Considering your expertise in pharma marketing and brand management, how do you react to ORG data, which is reflecting wholesale audit figures and not retail audit figures?
ORG IMS reflecting wholesale audit is not new, as it has been doing this in India since 1998. Pharma companies use this data to understand trends of distributors, retail and prescriptions before finalising their strategies.
As the head of an MNC how would you describe the current scene and what according to you are key trends emerging in this space?
Presently, the pharma sector shows a high growth compared to last year. It is expected that an average 10 to 12% growth for the industry can be maintained through the rest of this decade. The passing of the Patent Bill in 2005 was a defining movement for the sector. High GDP growth, increasing per capita consumption, rise in corporate hospitals and private health insurance players are some of the positive trends that are expected to drive growth in Indian pharma sector.
In the patent regime, what are the strategies devised by AZ Pharma India to make the best of the situation?
Our strategy is multi-dimensional. We are assessing all opportunities to drive robust organic growth. There is preparatory work going on to access new molecules and expedite time lines to launch, by increasing our level of engagement in global clinical trials. We continue to evaluate inorganic growth opportunities through in-licensing deals or acquisitions of brands, which are a clear logical and strategic fit in our portfolio. We have already acquired an anti-infective brand called 'Vancocin CP' from Eli Lilly in India in the critical care segment, which was launched by AstraZeneca India in March 2006. Going forward we intend to strengthen our presence in different therapy areas.
Coming to your area of expertise in marketing and management, which disease segments have been sales drivers? Does Imdur, referred often by Indian pharma analysts as AZ India's blockbuster in the angina segment continue to remain a best seller or have other brands emerged?
AZ India's focused areas are Cardiovascular, Oncology, Critical Care, CNS (Local Anaesthesia) and Respiratory therapy areas. AZ India, unlike other AZ subsidiaries, also has a strong presence in the MHC segment.
Imdur, an isosorbide mononitrate (ISMN) is a dominant leader in the molecule and in the whole nitrate segment itself. We also command a strong leadership position through Betaloc and Seloken XL in the Metoprolol (anti-hypertensive) molecule. Xylocaine and Meronem are also dominant brand leaders in their respective molecules.
There were two products, which ran into a controversy in the international arena. A guideline from the United Kingdom relegated all beta-blockers to Step-4 in the treatment approach for hypertension. Did this affect the sales of Metoprolol? In the pulmonary segment, Budesonide, a steroid for respiratory allergies has also run into controversy? What is the impact on Pulmicort sales, which is prescribed for this condition?
With regard to beta-blockers your statement is incorrect. The NICE 2006 guidelines on hypertension from British Hypertension Society mentions that Atenolol was the beta-blocker analysed in most of the studies and generalising of the data of Atenolol should not be applied to all beta-blockers.
Today the excise duty on MRP and movement to tax free zones is a serious issue affecting the pharma sector. Does AZ India intend to set base at any of these locations? Also does the company suffer from under utilized plant capacity syndrome like some MNCs?
Not likely. AZ India would continue to manufacture at its site in Bangalore. AstraZeneca has a strong commitment and investment in India through its manufacturing facility, discovery research centre, sales and marketing organisation and is currently setting up a global process R&D facility which should be commissioned in early 2007.
Our new facility is WHO-GMP compliant and maintains the highest standards in Safety, Health and Environment. Our bulk drug unit has been approved by the Swedish regulatory authorities and would be an exclusive supplier of a bulk drug to AstraZeneca, Sweden. We are currently operating at appropriate levels of capacity utilisation as in recent times, production lines, which were sub-optimal, were shutdown and the products were outsourced.
What have been the developments in the area of clinical trials?
Around 8-10 global clinical trials have been going on in India for some time for different molecules and indications. For India specific drugs, we conduct phase IV trials in oncology and critical care. This is only to ensure drugs are evidence-based and science-based. Now, we are working to augment the number of clinical trials. We are also in the initial stages of evaluating other areas of discovery like data management and statistics.
What would be your future strategies from an organizational and marketing standpoint?
We would like to achieve top line growth of 20% year-on-year. To achieve this, from a marketing perspective, we would work to invest in building brands, market research, sales force effectiveness and training. To supplement this strategy, growth via the inorganic route would be through in-licensing deals and/or acquisitions of brands. From an organizational point of view, we would ensure profitable growth through increasing productivity and cost-effective management approaches.
AZ India has been in India for last 2 decades. What are the key issues affecting the sector?
Clearly, the first challenge is to attract and retain talent. In this intensively competitive environment, the ability to ensure continuity in the marketplace and to differentiate oneself in a space of 10-40 generics are also serious issues. In terms of expectations with regards to the Pharma Policy 2006, we look forward to a conducive environment for MNCs in India and a proper enforcement of the Patent Bill with data protection and exclusivity because this would allow companies like us to expedite launch of innovator brands that could address new ailments affecting patients in India.