Contents

Chapter 1........................................................................................................................................3

Industry profile...............................................................................................................................3

INDIAN PHARMACEUTICAL INDUSTRY....................................................................................4

Market Share of MNCs & Local Companies....................................................................8

ADVANTAGE INDIA...............................................................................................................10

THE GROWTH SCENARIO..............................................................................................10

STEPS TO STRENGTHEN THE INDUSTRY........................................................................11

Sector structure/Market size................................................................................................12

Role of Pharmaceutical Industry in India GDP......................................................................15

Booming Pharma Sector in India..........................................................................................16

India’s top 10 pharma companies.........................................................................................17

Major players........................................................................................................................18

Ranbaxy Laboratories...................................................................................................18

Dr. Reddy's Laboratories...............................................................................................18

Nicholas Piramal...........................................................................................................19

Cipla..............................................................................................................................19

Biocon...........................................................................................................................20

Serum Institute of India................................................................................................20

Key Trends in the Pharmaceutical Industry..........................................................................22

Business Innovation is Restructuring the Value Chain..................................................22

Market Share and Margins are Declining.....................................................................22

Consumers have Less Access to New Drugs..................................................................23

Sales & Marketing.........................................................................................................24

Channel Management..................................................................................................25

New Product Development and Rollout.......................................................................25

Business Model and Strategies.............................................................................................29

SWOT Analysis......................................................................................................................38

Chapter 2 Company profile.........................................................................................................40

Company products...............................................................................................................43

Medicine.......................................................................................................................43

MAXYNIM – P (Nimesulide + Paracetamol)..................................................................43

Maxiclox-LB (Amoxicillin + Cloxacillin)..........................................................................44

Gusto (A complete Energy Drink).................................................................................45

Chapter 3......................................................................................................................................46

RESEARCH METHODOLOGY..........................................................................................................46

Research process..................................................................................................................47

RESEARCH DESIGN................................................................................................................48

Data Collection.............................................................................................................48

SAMPLE DESIGN....................................................................................................................49

Chapter 4......................................................................................................................................51

Analysis and observation..............................................................................................................51

Chapter 5......................................................................................................................................62

Conclusion....................................................................................................................................62

Chapter 6 Recommendation.........................................................................................................64

Recommendation to the company...............................................................................65

Annexure......................................................................................................................................66

Bibliography..........................................................................................................................67

Questionnaire.......................................................................................................................68

Chapter 1

Industry profile

INDIAN PHARMACEUTICAL INDUSTRY

The Indian Pharmaceuticals sector has come a long way, being almost non-

existing during 1970, to a prominent provider of health care products, meeting

almost 95% of country’s pharmaceutical needs. The domestic pharmaceutical

output has increased at a compound growth rate (CAGR) of 13.7% per annum.

Currently the Indian pharma industry is valued at approximately $ 8.0 billion.

Globally, the Indian industry ranks 4th in terms of volume and 13th in terms of

value. Indian pharmaceuticals industry has over 20,000 units. Around 260

constitute the organized sector, while others exist in the small scale sector.

The pharmaceutical industry in India is going through a major shift in its business

model in the last few years in order to get ready for a product patent regime from

2005 onwards.

This shift in the model has become necessary due to the earlier process patent

regime put in place since 1972 by the Government of India. This was done

deliberately to promote and encourage the domestic health care industry in

producing cheap and affordable drugs. As prior to this the Indian pharmaceutical

sector was completely dominated by multinational companies (MNCs). These

firms imported most of the bulk drugs (the active pharmaceutical ingredients)

from their parent companies abroad and sold the formulations (the end products

in the form of tablets and capsules, syrups etc.) at prices unaffordable for a

majority of the Indian population.

The Indian Pharmaceutical Industry today is in the front rank of India’s

science-based industries with wide ranging capabilities in the complex field of

drug manufacture and technology. A highly organized sector, the Indian Pharma

Industry is estimated to be worth $ 4.5 billion, growing at about 8 to 9 percent

annually. It ranks very high in the third world, in terms of technology, quality and

range of medicines manufactured. From simple headache pills to sophisticated

antibiotics and complex cardiac compounds, almost every type of medicine is

now made indigenously.

Playing a key role in promoting and sustaining development in the vital field of

medicines, Indian Pharma Industry boasts of quality producers and many units

approved by regulatory authorities in USA and UK. International companies

associated with this sector have stimulated, assisted and spearheaded this

dynamic development in the past 53 years and helped to put India on the

pharmaceutical map of the world.

The Indian Pharmaceutical sector is highly fragmented with more than 20,000

registered units. It has expanded drastically in the last two decades. The leading

250 pharmaceutical companies control 70% of the market with market leader

holding nearly 7% of the market share. It is an extremely fragmented market with

severe price competition and government price control.

The pharmaceutical industry in India meets around 70% of the country's demand

for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals,

tablets, capsules, orals and injectibles. There are about 250 large units and

about 8000 Small Scale Units, which form the core of the pharmaceutical

industry in India (including 5 Central Public Sector Units). These units produce

the complete range of pharmaceutical formulations, i.e., medicines ready for

consumption by patients and about 350 bulk drugs, i.e., chemicals having

therapeutic value and used for production of pharmaceutical formulations.

Following the de-licensing of the pharmaceutical industry, industrial licensing for

most of the drugs and pharmaceutical products has been done away with.

Manufacturers are free to produce any drug duly approved by the Drug Control

Authority. Technologically strong and totally self-reliant, the pharmaceutical

industry in India has low costs of production, low R&D costs, innovative scientific

manpower, strength of national laboratories and an increasing balance of trade.

The Pharmaceutical Industry, with its rich scientific talents and research

capabilities, supported by Intellectual Property Protection regime is well set to

take on the international market.

Indian pharmaceutical industry is undergoing fast paced changes. The Indian

Generics market is witnessing rapid growth opening up immense opportunities

for firms. This is further triggered by the fact that generics worth over $40 billion

are going off patent in the coming few years which is close to 15% of the total

prescription market of the US. The Indian pharmaceutical companies have been

doing extremely well in developed markets such as US and Europe, notable

among these being Ranbaxy, Dr. Reddy’s Labs, Wockhardt, Cipla, Nicholas

Piramal and Lupin. The companies have their strategies in place to leverage

opportunities and appropriate values existing in formulations, bulk drugs,

generics, Novel Drug Delivery Systems, New Chemical Entities, Biotechnology

etc. The industry ranks fourth globally in terms of volume and in terms of value, it

is ranked thirteenth. The industry has thrived so far on reverse engineering skills

exploiting the lack of process patent in the country. This has resulted in the

Indian pharmaceutical players offering their products at some of the lowest prices

in the world. The quality of the products is reflected in the fact that India has the

highest number of manufacturing plants approved by US FDA, which is next only

to that in the US. Multinational companies have traditionally dominated the

industry, which is another trend seeing a reversal. Currently, it is the Indian

companies which are dominating the marketplace with the local players

dominating a number of key therapeutic segments. The market is also very

fragmented with about 30,000 entities and the organized sector consisting of

about 300 entities. Consolidation is increasing in the industry with many local

players building a global outlook and also growing inorganically through mergers

and acquisitions.

The Key to success in this industry is research & development. R&D is the

starting of the industry value chain and is also the most important value creator.

Companies that involve in R&D do so in specific areas. They chose specific

therapeutic areas to target based on their strengths in the market, and the

commercial potential.

This led to a revision of Government of India’s (GOI) policy towards this industry

in 1972 allowing Indian firms to reverse engineer the patented drugs and produce

them using a different process that was not under patent. The entry of MNC’s

was also discouraged by restricting foreign equity to 40%. The licensing policy

was also biased towards indigenous firms and firms with lesser foreign equity1.

All these measures by GOI laid foundations to a strong manufacturing base for

bulk drugs and formulations and accelerated the growth in the Indian

Pharmaceutical Industry (IPI), which today consists of more than 20,000

players1. As a result the Indian pharmaceutical industry today not only meets the

domestic requirement but has started exporting bulk drugs as well as

formulations to the international market.

