ABBOTT INDIA INVESTOR DAY Highlights

• Over a period of time the medical reimbursement structure in this country is changing a little bit, were at some point of time only a self-pay market but over a period of time, whether it is the Jan Aushadhi, program run by the PM, run by the government, or increasing penetration of hospitalization, coverage of insurance, or the growth of beneficiaries like employee state insurance, corporation, defense, railways, etc, have certain segments of populations, which are getting reimbursed.

• Have had a series of products which were patented being launched in the last five to seven years. One of the good things is, there will be a series of products which will be going off patent in the five to 10 years. Have more than 500 LOE opportunities in the branded generic space.

• Abbott India Limited is the only multinational amongst the top 10 companies in Indian pharmaceutical market. Not only that, co is also growing faster than the Indian Pharma Market, IPM.

• 14% growth is important because if you continue to grow at this rate, co will be a $1 billion organization by 2025.

• Brands or therapy areas like Thyroid, almost 10%to 12% of India’s 1.4 billion population as per epidemiological studies suffers from hypothyroidism.

• The next 10 brands like Arachitol, Vitamin D, Creonfor digestion, Ganaton, Prothiadin, Zolfresh for insomnia, all in very strong emerging therapy areas having a very strong presence, backed by strong medical marketing initiatives, are poised for exponential growth.

• In the last three years, have launched almost 35 new products, going forward in the next five years, we plan to launch almost 75 new products.

• Since co already has big brands, the top 20 big brands which contribute almost 90% to 93% of the business are going to strongly focus on lifecycle management.

• Also looking at new product introductions with allied customer cohorts.

• Currently almost 70% of our business comes from metros and class one towns.

• Woman’s health portfolio grew by more than 23%, largely driven by the big brand Duphastone. Duphaston is a very unique situation, have moved from being the only one to one amongst the 41 brands in a span of two years. So, after being the only ones for 60 years, in two years now have 41 competitors. Despite 40 odd competitors, have not lost share in the IVF market. Have only lost share in the expanding gynecology market.

• Just like Thyronorm and Duphaston, would have Femoston with a very strong market share, leading and expanding this category. If you’re seen most of the top 10 brands are not brand share games, they are categories where abbott is expanding the category, have been expanding the category and continue to expand the category and will stay committed and continue to expand the category, Femoston falls into the same pattern going forward.

• The GI showed almost a 27% growth and is an extremely strong growth driver for the company.

• Having accelerated growth in all these second line of products and internally call them hidden gems.

• GI is one area where abbott is ramping up headcount, because co is the leader, Abbott is the leader in the gastrointestinal category and we would like to retain this leadership. Launching another business unit within the GI business.

• Almost all of Abbott’s top 10 brands are growing faster than the metabolics category.

• Out of 14.1% top line growth almost 7.6% has been volume, the rest has been price.

• Almost 26% of business by value comes from NLEM products, the rest is from non-NLEM.

• Have some 60 odd brands in the portfolio, of the 60 odd brands, the top 10 brands give around 70% of the business. Another 10 brands give another 20% of the business, which means 90% of the business comes from the top 20 brands, and the rest of the 40 are contributing the next 10%.

• Priorities are building the top 10 brands, the next 10 brands, NPIs, channels, geographic expansion, creating category, therapy area awareness and diagnosis.

Disclaimer:- Nothing on this website should be construed as investment advice. Please consult your financial advisor before taking any decision. We are not SEBI registered RA/RIA. The author does not own the stock in their portfolio at the date this post was published.