1. How to Access a Promising Market? Challenges from the Viewpoint of an Entrepreneur Interested to Access the Indian Market Norbert Gerbsch, PhD Head of Affairs – Biotechnology / R&D BPI - German Pharmaceutical Industry Association India

2. India – First Sight Charts from: Deutsche Bank Research: India´s pharmaceutical industry on course for globalisation April 2008, www.dbresearch.com Population: 2006: 1.15 bn. 2030: 1.51 bn. a huge market! Growth Rates: 2008: 8.2% Above world average growing income! Drug Sales: Above par for three years growing sales! A Promising Market…

3. India – First Sight Chart from: Deutsche Bank Research: India´s pharmaceutical industry on course for globalisation April 2008, www.dbresearch.com …for German Companies!?

4. India – Second Sight INDIAGERMANY Population1,122 mio82 mio GDP, 2007 [EUR] 684 bn2,423 bn Growth [%]9.42.5 GDP per capita 2007 [EUR] 64229,450 Sales of pharmaceuticals 2007 [EUR] 10 bn26,8 bn Sales covered by Health Insurance [%] 20 (4)80 (99) Sales of pharmaceuticals per year and capita, 2007 [EUR] 8.9327 „Middle class“ spending per year and capita appr. 42.5? Number of companies20,0001,032 Number of pharmaceutical products 70,00060,000 Employees500,000127,000

5. Consequences India is a huge and promising market, but… compared to Germany: -different volume -different pricing levels -different spending per capita -different structure (directly payed by customer vs. health insurance) -different distribution systems -similar company structure (small to medium sized, privately owned) …more differences than similarities!

6. -for specialty care products, which are not yet available in India -which are patent protected or protected otherwise (production technologies) -Roundabout 20 German companies have established a presence in India -needs very careful analysis of the Indian markets -local partners which know the situation in India -marketing, reimbursement, distribution, authorities, Chances / Challenges

7. Market Access - Challenges to obtain valid information for market evaluation / planning to obtain sustainable information about government plans to develop the health system – mid to long term to find partners in India product protection by patents Infrastructure payment transactions different time frames high customs for imported goods cultural challenges

8. Networking in the German Pharmaceutical Industry How to Use an Existing Platform BPI - The German Pharmaceutical Industry Association - Established in 1951 -

9. The German Pharmaceutical Industry Association (BPI) Established in 1951, with 57 years of experience in the development, regulatory approval and marketing of pharmaceuticals as well as political lobbying An alliance of about 260 members, representing a wide spectrum of the pharmaceutical industry –Small Enterprises –Multinational Corporations –Contract Manufacturers –Contract Research Organizations (CROs) –Attorneys specializing in pharmaceutical law –Consultants An ideal information and communication platform

10. The Staff of the BPI The BPI covers many diverse fields of activities, which can be summarized in six central core competencies: –Medicine and Pharmacy –Biotechnology / R & D –Politics –Law –Self Medication –Press / Public Relations At BPI, experts from various disciplines work closely together – pharmacists, physicians, economists, lawyers, etc.

11. Support / BPI Cooperation platform The BPI Cooperation Platform on the BPI homepage offers –Members and –Non-members the opportunity to find business partners in various fields or to actively offer themselves as partners. Offers are posted anonymously, with the BPI acting as a intermediary between the two partners Might be useful to overcome some of the access barriers mentioned

12. Thank you for your attention! ngerbsch@bpi.de