Summary

• Page properties (1 modified, 0 added, 0 removed)

Details

Page properties

Content

...	...	@@ -2,6 +2,17 @@
2	2	{{toc/}}
3	3	{{/box}}
4	4
	5	+= Summary =
	6	+
	7	+* Abbott India Limited is a publicly listed company and a subsidiary of Abbott Laboratories, headquartered in Mumbai.
	8	+* Abbott India is one of India's fastest-growing pharmaceutical companies. And market leader in pharmaceuticals, nutrition, devices and diagnostics.
	9	+* Abbott India own over 400 pharmaceutical brands.
	10	+* 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.
	11	+
	12	+
	13	+[[image:ABBOTINDIA01.jpg||height="409" width="614"]]
	14	+
	15	+
5	5	= Company Overview =
6	6
7	7	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.{{footnote}}https://www.abbott.co.in/about-abbott/abbott-india-limited.html{{/footnote}}
...	...	@@ -17,89 +17,68 @@
17	17	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.{{footnote}}https://www.abbott.in/products/business-areas.pharmaceuticals-abbott-india-limited.html{{/footnote}}
18	18
19	19
20		-[[image:ABBOTINDIA.jpg]]
21	21
	32	+[[image:ABBOTINDIA3.png]]
22	22
	34	+
23	23	= Industry Overview =
24	24
25		-The healthcare environment has been dynamic and, at times, volatile. As per IQVIA, a leading global provider of information and research services in the medical sector, Indian Pharmaceutical Market (IPM) is estimated at ` 149,900 Crore in 2020, its growth up by 2% from 2019. Acute therapies dominate IPM with 64% of the total sales; however, the chronic segment shows faster growth of 10.9% in comparison to 7.9% for acute therapies (3 year CAGR). The domestic pharmaceutical market is highly fragmented with the top 10 companies making up 43% of the share, and the top 150 companies accounting for 96% of share. Local players enjoy a dominant position, occupying 4 of the top 5 positions.{{footnote}}https://dam.abbott.com/en-ind/pdf/financials/2019-20-Annual-Report.pdf{{/footnote}}
	37	+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.{{footnote}}https://dam.abbott.com/en-ind/pdf/agm/Annual-Report-2020-21.pdf{{/footnote}}
26	26
27		-India is often referred to as the “pharmacy to the world”, ranking 3rd worldwide in total pharmaceutical production volume and 10th by value. As per National Indian Promotion Agency, it is the largest producer of generic medicines and vaccines, occupying 20% volume share in generics and 62% in vaccines.
	39	+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.
28	28
29		-The face of the market itself is changing because the informed consumer has brought a shift in demand. Given that customer experience can have a transformational impact on business, the informed consumer today is kept at the heart of business operations. In the emerging markets, pharma businesses are increasingly leveraging insights and adapting to changing consumer needs – emotional and behavioral, and not merely clinical - to stay relevant and build a sustainable business.
	41	+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.
30	30
31		-= Opportunities and Challenges =
	43	+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.
32	32
33		-There are multiple factors which impact industry growth and profitability. Severe price pressure is expected due to expansion of pricing regulations and increasing regulatory interventions. Influx of first-time patients from the National Health Protection Scheme (NHPS) into the healthcare ecosystem, relaxation of regulations for patented drugs, and increasing spend on preventive healthcare could emerge as major growth drivers over the next few years. In the medium term, successfully navigating the COVID-19 crisis will be on top of the mind for all companies.
	45	+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.
34	34
35		-Factors which impact industry and Company growth include:
36	36
37		-**Technology and Digitalization :** Technology led revolutionization of the healthcare industry is likely to be expedited in the year 2020 due to the global pandemic. While healthcare professionals will remain the single largest influencers of treatment and medicine choice, changes in the way doctors interact with both patients as well as sales representatives will open up a new array of opportunities for pharmaceutical companies. Remote healthcare, patient empowerment and multichannel engagement are likely to be some of the important emerging trends. Rapid adoption of new working models will be key to success for pharmaceutical companies in 2020 and beyond.
	48	+[[image:ABBOTINDIA.jpg]]
38	38
39		-**National Health Protection Scheme :** NHPS was launched by the Government of India in 2018 with the objective of providing free health coverage at the secondary and tertiary level to the poor and vulnerable sections of the population. NHPS has expected to cover 50 Crore beneficiaries in 10 Crore families. The National Health Agency projects a four-fold increase in the number of patients treated annually in India, rising to 10 Million over the next few years. The pharmaceutical industry stands to be a prime beneficiary from the massive influx of first-time patients in the healthcare system who are prescribed medicines at the primary care level.
40	40