Currently the main activities of Indian pharmaceutical industry are broadly

restricted to producing

(i) Bulk drugs and (ii) formulations with very few companies risking investing in

primary research aimed at developing and patenting new drugs. The bulk drug

business is essentially a commodity business, where as the formulation business

is primarily a market driven and brand oriented business. Multinational

companies which have entered the Indian market have mostly restricted

themselves to formulation segment till date. The domestic pharmaceutical

industry (MNC’s and Domestic) meets about 90% of the country’s bulk drug

requirement and almost the entire demand for formulations2. The economics of

bulk drug business and that of formulation business are quite different. Since a

majority of the Indian companies are producing both bulk as well as formulations,

these are considered together for the purpose of the present study.

Market Share of MNCs & Local Companies

The exports constitute almost 40% of the total production of pharmaceuticals in

India. India’s pharmaceutical exports are to the tune of $3.5bn currently, of which

formulations contribute nearly 55% and the rest 45% comes from bulk drugs.

The export revenue now contributes almost half of the total revenue for the top 3

pharma majors: Dr Reddy’s, Ranbaxy and Cipla. The other major exporters are

Wockhardt Limited, Sun Pharmaceutical Industries Ltd. and Lupin Laboratories.

The formulations and exports are largely to developing nations in CIS, South

East Asia, Africa, and Latin America. In the last 3 years generic exports to

developed countries have picked up.

POST 2005 SCENARIO

By issuing the patent ordinance, India met a WTO commitment to recognize

foreign product patents from January 1, 2005, the culmination of a 10-year

process. In this new scenario, the Indian pharmaceutical manufacturers won’t be

able to manufacture patented drugs.

To adapt to this new patent regime, the industry is exploring business models,

different from the existing traditional ones.

New Business Models include:

• Contract research (drug discovery and clinical trials)

• Contract manufacturing

• Co-marketing alliances

ADVANTAGE INDIA

Competent workforce: India has a pool of personnel with high managerial and

technical competence as also skilled workforce. It has an educated work force

and English is commonly used. Professional services are easily available.

Cost-effective chemical synthesis: Its track record of development, particularly

in the area of improved cost-beneficial chemical synthesis for various drug

molecules is excellent. It provides a wide variety of bulk drugs and exports

sophisticated bulk drugs.

Legal & Financial Framework: India has a 53 year old democracyand hence

has a solid legal framework and strong financial markets. There is already an

established international industry and business community.

Information & Technology: It has a good network of world-class educational

institutions and established strengths in Information Technology.

Globalisation: The country is committed to a free market economy and

globalization. Above all, it has a 70 million middle class market, which is

continuously growing.

Consolidation: For the first time in many years, the international pharmaceutical

industry is finding great opportunities in India. The process of consolidation,

which has become a generalized phenomenon in the world pharmaceutical

industry, has started taking place in India.

THE GROWTH SCENARIO

India's US$ 3.1 billion pharmaceutical industry is growing at the rate of 14

percent per year. It is one of the largest and most advanced among the

developing countries.

Over 20,000 registered pharmaceutical manufacturers exist in the country. The

domestic pharmaceuticals industry output is expected to exceed Rs260 billion in

the financial year 2002, which accounts for merely 1.3% of the global

pharmaceutical sector. Of this, bulk drugs will account for Rs 54 bn (21%) and

formulations, the remaining Rs 210 bn (79%). In financial year 2001, imports

were Rs 20 bn while exports were Rs87 bn.

STEPS TO STRENGTHEN THE INDUSTRY

Indian companies need to attain the right product-mix for sustained future growth.

Core competencies will play an important role in determining the future of many

Indian pharmaceutical companies in the post product-patent regime after 2005.

Indian companies, in an effort to consolidate their position, will have to

increasingly look at merger and acquisition options of either companies or

products. This would help them to offset loss of new product options, improve

their R&D efforts and improve distribution to penetrate markets.

Research and development has always taken the back seat amongst Indian

pharmaceutical companies. In order to stay competitive in the future, Indian

companies will have to refocus and invest heavily in R&D.

Sector structure/Market size

The Indian pharmaceutical industry is driving product development and breaking new

grounds in medicine research worldwide.

The Indian domestic pharmaceutical market is estimated to be US$ 10.76 billion in 2008

and is expected to grow at a high compound annual growth rate (CAGR) of 9.9 per cent

till 2010 and thereafter at a CAGR of 9.5 per cent till 2015.

Currently, the Indian pharmaceutical industry is one of the world's largest and most

developed, ranking 4th in volume terms and 13th in value terms. The country accounted

for 8 per cent of global production and 2 per cent of world markets in pharmaceuticals.

The Indian pharmaceutical off shoring industry is slated to become a US$ 2.5 billion

opportunity by 2012, thanks to lower R&D costs and a high-talent pool in India.

Exports

India exported drugs worth US$ 7.2 billion in 2007-08 to the US and Europe, followed by

Central and Eastern Europe, Latin America and Africa.

A report by industry research firm, RNCOS forecasts that pharmaceutical exports will

grow at a CAGR of 18.5 per cent between 2007-08 and 2011-12. This growth will be

fuelled by multi-billion dollar patent expirations and growth in the global generics market.

Pharmaceuticals exports (valued in US dollar terms) registered an impressive growth

rate at 30.7 per cent during April-October 2008 compared to the corresponding period

last year.

Growth

India's pharmaceuticals market is expected to grow by about 12-13 per cent in 2009,

says a study by consulting firm IMS.

During February 2009, India's drug retail industry continued its healthy growth recording

13.3 per cent higher sales over the same month last year.

A recent study by Yes Bank estimates the domestic formulations market to touch US$

21.5 billion by 2015.

The Indian vaccine market was worth US$ 665 million in 2007-08 and is growing at over

20 per cent. Exports contribute over US$ 360 million, while the domestic market for

vaccines is US$ 300 million.

Rural Market

According to estimates rural areas account for 21 per cent of the country's

pharmaceuticals market. In 2006-07, the rural Indian pharmaceuticals market was

estimated at around US$ 1.4 billion, having grown at about 40 per cent in 2006-07

against 21 per cent in the previous year.

Pharmaceutical Retail

India has 5.5 million chemists and druggists, and the organised retail market accounts

for just 2 per cent of the industry but is posting a year-on-year growth of 30-40 per cent.

The country's pharmaceutical retail market is expected to cross the US$ 10 billion mark

in 2010 and be worth an estimated US$ 12 billion- US$ 13 billion by 2012.

Generics

According to a report by IMS Health, the Indian generic manufacturers will grow to more

than US$ 70 billion as drugs worth approximately US$ 20 billion in annual sales faced

patent expiry in 2008. With nearly US$ 80 billion worth of patent-protected drugs to go

off patent by 2012, Indian generic manufacturers are positioning themselves to offer

generic versions of these drugs.

Diagnostics Outsourcing/ Clinical Trials

The Indian diagnostics and pathology laboratory business is presently around US$ 864

million and is growing at a rate of 20 per cent annually.

Moreover, the US$ 200-million Indian clinical research outsourcing market will reach up

to US$ 600 million by 2010, according to a joint study done by KPMG and the

Confederation of Indian Industry (CII) in September 2008.

Research & Development

In a bid to boost R&D in the pharmaceutical sector, the government will provide

US$ 422.96 million for establishing six National Institutes of Pharmaceutical

Education and Research over the next five years.

Biotechnology major, Biocon, will be investing US$ 20.11 million in the next fiscal

in enhancing its R&D.

Government Initiative

The Government has taken various policy initiatives for the pharmaceutical sector

Government has offered tax-breaks to the pharmaceutical sector. Units are

eligible for weighted tax deduction at 150 per cent for the R&D expenditure

incurred.

Steps have been taken to streamline procedures covering development of new

drug molecules, clinical research etc.

Government has launched two new schemes—New Millennium Indian

Technology Leadership Initiative and the Drugs and Pharmaceuticals Research

Programme—specially targeted at drugs and pharmaceutical research.

Investment

According to Ministry of Commerce, domestic investment in the pharmaceutical

sector is estimated at US$ 6.31 billion.

The drugs and pharmaceuticals sector has attracted FDI worth US$ 1.43 billion

from April 2000 to December 2008.

