COMPANIES
Actavis has to wait longer
to claim top-three ranking
I
Sales rankings for 2012
f Actavis had been a combined entity for the whole
of 2012 – instead of from 1 November – its proforma
generics and OTC sales from its Actavis Pharma
division would have been in the region of US$6.6 billion.
This would have put it into third place in Figure 1,
ahead of Mylan, which reported total worldwide generics
sales 7% higher at US$5.98 billion.
By the same token, Actavis Pharma would also
have been ahead of Mylan in terms of its US generics
sales, with a proforma total of about US$4.1 billion.
Mylan, in contrast, reported North American turnover
up by 14% to US$3.26 billion (Generics bulletin, 8
March 2013, page 3).
Both were ahead of Sandoz, which saw its US sales
plummet by 16% to US$2.79 billion in 2012, when it
lost its monopoly on generic enoxaparin and also suffered
from supply issues (Generics bulletin, 1 February 2013,
page 5). Nevertheless, with European sales of US$4.23
billion, albeit down by 5%, Sandoz comfortably retained
its overall second place behind Teva.
The leading global generics company reported sales
down by 11% to US$3.39 billion in its Europe region,
which it defines as the European Union, Norway and
Switzerland. But with its US sales climbing at the same
pace to US$4.38 billion (Generics bulletin, 15
show little movement
over 2011, but more
players joined the
US$1 billion club,
as Mike Rice reports.
February 2013, page 5), Teva reported total generics
turnover up by 2% to US$10.4 billion, significantly
ahead of Sandoz on US$8.70 billion after an 8% decline.
Missing from the Teva figure is its share of the
OTC joint venture, PGT Healthcare, it has with Procter
& Gamble. This rose by 22% to US$936 million.
However, OTC turnover was nearly offset by US$796
million in third-party sales of active pharmaceutical
ingredients (APIs) included in the generics total.
When Figure 1 appeared last year, there were 22
companies reporting turnovers of more than US$1 billion,
either by their businesses as a whole or by their generics
operations. This year, there are 27. This is partly explained
by business growth. However, there was remarkably
little consolidation in 2012. Watson getting together
with Actavis was the only significant deal between
major global players.
In fact, the only other change to the top rankings
was Dr Reddy’s slipping behind Fresenius Kabi, entirely
for reasons associated with exchange rates. These
have not been kind to Indian firms in particular, although
Japanese firms could also have fared a lot worse if the
current US$1= ¥100 had been applied, rather than an
historical average last year of US$1= ¥82. In terms of
the Indian rupee, the 2011 rate of US$1=Rs45 has been
Teva (0)
+11%
-8%
Sandoz
Mylan
Actavis
Perrigo (1,2)
Hospira (3)
+11%
+29%
+15%
±0%
+5%
+7%
+23%
+18%
+20%
+41%
+23%
+36%
+20%
+17%
+6%
+3%
+21%
Sanofi (4)
Stada (4)
Ranbaxy (5)
Fresenius Kabi (4,6)
Dr Reddy’s (5,7)
Sun (5,7)
Aspen (2,8)
Lupin (5,7)
Pharmstandard (9,10)
Cipla (5,7)
Krka (4,9)
Gedeon Richter (4)
Zydus Cadila (5,7)
Nichi-Iko (7,11)
Hikma
Aurobindo (5,7)
Valeant (12)
(0) Generics sales include API sales, but exclude OTC sales
(1) Generics sales include OTC sales of US$1.82 billion
(2) Financial year ended 30 June 2012
(3) Specialty Injectables sales only
(4) Reported in C euros; converted at C1 = US$1.30
(5) Reported in Indian rupees; converted at US$1 = Rs54
(6) Intravenous Drugs only
(7) Financial year ended 31 March 2013
(8) Reported in South African rand; converted at US$1 = ZAR8.5
(9) Generics sales include OTC sales
(10) Reported in Russian roubles; converted at US$1 = RUR31
(11) Reported in Japanese yen; converted at US$1 = ¥82
(12) Emerging Markets sales only
(13) Pharma sales only
(14) Reported in Brazilian reals; converted at US$1 = R$2.0
–
+21%
+27%
+45%
+29%
+27%
–
+11%
Wockhardt (5,7)
Hypermarcas (13,14)
Polpharma (15)
Covidien (16,17)
0
1,000
2,000 3,000
4,000
5,000
6,000
7,000
8,000
9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 20,000 21,000 22,000
Turnover (US$ millions)
Generics
APIs
Brands
Other
Figure 1 (above) and Figure 2 (right): Leading generics companies which reported global 2012 turnover of more than US$1 billion (above) and more than about US$300 million
(right). Figures have been quoted for the 2012 calendar year wherever possible, showing growth compared with the previous year. Results not reported in dollars have been
converted at the rates shown, but growth figures are as reported. Business breakdowns are mostly according to companies’ own definitions (Source – Company reports)
28 GENERICS bulletin
7 June 2013
COMPANIES
Morocco and Elie/Savanna in Sudan. The first full
year of the MSI deal increased the firm’s injectables
sales by nearly half to almost US$500 million.
