Biogenerics & India

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Contents
• Biologics • Biotechnology & India
• Market Outlook • Biogenerics
• Leading Products • Factors
• Pipeline • Advantages
• Target Biogenerics
• Biogenerics • Indian Manufacturers
• Introduction & Pipeline
• Market • Regulatory – Scenario
• Issues
US, EU & India
• Patent Status
• Development Portfolio

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Biologics - Background
 Global biologics market is estimated to be ~$ 53 billion (excluding
vaccines) constituting ~9% of global pharmaceutical market.

 ~125 biologics currently marketed.

 The research and development costs associated with biologics are high
because biologics are structurally complex and difficult to manufacture.

 Genentech, estimated that it has invested $6.4 billion in research over

the last 28 years.

 These high costs are then passed on to consumers, who often foot bills
for biologic treatments ranging anywhere from $10,000 to $25,000 a
year. In some rare cases, costs can exceed $170,000 per year.

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Biologics constituted ~9.4% of the
total biopharmaceutical market
Sales Estimates – 2005

$ 32.80
$32.80 US

$ 52.84 $ 12.18 EU
$ 549
$549
$12.18

Japan
$ 3.83
$3.43

$ 4.43
$4.43 ROW

•US is the largest market for biologics with >60% of

global biotherapeutic sales, ROW constitutes ~8%

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 But the growth of biotech has continuously
outpaced that of pharmaceuticals

30%

25%
YoY Growth in %

20%

15%

10%

5%

0%
2000 2001 2002 2003 2004 2005

Pharmaceuticals Biologics

•23% of total industry growth in 2004 came from biotech

products

Ref:: IMS Industry in Figures 2005; Stratycon Estimates

Erythropoietin is the leading class of
biologic constituting ~22% of biologic
market (excl. vaccines)

12.0 Erythropoietins
10.9
TNF
2005 Global Sales $ bio.

10.0
Insulin & analogs

Cancer Antibodies
8.0 7.6
7.2 Interferon Beta
6.8
G-CSF
6.0
Human Growth Hormone

Rec. Coagulation Factors

3.8 3.8
4.0
Interferon Alpha
2.3 2.2 2.1 Enzyme Replacement
2.0
1.3 1.1 1.0 Antiviral Antibody

Follicle Stimulating Hormones

0.0

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 Leading Biotech Products
2005 ww
Growth (Y0Y)
Product Compound Company Sales
%
($ bio.)*
neulasta PEG/FILGRASTI
AMGEN 3.50 31.5%
/neupogen M
mabthera/ ROCHE/GENE
Rituximab 3.33 22.0%
rituxan NTECH
procrit/ eprex Epoetin alfa j&j 3.32 -7.0%
Darbepoietin
aranesp AMGEN 3.27 32.0%
alfa
enbrel Etanercept AMGEN 2.57 42.0%
remicade Infliximab j&j 2.54 18.0%
epogen Epoetin alfa AMGEN 2.46 -6.0%
neorecormon,
Epoetin beta ROCHE 1.81 8.0%
epogin
herceptin Trastuzumab ROCHE 1.72 48.0%
Interferon BIOGEN
avonex 1.54 8.90%
beta-1a IDEC
TOTAL OF TOP
26.07 7
10
Monoclonal antibodies, gene therapy are
constitute major proportion of biologic
pipeline apart from vaccines

Others
62 # of Biologic in
Interleukins
8 Development by Category
9
Immune based therapy
Growth Factors 16

Interferons 18

Antisense 20
Cellular therapy 21
Recombinant Hormones/Proteins 43
Gene Therapy 46
Vaccines 62
mAbs
160

0 50 100 150 200

•>400 biologics in development constituting ~19% of all

developments are biotech products

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 BioGenerics

The biogenerics market is tipped to reach $16bn (€11.9bn) by 2011.

Regulated markets are taking the next step for biosimilars. ROW
countries could act as a launch pad taking products subsequently
to regulated markets.

The 'biogeneric' analysis problem, 2007

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Differences between Chemical Entities and
Biogenerics

Chemical entities Biogenerics

 Well-defined, easy-to-characterize  Routine chemical analysis are not

molecular structures with impurity sufficient to compare a biogeneric to
profiles that depend on their synthetic its originator product
route of manufacture
The demonstration of approvability

 In vivo safety and efficacy are for biogeneric differs from the
unrelated to product origin standard generics approach as it is
based on a comparability exercise
rather than on demonstration of
bioequivalence

 Need to establish on a case by case

basis.
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A tentative classification of biological
therapeutics

Class Example

Biotech products recombinant DNA technology; controlled

expression of genes coding for biologically active
proteins in prokaryotes and eukaryotes including
transformed mammalian cells; hybridoma and
monoclonal antibody methods
Vaccines vaccines

