The healthcare arm of a large, diversified conglomerate in Sri Lanka was seeking to understand the market potential for branded pharmaceuticals in the private healthcare sector.
More specifically, the Client was interested in understanding the market size (value and volume) of the branded pharmaceuticals, the competitor landscape, and how it is likely to evolve in the next 5–10 years.
We adopted a phased approach for this engagement. The initial phase involved gaining clarity on the objectives and reviewing the internal documents and financial models relevant to the project.
Thereafter, we conducted ~120 conversations with patients, doctors, pharmaceutical manufacturers, and industry experts to build our fact-base in sizing the market and understanding the competitor landscape.
We also leveraged proprietary and publicly available information to better understand the regulatory framework and how this impacts new players entering the market.
Based on our findings, the Client identified that there was a gap in their financial models, as the costs associated in establishing the brand had not been factored in.
Furthermore, the Client recognized that solely targeting the private healthcare sector would not be feasible and that they would need to cater to the public sector as well.
Despite the large size and potential of the branded generics market, our findings suggested that it would be difficult for a new entrant to penetrate into the market which is currently dominated by Indian brands.
Furthermore, we identified that a large investment would be required to build the brand and channels, and to conduct clinical trials to assure quality.