41		-**Specialty medicines **: These will witness increased demand across both developed and emerging markets, and are projected to account for more spending than previously.
	51	+= Business Overview =
42	42
43		-**Price controls and regulations **: Downward pressure on drug prices is likely to intensify due to the inclusion of more medicines in the 2020 update of the National List of Essential Medicines (NLEM). Additional downward pressure could come from the government’s plans to implement trade margin caps more widely in 2020. Increase in the price of APIs imported from China due to rate hike in 2019 and supply disruption in 2020 is likely to create upward pressure on drug prices. NLEM could be updated more frequently in the future
	53	+**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.
44	44
45		-The 2019 amendment to the Drug Price Control Order (DPCO) broadens provisions for exemptions from price controls to cover all patented medicines as well as products granted orphan drug status. Together with the new rules governing drug registration and clinical research activity notified in March 2019, this is likely to encourage investment from originators and result in early launches of more innovative, patented drugs.
46	46
47		-Frequent and unexpected changes in the domestic pricing policy have created an uncertain environment for investments and innovation. The Government and stakeholders would need to productively engage in order to develop a framework that ensures availability and accessibility of affordable drugs for citizens, while ensuring a workable pricing structure for pharmaceutical companies.
	56	+**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).
48	48
49		-**OTC drug regulations : **With rising patient empowerment and growing willingness to self-medicate, there is a growing demand for the drafting of a welldefined over-the counter (OTC) drug policy. Creation of a regulated OTC market coupled with stricter enforcement of prescribing and dispensing regulations will drive growth in the OTC space. The Company is well placed to benefit from such a policy with its dedicated OTC vertical.
50	50
51		-Uniform Code of Pharmaceuticals Marketing Practices (UCPMP) : UCPMP, while currently voluntary, could become mandatory shortly. A mandatory code would require ethical marketing practices to be followed by all companies. Given that the Company has a strong compliance process in place, it would be well positioned under a strict enforcement of UCPMP.
	59	+**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.
52	52
53		-= Business Overview =
54	54
55		-**Women’s Health :** This portfolio has consistently shown strong growth over the last several years. This year it grew by 21.9% led by Duphaston. Strong brand equity, coverage of gynecologists and high level of trust and credibility owing to sensitive indications with a high premium on safety (especially in pregnancy) are drivers of growth. Introduction of newer indications, addition of new products to expand the portfolio, setting up separate sales and marketing teams to increase focus on In Vitro Fertilisation (IVF) are some of the initiatives undertaken during the year to sustain the growth. Increasing awareness and widening the portfolio to strengthen market presence remain the key focus areas.
	62	+**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.
56	56
57		-During the year, 5 new products viz. Femoston (Hormone replacement therapy or HRT), Femilon (Contraception), Novelon (Contraception), Cetropro (Prevention of premature ovulation) and Parihep (Thromboembolic conditions) were launched.
58	58
59		-**Gastroenterology :** The Company grew by 9.9% in this area during the year, mainly driven by Cremaffin, Udiliv and Duphalac. The company's differentiated offerings beyond pills, a strong portfolio - from Gastro to GPs - and strong equity amongst the consumers are behind the sustained growth. A new, robust product introduction process through extensive market research has helped to further enhance the portfolio. The focus remains on the launch of new products in the Gastrointestinal (GI) space
	65	+**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.
60	60
61		-During the year, 12 new products viz. Evitol (Non alcoholic fatty liver disease or NAFLD), Fidonal (Anal Fissures), Udisyp (Liver Disorders), Tenfoplus (Hepatitis B), Viadek (Pancreatic Exocrine Insufficiency or PEI), Udistrong Orange (Liver Diseases), Creon SD (Pancreatic Exocrine Insufficiency or PEI), Cremadiet + 300 (Constipation), Udistrong sachet – Cranberry (Liver Diseases), Antoxipan sachet, Duphalac Bears 1.6 (Constipation – Pediatrics) and Duphalac Chews 3.3 (Constipation - Pregnancy) were launched.
	67	+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.
62	62
63		-**Metabolics :** This portfolio grew by 27.9%, driven mainly by NeoMercazole and Thyronorm, which retains flagship position* in its respective segment. Integration of the thyroid portfolio to optimise spend and increase market share, introduction and improvement of line extensions to facilitate differentiation, and entering bacterial vaginosis with new subtherapy (pre-probiotics) to leverage equity with Gynecs are some of the major drivers of performance. Increasing awareness remains the key priority for sustained growth.
