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Principles of Management

Nivedita Sachin Nisha Amar Krishna Umesh Pradeep Avinash Neha Dhaval Arvind Rahul Sandeep
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An insight of PHARMACEUTICAL Industry

PHARMACEUTICAL INDUSTRY

The first Indian pharmaceutical company, Bengal Chemicals and

Pharmaceutical Works, which still exists today as one of 5 governmentowned drug manufacturers, appeared in Calcutta in 1930.

The Indian pharmaceutical industry currently tops the chart amongst India's science-based industries and is estimated to be worth $ 6 billion, growing at about 10 percent annually.

The industry has over 60,000 generic brands across 60 therapeutic categories and manufactures more than 400 different active pharmaceutical ingredients (APIs)

The IPI is globally the 3rd largest in terms of volume and 13th largest in terms of value
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Some general terms and Regulatory authorities

API/Bulk Drug Formulation Generic

Innovator/ NCE
Therapeutic categories

Drug development phase

Current IPI scenario The Economist Intelligence Unit (EIU)


forecast that IPI will double to 29USD

billion by 2016

Aging population Changing disease profile

Foreign direct investment (FDI) inflow


Medical tourism The country is essentially a branded

generics market with local


manufacturers comprising nearly 75%

RANBAXY at a Glance
TAG LINE :- Trusted medicines healthier lives CHAIRMAN :- Dr. Tsutomu Une

CEO & MD :- Arun Swahney


Headquarters :- Gurgaon, Haryana, India Established :- 1961 2012 Revenues :- US$ 2.3 billion Employees :- More than 14,600 Areas of Business :- Develops, manufactures & Markets Generics; Branded Generics; Value added & OTC, ARVs, API & intermediates Product portfolio :- Over 500 molecules Listings:- BSE, NSE, Luxemburg stock exchange

Mission: Enriching lives globally with Quality & affordable Pharmaceuticals. Global Presence: Ground operations in 43 countries, products sold over 150 countries Manufacturing : 16 manufacturing facilities spread across 8 countries.
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HISTORY


1937- Founded by Ranjit Singh and Dr. Gurbax Singh in Amritsar & hence the name RANBAXY ( combination of RANjit & gurBAX ) 1952- Bhai Mohan Singh joined in as a partner 1961 Company incorporated with 1st manufacturing plant in Okhla.

1973 Ranbaxy goes public


1977 Ranbaxy first joint venture in Lagos (Nigeria) is setup 1983 A modern dosage forms facility at Dewas (MP) in India goes on Stream. 1990 Ranbaxy got its first US patent for Doxycycline

1994 Established regional headquarters in UK and USA. Listed in


Luxenburg stock exchange

ACQUISITIONS & MERGERS


1967 Lepatit ( 1st unit installed in collaboration in 1961, Okhla)
1995 Unicher ( Thailand) 1996 Rima Pharmaceuticals( Semisynthetic penicillin )

2000 German Generic business BAYER


2003 Generic business of RPG Aventis life science ( France) 2006 Mutual Pharmaceuticals & 5 others ( US for generic)

2007 Avesthan ( Indias 1st discovery based Bio-tech company)

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Alliance & Subsidairy

ALLIANCE :o

1994 Manufacture & market Cefactor with Eli-Lilly in US ( Ranbaxy was benefited with USFDA, rules & regulations, Eli-Lilly got affordable manufacturing & market share )

o o o

Subsidairy :1995 Ranbaxy Pharmacetical Inc. 1995 Ohm labs Inc. 1996 Ranbaxy UK inc.

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JOINT VENTURES

1993 Ranbaxy Eli-lilly ( Manufacturing ) 1993 Ranbaxy Guangzhou China ( Bulk Drug Formulations) 1984 Ranbaxy Malayasia Sdn Bhd ( Generics) 2007 Zenotech Lab. Ltd. ( Onco products for India)

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Vision & Strategies


Bhai Mohan Singh ( 1952-93 )
Strategy was to focus on API & Manufacture genrics

Parvinder Singh ( 1993 99 )


Globalisation Acquisitions in UK,US & INDIA Setup State of art R&D, Gurgaon,India Focus on Urology, Anti Infectives, Respiratory, Anti Inflamatory, & metabolic disorders

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Vision & Strategies


Devinder Singh Brar ( 1999 2004 )
Enacted Vision Garuda achieve US$ 5 billion by 2012, focussing more on International Market. Focus on NDDR

Brian W.Tempest ( 2004 05)


Operations oriented rather than strategist or visionery Focussed more on Indian Markets ( infection, Urology, inflamation, respiratory & metabolic disorders) Believed in people development & training of staff

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Vision & Strategies


Malvinder Singh ( 2005-08)
Focussed both for globalisation by acquisition & mergers as well as creating strong Domestic base Outlicensing, In licensing & launching of innovative products Ensure right doctor coverage & expansion in reach Company achieved a sales of $40.6 billion in 2006 ( against set goal of $5 billion)

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ACQUISITION by DAIICHI SANKYO

Poor financial position No major R&D breakthrough Increasing price war & stiff competition in generics market Needed funds to achieve its objective.

