Summary

  • Abbott India Limited is a publicly listed company and a subsidiary of Abbott Laboratories, headquartered in Mumbai.
  • Abbott India is one of India's fastest-growing pharmaceutical companies. And market leader in pharmaceuticals, nutrition, devices and diagnostics.
  • Abbott India own over 400 pharmaceutical brands.
  • With over 14,000 employees in India the company meets  the healthcare needs of consumers, patients, doctors, hospitals, blood banks and laboratories are being met throughout both rural and urban areas.

ABBOTINDIA01.jpg

Company Overview

Since 1910, Abbott has been dedicated to helping people in India live healthier lives through a diverse range of science-based nutritional products, diagnostic tools, branded generic pharmaceuticals, and diabetes and vascular devices.1

Headquartered in Mumbai, Abbott India Limited (NSE:ABBOTINDIA), a publicly listed company and a subsidiary of Abbott Laboratories, takes pride in offering high-quality trusted medicines in multiple therapeutic categories such as women's health, gastroenterology, cardiology, metabolic disorders and primary care.

One of India's fastest-growing pharmaceutical companies, Abbott India Limited is part of Abbott's global pharmaceutical business in India.

Abbott India has expertise across product development, manufacturing, sales and customer service and are dedicated to providing high-quality, reliable products with the expert clinical support its customers need.

Abbott India Limited believes in providing quality healthcare through a mix of global and local products for people in India. The company's in-house development and medical teams undertake product and clinical development tailored to the unique needs of the Indian market. The company's employees work to produce high-quality, high-volume formulations using cost efficient processes. And, its trained personnel are dedicated to ensuring compliance with international quality standards.

Abbott in India develops and distributes over 600 products for healthcare professionals that promote health and well-being for Indians in all stages of life.2

ABBOTINDIA3.png

Industry Overview

The global pharmaceutical industry has seen an increased use of medicines over the past decade where the rate of growth of medicine usage has outpaced both population and economic growth. This expansion has been largely on account of the pharmemerging markets.3

The Indian pharmaceuticals industry is poised for a big leap forward in this decade. Health, science and innovation have come into sharp focus as never before. The developments over the past year have emphasized the importance of an innovation ecosystem, a robust infrastructure for production of drugs and pharmaceuticals and the need to constantly build a huge talent pool of scientists, researchers and technologists who can be the arrowheads for the future. India has emerged as a pharmacy to the world, supplying critical drugs and vaccines in the course of this pandemic.

Indian pharmaceuticals industry supplies over 50% of global demand for various vaccines, 40% of generic demand in the US and 25% of all medicine in UK as per the Indian Ministry of Commerce. It is also the largest producer of generic medicines and vaccines, occupying 20% volume share in generics and 62% in vaccines as per the National Indian Promotion Agency.

As per IQVIA, India’s domestic Pharmaceuticals Market (IPM) is estimated at Rs 153,534 Crore in 2021 with growth of 4.4% v/s 2020. Acute therapies dominate IPM with 64% of total sales, however the chronic segment shows faster growth. There are estimated to be over 8,000 pharmaceutical companies, however the market is dominated by a core of around 300 manufacturers whose products generate the majority of sales in most therapy areas. Domestic manufacturers claim around three-quarters of the market in value terms.

Branded generics dominate the domestic prescription pharmaceutical market, accounting for around 80% of sales by value as per IQVIA. While efforts to raise the regulatory bar are being pursued, brand names and company image are still widely regarded as de-facto indicators of quality. The market is expected to grow at 8% per annum over the next 5 years driven by high economic growth, increasing penetration of health insurance and increased private sector investment.

ABBOTINDIA.jpg

Business Overview

Women’s Health : This portfolio was adversely impacted during the year due to key elective procedures such as In-Vitro Fertilisation (IVF) being postponed owing to the ongoing COVID-19 pandemic. Overall, there was a de-growth of 19.8% during the year. The key brand under Women’s Health is Duphaston (miscarriage and IVF). The Company has robust plans in place to address generic competition to lead brand Duphaston, leveraging its high level of equity, credibility and trust with gynecologists and IVF specialists. The launch of a first-of-its-kind “Tender Love and Care” program to provide virtual counseling and curated lifestyle management support for couples undergoing pregnancy has provided a significant boost to its value proposition in this therapy. Regaining strong growth trajectory in Duphaston, shaping menopause therapy and expanding into new areas through launch of new products and indication expansions are the key priorities in this space. During the year, Parihep 60 (deep vein thrombosis) was launched.

Gastroenterology : The Gastro portfolio was a key growth driver for the Company with 7.9% growth during the year. This was mainly driven by growth of top brands Cremaffin Plus (constipation), Udiliv (cholestatic chronic liver disease) and Duphalac (constipation). Increased geographic presence, relevant line extensions and differentiated marketing contributed to the sustained growth. Focus on new launches has yielded substantial results with Digeraft (antacid) being one of best performing new products in recent years. Beyond-the-pills offerings have also seen significant scale up and the company continue to invest in this area to connect and support its patients better. A robust new product introduction process through extensive market research has helped to further enhance the portfolio. Going forward, focus remains to launch new products and support its consumers with a comprehensive service offering. Besides Digeraft, Abbott India has launched 3 other new products viz. Colohep (fatty liver disease), Pankreoflat HD (indigestion), Rowasa 2 (ulcerative colitis).