Road Ahead

The Indian pharmaceutical industry will see tremendous growth in the coming years as

consumer spending on healthcare is increasing in India. Consumer spending on

healthcare is expected to increase from 7 per cent of GDP in 2007 to 13 per cent of GDP

by 2015.

Role of Pharmaceutical Industry in India GDP

The Pharmaceutical Industry in India is one of the largest in the world

It ranks 4th in the world, pertaining to the volume of sales

The estimated worth of the Indian Pharmaceutical Industry is US$ 6

billion

The growth rate of the industry is 13% per year

Almost most 70% of the domestic demand for bulk drugs is catered by

the Indian Pharma Industry

The Pharma Industry in India produces around 20% to 24% of the

global generic drugs

The Indian Pharmaceutical Industry is one of the biggest producers of

the active pharmaceutical ingredients (API) in the international arena

The Indian Pharma sector leads the science-based industries in the

country

The pharmaceutical sector has the capacity and technology pertaining

to complex drug manufacturing

Around 40% of the total pharmaceutical produce is exported

55% of the total exports constitute of formulations and the other 45%

comprises of bulk drugs

The Indian Pharma Industry includes small scaled, medium scaled,

large scaled players, which totals nearly 300 different companies

There are several other small units operating in the domestic sector

Booming Pharma Sector in India

India, a US$ 8.2 Billion pharmaceutical market, represents one of the most

emerging pharmaceutical markets in the world. According to the RNCOS latest

report “Booming Pharma Sector in India”, in near future, the potential and

opportunities within this market will increase by several folds. The market,

presently driven by over a billion population, an expanding GDP, and rapid

epidemiological transitions, is expected to be the major player in the global

pharmaceutical market both in terms of its large domestic market and also as a

pharmaceutical export hub.

The research study contains unique market-based research and provides

detailed and objective analysis on the Indian pharmaceutical market. It presents

a thorough statistical and analytical overview on the Indian pharmaceutical

market, and provides past, present and future data on the entire structure,

composition and working of the Indian pharmaceutical market. The research

extensively discusses the opportunities and challenges that are expected to arise

within and from the pharmaceutical market.

Research Highlights

Between 2007-08 and 2011-12, the Indian domestic pharmaceutical market is

expected to grow at a CAGR of nearly 16%. The size of the domestic

pharmaceutical market is larger than export market. However, owing to the

growth of global generics market, stringent price controls in the domestic market,

and better margins, the export market is growing much faster than the domestic

market. Traditional branded generics presently dominate the Indian

pharmaceutical market but the future will see strong growth in the specialty

branded generics and patented drug segments .Drugs for diabetes and

cardiovascular diseases are expected to see the fastest growth among all

therapy areas during 2007-2011.The retail pharmaceutical market in India is

presently highly unorganized; however, a vast opportunity exists for the

organized market. Over the last few years, Cipla, Ranbaxy and GlaxoSmithKline

are controlling the top three positions in the Indian pharmaceutical market.

India’s top 10 pharma   companies

Rank Company Revenue2004 (Rs crore)

Revenue2008 (Rs crore)

1 Ranbaxy Laboratories 4,461 25,196

2 Dr. Reddy's Laboratories 1,933 4,162

3 Cipla 1,842 3,763

4 Sun Pharma Industries 1,110 2,463

5 Lupin Labs 1,180 2,215

6 Aurobindo Pharma 1,260 2,080

7 GlaxoSmithKline Pharma 1,228 1,773

8 Cadila Healthcare 1,091 1,613

9 Aventis Pharma 1,005 1,483

10 Ipca Laboratories 980 1,080

Major players

Ranbaxy Laboratories

Sri S T Kalairaj, Chairman

Ranbaxy is the leader in the Indian pharmaceutical market, taking in $1.174

billion in revenues for a net profit of $160 million in 2004. It was the first Indian

pharmaceutical to have a proprietary drug (extended-release ciproflaxin,

marketed by Bayer) approved by the U.S. FDA, and the U.S. market accounts for

36% of its sales. 78% of Ranbaxy’s sales are from overseas markets; its offices

in 44 countries manage manufacturing in 7 countries and distribution in over 100.

IMS Health estimated that Ranbaxy is among the top 100 pharmaceuticals in the

world and that it is the 15th fastest growing company. By 2012, Ranbaxy hopes

to be one of the top 5 generics producers in the world, and it consolidated its

position with the purchase of French firm RGP Aventis in 2003. Ranbaxy also

has higher aspirations, however, “to build a proprietary prescription business in

the advanced markets.” To this end, it keeps a dedicated research facility in

Gurgaon staffed with over 1100 scientists. They currently have two molecules in

Phase II trials and 3-5 in pre-clinical testing. It spent $75 million in R&D in 2004,

a 43% increase over its 2003 expenditure.

CEO Brian Tempest is the only non-Indian on the senior management

team.38,39

Dr. Reddy's Laboratories

K. Anji Reddy, Chairman

Founded in 1984 with $160,000, Dr. Reddy’s was the first Asia-Pacific

pharmaceutical outside of Japan and the sixth Indian company to be listed on the

New York Stock Exchange. It earned $446 million in fiscal year 2005, deriving

66% of this income from the foreign market. In order to strengthen its global

position, Dr. Reddy acquired UK-based BMS Laboratories and subsidiary

Meridian Healthcare.

Although 58% of Dr. Reddy’s revenues come from generic drugs, the company

was committed to WTO-compliance long before the 2005 bill took effect, and

most of these products were already off patent. Dr. Reddy has long been a

research-oriented firm, preceding many of its peers in setting up a New Drug

Development Research (NDDR) in 1993 and out-licensing its first compound just

four years later. Dr. Reddy’s has since outlicensed two more molecules and

currently has three others in clinical trials.

Although Dr. Reddy’s is publicly-traded, the Reddy family (including

founder/chairman K. Anji Reddy, son-in-law/CEO GV Prasad and son/COO

Satish Reddy) holds a hefty 26% share in the company.11,44

Nicholas Piramal

Asish Mishra, Chairman

Now a company grossing $350 million per year, Nicholas Piramal started its

existence with the 1988 acquisition of Nicholas Laboratories and grew through a

series of mergers, acquisitions and alliances. The company has formed a name

for itself in the field of custom manufacturing. It cites its 1700-person global sales

force as another core strength; with its acquisition of Rhodia’s inhalation

anaesthetics business, Nicholas Piramal gained a sales and marketing network

spanning 90 countries34.

Nicholas Piramal is well-poised for the challenge of surviving in the aftermath of

product patent protection. The company has respected intellectual property rights

since its inception and refused to "support generic companies seeking first-to-file

or early-to-market strategies." Instead, it decided to make its own intellectual

property and opened a research facility last November in Mumbai with hopes of

launching its first drug in 2010 at a cost of $100,000.24,33

Cipla

Dr. Yusuf K. Hamied,

Chairman and Managing Director

Cipla burst into the international consciousness in 2000 with Triomune, an AIDS

treatment costing between $300 and $800 per year that infringed upon patents

held by several companies who were selling the cocktail for $12,000 per year.

Long before this news, Cipla had been building a strong global presence, and it

now distributes its 800-odd products in over 140 countries. Privately-held Cipla

holds a prominent spot in its home country as well; it is the leader in domestic

sales, having just unseated GlaxoSmithKline for the first time in 28 years.

Revenue in 2004 totaled $552 million (using Rs 43.472 = $1) about 75% of which

was derived in India. Cipla did not report having a research program.8,18

Biocon

Dr. Kiran Mazumdar-Shaw, Chairman and Managing Director

Originally an extension to an Irish chemicals company seeking to break into the

Indian market, Biocon is now the leading biotech in India, bringing in Rs 646.36

crore (almost $150 million) in revenue for fiscal year 2004. It initially made its

money by producing enzymes, but Biocon recently decided to become a

research-oriented company with the goal of bringing a proprietary new drug to

market.