Blood derivatives sera; immunoglobulins; coagulation factors;

plasma; albumin; interleukins

Other products extracted insulin; heparin and derivatives; amino acids;

from native (non- antibiotics obtained through fermentation;
engineered) biological hyaluronic acid
sources

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 Biogeneric - Market Outlook

 13 of the leading biologics achieved mega-blockbuster status (i.e.,

exceeded $2 billion in global sales).
 Those biologics that lose patent protection open an emerging opportunity
for biogenerics.
 Taking a global perspective, we see that a branded biologic priced at
$10,000 a year may cost just $2,000 to manufacture in the U.S. or
Europe.
 The high prices of biologic therapies make it imperative that generic or
off-patent products be marketed as options for consumers after patent
and exclusivity protections for manufacturers have expired.
 Europe is leading the biogeneric charge; seven biosimilars have launched
there and four more were recently approved.
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Biogeneric - Market Outlook

 Worldwide interest in biogenerics is gaining momentum and is expected

to reach $5.8 billion by 2012.
 By 2013, at least 10 branded biologics with total sales of $15 billion will
be generic and prime targets for genericization.
 But first such stumbling blocks as safety, access to innovators' key
intermediates, process controls, availability and access to bulk
materials, specifically designed and adapted analytical procedures and
validation studies must be addressed.
 Also, biosimilars cannot currently be marketed in the US because there
is no pathway for them to reach the market.

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Issues surrounding Biogenerics

Newer products
Regulatory hurdles

Issues
Technical Innovator woes
&

quality issues

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 Selected biologics with expired patent
Product Compound Company Expired
Filgrastim GM-CSF Amgen 2007
Engerix-B Hepatitis B Vaccine GSK 2006
Neupogen G-CSF Amgen 2006

Novolin Human Insulin NovoNordisk 2005

Protropin Growth hormone Genetech 2005

Activase t-PA Genentech/BI 2005
Epogen, Procrit EPO-α Amgen/J&J/Sankyo 2004
Nutropin Growth Hormone Genentech 2003
Humatrope Growth Hormone Eli Lilly 2003
Avonex Interferon b1a Biogen 2003
Intron A Interferon a2b Schering Plough 2002
Humulin Human Insulin Eli Lilly 2001
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Biologic Drugs Losing Patent Protection

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Markets in which Biogenerics are currently
marketed
Eastern
Europre/Baltic
Others
(e.g Lithuania)
20%
27%

Major EU
13%
Canada/ US Pacific (ex
13% Japan)
27%

Eastern
Others Europre/Baltic
5% (e.g Lithuania)
Pacific (ex Japan)
3%
2%
Major EU
42%
Canada/ US
48%
Markets in which pipeline biosimilars are being
targeted towards
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Leading Generic Companies & their biogenerics portfolio
Company EPO CSF Insulin HGH INF tPA mAB Total

Teva/Sicor/B D M M M 4
TG
Sandoz M 1
Pliva M D M 3
(+Mayne)
Stada D D D 3

BioPartners/ M M M M M 5
LGLS
BioGenerix D D 2

GeneMedix D M D D 4
Dragon M 1

Biocon D M M D D D D 7

Scino Pharma D D D D D 5

Scigen M M M D D 5

Wockhardt M D M D 4

DRL D M D 3

Shantha M D M M D 5
Biotech
1852
Total 12 9 6 7 9 3 6

D: Developing, M: Marketing
Indian Biotechnology Market
 The Indian biotech market has doubled in size in the past two
years, reaching a value of US$ 2.08 billion in 2006-07, compared to US$
1.45 billion in 2005-06.
 The Indian market currently accounts for a little over 1.1 per cent of the
global biotech market.
 Off the 50 odd biotech products 13 are available in India & 7 biotech
drugs are indigenously developed and produced by Indian Companies.

Bio-Industry 96 35
Bio-Informatics
225
Bio-Agri

268
Bio-Services Bio-Pharma
1453

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Biotech Industry Revenues - 2006-07(US$ million)
Biogenerics - India
 Companies in Indian generics universe have gross margins closer to
50%. This means that an Indian generics company could enter the
market, manufacture the same product, and be content to sell it at
$4,000-5,000, a 50–60% discount.

For example, last year Dr. Reddy’s launched a Biogeneric version of

Roche’s Rituxan/Mabthera in the Indian market at Rs. 20,000 per vial,
or approximately $505, a 50% discount to Roche’s price in India.

 With additional entrants and lower-cost manufacturing, prices could be

driven down further. For example, Wockhardt recently invested $38
million to build a facility capable of manufacturing 15% of the
worldwide supply of biologics.

 Major brands of Erythropoietin products have become key targets for

biogenerics, after accounting for 18.7% ($12bn) of global
pharmaceutical sales in 2006. Amgen's Aransep held 55% of the EPO
market in 2006, typifying the rapid growth of long-acting products.