2nd largest & innovator company in Japan Demand for low cost production by japan govt. Difficult with high investments in R&D & lack of affordable manufacturing. Needed an affordable generic manufacturer.

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Anti-Infective
We have a significant presence in the Antiinfective segment. Ranbaxy having leadership position in key market in Anti-infective and critical care. Molecules- Amoxicillin+clavulanic Acid, Ciprofloxacin and Amoxicillin. Indication-Complicated UTI,URTI and Typhoid. Target Customer- GPs, Consulting Physicians, Urologist, chest physicians, gynecologist, paediatricians etc. Major competitor Mankind , Dr Reddy , Torrent , Hetro.
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Pain and musculoskeletal

Overview Due to Increasing hectic lifestyle & aging population, demand of anti-inflamatory & muscle relaxants have always been in demand.
Molecules Paracetamol, diclofenac, Tramadol, Tapentadol, etorocoxib and ketorolac Indication Pain associated with Muscle, Musculoskeletal, Joints, post operative & Dental pain Target Customers Surgeons, orthopedics, dentist & GPs Major competitor Mankind, Cadila, Aristo, Cipla
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Anti-retroviral
Ranbaxy is the first generic companies to offer ARVs to various National AIDS treatment programmes in Africa. Molecules mainly Zidovudine, lamivudine along with other combinations. Indication Confirmed HIV cases Target Customers Physicians & Chest Physicians with HIV practise Major Competitors:Cipla,Mylan
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Dermatology
We have a major focus in dermatology with a presence across markets, including the US, India and Brazil. We have a robust franchise in the Antiacne segments.

Molecules- Luliconazole
Indications- Atopic Dermatitis Target Customers- Dermatologist, Gps Major competitor Zydus, Alchem , Abbot , Intas , Glenmark.

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Cardiovascular
Cardiovascular Ailments are on the rise all over the world due to changing lifestyles .As a result there is increasing needs for C.V.S Drug. Cardiologist are main targeted Customer. Major competitor- sun pharma , cipla , Dr Reddys , Lupin. Molecules- Atorvastatin, Rosuvastatin, Simvastatin, Losarten. Olmesarten. Indications-Atherosclerosis , C.H.D , C.H.F, Chest pain. Hypertension, Hyperlipidemia. Target Customers- Cardiologist, Physicians, GPs

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Gastrointestinal
Gastrointestinal is another significant therpatic Segment for Ranbaxy. Major competitor- Cipla . Sun pharma ,lupin, Macleods are the main competitor for Ranbaxy.

Molecules- pantaprazole, Rabeprazole, omeparazole, a-b-peginterferron

Indications : ulcer,bleeding,Inflammation,polyps.
Target CustomersGasteroenterologists, surgeons, orthopedics, GPs, Pediatrics,
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Respiratory
There is a growing globel population of patients with ailments respiratory
Major competitor- Cipla , sun pharma , G.S.K, lupin , macleods pharma Molecules- Ambazone Loratadine combination ,Montelukasts Indications : - Indication-Chronic obstructive pulmonary disease.colour change.nose flarring,Retraction. Target Customers- Chest physician are main customer
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Central nervous system


Ranbaxy have a wide range of drug for central nervous system Major competitor- sun pharma , intas pharma , lupin and abott pharma

Molecules- sertaline .Gabapentin and olanzapine.


Indications : Epilepsy .Neuropatic pain , Alzheimer. Target CustomersNeuropshychiatrist, neuro physicains.

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OTC PRODUCTS OF RANBAXY OTC (OVER THE COUNTER)

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OTC PRODUCTS OF RANBAXY


WHAT IS OTC PRODUCTS

Over the counter (OTC) drugs are the medicines sold directly to customer without prescription from a health care professional.

ORIGIN OF OTC PRODUCTS

Those products which become widely prescribed & known to the patient, are purchased directly at the chemist counter e.g. Revital, crocin, saridon, volini etc. Common public have in general knowledge about these drugs hence doctors do not

or rarely prescribe them Hence they are purchased Over The Counter.