The company went public in March 2004, and "its shares were oversubscribed by

33 times on opening day." Eight months later it launched Insugen, a bio-insulin

that is its first branded product. Biocon also has two wholly-owned subsidiaries,

Syngene and Clinigene, that perform custom research and clinical trials.3,14,31

Serum Institute of India

Dr. Cyrus Poonawalla, Chairman

The Serum Institute of India can make the enviable claim that 2 out of every 3

children in the world are immunized with one of their vaccines. It is the world’s

largest producer of measles and DTP vaccines, and its portfolio includes other

vaccines, antisera, plasma products and anticancer compounds. The Serum

Institute earned Rs 565 crore ($130 million) in revenue in fiscal year 2005, selling

mainly to UN agencies and to the Indian government. The Serum Institute is part

of the Poonawalla Group, whose holdings include a horse stud farm and

manufacturers of industrial equipment and components.1,4,40

Key Trends in the Pharmaceutical Industry

Recent breakthroughs in genomics and proteomics may be mind-boggling to

most. And, although news reports remind us regularly of the strides

pharmaceutical companies are making in the fight against disease and pain, little

is reported about the increasing struggles pharmaceutical companies face in this

fight.

In fact, the pharmaceutical industry is experiencing unparalleled change and

challenges. All of the usual suspects that impact business today are at play:

globalization, treatment and pricing economics, government controls and

technology.1 However, in an era of continuing consolidation, innovation abounds

not only in R&D, but also in business models.

Business Innovation is Restructuring the Value Chain

The value chain is restructuring as business innovations are implemented. For

example, nearly half of the health-insured population in the United States now

receives pharmacy care from pharmaceutical benefits managers (PBMs). As a

consequence, the mail order channel has grown dramatically, with supply chain

requirements differing from those of the hospital or retail store channel.

Additionally, drug manufacturers and health care providers are implementing

disease management programs that provide specialized services for a specific

disease.2 These programs allow drug manufacturers to get much closer to the

consumer and to better control inventory levels and, subsequently, demand

planning. Companies that choose to ignore or languish in optimizing their sales

and distribution channel strategies may well miss prime opportunities to develop

consumer loyalty and lower-cost-to-serve channels.

Market Share and Margins are Declining

Declining market share and margins are being experienced for the first time in

many years. The number one culprit is the increased competition from generics.

However, price pressures, shortened new drug exclusivity periods, mergers,

acquisitions, consolidation and escalating R&D costs also play significant roles.3

Overall drug utilization continues to be a source for growth. However, as

competition increases and companies achieve intended globalization, erosion of

market share and margins will have greater and greater impact on profitability.

UPS Consulting anticipates that as the attempts to preserve market share,

margin and growth intensify, those companies that address cost and efficiency

structures within their supply chain will be best positioned to meet Wall Street

expectations. In the coming years, pharmaceutical companies that do not adapt

to optimized cost- and business-effective structures will risk survival.

Consumers have Less Access to New Drugs

While it is helpful that consumers are becoming more knowledgeable – due to

mass communications (including advertising), consumer Websites and consumer

demand for information – knowledge is not turning into power. Managed care use

of formularies, HMO use of therapeutic interchange and step-care therapy

prevent many consumers from buying drugs of their choice.2 once formularies

and treatment programs are defined, the power rests primarily with pharmacists,

who choose how they will fill prescriptions.

Shifts in treatment and buying decision power will continue to change, requiring

more agile, tiered marketing and nonrevenue product fulfillment. Mass

communications and sales processes that have traditionally focused on

educating and building awareness within the medical provider community will

need to anticipate and accommodate power shifts. More recently, large

pharmaceutical companies have started mass marketing to U.S. consumers.

However, the growing limitations of consumer influence may render such

programs profitless in the future. As the focus of control changes, information

needs and the needs of various decision makers will need to be addressed to

successfully and profitably launch new products.

Sales & Marketing

The increasing use of formularies, therapeutic interchange and step-care therapy

by managed care means that sales and marketing efforts should cater to the root

of these programs: cost management in treatment programs.2 Marketing efforts

must address the total cost management needs of both managed care and

providers.

Moreover, the time in which sales and marketing has to generate and influence

demand is shrinking due to increased generics competition and shortening

exclusivity periods. These shrinking timeframes and price pressures require that

new product marketing and sales methods continuously address evolving sales

channels. Pharmaceutical companies and their partners must also be able to

quickly build differentiating capability in marketing to such sales channels.

For example, with drug manufacturers now marketing directly to consumers – via

television in the United States and via the Internet worldwide – this new sales

and marketing channel may only be appropriate for certain products. The

McKinsey Quarterly, 2002 second quarter, stated that direct-to-consumer (DTC)

advertising produced mixed results, and while DTC budgets have significantly

increased, efficacy has not.4 Identifying and evaluating the efficacy of evolving

sales channels should become integral to the commercialization process.

Lastly, the information needs of the consumer are dramatically different from

those of managed care and provider organizations. We believe that retailer and

provider direct channels, along with additional evolving sales channels, also

present a whole new cadre of needs. CRM and customer support will need to be

expanded to meet these new categories of need. Although they generate extra

cost, these direct channels also present new opportunities to build loyalty and get

closer to real-time demand.

Channel Management

As new channels develop, pharmaceutical companies will need to re-evaluate

channel strategies. These new channel opportunities paired with the increasing

role of PBMs and disease management programs could present a ripe-for-

picking time to address channel costs and performance for both nonrevenue and

revenue business streams.2

On the nonrevenue side, pharmaceutical companies can investigate the value of

alternative distribution for samples and literature. For example, distributing direct

to disease management programs or leveraging the role of retail pharmacies

may provide opportunities to strengthen retail relationships and gather more

accurate demand information.

On the revenue side, shifting to cost- and performance-based channel

management can lead to cost savings, more reliable distribution and improved

demand visibility. Drug makers can now sell direct to retailers and providers

through e-marketplaces such as the Worldwide Retail Exchange and Global

Healthcare Exchange.8 Additionally, as PBMs and disease management

programs continue to evolve and mature, drug makers should anticipate their

technology and information needs in order to seek ways to integrate their

fulfillment, customer management and financial processes.

New Product Development and Rollout

In new product development, highly specialized niche companies are

demonstrating that they can bring innovation faster. With escalating R&D costs,

we believe drug manufacturers that leverage the intellectual property of such

companies, as well as facilitate collaborative efforts through alliances and

partnerships, can better manage risk and portfolio profitability. As more parties

participate in the race for innovation, integrating research, development and

design efforts will become a source for competitive advantage. Technology,

information sharing and process integration will become paramount to lowering

costs and optimizing intellectual property.

Additionally, once a new product has been developed, the cycle for

commercializing that product and rolling it out must become tighter. With

exclusivity periods shortening and generics gaining higher market share, the time

it takes to get product commercialized and demand generated will directly affect

the profitability and life of that product.5 Forrester Research calculates that the

per-day cost in lost sales for a $1 billion drug is $2.74 million.

Regulations and compliance also affect the transition from development to

rollout. The FDA allows new drugs to be marketed in the United States

immediately following approval, but Europe often experiences delays of up to 12

months between drug approval and market availability.2 Tighter and more

intelligent synchronization between production, fulfillment, marketing and channel

networks will enable faster rollouts. Reverse logistics of information and feedback

will need to be considered along with fulfillment and demand generation

processes.

Lastly, formula and indication strategy, along with life-cycle management, will

need to take place as part of – not after – new product development.

Organizations that assume profitability from original patent and license

expirations could be severely damaged financially by product innovations from

competitors. Pharmaceuticals can no longer depend on patents to guarantee

future product revenue streams. Instead, organizations must be prepared by

anticipating innovation and competition, by designing alternative and extending

formulas, researching alternative indications and obtaining timely regulatory

approval for indications and expansion into other global regions.

Therapeutic Area wise Total Pharma Market

Category Value Market Share%

Anti-Infective 16.4

Gastrointestinal 10.9

Cardiac 10.3

Respiratory 10.2

Vit./Minerals/Nutrient 9.6

Pain/Analgesics 9.5

Dermatologic 5.4

Gynecology 5.3

Neuropsychiatry 5.3

Antidiabetics 4.4

Opthologicals 1.7

Others 11.0

Total 100.00

OTHERS15%

DIABETES3%

RESP.10%

CNS5%

NSAIDS9%

NUTRA.14%

GI12%

ANTI INF.24%

CVS8%

year 2005

OTHERS12%

DIABETES3%RESP.

