SUBMITTED BY GAUTAM KUMAR PGDM (MBA) ROLL NO. - 17
UNDER THE GUIDANCE OF PROF. B. SHANKAYE
SINHGAD INSTITUTE OF MANAGEMENT & COMPUTER APPLICATION NARHE, AMBEGAON, (PUNE-41)
Page 1 of 75 ACKNOWLEDGEMENT
It’s a great pleasure acknowledge these people to have contributed to the successful completion of my project. The project report instead of being an individual effort is a collective on where in help from various quarters specially business and academic ones have been derived. The list of those providing a helping hand is quite played a major role in completion of the project and continuous to have a positive influence in my thought process.
First of all I would like express my deep sense of gratitude to Prof. B. SHANKAYE and faculty member of PGDM {AICTE} for providing me this opportunity.
Page 2 of 75 Page 3 of 75 CONTENT Sl. No Topic Page No. 1 INTRODUCTION 5 2 OBJECTIVE OF THE STUDY 6 3 NEED TO KNOW PHARMA INDUSTRY 7 4 PHARMA INDUSTRY TODAY 7 5 KEY ISSUE FOR PHARMACEUTICAL INDUSTRY 8 6 INDUSTRY SEGMENTATION 9 7 BULK DRUG 10 8 CLASSIFICATION OF INDUSTRY 10 9 GOVERNMENT POLICY 12 10 SCOPE IN INDIA 15 11 FUTURE SCENARIO 18 12 SWOT ANALYSIS 19 13 TOP TEN INDIAN COMPANY 20 14 INDIAN PHARMA MARKET 21 15 TOP TEN COMPANIES CONTRIBUTION 23 16 MARKET SHARE OF KEY DRUG 25 17 MERGERS AND ACQUISITIONS 26 18 DISTRIBUTION CHANNEL 27 19 ORGANISATION STRUCTURE OF C.F.A. 28 20 STOCKIEST 29 21 MARKET TREND 30 22 CONCLUSION 33 23 SUGGETION 34 24 LIMITATION OF THE STUDY 35 25 RESEARCH METHODOLOGY 35 26 LEADING COMPANY ANALYSIS 37 27 RANBAXY 37 28 CIPLA 41 29 LUPIN PHARMACEUTICALS 49 30 ALKEM LABORATORIES 53 31 DR. REDDY 58 32 COMPARATIVE ANALYSIS 67 33 ANNEXURE 68 34 BIBLIOGRAPHY 71
Page 4 of 75 Indian Pharmaceutical Industry
Introduction
Indian economy is one of the fastest growing in the world. Its GDP growth rate is 9.2% with a GDP of rupees 177000 crore, which is the fourth largest in the world. India, the 12th largest economy in the world possesses a foreign exchange reserve of USD.177.00 billion. The country is fast adapting to industrialization, the speed of which is measured as the second fastest in the world. The major industries of India are automobiles, cement, chemicals, consumer electronics, food processing, machinery, mining, petroleum, pharmaceuticals, steel, transportation equipment, andtextiles.
In the post liberalization era the country has capitalised on its vast pool of educated, English speaking manpower to become a major power in outsourcing, Information Technology, financial and biomedical technology research, banking & insurance, and real estate development
EVOLUTION OF INDUSTRY In India, modern system of medicine is a 20th century phenomena, though the traditional system of medicine has been in practice for many centuries. Therefore, in discussing the evolution of the IPI, three points of time are very relevant. These are: 1900-1970, 1970-1990 and the decade of 1990s. The period 1900-1970 signifies the dominance of the multinationals in this field that were basically importing bulk drugs and formulations from abroad. Most domestic manufacturers were engaged in repacking the formulations produced by the multinationals and production was concentrated in the hands of the multinationals.
Production of modern medicine by indigenous units started with the setting up of Bengal Chemical and Pharmaceutical works in 1892, which was followed by the establishment of Alembic Chemical works in 1907 and Bengal Immunity in 1919. At this point in time, the Patents Act of 1911 was in practice, which facilitated patenting all the known and possible processes of manufacturing of the said drug besides patenting the drug itself. Hence, the indigenous firms were legally prevented from manufacturing most of the new drugs during the life of the patent secured by the latter, i e, for 16 years, which could be extended to a maximum of another 10 years if the working of the patent had not been sufficiently remunerative to the patentee. This gave them the monopoly power initially. The domestic firms were also for bidden from processing a patented drug into formulations or importing it. However, the Second World War and the introduction of sulpha drugs and penicillin gave on impetus to the pharmaceutical industry. The policy instruments of independent India emphasized on creating a strong public sector unit. In the pharmaceutical front, specific areas of production were defined for the public, private and the domestic sector. The setting up of the public sector units and the technical institutes meant for creating technical skills in the country contributed to the growth of the domestic industry. By 1952, a few drugs like tetanus anti-toxin, PAS and Indocblorhydroxyquinoline were produced in India from their basic stages . However, the import content of the basic drugs was high due to which the prices of the Page 5 of 75 pharmaceutical products of India were the highest in the world. The second period of 1970-1990 is very significant for the IPI since, a few important changes that had implications on the growth of the IPI took place during this time. The Patent Act of 1911 was amended in 1970, which came into force in 1972. The 1970 Patent Act provides protection for the processes of manufacturing the drug for seven years from the date of filing the application or five years from the date of the grant of the patent. Under this Act only one process that was used in the actual manufacturing could be patented. This change brought a renaissance to the pharmaceutical industry of India. More units larger in size and capacity set up in the 1970s and 1980s started producing drugs, which were primarily imported till then. The technical institutes that were set up in the early 1950s and 1960s resulted in creating technical and engineering skills, which could easily adapt the technology developed elsewhere, proved to be very advantageous for the industry. By 1972, over 100 essential drugs covering a wide spectrum of therapeutic groups like antibiotics, sulpha drugs, anti leprotic drugs, analgesics, antipyretics, vitamins, tranquillisers, photochemical and various other pharmaceutical chemicals were produced in India from basic stages . A significant increase in the production of bulk drugs and formulations is observed before and after the 1970s. In the early 1970s, the government introduced the MRTP Act the FERA, which aimed at reducing the concentration of economic power with few units and controlling the flight of foreign exchange from the country. Basically units, which were not bringing in any new technology were asked to reduce their foreign equity and renewal of their licence was also subject to their bringing in new technology. This resulted in the dilution of the foreign equity, which is reported in the Table As a strategy to protect the domestic industry from competition, the FERA companies were also not permitted to produce a list of drugs, which were delicensed during the 1980s.