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OTC PRODUCTS BY RANBAXY


BRAND NAME GENERIC NAME
CINSENG, VITAMINS & MINERALS

THERAPUTIC SEGMENT VITAMINS & MINERALS SUPLEMENT

REVITAL Range

CINSENG, VITAMINS & MINERALS (WOMENS)


CINSENG, VITAMINS & MINERALS ISOFLAVONES (50 +) SOY PROTEIN SUPLEMENT

VOLINI Range CHERICOF PEPFIZ

PAIN RELIEF GEL & SPRAY AYURVEDIC PAIN RELIEF GEL

ANALGESIC TOPICAL

COMPLETE COUGH SYRUP

COUGH COLD AND ALLERGY

EFFERVESCENT DIGESTIVE ENZYMES

GARLIC PEARLS
GESDYP

GARLIC OIL FOR ALL ROUND HEALTH

GASTROINTESTINAL
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DIGESTIVE ENZYMES

Supply Chain & distribution

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DISTRIBUTION PROCESS
WAREHOUSE
INR69

CFA
INR70

INR72

STOCKIST

SEMI STOCKIST
INR80

HOSPITAL/
INSTITUTION

RETAILER
INR100

INR 80

PATIENT

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Warehouse : Dewas( M.P ) CFA Locations :


West : Ahmedabad, Indore, Mumbai, Nagpur, Pune, Raipur East : Cuttack, Guwahati, Kolkata, Patna, Ranchi

North: Delhi, Ghaziabad, Jaipur, Jammu, Lucknow, Panchkula,


Zirakpur South : Banglore, Chennai, Cochin, Madurai, Secunderabad, Vijaywada

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ROUTE PLAN Mumbai Local


STATION FROM STATION TO DESPATCH DAYS MATERIAL TO BE RECEIVED BY DISTRIBUTOR

Princess Street Bandra

Kurla Dahisar

Saturday Tuesday

Monday Wednesday

Ghatkopar

Mulund

Thursday

Friday

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BCG MATRIX:Products offered


STAR Cardiovascular, Diabetic, Dermatology & Urology QUESTION MARKS HIV/ AIDS & Oncology

CASH COW OTC Products

DOGS Respiratory, Neuro Psychiatric

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Porters 5 Forces Model


THREATS OF ENTRY

POWER OF BUYERS

COMPETATIV E RIVALRY

POWER OF SUPPLIERS

THREAT OF SUBSTITUTE S

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COMPETITIVE RIVALRY

Pharmaceutical company has to face various competitive rivalries among the other pharmaceutical companies

Competitors of Ranbaxy in India are: Dr. Reddys Pfizer Cipla Abbot Aurobindo Pharma Glaxo Smith Kline Lupin Sun Phrmaceuticals Cadilla Healthcare Wockhardt

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THREATS OF ENTRY
Pharmaceutical Industry easy Entry Capital requirement are very low

Creating a regional distribution network is easy


Brand awareness franchisee amongst the doctor is the key for the long term survival

Quality regulations by government may put some hindrance for establishing new manufacturing operations

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THREAT OF SUBSTITUTES

There also is bend towards ayurvedic & homeopathic methods of medicine

There are many product which are close substitutes to each other causing substitution at Retail - Point.

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Bargaining Power of Suppliers


The chemical industry is again very competitive and fragmented Easily switch from their suppliers without incurring a very high cost

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Bargaining Power of Buyers


Buyers are scattered and they as such does not yield power in the pricing of the products. Government with its policies plays an important role in regulating pricing.

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SWOT Analysis

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SWOT ANALYSIS: STRENGTH:

Top 10 global Generic company with a spread over 125 countries. Strong presence in international market with major share. State of Art R&D facilities.

Large pool of skilled technical manpower both in India and abroad.


Non Infringing products of Active Pharmaceuticals Ingredients. High standards of purity.

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WEAKNESS:
Low share of India in World Pharmaceutical Production (1.2% of world production but having 16.1% of world's population). Very low level of Biotechnology in India and also for New Drug Discovery Systems. Low level of strategic planning for future and also for technology forecasting.

Absence of Association between Institutes and Industry..


It is heavily dependent on Generics for revenue generation. Constantly regulated government Policies- operational efficiency affected.
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OPPORTUNITIES:

Growing health awareness. New diagnoses and new social diseases. New therapy approaches. Spreading attitude for soft medication (OTC drugs) Spreading use of Generic Drugs. Globalization Easier international trading. Supply of generics drugs to developed markets.
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Improvement in distribution network & brand building


The land of opportunities Africa is still unexplored due to economic calamities, the company can establish its

brand value by reaching the segment and their by


increasing the market share.