Metabolics : This portfolio achieved a growth of 7.0% mainly driven by Thyronorm (hypothyroidism) which continues to maintain it’s leadership position*. Abbott India has increased its focus on enhancing its digital footprint in all therapy shaping initiatives especially during COVID-19 period and look forward to scaling these up going forward. Consolidating presence in space of hormone management, the company launched Cabernorm in January 2021 which is preferred widely to treat hyperprolactinemia. Combinorm continues to establish concept of usage of pre-probiotics in treatment of bacterial vaginosis.

Central Nervous System (CNS) : The CNS business achieved a growth of 10.0% which was higher than the market*, mainly driven by Vertin (vertigo). The other key brands in CNS are Prothiaden (pain & depression) and Inderal (migraine & hypertension). Abbott India has restructured its sales force to drive higher focus on the key brands and have seen positive results from that. Innovative new products, like the mouth dissolving Vertin MDS strip (first globally) (vertigo), Lacoxa, a syrup formulation of Lacosamide (which is a new generation of anti-epileptic) and Brivetoin (anti-epileptic) were launched during the year. Growth of these new products will be a priority for the business going forward.

Multi-Specialty : Under Multi-Specialty, the Company offers products for insomnia, nutritional supplements and vitamins, Pre-term labor and pain management. This portfolio has shown a growth of 6.6% during the year despite the pandemic situation. Zolfresh (insomnia), Arachitol portfolio (Vitamin D deficiency), Brufen (analgesics) and Duvadilan (preterm labor) are the key contributors in the business. The company pioneered a crossfunctional initiative for process enhancement which helped it build a progressive business.

To expand portfolio, 3 new products with patient centric solutions, Arachitol Nano Daily 2K IU with innovative Acudose caps (Vitamin D deficiency), Doxstem 20 (antiemetic) and Digecaine (antacid) were launched.

Vaccines : The Vaccines portfolio showed strong doubledigit growth of 42.3%, which was mainly driven by Influvac (prevention of influenza). Influvac is the key brand for the Company under this portfolio and leads its participated market. The Company has a licensing arrangement with Bharat Biotech India Limited to market vaccines in immunology segment. The key brands under this arrangement are Enteroshield (prevention of typhoid) and Rotasure (prevention of rotavirus gastroenteritis). The launch of a very critical adult immunization guideline for vaccine-preventable diseases by the Association of Physicians in India (API) will help it increase awareness and equip Healthcare Practitioners (HCP) with evidence-based information to guide vaccine recommendation and administration. Abbott India has also conducted a special vaccination drive for HCPs during the lockdown so that the frontline workers and their families could get their flu vaccines without supply constraints. Going forward, a key priority is to establish adult immunization segment in India through a dedicated adult vaccination task force.

Abbott India is looking to expand the portfolio beyond current set of vaccines and target segments. During the year, the company launched Influvac Quadrivalent 0.5 ml vaccine (prevention of influenza) which will help it receive advocacy from doctors and launched JE Shield (prevention of japanese encephalitis).

Consumer Health : During the year, this portfolio delivered growth of 15.9% despite pandemic challenges. Digene, flagship brand in antacids strengthened its positioning and was awarded the Economic Times “Best Brand Award” for 2020. The company further expanded the portfolio with the launch of Digene Ultra fizz in May 2020, a differentiated innovation with 50% higher ANC (acid neutralizing capacity) than leading powder antacids. Cremaffin continued its efforts on consumerising the brand post its Cx switch. The company increased awareness of its scientific positioning of gentle and effective relief through direct-to-consumer campaigns and new packaging launch along with increasing availability and visibility at pharmacists.

Financial Overview

Revenue from Operations : Revenue from Operations for the year ended March 31, 2021 is Rs 4,310.02 Crore in comparison to Rs 4,093.14 Crore last year, recording a growth of 5.3% over the previous financial year.

Profit Before Tax : Profit Before Tax for the year ended March 31, 2021 at Rs 925.95 Crore grew by 15.4% over the previous year.

Other Income : The Other Income stood at Rs 80.90 Crore, mainly comprising interest income from bank fixed deposits. The Company continues to invest in fixed deposits with banks that have high credit ratings, with a view to safeguarding the principal and maintaining liquidity. Income from bank deposits reduced by 29.4% due to reduction in interest rates. The Company has an investment portfolio of Rs 2,332.14 Crore as on March 31, 2021.

Material Cost : The Material Cost increased on account of inflation, but was compensated by improved sales price realisation, resulting in a marginal decrease in the same as a percentage to Sales from 57.1% in financial year 2019-20 to 56.3% in the current year.

Employee Cost : The Company increased its employee strength to 3,585. The Employee Cost as a percentage to Sales shows a marginal decrease at 11.6% in the current year vis-à-vis 11.7% in the financial year 2019-20. The increase in Employee Cost by 3.5% over the last year is mainly due to merit increase.

Other Expenses : Other Expenses including Depreciation and Finance Cost decreased by 5.2% over the last year. Also, as a percentage to Sales, it has decreased to 13.7% vis-à-vis 15.1% in the previous year

References

  1. ^ https://www.abbott.co.in/about-abbott/abbott-india-limited.html
  2. ^ https://www.abbott.in/products/business-areas.pharmaceuticals-abbott-india-limited.html
  3. ^ https://dam.abbott.com/en-ind/pdf/agm/Annual-Report-2020-21.pdf
Created by Asif Farooqui on 2020/09/21 19:54
     

Share this Page

Help us succeed by sharing this page on your favorite message boards, forums and chat rooms.

Become a Contributor

If you follow a company closely and would like to share your knowledge, we would love your contributions. To apply for access, send your request to [email protected] - please include a description of your background and links to any writing samples, along with a list of the companies or sectors you would like to edit.

Recently Modified

This site is funded and maintained by Fintel.io