7%

CNS8%

NSAIDS11%

NUTRA.12%

GI13%

ANTI INF.16%

CVS18%

year 2010

Figure 2 presents market share of top therapeutic segment in the year 2001 with

projection made for year 2010

Business Model and Strategies

One of the repeated mantras of pharmaceutical company strategy over the past decade

has been increasing scale Companies can only afford the considerable costs of drug

development and distribution by growing larger. This is well summarized in the Price

Waterhouse Coopers report Analysis and Opinions on M&A Activity (Price Waterhouse

Coopers, 1999). The three observed business models from this broad strategy are:

1. Blockbuster model involving the discovery and distribution of a small

number of drugs that achieve substantial global sales (usually in excess of

$1 billion). The success of this model depends on achieving large returns

from a small number of drugs in order to pay for the high cost of the drug

discovery and development process for a large number of candidates.

2. Diversification model in which a larger number of drugs are marketed to

smaller niche markets. The success of this model is not dependent on

sales of a small number of drugs. However, the model only works for small

markets where distribution costs are low, particularly without a blockbuster

to help pay for the high development costs.

3. Intermediate model with some combination of (I) and (II).Industry analysts

have recognized the blockbuster model as the dominant model (Mercer

Management Consulting, 2001). However interest in alternative models is

growing as consideration is being given to the marketing of biotech drugs

with smaller markets and higher treatment costs and the expectation of

more personalized medicine.

The primary strategy of the big established pharmaceutical companies has been

to increase scale through mergers and acquisitions. By building scale, the latter

stages of their product pipelines have at least a handful of highly prospective

blockbuster drugs. Scale also offered the capacity to both fund in-house research

and draw in external research through a variety of licensing arrangements and

alliances. Since the number of New Chemical Entities (NCEs) at the latter stage

is so small and returns are so uncertain these solutions may last a very short

duration. The gaps in the pipeline, expiration of existing blockbuster patents, and

the failure of the expected blockbusters are producing another round of Merger &

Acquisitions. The expected growth rates by the financial markets to sustain

current valuations require a significant and questionable expansion in the number

of new large selling drugs. Another strategy has been for pharmaceutical

companies to diversify their business activities into lower risk activities. For

example, Merck went into Medco or Johnson & Johnson expanded into

household health products. As Merck recently spun off its Medco unit, it is not

clear that the financial markets have rewarded this strategy.

Another diversification strategy is to focus on a comparatively large number of

niche market drugs rather than blockbusters. A number of European companies

have followed this strategy. While their total sales of Pharmaceuticals place them

in the top rank of pharmaceutical companies they have only one or two

blockbuster drugs. This diversification strategy lessens dependence on the

discovery of new blockbusters, but development and marketing costs need to be

minimized for the smaller markets to be profitable On the other hand, some

biotech firms used a discovery breakthrough to develop a blockbuster of their

own, and eventually succeeded in marketing through an alliance with a global

pharmaceutical company. In some instances, biotech firms also have funded

independent drug discovery through direct access to the venture capital market.

In other cases, large pharmaceutical companies through alliances and licensing

have supported their research. Very small number of biotech companies rose to

the top ranks from a single successful blockbuster drug. On the other 3hand,

many biotech companies fail to realize these goals and become contract

research organizations or go out of business. There is a strong need for alternate

business models due to the instability and un sustainability of current

pharmaceutical business strategies and structure. Details of the blockbuster

model are presented below.

The Blockbuster Business Model

Due to its complex and uncertain nature of drug development and distribution

system, the industry’s economics call for few high selling drugs to mitigate the

risks and enhance the profitability. Figure 2 presents the 10 largest global

Pharmaceutical companies by sales of pharmaceuticals for 2002 together with

total sales of those drugs with global sales exceeding $US1 billion (‘blockbuster’).

There are only 40 blockbusters highly concentrated with the three largest

companies representing on average 41% of pharmaceutical sales of these comp

Pfizer

Merck

BMS

AstraZeneca

J&J

Pharmacia

Wyeth-Ayerst

Eli Lily

Aventis

Novartis

GSK

0 10,000 20,000 30,000 40,000 50,000 60,000

Series1

Figure 2 Blockbuster sales by major pharmaceutical companies (Credit Suisse First Boston, 2008)

The blockbuster model requires that the later stages of the development pipeline

always contain drugs of blockbuster potential. This also requires a consistent and

dedicated approach to drug R&D with considerable in house research expertise

and successfully utilizing public domain research or using various alliance

strategies and licensing arrangements to bring prospective drugs into the later

stage drug development. The risk involved in this strategy is that there may not

be new blockbusters to replace those losing patent protection since the number

of blockbuster drugs at any point in time is relatively small. Some companies

failed to invest adequately in the pipeline resulting in lack of blockbusters to keep

sales growing as in the case (Gambardella, 1995) of SmithKline, which failed to

reinvest the proceeds of its Tag a met success in upstream research, and it was

forced to merge with Beecham in 1989. Some companies have combined

mutually supportive capabilities such as the ability to develop valuable drug

development pipeline and a strong sales and distribution infrastructure as in the

case of the merged company AstraZeneca – Astra with the blockbuster drug

Losec and Zeneca with the financial strength and scale to under write further

R&D. The blockbuster model requires cost improvements in the developmental

costs to reduce the uncertainty in the model. In 1990s, Ely Lilly's efforts to

improve in efficiency of its drug development pipeline for its blockbuster drugs

through quality, speed and value (QSV) concept. Lilly emphasized to improve

speed to market, leveraging existing products and establishing a global and

focused therapeutic area presence. Their focused activities and more disciplined

approach of the drug discovery and development process (Burgleman, Maidique

and Wheelwright, 2001)

Resulted in a remarkable performance in share price. Despite these

improvements, the cost of R&D per drug has climbed exponentially over the last

30 years (Grabowski and Vernon, 1994). Recent estimates put the cost of R&D

per drug at $802M whereas the equivalent study conducted 10 years previously

and adjusted to 2000 dollars put the cost at $318M (Di Masi, 2001).

Consolidations in the industry increase the risks in the blockbuster model and

uncertainty of the economics of new drug development. It is difficult to achieve

stable and predictable returns when fewer blockbusters are replenished in the

portfolio while facing the constantly emerging competition from follower drugs.

The industry data shows that the follower drug competition has cut market exc

lucidity from 4 years in the 1980s to less than 1 year in the 1990s

(Pharmaceutical Research and Manufacturers of America, 2001). From the

lessons learned from the other industries such as automotive, chemical, and

personal care industries the pharmaceutical industry need to leverage its value

chain to gain efficiencies in supply chain costs.

2.2 Operational Model and Supply Chain Management

In the changing pharmaceutical landscape, all the supply chain components

need to gain efficiency in order to sustain the growth and profitability of the past

performance. Recent market withdrawals of products in COX-2inhibitors and

regulatory disappointments of several promising drugs, big pharmaceutical

companies that continue to reply on old investment and commercialization model

based on the blockbuster drugs will face the challenge of shifting the drug

development to specialty products. About 75 of the new chemical entities (NCEs)

entering the market are specialty products and/or biologics produced by the small

to medium size biotech companies. The challenge of being profitable through

smaller chemical entities needs to be managed by developing more niche

products either internally or through partnerships. One element of this new

model, as learnt from the other industries such as the specialty chemicals and

personal care is the cost and resource management. Efficiencies need to be

gained in minimizing the costs and resources until these products have large

growth potential. Timing is also an important factor in bringing these products into

the market as quickly as possible

Regulations

DrugDiscovery

ClinicalDevelopment

Formulation& Manufacture

Marketing& Sales

Distribution

SUPPLIERS

Figure 3 Pharmaceutical Supply Chain

Figure 3 presents the pharmaceutical supply chain, which integrates the

processes from drug discovery tom distribution to create value for the patents.

