World pharma: who's performing well?

Pharmaceutical companies around the world currently have different levels of success in each country. In America, the market is forecast to suffer a decline in 2009, while the top five European firms are only expected to see a two or three percent increase, with Japan seeing a growth of just four or five percent, according to IMS Health, the global drug sales tracking agency. More than 53,000 jobs have been eliminated in 2009 globally by MNC drug companies, almost double that in 2008. Major cuts have been announced by Eli Lilly (5,500), Pfizer (19,000) and Merck (16,000).

But despite global multinational drug makers slashing their workforces to reduce their costs, their Indian counterparts are on a hiring spree. The top 10 domestic drug companies recruited 200-250 professionals annually over recent years. The number has now gone up almost five times.

Lupin, which is one of the top five local players and growing at an annual average of 23 percent in the domestic market for the past four years, has added about 900 sales executives in the eight months, to take its field force to over 3,200 people, said President Shakti Chakraborthy, India region formulations. "We aim to strengthen our position in areas such as cardiology, central nervous system, diabetology, anti-asthma, gastro-intestinal and oncology with the addition," he said.

Lupin Pharmaceuticals, Inc. is the US wholly owned subsidiary of Lupin Limited, which is among the top six pharmaceutical companies in India.

Dr Reddy's Laboratories, the largest domestic company in sales, is adding 1,300 people across manufacturing, quality and sales and marketing in 2009-10, said a spokesperson. The company recruited 1,500 people in 2008-09.

GlaxoSmithkline Pharmaceuticals, the largest multinational player in India, added 300 people in 2009 to enlarge its sales team to 2,100 people, said Hasit Joshipura, MD. Sources said other MNCs such as Pfizer, Astra Zeneca and MSD Pharma were also recruiting sales people in large numbers to boost business in Indian shores.

The Indian Pharmaceutical Market (IPM), valued at Rs 55,500 crore in 2008, grew 8.9 percent in July and 18.3 percent in June, according to ORG IMS, which tracks sales of drugs in India. A KPMG-CII study estimated that the Indian drug market would grow at over 16 percent between 2007-2011.

"Healthcare facilities and numerous hospitals are coming up in small cities and rural areas, necessitating drug companies to expand their reach to so far untapped markets. Companies are also focusing on specialised divisions with highly skilled experts to sell products to specialists," said R B Smarta, founder and Managing Director of Interlink, a pharmaceutical marketing consulting firm.

21/09/2009

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