Factors Driving Halal Pharma Market

Transcription

1 Accelerating Pharma time-to-market, cost effectively Asia Europe Americas Dr. K. Shabana Ecron Acunova Factors Driving Halal Pharma Market CPhI International Halal Pharmaceutical Summit 2013; GTOWER Hotel, Kuala Lumpur, Malaysia 12 NOV 2013

2 Contents Introduction Halal market Why Halal Pharmaceuticals Driving factors for global Halal Pharmaceutical industry People Purchasing power Choice for Halal Increasing demand Public awareness Halal accreditations India perspective Ecron Acunova proposition Conclusion 9/30/2015 CPhI International Halal Pharmaceutical Summit

3 Halal is a value system & lifestyle which is applicable to all facets of life Food Financing Pharmaceuticals Packaging Drinks Cosmetics Clothing 9/30/2015 CPhI International Halal Pharmaceutical Summit

4 Global halal market size Global halal products market is estimated at US$ 2.3 trillion excluding Islamic banking - Food 61% Pharmaceuticals 26% Cosmetics 11% Others 2% Halal pharmaceuticals comprise nearly 1/4th of the total halal market 4

5 Halal accomplishment in each sector Meat based products-98% Processed foods- 64% Pharmaceuticals- 24 to 30% Cosmetics- 18 to 22% 5

6 Why Halal pharmaceuticals.. Halal certified products not only benefit Muslims but EVERYONE because of the wholesomeness aspects Safe for consumption and use Assurance of product efficacy Quality standard of production & ingredients/ materials Hygienically processed 6

7 Basic requirements for halal pharmaceuticals Devices, utensils, machines and processing aids - be used only for halal pharmaceutical products The line shall be operated for Halal pharmaceutical products only Systems to prevent contamination of pharmaceutical product Processing, handling, packaging, storage and transportation to be physically separated from any other non halal product 7

8 Driving factors for global Halal pharma industry 8

9 People 9

10 Estimated muslim population US$ 2.77 trillion Annual market value for halal food and non food trade US$ 560 Billion Annual global market value for halal food trade 1.83 billion Estimated number of global muslim population 1 Billion Estimated number of Asian muslim population source: 10

11 Muslim purchasing power Largest Muslim Population Indonesia Pakistan India Bangladesh Turkey Egypt Iran Nigeria China Ethiopia Algeria Morocco Sudan Afghanistan Iraq Highest Purchasing Power of Muslim Population Saudi Arabia Turkey Iran Malaysia Qatar Russia France Libya UAE USA Algeria Singapore Indonesia Egypt The Netherlands source: 11

12 Choice for Halal Increasing choice of vegetable-based pharmaceutical ingredients in the market Reputation for health and safety benefits of halal products By some interpretations, its more natural, ethical or humane treatment of animals Scares such as Mad cow disease or BSE Foot and Mouth disease Avian flu 12

13 Bovine Spongiform Encephalopathy 13

14 Foot and mouth disease In 2001, a serious outbreak of FMD in Britain resulted in the slaughter of many animals, the postponing of the general election for a month, and the cancellation of many sporting events. 14

15 Commonly used substances in the pharmaceutical product Substance Function Sources Gelatine Glycerine Glycerol Alcohol (ethanol drinks) (methanol reagent) Stearates, eg. Magnesium, Stearic acid, calcium Enzymes eg. Trypsin, ACTH Heparin Capsules Emulsifier Filler Diluent, antibacterial, sweetener, Preservatives (found in syrup, toothpaste, soaps, shampoo, etc.) Solvent Antiseptic Lubricants Binder Media for microbial growth (TSB) Hormones Corticotrophin Anti-Clotting Agent Also used in coating in medical devices e.g. catheter, heart transplant devices 1. Skin, bones, joints (bovine, porcine) 2. Collagen derivatives 3. Vegetables 1. Lard 2. Vegetables 3. By-products of biodiesel productions 1. Fermentations 2. Chemicals 1.Animal Fats, Lard or fatty acids from pig s stomach) 2.Vegetable (palm oil, Coconut, soybean, castor oil, sunflower) 1. Pig s Pancreas 2. Pig s Pituitary Gland 1. Pig s intestine 2. Bovine 16

