Thursday 16 February 2012

Merck and Company firms up plan for emerging markets

World's second-largest drug company by sales Merck and Company, known as MSD outside the US and Canada, has firmed up a three-pronged strategy to consolidate its position in the emerging markets and emerge as first or second largest firm over the next 5-7 years from fourth now, said Kevin Ali, President, Emerging Markets.
The game plan of the global drug giant rests on the pillars of a relevant portfolio of drugs to service each country, a healthy basket of products to be launched periodically and partnerships to manufacture and co-market products in other countries.

China, India, South Korea, Russia, Brazil, Mexico and Turkey are famously called the EMs, emerging as the new growth frontiers for Big Pharma. Merck has set itself an ambitious target to grow by 25% by 2013 in the emerging markets, or EMs, from 18% now.

Kevin Ali said, "The strategy for each country is uniquely different. We will focus our research and development on products that are important for a particular country. Both primary-care drugs and speciality products will get our attention."

MSD has identified diabetes, cardio-metabolic, cancer and osteoporosis as key areas of research. It spends $8 billion for research each year, of the $48 billion it makes from selling drugs.

Big pharma are aggressively realigning their strategies and resources around EMs and India, a prospective $30bn market, according to ORG IMS, an intelligence firm.

An analyst from Bain Capital who declined to be quoted said, "This development is bound to have profound positive implications for the new priority destination, particularly India and China. Many Indian are sprucing up their field force to derive competiveness and make way for big partnerships."

In India and other countries, Merck will launch about seven products this year. It has 19 other products that are in late stages of development that will be launched over a period of time -- first in the US and Europe and then in India. The company has 14 manufacturing tie ups in India presently and will forge more tie ups to strengthen the market share of drugs that are available in India already.

Kevin Ali said, "India is one of the most sophisticated countries in the world in terms of technology and competitiveness. We have a number of therapeutic areas and we would look at marketing tie-ups for the anti-infective segment. While many companies are going hog-wire crazy on acquisitions, we will focus on partnerships to add sales force and augment product density."

He said Merck will continue to adopt a differential pricing system to make their medicines more accessible to the Indian consumer. It currently sells Januvia, the diabetes drug, at a fraction of the cost that it is sold for in the US market.

Apart from therapeutic drugs, the company expects vaccines and follow-on biologics to drive growth in the emerging markets, said KG Anathakrishnan, managing director, Merck India.

No comments:

Post a Comment