64	64
65		-**Central Nervous System :** This portfolio showed a growth of 12.6% during the year. Vertin and Prothiaden continue as the market leaders* in their segments. Creation of hybrid structure, marketing resource allocation strategy and reduction of attrition on account of team engagement have helped this portfolio to show good performance during the year. Introducing new sub-therapies and life-cycle management support for older molecules remain key priorities. Also, during the year, Epishield (Micronutrients/Epilepsy) was launched.
	70	+**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.
66	66
67		-**Multi-Specialty :** Under this segment, the Company offers products for Pain Management, Insomnia, Nutritional supplements and Vitamins. This portfolio showed a growth of 4.4% during the year which was mainly driven by Zolfresh, Arachitol Nano and Brufen. Promotion of specialty brand matrix and creation of the leadership academy for capacity building have helped maintain growth. Introduction of new molecules and expanding the portfolio through scientific research and market studies remain the key priority.
	72	+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).
68	68
69		-**Vaccines : **The key brands in the vaccines portfolio are Influvac, Enteroshield and Rotasure. The portfolio showed strong double-digit growth of 20.4% and contributed 3.9% of Sales for the year. The growth was mainly driven by Influvac, a number 1* product in its participated market. A separate task force was set up to target the untapped adult vaccination market. Focus is to expand the portfolio beyond the current set of vaccines and target segments. The Company has a licensing arrangement with Bharat Biotech India Limited to market vaccines in the immunology segment.
70	70
71		-During the year, Influvac Tetra (Flu vaccine) was launched and was a big hit in the first three months of its launch.
	75	+**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.
72	72
73		-**Consumer Health :** The Company offers a few consumerdirected products, including all variants of Digene - tablets, liquids and powders. During the year, this portfolio showed strong growth of 19.5%. Cremaffin was consumerised to revitalise the brand. Good strategy and sustained investment have helped achieve growth. The company's focus remains on expanding this portfolio.
74	74
75		-During the year, two new products - Brufen Rapid (Analgesics) and Digene Ultra Fizz (Antacid) were launched
76		-
77	77	= Financial Overview =
78	78
79		-**Total Revenue :** Total Revenue for the year ended March 31, 2020 is Rs 4207,53 Lakhs in comparison to Rs 3791,89 Lakhs last year, recording a robust growth of 11.0% over the previous financial year.
	80	+**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.
80	80
81		-**Profit Before Tax :** Profit Before Tax for the year ended March 31, 2020 at Rs 802,69 Lakhs grew by 14.9% over the previous year.
	82	+**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.
82	82
83		-**Other Income :** The Other Income stood at Rs 114,39 Lakhs, 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 grew by 27.5%. The investment strategy is reviewed periodically by the Finance Committee. The Company has an investment portfolio of Rs 2168,68 Lakhs as on March 31, 2020
	84	+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.
84	84
85		-**Material Cost :** The Material Cost increased on account of inflation, but was compensated by improved sales price realisation, resulting in a marginal decrease in Material Cost as a percentage to Sales from 57.4% in financial year 2018-19 to 57.1% in the current year
	86	+**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.
86	86
87		-**Employee Cost :** The Company increased its employee strength to 3,551. The Employee Cost as a percentage to Sales shows a marginal decrease at 11.7% in the current year vis-àvis 12.0% in the financial year 2018-19. The increase in Employee Cost by 9.3% over last year is mainly due to merit increase.
	88	+**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.
88	88
89		-**Other Expenses :** Other Expenses including Depreciation and Finance Cost increased by 7.8% over the last year. However as a percentage to Sales, it has decreased to 15.1% vis-à-vis 15.6% in the previous year
	90	+**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
90	90
91	91
92		-**Abbott India Q3 net profit down 5% to Rs 177 crore **{{footnote}}https://www.moneycontrol.com/news/business/earnings/abbott-india-q3-net-profit-down-5-to-rs-177-crore-6479101.html{{/footnote}}
93		-
94		-**February 9, 2021**; Drug firm Abbott India on Tuesday reported a 5.11 percent decline in its net profit to Rs 177.14 crore for the quarter ended December.
95		-
96		-The company had posted a net profit of Rs 186.69 crore for the corresponding period of the previous fiscal, Abbott India said in a filing to BSE.
97		-
98		-The consolidated revenue from operations of the company stood at Rs 1,095.37 crore for the quarter under consideration.
99		-
100		-It was Rs 1,078.25 crore for the same period a year ago, it added.
101		-
102		-
103	103	= References =
104	104
105	105	{{putFootnotes/}}