16 Increasing demand 16

17 Yiwu instance 200,000 Arabs visit this Chinese coastal city every year because it boasts the largest wholesale consumer goods market in China It has made commerce convenient - A prayer hall for nearly 10,000 worshippers, Halal food is easily available, etc (Economist Ben Simpfendorfer - The New Silk Road ) The following companies are manufacturing their products using Halal processes and working with Halal accreditation agencies to fast-track growth in Islamic markets; Nestlé Unilever Abbott L Oreal KFC Subway, etc.. 39 firms - applied for Halal certification from JAKIM (The director of Department of Islamic Department Malaysia) - 05/06/

18 Public awareness Educating all consumers (Muslim and non-muslim) about Halal too many misconceptions exist that have shaped public consciousness against the concept of Halal Industry wide approach to explain Halal in much the same way as organic foods have been explained and promoted Advisory boards made up of academic, nutrition, health experts Social media channels Pharmaceutical companies to take the initiative to help the public understand that halal products are not necessarily just food and drinks 18

19 Halal accreditations The Halal Index, developed in Malaysia, provides a list of Halal and Haram compounds used in the pharmaceutical sector Malaysia s Halal pharmaceutical standard (MS2424:2010) The Brunei Halal Brand - to address the challenges to Halal certification and labelling 19

20 9/30/2015 CPhI International Halal Pharmaceutical Summit

21 India perspective A glimpse on overall pharmaceutical market facts 21

22 Country expenditure - India assumed to rank for 3 rd among pharmerging nations..!! 22

23 Market growth a prediction 9/30/2015 CPhI International Halal Pharmaceutical Summit

24 Economic development will drive volume growth 9/30/2015 CPhI International Halal Pharmaceutical Summit

25 Ecron Acunova s Positioning in the Indian Market As per Bio Spectrum- ABLE 2013 survey published, we are ranked #3 in revenue in Bio-Services. EA was founded by D A Prasanna, a GE veteran and invested by Manipal Education and Medical Group ( largest teaching hospital network providing patient access. EA provides Ph I-IV clinical development services and its key value proposition is Accelerate Pharma time-to-market cost effectively with no compromise in quality. EA conducts studies in G 8 markets with an understanding of study guidelines for getting marketing authorization in key markets. Speed to market is achieved by an intelligent combination of countries like India and CEE (Central and Eastern Europe). EA has centers of excellence in oncology, CV, metabolic disorders, stem cell therapy and diagnostic imaging agents. Key customers include top 10 pharma, bio-pharma and medical device companies. 25

26 Ecron Acunova Proposition Towards the final goal of delivering Halal premium products to the market Strategize to enable the major pharma players to perform a broad spectrum of activities including, research and development, product design, logistics, training, certification, standards, etc Gathering of information and market intelligence Understand the distribution channel Know who are the buyers/ distributors/ agents Assess preferences and existing products in market place Address certification issues and other market requirements Identify the most effective promotion programme 26

27 Ecron Acunova Proposition - Continued Remember each Muslim countries differ in preference (Social strata, culture, wealth, etc) Strategizing to prospect the sponsors keen to study the safety and efficacy of the halal investigational product Outlook towards the conduct of bioequivalence studies for the halal investigational product comparing with the existing reference product as per the applicable regulatory requirements 27

28 Malaysia - An export zone 28

29 Conclusion Halal Pharmaceutical is the emerging growth sector in the Halal industry National, regional & global effort - to harness resources in addressing the various aspects of halal pharmaceuticals Regulatory norms and guidelines to promote halal pharmaceutical products at every national level Statutory requirements by regulatory agencies all across the globe 29

30 Reference 1. McKinsey analysis India pharma Article in Pharmabizon "Value of Indian medical devices market to touch US$ 6.41 bnby 2014: Cygnus", March Quoted from a PwC report 4. IBEF report -a trust by the Ministry of Commerce, India 5. Public Private Partnerships for Healthcare Delivery in India, Journal of world health and societal politics, September Public Private Partnership to promote healthcare in India, December Article in Economic Times, September Article in Business Standard, June India: Digital Market Overview, WHO report on country specific health expenditures, India Brand Equity Foundation, August The Economist, May India's Pharmaceutical Industry on course for globalisation (Deutsche Bank Research),April Biospectrum ABLE, PWC report on Healthcare in India, /30/2015 CPhI International Halal Pharmaceutical Summit