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 "All the biotech products produced by Indian companies are generic
in nature.
India has a huge market potential for Biogenerics”.

 Off the 50 odd biotech drugs 13 are available in India and seven
biotech drugs are indigenously developed and produced by the Indian
companies.

 Typically the market potential in India for biogenerics has been in the
range of 0.1 percent (EPO) to 0.2 percent of (Insulin) of the global
market value based on the type and class of molecule.

 India has over 130 home grown biopharmaceutical companies, many

of which are fully integrated.

 The global market for Indian Biopharmaceutical companies have

touched $ 1.5 Billion in revenues (2006) with CAGR of 27%.

Indian biogeneric companies on the threshold of globalization, 2007 (biospectrum)

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Factors Driving Development of a
Biogenerics Market
 Multiple Patent expiries for biologics launched in the late 1980s/ early
1990s.

 Considerable market size for these biologic products.

 Technological advancements enabling ‘replication’ of biologic products.

 Consumer interest in lower cost alternative to expensive branded

biologics.

Biogenerics are becoming technologically feasible and

economically necessary, therefore are gaining Regulatory and
Political attention

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Key advantages
 At present India is one of the major contributors in the world
biogeneric market along with the china. Some of the that India has
upon other countries in biogenerics are-

 Highest number of US FDA approved plants outside the US.

 Compliance with GCP guidelines is an rise with Indian
Companies.
 Highly qualified human resource availability.
 Low capital and operational cost.
 Pharma sector highly competitive in bioprocessing skills.
 Excellent genomic research opportunity.

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Measures that are fueling rapid
growth
 Increase in partly public-funded biotechnology incubators and parks.
 Increase in the private venture capital, fiscal incentives and tax
benefits for R&D and exports.
 Streamlining of regulatory pathway and reduction in the approval
time by various regulatory agencies.
 Active role of Indian Pharmacopoeia in issuing product specific
monographs.
 Increased penetration of private health insurance.
 Increase in the burden of diseases (especially lifestyle diseases).
 Increase in per capita pharmaceutical spend.
 Modernization and integration of patents and other intellectual-
property offices with adoption of electronic filing system.
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 Protein Classes in which
biogenerics are in development
•Biogeneric Development has extended into protein classes with high market
potential.

Insulin Interleukin EGF

Interferon Gamma PTHGM-CSF
Coagulation 3% 3% 2% FGF
Factors 5% 5% 3%
2%
7%
IGF
Interferon Alpha 2%
10%

Interferon Beta G-CSF

10% 20%
Human Growth
Hormone
12% Erythropoietin
16%

Biogeneric companies do not focus on providing merely copies of existing drugs,

they try to improve manufacturing processes.

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 Target Biologics Market Share & Patent
Status
sales
Worldwid 2010
Leading Launch e Sales (USD
Biologic Company Patent Expiry
Brand Year 2006 Mn)
(USD bn) EU
Market
US EU

Eprex/Procri 1988 2014

Erythropoietin J&J, Expired
t, Epogen, (alpha), (alpha),
Epoitin alpha Amgen, (alpa & 13 701
Epogin/Neo 1990 n/a
and beta Roche beta)
Recormon (beta) (beta)

G-CSF Neupogen Amgen 1991 2008 Expired 5.6 605

Schering 188
Interferon Intron,
Plough, 1987 Expired Expired 2.3 (EU+U
alpha Roferon
Roche S)
2008-
2012
Avonex, Biogen 2013
Interferon 1996 (1a) (1a)
Rebif, Idec, (1a) 3.7 131
beta 1993(1b) Expired
Betaferon Serono Expired(
(1b)
1b)

Pfizer,
Genotropin,
Novo 442
Human growth Norditropin,
Nordisk, 1988 Expired Expired 1.9 (EU+U
hormone Humantrope
Lilly and S)
and others
Others

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 Biogeneric Manufacturers and Their
Products
Company Launched Biosimilars In the Pipeline
Barr EPO scheduled for launch in G-CSF (Filgastrim),
Eastern Europe Insulin, and HGH
Biocon Insugen (Insulin in India and Insulin, glargine and HGH
China), Erypro (EPO) G-CSF,
Nimotruzmab, BIOMAb EGFR
Biopartners (cancer)
Valtropin (rHGH) Alpheon (INF-α) and
EPO
Cipla None Autoimmune, cancer and
cardiovascular
Dr. Reddy’s G-CSF (Filgastrim) Nine (9) development
Glenmark None GBR 500 (mAb for MS),
GBR600 (antithrombotic)
and mAbs for adhesion
molecular inhibitors
Intas Biopharma Neukine (G-CSF), Erykine (EPO) Six (6) development
and Intalfa (INF-alpha2b) programs
Prolong None PEG-EPO and other
Pharmaceuticals PEGylated proteins 27
 Biogeneric Manufacturers and Their
Products
Company Launched Biosimilars In the Pipeline
Ranbaxy Nugraf (Filgrastim), Macrogen mAbs in oncology and
(Molgramostim from Zenotech) neurology
Sandoz Omnitrope (HGH), Binocrit (EPO) Six (6) development
programs including G-
CSF (Filgrastim)
Shanta Shaferon (INF-alpha2b, mAbs and PEGylated
Biotechnics Shankinase (streptokinase) and therapeutic proteins
Shanpoietin (EPO)
Stada EPO-Zeta (approved) Filgrastim