Drug discovery and clinical development can be enhanced in this supply chain by

leveraging the technology. Currently, the process is very lengthy, labor-intensive

and highly regulated. The legacy IT systems and multiple, disparate data sources

that are resident internally and externally in many companies is hampering the

improvement in this are a .Marketing and sales is another area where scale

delivers clear advantage. Sales per representative typically rise allocated for

marketing, where as less than 20% for R&D. Any efficiencies gained in this area

of supply chain can have a major impact on company value. A survey of US

pharmaceutical companies suggests that marketing and sales capability

accounts for 42% of the variation in financial performance (George and Perone,

2001 and Blumberg and Perone, 2001). Most of the new blockbuster drugs are

launched with a comprehensive and expensive global marketing campaign that

involves the full range of marketing tools including media advertising,

comprehensive information packs, special events for doctors, conference

presentations, dedicated sales forces and the Internet. Sales and distribution

activities in the supply chain is emerging as a major issue for pharmaceutical

companies. Traditionally in the US, clinical settings (hospital, in-patient facilities)

have accounted for about 25% of pharmaceutical sales while the remainder have

been distributed through various wholesale and retail channels.

Typically the manufacturer sold the drugs to a wholesaler which distributed the

drug to retail pharmacies. In this relationship the doctor, who has been the focus

of marketing campaigns, had an unrestricted ability to prescribe drugs as he saw

fit. Traditionally marketing to physicians involves sending more sales reps to the

doctors with each new drug launched. Accordingly, the number of sales reps has

been rising rapidly, at 20%, compared with Drug Discovery Clinical Development

Formulation& Manufacture& Sales Distribution SUPPLIERS REGULATIONS

Physicians at only 3%. Pharmaceutical companies are seeking ways around the

doctor channel such as direct-to customer (DTC) and various forms of the

Internet delivery.

3.1 Emerging Business Models and Strategies

In order to prepare for the future, integrated pharmaceuticals companies have a

variety of strategic alternatives to position themselves in the future market. They

can leverage the value chain and recapture the value like the personal care and

chemical industries have done in the 1990’s (Chitra, 1999 and 2000). They can

concentrate on individual slices of the integrated value chain, such as cardiology,

urology or CNS. Another option is to focus on individual functions of the value

chain such as lead identification, drug development, production or marketing &

sales. Finally, integrated firms can continue to follow the current strategy of

acquire and integrate the newly acquired companies into current organizational

structures with elimination of redundancy. The primary strategic alternative is to

concentrate on integrated slices of the value chain. This will require companies to

separate their existing business structures into multiple fully integrated

organizations focusing on specific segments or markets with focus on market

orientation from process orientation. The responsibility lies with individual

organizations for research, development, production and marketing and sales.

Resources can be obtained from internal service providers (e.g., central

headquarters) or external service firms based on competitive pricing. A

secondary strategic alternative for large integrated pharmaceutical companies is

to focus on the individual functions of the supply chain or the individual segments

of the value chain, which provide a clear sustainable benefit to profitability.

Companies must decide regarding which functions the firm should retain

internally, which functions the firm should source to outside partners and which

technologies the company will need to retain and grow. In addition the

companies develop strategies to select and orchestrate synergistic partners. As a

result of this strategy, value chain segments can be separated into independent

units, which can be divested or maintained as profit centers. The final strategic

alternative, acquire and integrate smaller firms, is the current strategy followed by

the industry. An example of this strategy is the acquisition of Viceroy

Pharmaceuticals by Pfizer recently. However, this strategy becomes increasingly

competitive and difficult as the industry continues to consolidate. Sooner it will

Become hard to follow this strategy as the few remaining firms will be too large

acquire to maintain the current growth. Just like in the other industries such as oil

and chemical industries, the integrated firms will begin to yield to the specialists

of one segment or a function. Already, the market is beginning to reward the

segment and market specialists as shown in Figure 5. The current blockbuster

model is very risky, expensive and time and resource intensive. The alternative

to the blockbuster model is to consider the other options used by the biotech

companies and the generic drug manufacturers. The approach of some smaller

biotech companies is to focus on specialty products and/or biologics. In 1996,

25% of the NDAs targeted specialty products and 75% targeted the primary care

products. But in 2003, the trend is the reverse with 75% for the specialties and

25% for the primary care. This approach can reduce the risk compared to the

current blockbuster model, since these NCEs are targeted for very specific target

patient populations. But the drug development cost is very high and time to

market these drugs is still very long.

0

10

20

30

40

50

60

70

80

90

MarketSpecialistsFunctional SpecialistsIntegrated CompaniesColumn1

Building Supply Chain Capabilities in the Pharmaceutical Industry

SWOT Analysis

Strengths

• Cost Competitiveness

• Well Developed Industry with Strong Manufacturing Base

• Access to pool of highly trained scientists, both in India and abroad.

• Strong marketing and distribution network

• Rich Biodiversity

• Competencies in Chemistry and process development.

Weaknesses

• Low investments in innovative R&D and lack of resources to compete with

MNCs for New Drug Discovery Research and to commercialize molecules

on a worldwide basis.

• Lack of strong linkages between industry and academia.

• Low medical expenditure and healthcare spend in the country

• Production of spurious and low quality drugs tarnishes the image of

industry at Home and abroad.

• Shortage of medicines containing psychotropic substances. There are

4000 such brands of medicines that fall under the Narcotics Drugs and

Psychotropic Substances (NDPS) Act, 1985.Under a clause of this Act,

the retailer has to sign the consignment note provided by the stockist. The

police check this note regularly to prevent these medicines getting

diverted to the drug mafia and they can arrest the retailer if the signatures

are under suspect. To protest against this clause, the retailers have

stopped stocking these medicines, some of which is life saving.

Opportunities

• Significant export potential.

• Licensing deals with MNCs for NCEs and NDDS.

• Marketing alliances to sell MNC products in domestic market.

• Contract manufacturing arrangements with MNCs

• Potential for developing India as a centre for international clinical trials

• Niche player in global pharmaceutical R&D.

• Supply of generic drugs to developed markets.

Threats

Product patent regime poses serious challenge to domestic industry

unless it invests in research and development

R&D efforts of Indian pharmaceutical companies hampered by lack of

enabling regulatory requirement. For instance, restrictions on animal

testing outdated patent office.

Drug Price Control Order puts unrealistic ceilings on product prices and

profitability and prevents pharmaceutical companies from generating

investible surplus.

Lowering of tariff protection

The new MRP based excise duty regime threatens the existence of many

small scale pharma units, especially in the states of Andhra Pradesh and

Maharashtra, that were involved in contract manufacturing for the larger,

established players.

These companies are now shifting their manufacturing from these states to states like

J&K that enjoy tax holidays.

Chapter 2

Company profile

Company profile

Maxycon is a pharmaceutical company headquartered in India. The company

strong portfolio of businesses, geographies and products gives us an edge in an

increasingly competitive Indian market and allows us to provide affordable

medication to people across the country, regardless of geographic and socio-

economic barriers.

MAXYCON PHARMACEUTICAL PVT. LTD.:

Maxycon pharmaceutical pvt. Ltd was founded in the year 2008 with a clear

mission to improve human health by offering quality Pharmaceuticals so much

vital to the society today. We at P.I. L.act as -Catalyst’ in bringing world class

products to the companies customers. We identify market needs & work to

achieve competative advantage in the market place for the companies

customers, by offering high quality APls & their formulation at affordable rates.

MPPL’s GLOBAL OPERATION :

MPPL is well positioned in the international arena. The company Global business

plan includes supply of Pharma Active Ingredients (APls)-mainly semi synthetic

penicillins and cephaosporins to a wide range of Formulation manufacturers. The

company customer base includes’ international names such as ACETO, HELM,

DOLDER, BAYER & BASF.

The company geographical projected reach Spain, Africa, Asia, CIS countries &

Latin, American Countries etc. We have been supplying to all these customer will

be 2010 where all the company products are ‘very highly accepted both for their

high quality as well as RRODUCT STEVEDORING.

Also MPPL is the accredited formulation supplier to a host of Non-Government

Organization (N.G.O’s) and various overseas Government bodies namely

W.H.O.

