 "Market forces should determine prices: Edgard Olaizola")
The $19.6-billion (2014 revenue) US pharmaceutical and biotech firm Eli Lilly has large stakes in India where it has emerged a key player, especially in diabetic care. Eli Lilly India's Managing Director Edgard Olaizola tells Ajay Modi the company will launch more products in diabetic care and oncology to grow these businesses. Edited excerpts:
Eli Lilly's core area of business is diabetes care in India. How is that growing year-on-year? What is the growth projection for this segment?
India is a key market for Lilly in Asia, with an immense opportunity to positively impact 1.3 billion people with its products and services, especially in diabetes, oncology and osteoporosis segment. We lay emphasis on our diabetes portfolio and we recognise it takes more than medicine to overcome the challenges of diabetes. We take a comprehensive approach to addressing the disease, which includes the pursuit of excellence in three key areas - expanding science and clinical knowledge; providing a broad portfolio of innovative products; and creating disease awareness. We cannot share any numbers but we continue to grow our business. India has one of the highest numbers in terms of people suffering with diabetes, currently at 66.84 million and estimated to cross 109 million by 2035. Given the diabetes burden, it is expected that the insulin market, currently at 17 per cent of the overall $1.12-billion diabetes market, shall continue to grow strongly.
We are no more commercialising Lilly Therapeutics in India. We are currently focusing on our existing oncology products Gemcite and Alimta, and preparing for new launches.
What are Eli Lilly's focus areas for further growth in India? What will be some of the growth triggers?
In India, we have cultivated a strong equity in the diabetes care franchise and are working to strengthen our position. Currently, Lilly offers one of the most robust injectable insulin portfolio and will soon be launching a new class of therapy from our international diabetes portfolio. We also have a growing oncology business and plan to introduce innovative products from our rich oncology pipeline. We are working closely with the government, health care providers and local communities to expand treatment access and improve outcomes. Lilly India is committed to providing both therapeutic and non-therapeutic solutions to patients and health care providers.
What challenges do you anticipate in executing the India growth plans?
Many people living with diabetes are unaware of their condition and consequently are undiagnosed and receive no treatment or care. Hence, there is an urgent need to create awareness and increase access to information on diabetes, its prevention, early diagnosis and management. Through our various initiatives, we seek to impart more education, spread disease awareness and discussions around it. Some of the other challenges we hope to address are expanding the access of essential medicines to semi urban population, tackling the growing menace of NCDs (non-communicable diseases), and addressing the dangerous resurgence of TB (tuberculosis). We are working relentlessly to reach out to more and more patients.
What is Eli Lilly planning to do with the animal health unit it acquired from Novartis India as part of the global deal between Novartis and Eli Lilly?
Once closing is completed in India, the combination of Novartis Animal Health and Elanco will position the company to offer a more diversified product offering to help customers sustain and grow their businesses, reach more market segments, and strengthen pipeline, capabilities and expertise.
The Indian government has a policy of price control on select drugs with an aim to improve accessibility. Do you think price control leads to better access? How does such control impact the industry?
On pricing, we have always felt competition is the biggest leveller and mandatory price approvals/controls do not provide any tangible benefit to the masses. The real issue remains access to basic medicines and government is taking the right steps towards providing free access to generic medicines to this segment through welfare schemes. Beyond this, the pricing should be determined by market forces and not through pricing controls. Moreover, we advocate adopting a consultative approach for fixing drug prices in which all stakeholders are involved to ensure transparent and market-based pricing caps on essential medicines. The pharmaceutical industry is an integral part of the health care system and an all-inclusive outlook is critical for its growth and sustainability to ensure a robust health care environment.
Eli Lilly's core area of business is diabetes care in India. How is that growing year-on-year? What is the growth projection for this segment?
India is a key market for Lilly in Asia, with an immense opportunity to positively impact 1.3 billion people with its products and services, especially in diabetes, oncology and osteoporosis segment. We lay emphasis on our diabetes portfolio and we recognise it takes more than medicine to overcome the challenges of diabetes. We take a comprehensive approach to addressing the disease, which includes the pursuit of excellence in three key areas - expanding science and clinical knowledge; providing a broad portfolio of innovative products; and creating disease awareness. We cannot share any numbers but we continue to grow our business. India has one of the highest numbers in terms of people suffering with diabetes, currently at 66.84 million and estimated to cross 109 million by 2035. Given the diabetes burden, it is expected that the insulin market, currently at 17 per cent of the overall $1.12-billion diabetes market, shall continue to grow strongly.
More From This Section
It has been a while since the company entered the branded generic market in India. How is that segment performing? Do you look to expand presence in the area?
We are no more commercialising Lilly Therapeutics in India. We are currently focusing on our existing oncology products Gemcite and Alimta, and preparing for new launches.
What are Eli Lilly's focus areas for further growth in India? What will be some of the growth triggers?
In India, we have cultivated a strong equity in the diabetes care franchise and are working to strengthen our position. Currently, Lilly offers one of the most robust injectable insulin portfolio and will soon be launching a new class of therapy from our international diabetes portfolio. We also have a growing oncology business and plan to introduce innovative products from our rich oncology pipeline. We are working closely with the government, health care providers and local communities to expand treatment access and improve outcomes. Lilly India is committed to providing both therapeutic and non-therapeutic solutions to patients and health care providers.
What challenges do you anticipate in executing the India growth plans?
Many people living with diabetes are unaware of their condition and consequently are undiagnosed and receive no treatment or care. Hence, there is an urgent need to create awareness and increase access to information on diabetes, its prevention, early diagnosis and management. Through our various initiatives, we seek to impart more education, spread disease awareness and discussions around it. Some of the other challenges we hope to address are expanding the access of essential medicines to semi urban population, tackling the growing menace of NCDs (non-communicable diseases), and addressing the dangerous resurgence of TB (tuberculosis). We are working relentlessly to reach out to more and more patients.
What is Eli Lilly planning to do with the animal health unit it acquired from Novartis India as part of the global deal between Novartis and Eli Lilly?
Once closing is completed in India, the combination of Novartis Animal Health and Elanco will position the company to offer a more diversified product offering to help customers sustain and grow their businesses, reach more market segments, and strengthen pipeline, capabilities and expertise.
The Indian government has a policy of price control on select drugs with an aim to improve accessibility. Do you think price control leads to better access? How does such control impact the industry?
On pricing, we have always felt competition is the biggest leveller and mandatory price approvals/controls do not provide any tangible benefit to the masses. The real issue remains access to basic medicines and government is taking the right steps towards providing free access to generic medicines to this segment through welfare schemes. Beyond this, the pricing should be determined by market forces and not through pricing controls. Moreover, we advocate adopting a consultative approach for fixing drug prices in which all stakeholders are involved to ensure transparent and market-based pricing caps on essential medicines. The pharmaceutical industry is an integral part of the health care system and an all-inclusive outlook is critical for its growth and sustainability to ensure a robust health care environment.