New book by Larry Connors Click here Improve your trading - See how
Merck is not the only leading multinational operating in the Indian vaccine market. British pharma giant GlaxoSmithKline Plc. (NYSE: GSK | Quote | Chart | News | PowerRating) has established its presence with about 10 vaccines in the market. US-based Wyeth (NYSE: WYE | Quote | Chart | News | PowerRating) and French company Sanofi-Aventis SA (NYSE: SNY | Quote | Chart | News | PowerRating) have also ventured into the country. GlaxoSmithKline and Sanofi-Aventis have also set up manufacturing facilities within India.
Opportunity For Foreign Pharma Companies
Existence of life threatening diseases, mass public health programs undertaken by the government and rising awareness levels have made India an attractive market for vaccines.
India, with population exceeding 1 billion, is the second most populous country in the world. As per the 2001 Indian Census data, a considerable 35% of the population falls in the age group of below 14 years (16% below six years). This creates huge scope in the pediatric immunization segment. Prevalence of chronic diseases such as polio, diphtheria and hepatitis has necessitated government intervention in the area of children's vaccination. The huge success of the nationwide drive to eradicate polio and educate the masses has expanded the market for vaccines in the country.
Besides, rising education levels and increased exposure to the developed world has raised awareness among the middle class of the country. This section of the society is increasingly investing in preventive healthcare treatments, thus creating an opportunity for adult vaccine manufacturers also.
Low Price And Good Quality ' The Real Challenge
Government is the largest procurer of vaccines in India. Considering the widespread reach of its primary healthcare centers, manufacturers of vaccines cannot ignore supplying to the Government. Partnering with NGOs and international organizations such as WHO also become imperative to reach out to the rural population. Therefore price plays an important role in ensuring success in India.
Low cost of research and clinical trials reduces the overall cost of production of vaccines in India. At the same time, skilled human resource and state of art facilities ensures that quality is not compromised. This has significantly driven the demand for Indian vaccines in the export market. The 'Global Vaccine Market Forecast to 2012', a study conducted by research firm RNCOS, states that exports account for around 65% of the country's vaccine market. India is also a major supplier to organizations such as the UNICEF. Hence given that the Indian industry is fairly mature, the real challenge faced by foreign companies is to supply superior quality vaccines at competitive prices.
However international players are bound to face tough competition from the well established domestic companies. Serum Institute of India, Panacea Biotech, Shanta Biotech and Bharat Biotech are some of the industry leaders who possess cutting edge research capabilities and manufacturing facilities in the country. On the other hand, GlaxoSmithKline and Sanofi-Aventis are the only foreign players which manufacture vaccines in India. With plants located in other countries, international pharma companies like Merck will find it difficult to maintain low price levels.
Manufacturing In India Holds The Key
If Merck & Co aims to become a market leader in vaccines in India, merely launching new products or increasing distribution network will not be sufficient. According to Amita Samant, analyst at ValueNotes, the company must either set up a plant on the Indian coast or form a joint venture with a domestic counterpart. The pharma giant must also partner with government agencies and NGOs to understand the nature of diseases prevailing in emerging and underdeveloped countries and develop specific vaccines for them. Going forward the company must also consider making India the hub for its vaccine exports.
Cross Border: US India News Wrap is a unique news and analysis service from ValueNotes. This weekly publication focuses on US corporations and what they're doing in India. This will be a unique service focused entirely on the US-India story; and will chronicle the growth in cooperation, closer economic ties, mutuality of interest and US corporations increase investment in India and its impact on companies, sectors and investing options.
No responsibility is accepted for errors of fact or opinion. Neither the analyst nor ValueNotes has a position in the stocks covered above, or has received any payment in any form for this report. ValueNotes does not own or trade in the stocks of companies under coverage. ValueNotes does not provide investment banking services or investor relations' services to preserve the independence of its research. Neither ValueNotes nor the analyst incurs any liability arising out of use of the above information/ report. Reproduction in whole or in part without written permission is prohibited.
ValueNotes is an independent research firm based in India, and provides a range of custom research and business intelligence services, including India-based research outsourcing solutions. Through a constantly evolving range of products and services, the ValueNotes Outsourcing Practice (www.valuenotes.biz) provides service buyers, vendors, consultants and others in the outsourcing industry with access to in-depth analysis backed by reliable primary intelligence.
Both ValueNotes and Investrend Research are members of the First Research Consortium, and participate in the organization's standards development panel for independent research providers located at http://www.firstresearchconsortium.com .
FinancialWire" is a fully independent, proprietary news wire service of Investrend Information (a division of Investrend Communications, Inc.). FinancialWire" news is written by professional journalists, dedicated to pure journalistic standards. FinancialWire" does not receive or accept any compensation from any individual or subject company (or representative thereof) for its news or opinions. All FinancialWire" news is available at http://www.financialwire.net . Please address any inquiries to feedback@financialwire.net .
Free annual reports for companies mentioned in the news are available at http://investrend.ar.wilink.com/?level=279 .
http://www.financialwire.net
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
