Organization

transformation in
pharmaceutical
companies

Dr. Imran H Sange

Roll No.84
Organizational Transformation
(OT)

 The mission of OT practice is to help

the organization achieve organizational
excellence. 
 Organizational excellence can be
measured by any number of ways
including time-to-market, operational
costs and productivity.
Need for OT

 Overall business performance is deteriorating

 Dissatisfaction among employees is
increasing
 A generally poor outlook for the business
and the organization’s management team
doesn’t know what to do.
 Organizational Assessment
 The first step -how well an organization is
performing. 
 Assess the organization’s performance
against its goals. 
 Assessments through-interviewing,
observations, and structured meetings. 
Strategic Planning
 To modify the organizational structure
or practices to better meet the goals as
defined. 
 To define how each organization must
change in order to better meet its
mission.
Communications Planning

 People do not fear change. 

 People fear the uncertainty and the unknown
associated with change. 
 Communications planning defines how
management will communicate to employees
prior to, during and after OT to reduce this
uncertainty
 Transformation

 OT efforts start by identifying the business

drivers that necessitate the need for
change.  
 A close look across the whole organization
to discover how it can measurably improve
the way it operates. 
Need to move swiftly
 Current global financial conditions and
the threat of a broad recession have
accelerated the timetable for
implementing change
Challenges for pharma.
 Patent expirations
 Pricing and regulatory pressures
 Thin late-stage pipelines
 Efficacy issues and
 Globalization
 Top priority
 Improving new product flow
 72% of executives indicate that the “thinness”
of their pipelines is a chief concern.
 Producing and sustaining products of value in
today’s demanding marketplace (47%)
 Pressures of global RA (44%)
 Redefinition of the customer and rise of payors
(36%).
Cost effectiveness
 More strategic and sustainable
approaches
 Rely less on cost-cutting campaigns
 Only 40% of executives ranked
optimizing costs as their most important
initiative, compared to a similar study in
2007 (92%)
Newer business models
 66% of interviewees ranked
reinvigorating R&D as the most
important strategic initiative
 40% ranked expanding into new
markets and becoming more customer-
centric as primary areas of focus.
Product-only business model
 Majority of companies continue to exclusively
pursue a product only business model
 Not pursuing aggressive overhaul of the
discovery, development and life-cycle
management of their human capital pipeline
in response to the dramatic demographic
changes in the global talent pool.
Finance as central player
 The finance function has become a
central player in identifying the specific
strategies needed to meet the changing
demands of industry stakeholders and
creating a sound decision-making
framework for value creation to address
them
Glenmark Pharmaceuticals
Limited
 Started in November 1977
 1979----------- candid cream
 1979-2000----60 new products
( Respiratory and internal medicine,
pain management and diabetes)
Year- 2000
 Glenmark-initial public offer on the
Bombay Stock Exchange and the
National Stock Exchange of India
 Market capitalization of USD 40 million.
 Acquired various brands in the Indian
domestic market.
 Commenced R&D at Mahape, Navi
Mumbai, India.
Year 2005
 The marketing and development rights for
Glenmark’s first NCE, GRC 3886 for the US
were licensed to Forest Laboratories Inc., for
an upfront payment of USD 10 Mn and
potential deal value of USD 190 Mn.
 Largest single out licensing deal out of India.
 GRC 3886 also entered Phase I clinical trails
in the UK
Year 2005
 Collaboration agreement with Teijin Pharma
for Japan which potential value of USD 53 Mn
and a large upfront payment.
 The molecule was also granted its
international, non proprietary name (INN)
“Oglemilast” by a WHO capital body.
Year 2006
 Glenmark’s lead molecule Oglemilast (GRC
3886) progressed into Phase II clinical trials.
 Oglemilast- a novel, orally available PDE4
inhibitor in development for Chronic
Obstructive Pulmonary Disorder (COPD) and
Asthma, and may also have utility in other
conditions.
Year 2008
 Glenmark Pharmaceuticals Limited re-organization of
its business into Specialty and Generics.
 Glenmark Generics Limited (GGL) and Glenmark
Pharmaceuticals Limited (Glenmark).
 GGL has an established presence in North America,
EU and Argentina
 The Company has a state-of-the-art manufacturing
plant at Goa, India that is approved by US FDA, TPD
(Canada), MHRA, UK and many other overseas
regulatory authorities.
 GGL also markets over 45 APIs to more than 80
countries across the world
Thank you