UNDP

Medicines

Sans

Franchise

Red Cross

Various

Church bodies

DOH

MPPL’s DOMESTIC OPERATION:

Primarily the company range of products is being promoted widely in & around

highly developed & matured market of Delhi city. The company products. Sales

are scaling exponential growth rate solely due to the acceptance at Doctor’s level

as well as product quality. Currently the company’s product basket contains

about 15 product & we envisage to’ add additional 40 - 50 products by the end of

2010. The. Company’s core strengths are antibiotics & injectables and this is all

due to the company strengths in Antibiotics APIs.

In the very near future the company Product range shall cover practically all the

Therapeutic areas.

MANUFACTURING & QUALITY CONTROL:

At MPPL we practice W.H.O., CGMP standards of manufacturing procedures

complemented with W.H.O standard procedures for PRODUCT STEVEDORING.

This standard of products stevec’oring ensures ultimate quality standards both

for the company range of APls as well as formulations.

Company products

Medicine

MAXYNIM – P (Nimesulide + Paracetamol)

It is new nonsteroridal anti-inflammatory drug and after administration leads to

adequate analgesia and antipyretic effect. The advantage of nimesulide over

other NSAIDs is that it causes minimal gastric irritation.

M.O.A: It is a weak inhibitor of prostaglandin synthesis. It appears to act at

different at stage of the inflammatory reaction and the mechanism by which it

exert its action are complex. It leads to inhibition of superoxide anion generation

in vitro by activated neutrophils, inhibition of histamine release from tissue must

cells and basophils, it cause a inhibition of platelet activating factor synthesis in

stimulated human neutrophils and inhibition of synthesis of metalloproteinase

thus preventing brakedown of osteoarthritic human cartilage.

P/K: After oral administration it is rapidly and almost completely absorbed. It is

highly bound to plasma proteins and is extensively metabolised in liver.The major

Metabolite is pharmacologically active.

ONSET OF ACTION: 32- 60mins.

DURATION OFACTION: 8-10 hours.

ADVERSE EFFECT: Nausea, vomiting, deiarrhoea, heart burn, epigastric pain,

pruritus, skin rash headache, somnolence, dizziness.

CONTRAINDICATIONS: Active peptic ulcer, moderate to severe hepatic

impairment.

SPECIAL PRECAUTIONS: Renal impairment-heart failure.

INDICATIONS : Osteoarthritis, reheumatoid arthritis, low back pain,

dismenorrhoea and other gynaecological disorders, dental and postoperative

pain, in reducing pain of ear, nose and throat and inflammation. Pain of

malignancy, sports injuries. Fever ect.

DOSAGES:

Adult 100mg bd.

CHILDEN : 5mg /kg/day divided in 2 or 3 daily doses.

Maxiclox-LB ( Amoxicillin + Cloxacillin)

Amoxicillin (INN), formerly amoxycillin (BAN), is a moderate-spectrum,

bacteriolytic, β-lactam antibiotic used to treat bacterial infections caused by

susceptible microorganisms. It is usually the drug of choice within the class

because it is better absorbed, following oral administration, than other β-lactam

antibiotics.

Amoxicillin is susceptible to degradation by β-lactamase-producing bacteria, and

so may be given with clavulanic acid to decrease its susceptibility.

Formulation

Amoxicillin in trihydrate form is available as capsules, chewable and dispersable

tablets plus syrup and pediatric suspension for oral use, and as the sodium salt

for intravenous administration. It is one of the most common antibiotics

prescribed for children, and the liquid forms are helpful where the patient might

find it difficult to take tablets or capsules. It has three ionizable groups. A once

daily dosing form (Moxatag) was approved by the American FDA in January

2008.

Composition

Each Vial contains:

Amoxycillin Sodium I.P. equivalent to Anhydrous Amoxycillin 1g

Cloxacillin Sodium I.P. equivalent to Cloxacillin 1g

Gusto (A complete Energy Drink)

Oral Eletrolytes

Electrolyte deficiency may arise in body particularly in infants due to

gastroenteritis. Also vomiting and diarrhoea due to different cuases may lead to

electrolyte inbalance. Orale preparations of flavoured electrolytes (as

recommended by W.H.O. ) are indicated in mild cases. For severe conditions

Eletrolytes are to be administered by parenteral route. Potassium

supplementation is given with some diuretics.

Indications : Replacement of Eletrolytes and liquid in mild to moderate losses

due to diarthoea or vomiting. Eletrolytes depletion state.

Dosage : Adults: Daily dose to be equivalent to patient's water requirements for

maintenance and replacement. Of losses preferably calculated on basis of body

surface area. Upto 2-3 litres daily. Children: Up to 5 yrs. 400ml -1.6 litre daily(8-

12ml/kg body weight per hr.depeding on need). Older children 2-3 litres spread

over 24hrs.

Chapter 3

RESEARCH

METHODOLOGY

Define the research problem and its objectives

Review concepts and theories

Research design including sample design

Collection of data survey

Analysis of data

Interpretation and report writing

RESEARCH METHODOLOGY

Research is defined as human activity based on intellectual application in the

investigation of matter. The primary purpose for applied research is discovering,

interpreting, and the development of methods and systems for the advancement

of human knowledge on a wide variety of scientific matters of our world and the

universe.

Research process

RESEARCH DESIGN

The objective of the study gives a clear indication about the nature of the study.

Market survey is one of the best examples of descriptive research. This is a one

shot research study at a given point of time, and consists of a sample of the

population of interest. Its advantages are that it gives a good overall picture of

the position at a given time. It can cover many variables of interest, and is not

affected by the movements of elements in the sample, because other elements

can be substituted for them.

The research consisted of two stages.

Data Collection

Two types of data were required for the purpose of a descriptive research primary and secondary. Both primary and secondary data were collected for meeting the objective of the research using the following methods:-

Primary sources

The basic requirement of the study was to determine the perspective customer and experience of the respondent. The sample for the research includes different individuals of various age groups and having different professions and qualifications. Data was collected through the interview of doctor. The questionnaire was containing questions regarding the personal details of individuals and then some light questions regarding their knowledge related to pharma companies.

For the purpose of primary data collection questionnaire is used.

The primary source of data was interviews conducted as part of the

survey.

The sample size for the survey was 30.

Data was collected through discussions with the doctor .

Data collection methods

Questionnaire.

Secondary sources

Secondary data provides a lot of information for understanding the factors underlying the study. This mainly provided information about the pharma sector. These helped in gaining knowledge about the industry. For the purpose of collecting secondary data, a perusal of secondary sources of information had been conducted. The sources of secondary data comprised of magazines, newspaper, journals, studies conducted in the past, concerned websites etc.

SAMPLE DESIGN

The population for the study was spread over a large geographical area and due to the time constraint, conducting a census survey was not possible. So a sample of respondent was selected from the whole population. Sample design consisting of following factors was prepared for the purpose of the study ---

Population

All the doctor are selected from NCR region.

Sample size

A sample size of 30 respondents was considered appropriate for the purpose of the study. These respondents are the doctor.

Sampling Procedure

Contact Method: personal meetings

Sampling technique

All the respondents were not willing to share information. So all the respondent who are easily accessible and willing to share the information were administered the structured questionnaire to get the desirable information. These respondents were selected randomly on the basis of convenience of the research. Convenience sampling has been used for collection of data.

Sample composition:

Government doctor

Private doctor

Sampling area: Delhi & NCR

Sample survey was done, in which questionnaires were made and filled up by

various doctor in different geographical areas in Delhi & NCR in order to gauge

their general opinion about pharmaceutical companies, Maxycon’s offerings, their

views on the visibility of company’s products & suggestions for the improvement

of awareness of Maxycon pharmaceutical.

Then in the last stage all information gathered was analyzed and the areas in

which maxycon was lacking were identified. The recommendations were given as

per the findings of the project.

Chapter 4

Analysis and

observation

Chapter- 4

Analysis and observation

The research tool used was the questionnaire containing eleven questions. The

survey was conducted in the region of Delhi and NCR. The data was collected

through personal meeting with the respondents. The questionnaire was designed

after conducting a pilot survey, which included personal meeting with the users of

any insurance company, and also few connoisseurs were asked from their points

of views, which helped greatly in designing an effective questionnaire.

