry – Brief Overview Market Overview Growth Drivers New Business Models Skill Sets Table Of Contents

  3. Pharmaceuticals Industry ? The Pharmaceutical industry Develops , Produces and Market Drugs, licensed for use as medications . Pharmaceutical companies are allowed to deal in generic and/or brand medications and medical devices

  4. $ 800 $ 2 billion

  5. Indian Pharma Industry -Brief History 1970/1972 1995 2005 23 Years + 10 Years Beginning of Product Patent Era End of Product Patent Era Reverse Engineering Era Return of the Patent Era GATT WTO TRIP’S IPA Amendments GATT – General Agreement of Tariffs & Trade , WTO – World Trade Organisation , TRIPS – Trade Related Aspects of Intellectual Property Rights , IPA – Indian Pharmaceutical Association

  6. What will drive future growth • India is second to China in terms of GDP and is expected to be the fifth largest economy by 2017 • IT Investment , International Trade , Mature Financial Sector, and creation of Special Economic Zones ( SEZs) • As a result the per capita disposable income is expected to increase by 220% by 2015 The questions for MNCs : Will India’s robust growth continue ?

  7. Growth Drivers

  8. Disease Pattern • Shift in disease patterns from Acute to Chronic disorders due to : • Increase in Urbanization • Unhealthy Lifestyles of Indian population • According to WHO estimates, India’s mortality due to chronic disease will increase 18% by 2015 • CVD ( Cardiovascular Disorders) • Diabetes • HIV / AIDS • Cancer • CNS ( Central Nervous System) • Diabetes related mortality could increase to 35% by 2015

  9. Disease / Drug Segments • Chronic diseases like CVD and Diabetes are expected to drive demand for new drugs • Advantages in Chronic segment : • Drugs used in chronic diseases are for life time • Chronic disease therapies are newer molecules with relatively less brand clutter and better patent protection Strategic Risk : How will prescription pattern change if Indian companies match the MNC value proposition at competitive prices ?

  10. Indian Pharma Market will grow to USD 55 billion by 2020 • This Growth is due to : • Rising Incomes • Enhanced Medical infrastructure • Rise in Prevalence & Treatment of Chronic diseases • Greater Health Insurance Coverage • Launches of Patented Products USD in Billions CAGR ~14.5% CAGR ~ 10% Projected size of Indian Pharma Market USD Billion *Source : McKinsey analysis : Secondary Research; 2011

  11. Healthcare Spend by government in India Total spend by government ( central & State) on healthcare in India USD Billion • High GDP growth > 8% • RSBY* will cover more than 75% of BPL population • 1.9 Mio beds will be added every year • New Patented product launch USD in Billions 2020 Share of GDP Percent 0.84% 0.84% 0.88% 0.93% 3.00% • RSBY – RashtriyaSwathyaBimaYojna • BPL – Below Povetry Line 1.Actual spend for centre” Budgetary estimates for state adjusted for historical performance of budget versus actual Source : Ministry of Health & Welfare Website; Central Bureau of Health Intelligence Website

  12. What Industry is looking for ! “ How can the Indian Market scale up to an even higher growth trajectory & achieve its full potential ? ” What CEO’s are looking for ! “ How can we establish undisputed leadership in the important market and be the market leader? ”

  13. Distribution Consolidation • Indian Pharmaceutical distribution system is fragmented and disorganized with : • 60,000 Distributors & • 700 to 800,000 retailers • Organized retail and distribution consolidation will enable greater demand by : • Reducing inefficiencies • Increasing reach in semi-urban and rural markets • This growth will be governed by : • The rate of Infrastructure growth • ( Like Cold Chains , Road Networks) • - Govt. willingness to allow foreign investment

  14. New models for Sales Force Coverage & Excellence ~0.10 ~0.13 ~0.31 -.37 Ratio of Sales Representatives to physicians to go up dramatically Source : Medical Council Of India

  15. The Changing Trends – 2012 - 2020 • Change in Approach • No room for complacency • Enhance diagnosis & treatment Rates • MNCs adopted Indian Model • Ramp up Sales Force • Launch of Branded Generics Changing the nature of Patient Funnel - Improve Patient Compliance

  16. Growing Focus on Preparedness • Adopting innovative and differentiated coverage models • Enhance the Quality of Performance Management & dialogue • Focus on long term performance goals • Focus on people – Talent Development & Retention • Focus on high quality Ist line Managers • Change of Mindset to challenge long standing myth “ It takes 1-2 years for new reps to be productive” Profitability , Talent Development – Retention will remain the major focus area

  17. Opportunities in Pharma Industry

  18. PHARMACEUTICAL INDUSTRY JOBS OPPORTUNITIES

  19. New Skill Sets for Pharma Selling Beyond numbers , new skill requirements will also increase attractiveness of talent from Non-pharma backgrounds Source : Mckinsey Analysis

  20. Questions ?

  21. Job Competencies in Pharma Selling Response from 103 Managers • Job knowledge is the highest competency needed for high performance • Apart from this; Hardworking , Communication, Team Skills , Calm & Composed are other key competencies • Innovativeness is also one of the most sought after competency in Pharma sector Source: Competencies of Pharma Professionals Global Leadership and Managerial Competencies of Indian Managers ;T.V. Rao ;W.P. No.2007-06-05 June 2007

  22. Areas of Improvement • Patience , Assertiveness , Decision making , Team work & Openness are major improvement areas seen with beginners Source: Competencies of Pharma Professionals Global Leadership and Managerial Competencies of Indian Managers ;T.V. Rao ;W.P. No.2007-06-05 June 2007

  23. What do Employers look for • The Entire Package • Candidates need to be academically prepared in their discipline as it pertains to their employment • Communication Skills • Leadership • Team work • Interpersonal Abilities • Personal Traits • Computer Aptitudes

  24. Behaviors Several skills or experiences bind the package and are essential to holding it together. 1. Critical thinking/problem solving 2. Intelligence and common sense 3. Willingness to learn quickly and continuously 4. Work-related experiences

  25. Human Capability Network “Assess, Acquire, Develop and Align”

  26. About US • Human Capability Network (HCN) is a management consulting firm started by Mr. Arun Thukral. Over the last two decades Arun has been associated with the pharmaceutical industry in various leadership positions with some highly reputed organizations • HCN brings forth a network of dynamic professionals from the healthcare industry with a "Vision" to develop talent available within the industry and attract fresh talent by presenting the healthcare industry as one of the most promising career choices • Our solutions aim at helping our clients identify, assess and arrive at the right hiring decisions and hire the best candidate basis the precise position requirements

  27. Our Services Business Goals Talent Analytics Workforce Planning Assessment Talent Sourcing Selection Onboarding Leadership & Succession Planning Career Planning Performance Management Reporting Goal Management Assess Acquire Align Develop Talent Management Platform On Demand Infrastructure Business Performance

  28. www.hcnconsultants.comArun Thukral - +91-9958010079arun.thukral@hcnconsultants.com

  29. Questions ?

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