Unexplored markets in India ready to be in licensed (FTL).

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THREATS:
Competition From MNCs Containment of rising health-care cost. High Cost of discovering new products and fewer discoveries. Stricter registration procedures. High entry cost in newer markets. High cost of sales and marketing. Competition, particularly from generic products. Switching over form process patent to product patent. Drug price control order put unrealistic ceilings on product prices and profitability and prevent company from generating investible surplus
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Stringent FDA Regulation


FDA has become strict. Due to this every procedure is monitor. Hence, recent we know that Ranbaxy have to pay a penalty of $500 million Dollars impose by USFDA. Secondly European union has impose a penalty of $110 million Dollars for delaying the generic molecule in the European market.

Exchange rate fluctuations.


Exchange rate fluctuations. Global economic slowdown. Only focuses on generic market and have less patented drugs. Most of the companies have segmented Africa which is considered to be the land of opportunities.

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Need of Innovation
SWOT Analysis suggests use of Strengths to overcome
Weakness by coping with Threat

Strengths

o o o o

STATE OF ART R & D FACILITIES. Well Trained & specialised employee strength. Reach in terms of Therapy, operations & Market coverage. Global manufacturing facilities.

Threats

o Threat of competitors & substitution in generic market. o Fluctuating market share. o Changes in Govt. Policies for products with high customer base.

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SOLUTION

Focus on uncontested market share by offering a Product or Service that is unique in Market space, where there is no or less competition.

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INTRODUCING

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BLUE OCEAN STRATEGY


According to a Market Survey :

PRICE was the least preferred factor. Expected least Adverse event with a Drug.

Expected Fast symptomatic relief & Complete cure .


A unique feature like Patient compliance was most needed & ignored by competitors.

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INNOVATION Vs conventional

Cure Rates Fever Clearance Time Gametocyte Clearance Patient Compliance

97.9% 97.4% (Irrespective of meals) (When given with meals)

82.6%

18 Hrs.
100% at day-42 One Pill a day

24 Hrs. 98.9% at day-42 2 Pills a day


As 2 dose has to be taken just after 8 hours of 1st dose
nd

31.2Hrs. No Data Available 4 pills /day

(1 OD for 3 days)

(Min. 5 days therapy (Twice daily for 3 days ) and may continue till report comes negative)
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INNOVATION Vs conventional

Convenience of therapy (Food independent)

Fixed Dose Combination

Fixed Dose Combination (Fatty food dependent)

Co-blister packing

Body Weight Dependency Affordability


Source Availability

Independent Rs.130/- for complete treatment SYNTHETIC

Dependent
Available in different prices according to the Brand. Average Price > 150 PLANT SOURCE

Dependent
Available in different prices according to the Brand. Average Price > 150 PLANT SOURCE
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Acheivements
Within a year of launch, SYNRIAM has achieved landmarks,
2 million SYNRIAM pills used & More than 7,00,000 patients benefited. Golden Peacock award, 2012 in the Innovative

product & Services.

ASSOCHAM innovation award by Shri Jaipal Reddy, Hon.Minister for Science,Technology & Earth sciences.
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INNOVATIVE PRODUCTS & SERVICES


NDDS technology : Novel drug delivery system used to provide enteric coating for slow release.
HYNOV inj : A single shot inj. Of HyNov vs 3 inj. Of other brands for patients with compromised knees in Osteoarthritis. SODOX : Indias 1st superoxide antioxidant, which is bodys 1st line of defence & blocks generation of free radicals right at the source. Also purely Veg product.

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CONTROVERSIES
Guilty for selling adulterated drugs & paid penalty worth $500 mn.
2006 :- USFDA issued letters to Paonta sahib & Dewas Manufacturing plants 2008:- USFDA banned import of 30 drugs manufactured at these plants 2011:- Ranbaxy signed a consent decree with USFDA & settled claims with US department of justice.

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CONTROVERSIES
PIL against Ranbaxy products. Hospitals imposing ban on use of Ranbaxy pills. Daichi Sankyo accusing former Owner of concealing facts concerning USFDA & USDOJ investigations.

Recently a ban was imposed on import of drugs from Mohali plant.

OHM Laboratories a manufacturing facility owned by Ranbaxy under USFDA scanner.

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BIBLIOGRAPHY
www.ranbaxy.com

www.myranbaxy.com
www.businessstandard.com Ranbaxy world 2013 www.hindustantimes.com www.natures.com

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