The Australian pharmaceutical market is valued at USD 13 billion and grew by 3% in 2020. The generics segment in Australia has witnessed consolidation in recent times and grew at a faster rate of 4%, backed by government support. Lupin’s Australian subsidiary, Generic Health ranks fourth in the region amongst generic players and supplies generic prescription and OTC medicines to pharmacies and hospitals in Australia.
Generic Health showed resilience during the pandemic and reported strong FY21 revenues of AUD 57 million. It launched more than 10+ new products during the year, including a niche generic product having limited competition in the weight management therapy area.
The Philippines market is valued at USD 4.1 billion and declined by 10% in FY21 impacted by demand disruption due to COVID-19. Multicare Pharmaceuticals Philippines Inc. (Multicare), Lupin’s subsidiary in the country, is a premium branded generics company with strong presence in the Rheumatology, Gastrointestinal and Diabetes segments. Successfully retaining its number 2 rank amongst reference branded generic market in the country, Multicare recorded revenues of PHP 1,388 million in FY21. The company has more than 250 employees, who were able to grow 7 of its top 10 products by increasing its reach to HCPs and creating more demand through a mix of face-toface and digital promotion. Multicare has a product pipeline of more than 50 new products to be launched over the next 5 years.
Japan is the third largest market in the world at USD
81 billion, decreasing 2% year on year (impacted by
price reforms and rising generic use). While Lupin
exited the market with the divestiture of Kyowa
Pharmaceuticals in 2019, we continue to cater to it
by supplying existing products, APIs, and select new
products through licensing agreements like those
with Kyowa Pharmaceuticals. We are also committed
to our partnership with Nichi-iko for biosimilar
Etanercept, which was launched in Japan in FY20.
We continue to selectively bring our portfolio of
complex generics and rare diseases to the Japanese
market, partnering with the right companies to
maximize value for the company.
Data Source: IQVIA Global MIDAS (MAT Dec 2020). IQVIA Local PHI data (MAT Mar 2021)
The LATAM pharmaceutical market is USD 40 billion and grew by 10% in FY21. The growth was driven by therapeutic areas tied to COVID-19 as well as chronic therapies such as Cardiovascular, Thrombosis, CNS, Diabetes and Vitamins. Overall, our LATAM business recorded a sales decline of 10% and contributed 4% to our overall revenues in FY21.
The two biggest markets in the region, Brazil and Mexico, represent 70% of the LATAM market and witnessed growth of 11%.
The Mexican pharmaceutical market is valued at USD 10 billion. The market witnessed a robust growth of 11% in 2021 despite pandemic-driven macroeconomic headwinds.
Laboratorios Grin (Lab Grin), Lupin’s subsidiary in Mexico with 310 personnel, recorded a decline of 10.1% in primary sales at MXN 621 million, while continuing to be ranked second in the ophthalmic reference market (by units). In FY21, the ophthalmic market was severely impacted by the pandemic as patients ceased treatment of acute conditions while private ophthalmologist practices were closed in Q1FY21.
Lab Grin’s portfolio consists of 50 ophthalmic products and 10 primary care products. Five products were launched in FY21. We are constantly seeking opportunities to bring innovative products to the ophthalmic market and intend to leverage our global product pipeline to grow in areas beyond the ophthalmic segment by launching products in the Respiratory and CNS segments.
The Brazilian pharmaceutical market is valued at USD 21 billion and is the most important pharmaceutical market in LATAM, accounting for 47% of the region’s sales. It is ranked as the 10th largest pharmaceutical market worldwide. In FY21, the Brazilian pharmaceutical market grew 9.6% largely led by robust volume growth of essential medicines.
Medquimica, Lupin’s Brazilian subsidiary with 570 personnel, now ranks thirteenth in value in the region and is the fifth largest in its reference market (by Units), commanding a 6.4% market share. The company outpaced industry growth, delivering 35% growth in BRL terms. Medquimica continues to identify new products and differentiation opportunities to fill its product pipeline.
Our Growth Markets strategy is focused on introducing new products from our global pipeline to expand into newer segments while improving market share in our legacy segments and products. We will bring our complex inhalation and injectables assets to most of the markets in the coming years. The growth markets are now focused on crafting an entry strategy into China.
Data Source: IQVIA Global MIDAS (MAT Dec 2020). IQVIA BRA & MEX Local data (MAT Mar 2021) and IQVIA LATAM President’s Meeting (APR 2021). LATAM Market size includes retail and non-retail and excludes Argentina and Venezuela.