With its Branded business segment in the Middle
East and North Africa region reporting sales up by nearly
a fifth to over US$500 million, Hikma reported a 21%
turnover rise to US$1.11 billion in 2012.
Later this month, on 28 June, Mallinckrodt will be
spun off from parent group Covidien to operate as a
standalone business. Generics and APIs will make up just
under half of Mallinckrodt’s US$2 billion turnover, with
medical-imaging products accounting for the other half.
Branded pharmaceuticals with 8% of turnover will make
up the difference. In the year ended 28 September 2012,
generics sales by Covidien’s Specialty Pharma unit
increased by 16% to US$573 million, while its API
business rose by 4% to US$433 million.
Two Indian firms have had their rankings
affected by divestments. Orchid has dropped out of
Figure 2 completely, having sold its injectable antibiotics
business to Hospira for US$380 million in 2010, and
agreed with the same firm last year to part with its API
development and production centre in Aurangabad for
about US$200 million.
Strides Arcolab, meanwhile, has fallen as a result
of selling its Australian Ascent business to Actavis in
2012 (Generics bulletin, 3 February 2012, page 1), and
will drop even further when it offloads its Agila
Specialties injectables operation to Mylan for up to
US$1.85 billion (Generics bulletin, 8 March 2013,
page 1). Last year, Agila contributed about US$250
million to the firm’s turnover, while the rump Pharma
solid-dose division had sales of about US$170 million. G
replaced by US$1=Rs54, an effective devaluation of 20%.
An addition to the rankings this year is Polpharma.
This private company has always been absent as it has
produced no publicly-available sales data. A company
presentation, however, claimed a 2012 sales figure of
US$1.02 billion. Similarly, Pharmascience and Synthon
are in Figure 2 on the basis of their own figures.
Notable absentees from the listings are the private
Canadian firm Apotex, which has simply claimed for
many years annual sales of over US$1 billion; the US
firm Par, which went private last year when it was bought
by private-equity firm TPG for US$1.9 billion (Generics
bulletin, 19 October 2012, page 2); and the generics
sales of Pfizer, including those of its Greenstone US
generics unit. According to Pfizer, its Established
Products division increased its turnover by 11% to
US$10.2 billion in 2012. However, this figure included
12 months of Lipitor (atorvastatin) sales in the US and
Japan. The Established Products total excluded around
US$4.5 billion from sales of off-patent products that
fell under Pfizer’s Emerging Markets division.
Japanese companies are gradually moving up the
rankings, with Nichi-Iko appearing in Figure 1 for the
first time, and Sawai rising to the top of Figure 2. The
former has a generics joint venture with Sanofi that was
set up in 2010 (Generics bulletin, 18 June 2010, page 7).
Separately, Sanofi reported generics sales up by 14%
to C1.84 billion in 2012.
Other newcomers to Figure 1 include Jordan’s
Hikma and Covidien of the US. Hikma had to thank
its acquisition of Baxter’s Multi-Source Injectables
(MSI) business in the US midway through 2011, as
well as the more recent additions of Promopharm in
There was remarkably
little consolidation
among the top global
players in 2012
Sawai (7,11)
+19%
EMS (14)
+10%
Glenmark (5,7)
+25%
Aché (14)
+14%
Pharmascience (15)
–
Towa (7,11)
+13%
Endo (18)
+12%
+3%
Egis (19,20)
Torrent
(5,7)
+19%
Impax
+13%
CFR Pharma
+16%
Adcock Ingram (8,20,21)
+3%
Ipca Labs (5,7)
+19%
Jubilant (5,7,13)
+22%
Intas (5,22)
(15) Company presentation
(16) Specialty Pharma and API sales only
(17) Financial year ended 28 September 2012
(18) Qualitest generics sales only
(19) Reported in Hungarian forints; converted at US$1 = HuF220
(20) Financial year ended 30 September 2012
(21) Brand sales are for domestic OTC business
(22) Financial year ended 31 March 2012
(23) Specialty Products sales only
(24) Reported in Bulgarian lev; converted at US$1 = BGN1.50
(25) Reported in Chinese yuan; converted at US$1 = CNY6.20
+36%
Orion (4,23)
+14%
Biocon (5,7)
+18%
Sopharma (24)
+7%
Strides Arcolab (5)
+31%
Chemiphar (7,11)
+12%
Synthon (15)
–
Simcere (25)
+2%
Acino (4)
+91%
0
100
200
300
Generics
400
500
600
Turnover (US$ millions)
APIs
Brands
700
800
900
1,000
1,100
Other
7 June 2013
GENERICS bulletin 29