Teva G-CSF (Filagstrim),Teva-Tropin Insulin, EPO and

(HGH), INF-alpha2b interleukins
Wockhardt Wepo (EPO), Wosulin (insulin) Insulin Glargine
INF-alpha2b, G-CSF

These companies have already introduced as many as seven biotech drugs

(Hepatitis B vaccine, Streptokinase, Insulin, G-CSF, Erythropoietin, Human
Growth Hormone and Interferon alpha 2b) under many brands. 28
 Sustain Biogenerics Market
 Developing a specific bio-generic regulatory framework.

 With the introduction of TRIPS agreement from January 1, 2005, Indian

bio-generic companies should not concentrate on generating mere copies
of the existing drugs, but try to improve manufacturing procedures,
which may themselves bring new patents.

 Modifying the patent framework to suit the bio-generic products.

 Improving the approaches of generic suppliers from directly copying the

drugs to generating novel targets (especially, applicable to bio-generic
companies in Indian and other developing countries).

 Policies from the originators

 Customer receptivity towards biogeneric products 29

Core competencies that biosimilar
companies need to survive

Marketing

Clinical Trial Traditional Biologics

Generics World manufacture
Design
Patent Law
Regulatory
Expertise Detailing to
Pharmacovigilance Low Cost Specialists
Manufacture

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 Biogenerics -Regulatory

EU has guidelines in place for approval of biosimilars, US and Japan

lag behind in the process.

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 US Approval Process for Biologics
 There are two distinct regulatory pathways for biologics are associated with a
different set of barriers for approval of biosimilars.

Approval Process for Biologics

Biologic License Application (BLA) New Drug Application (NDA)

Governed by Public Health Service Act Governed by Federal Food, Drug and Cosmetic
Act (FFDCA)
(PHSA)
Approval pathway for human growth hormone
and insulin products
Approval pathway for the majority of
biologics (e.g. epoetins, interferons, Hatch-Waxman provisions provide an
abbreviated new drug application (ANDA)
colony stimulating factors) pathway for generic small molecule drugs

No abbreviated pathway for approval of Section 505(b)(2) provides an abbreviated

Generics pathway for biosimilar approval
No existing statutory framework
for approval of biosimilars 32
 EU Approval Process for Biosimilars
 Europe has a unified regulatory process for approval of Biosimilar:

European Medicines Agency (EMEA)

Committee for Medicinal Products for Human Use (CHMP)

•Reviews marketing authorization applications for biologics

•Awards either a ‘positive’ or ‘negative’ opinion based on

evaluation of quality, safety and efficacy measures
EMEA has authority to recommend approval of biosimilars

European Commission (EC)

•After a product receives a positive opinion, the EC will

grant marketing authorization valid for the European Union
Final decision-maker for marketing approval of biosimilars
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Regulations on Biogenerics in India

 Institutional BioSafety Committee (IBSC)

 Review Committee on Genetic Manipulation
(RCGM)
 Genetic Engineering Approval Committee
(GEAC)

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 Indigenous product development,
manufacture & marketing of
pharmaceutical products derived
from LMOs but the end product is
not an LMO.

Report of the task force on Recombinant Pharma, 2005

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 Risk Group Risk Group
-I III & above I & II
c ol Application
oto
P r
IBSC IBSC

RCGM RCGM
(Approves pre-clinical studies) (Approves pre-clinical studies)

Pre-clinical trial conducted Pre-clinical trial conducted

RCGM RCGM
(Recommends human CT to DCGI & (Recommends human CT)
forwards views on containment
facilities to GEAC)
GEAC examines DCGI
information on (Approves Human CT)
DCGI
containment
(Approves Human CT) facilities & data on
Human CT Conducted
clinical trials
Human CT Conducted
Environmental Clearance DCGI
under Rule 1989 of EPA (Approves manufacture &
DCGI market authorization under
based on risk & benefit
(Approves manufacture & market Drug & Cosmetic rules based
analysis and inform DCGI
authorization under Drug & Cosmetic on the clinical trials data)
rules based on the clinical trials data)

DCGI – 36
Post Release Monitoring
DCGI – Post Release Monitoring
Trends In Biopharmaceuticals

37
 k Y o u
T h an

* Information presented here is available in public domain.

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