All the respondents were not willing to share information. So all the respondent

who are easily accessible and willing to share the information were administered

the structured questionnaire to get the desirable information. These respondents

were selected randomly on the basis of convenience of the research.

Convenience sampling has been used for collection of data. The selection

criterion was same in the entire region i.e. distributing one questionnaire each to

the peoples who is willing to fill it. Also the respondents were instructed little and

were helped for any other doubts they carried. The respondents were very co

operative and sincere.

The discussion will be covering all the parameters of the questionnaire including

each and every bit of every question and also the demographics details at the

end of the questionnaire.

The statistical tool is used everywhere where it is required. The main statistical tools are Mean, standard deviation. Bar and pie charts are also used for the analysis. Cross tabulation method is used which help in doing analysis easily and accurately.

1. What is the frequency of your visitor (patient) daily?

(1) 0-10 (2)10-20 (3) More than 20

Between 0-10

Between 10-20

More than 20

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

20%

37%

43%

Interpretation

The above figures shows that 45% of the doctors says that there are around 20

and more than 20 patients coming to their clinic daily and around 40% says that

there are 10-20 peoples( patient) visiting clinic daily.

2. How many days in a week you see the patient?

(1) Only one day in a week (2) Alternative day in a week

(3) More than three days

Only one day in a week

Alternative day in a week

More than three days

0% 10% 20% 30% 40% 50% 60% 70% 80%

7%

20%

73%

Interpretation

From the above graph it is shown that around 75% of the doctors are opening their clinic for more than 3 days in a week and there are only few doctors who are open for only one day in a week these are mainly the doctors which are specialist in some area.

3. How much time do you devote to them?

(1) 0-5min. (2) 5-10min. (3) more than 10min.

0-5min.

5-10min

more than 10min.

0% 10% 20% 30% 40% 50% 60%

20%

27%

53%

Interpretation

When asked about the time devoted per patient most of the doctors are devoting a good amount of time on their visitors (patient/ M.R.). Around 50% of the doctors are devoting more than 10 minutes on a single patient.

4. Which pharma company’s medicine do you prefer to them?

(1) Ranbaxy (2) Cipla (3) Dr.Reddy

(4)Cadila (5) Glaxo

Ranbaxy

Cipla

Dr.Reddy

Cadila

Glaxo

0% 5% 10% 15% 20% 25% 30% 35%

30%

20%

23%

13%

13%

Interpretation

The above figure reveals that around 30% of the doctors are recommending drugs of Ranbaxy Company to their patient. And there is also good amount of doctors who is recommending drugs of cipla and Dr.Reddy Company. While there are only a few number of doctors who are recommending Glaxo and Cadila company drugs.

5. What is the reason for recommendation to the particular company?

Brand name Good products

Wide range of products Tie up with company

Brand name

Good products

Wide range of products

Tie up with company

0% 5% 10% 15% 20% 25% 30% 35%

23%

27%

20%

30%

Interpretation

When asked for the reason for recommendation to the particular company most of the doctors says that because they have the tie up with the company that`s why they are recommending the drugs of the particular company. There are around 30% of the doctors who are saying so. There are around 25% doctors who are recommending due to a good brand name of the company while the good product range is also among the reasons for the recommendation.

6. Do you meet M.R. in regular schedule (1) Yes (2) No

83%

17%

Chart Title

Yes

No

Interpretation

The above figure reveals that the most of the doctors are meeting the M.R. on a regular basis when asked about the timings they said that the time of meeting is fixed and only in that time the M.R. are allowed to meet.

7. Do you also prefer that medicine that is being recommended by M.R. of a particular company?

(1) Yes (2) No

76%

24%

Yes

No

Interpretation

The above figure reveals that the most of the doctors are recommending the drugs preferred by the particular medical representative around 75% of the doctors meet with M.R. and discuss about the product of the particular company.

.

8. Have you heard about Maxycon Company?Yes No

40%

60%

Yes

No

Interpretation

Overall we see that most of the doctors around 60% are not aware about the company and only 40% doctors are aware about company.

9. If yes from where did you come to know about Company?Electronic media Internet

Print Work shops

M.R. Others

Electronic media

Print media

Internet

Work shops

M.R.

Others

0% 5% 10% 15% 20% 25% 30% 35%

8%

8%

17%

25%

33%

8%

Interpretation

Now as we see the most of the doctors around 40% get aware about the company through medical Representative of the company. Some of the doctors gets information about through work shops around 25% and some of them are knows through the internet and print media.

Chapter 5

Conclusion

Conclusion

Overall majority of the doctors have said that they look for each aspect but

they give attention to the medicine on the bases of their personal

experience, and also many said that they take medicine from that

company which give better result and also having a brand name.

Companies like RANBAXY, CIPLA,DR.REDDY ,CADILA GLAXO

SMITHKLINE is chosen most of the time on the basis of brand name and

better product features, and RANBAXY,CIPLA,DR.REDDY are chosen

most of the time because of good network in the market and presence in

the sector for a relatively longer period than other company

The doctor and people mainly get awareness about company through the

medical representative and media but there is very less effect of

advertisement seen in creating awareness.

Among the factors that the doctor generally considered while prescribed

any patient, like result of the medicine and side effect of the medicine are

the most important factors that are considered by doctor.

When asked about the satisfaction level of the doctors from the company

most of the doctors replied favourably i.e. they are satisfied while there are

only a few doctors who show dissatisfaction with the company.

Most of the doctors are unaware about the company because of company is new in market

Chapter 6

Recommendation

Recommendation to the company

.

The number of medical representative in Maxycon Company should be

increased in order to tap the market. A large segment of the people still

needs to be aware about Maxycon Company

The company should advertise in the print media and have to make a

good network in the market by the way of meeting to doctors as well as

M.R.

The website of the company should be updated regularly. Many of the

things in the website don’t even work; like the details of the products

offered by the company. In today’s hi-tech world, website helps to market

the products offered by any company.

The company should have to make expenditure on Research and

development in order to make new products

Annexure

Bibliography

Search engine

www.google.com

www.msn.com

www.wikipedia.com

Websites

www.maxycon.com

www.pharmaceutical-drug-manufacturers.com

www.ficci.com

www.bharatbook.com

www.researchandmarkets.com

www.pwcglobal.com/

Books

Walton, J. 2001, “Investors’ views on Merger and acquisition, alliance

and licensing activity in the pharmaceutical industry”, in Kettler 2001.

Agarwal, S., Desai, S., Holcomb, M. and Oberoi, A. 2001, ‘Unlocking

the value of Big Pharma’.

Grabowski, H. and Vernon, J. 1994, ‘Returns to R&D on new drug

introductions in the 1980s’, Journal of Health Economics vol. 13, pp.

383-406.

Questionnaire

(The information supplied by the respondent will be kept confidential and will be used only for the research purpose)

Personal Information:

Name: __________________________________________________________

Contact No: ______________________________________________________

________________________________________________________________

QUESTIONNAIRE

1. What is the frequency of your visitor (patient) daily?

(1) 0-10 (2)10-20 (3) More than 20

2. How many days in a week you see the patient?

(1) Only one day in a week (2) Alternative day in a week

(3) More than three days

3. How much time do you devote to them?

(1) 0-5min. (2) 5-10min. (3) more than 10min.

4. Which pharma company’s medicine do you prefer to them?

(1) Ranbaxy (2) Cipla (3) Dr.Reddy

(4)Cadila (5) Glaxo

What is the reason for recommendation to the particular company?

Brand name Good products

Wide range of products Tie up with company

5. Do you meet M.R. in regular schedule

(1) Yes (2) No

6. Do you also prefer that medicine that is being recommended by M.R. of a

particular company?

(1) Yes (2) No

7. If yes then on what basis (please specify)

………………………………………………………………………………………

8. Have you heard about Maxycon Pharmaceutical Company?

Yes No

9. If yes from where did you come to know about Company?

Electronic media Internet

Print Work shops

M.R. Others

10.According to you what company has to do to increase their business?

……………………………………………………………………………………

……………………………………………………………………………………