STRUCTURE OF INDUSTRY • Fragmented with 24000 players – 300 organized • Leading 250 – 70% of the market • Market leaders hold 7% • Manufactures : Bulk drugs – APIs Formulations (75:25) • Adopts high technology & produces high value products
Objective of the study
A. To identify the various forces which are affecting the distribution channel of pharmaceutical industry?
B. To understand the process of pharmaceutical marketing.
C. To suggest appropriate modification in the distribution channel for pharmaceutical industry.
Page 6 of 75 Page 7 of 75 Need to know about the Pharmaceutical Industry
The Pharmaceutical Industry Today
The pharmaceutical industry is one of the largest and most exciting sectors to be working in today. It is a rapidly changing environment where many advances have taken place over the past 20 years. Furthermore, it will continue to develop and evolve at an ever-increasing pace over the next decade. New drugs, new technologies and exciting new discoveries have driven this evolution. Dr Allan Jordan, Senior Medicinal Chemist at Vernalis will present a clear picture of today's pharmaceutical industry.
• The origins of the industry • Where are we now and what issues are we likely to face in the future? • How do generic medicines and parallel trade affect the industry? • What is Biotech and how does it fit into the sector?
Regulatory Control of Medicines
As a result of the Thalidomide disaster of the late 1950s and early 1960s, medicines have become one of the most highly regulated products in the world. Data demonstrating their safety and efficacy must be filed with government agencies in order to move through clinical development, to obtain approval to sell a new drug and at regular intervals thereafter. Each country has its own regulatory authority and laws governing the development and sale of medicines. In addition, in Europe, there is a regulatory agency at the European level (EMEA). Internationally, there is regulatory co-operation between Europe, the USA and Japan (ICH). As a result, the regulatory control of medicines is a complicated business. The speaker will discuss the current regulatory framework for medicines including:
• Why we have regulatory control of medicines • Who the major regulatory bodies are (MHRA, FDA, EMEA, ICH) • What their role is within drug development • What the main regulatory submissions are that a company will make •
Drug Discovery and Development
Why is drug discovery so important and what are the key stages in drug development? Dr Allan Jordan, Senior Medicinal Chemist at Vernalis will take you through the whole lifecycle of drug discovery - a process that normally takes the Pharmaceutical Industry 10 years. He will explain how new technologies are shaping the future of the industry and discuss the strengths and benefits of conducting pharmaceutical research in the UK.
• Drugs and drug targets • Drug discovery: where do leads come from? • From lead to candidate: turning a good lead into a good drug Page 8 of 75 • Early pre-clinical development • Research priorities • The UK Pharmaceutical Industry: the best in the world?
Preclinical Studies
Before first administration to man, the safety of a new drug has to be evaluated in animals. In this highly regulated environment, a programme of studies, designed to be relevant to the proposed therapeutic use of the drug, must be undertaken. Additional studies will also be required as the compound passes through the different phases of clinical development. The speaker will address the following points:
• What key questions do the preclinical studies attempt to answer? • Which studies need to be undertaken • When these studies should be performed • How we use the information produced
Clinical Trials Phases I-IV
Clinical trials are one of the most important areas of research simply because human patients are involved. In this presentation, Dr Jörg Täubel, Managing Director of Richmond Pharmacology, will describe the stages of the clinical trial process, explaining the importance of each stage.
• What is a clinical trial? • What are the stages of the clinical trial process – Phases I-IV? • Who’s who in clinical trials • The contribution of each department to the clinical trial • Demystifying the jargon and terminology
Medical Marketing
Medical marketing involves planning and analysis in order to help promote and sell pharmaceutical products to both clinical and medical professionals. Brian Smith, Marketing Consultant for PragMedic, will explain the strategies involved and how medical marketing differs from marketing in other industries.
• What is medical marketing? • The key concepts of medical marketing strategies • Strategic trends in the industry • The marketer’s tool box – promotional devices for marketing • Key questions for support staff in medical marketing departments Page 9 of 75 Key Legal Issues for the Pharmaceutical Industry
In order to protect the huge investment in time and money necessary to bring a product to market, knowledge must be protected as an asset. Consequently, workers in the Pharmaceutical Industry need an understanding of the relevant intellectual property rights. This talk examines some of the basics, with particular emphasis on patents. It will assist pharmaceutical personnel to spot issues where further advice may be needed. Topics covered will include:
• Update on intellectual property rights • Pharmaceutical patent litigation - revocation - infringement - interim injunctions • European enlargement - data exclusivity - parallel importation
Anatomy of a Licensing Deal
This session will look at the key features of a pharmaceutical licensing deal. Topics that will be covered include:
• The scope of the licence - what is being licensed, where, for how long and for what purpose? • Payments - royalties - milestones - auditing
INDUSTRY SEGMENTATION
Indian pharmaceutical industry can be widely classified into bulk drugs, formulations and contract research. Bulk drugs are the Indian name for Active Pharmaceuticals Ingredients (API). Formulations cover both branded products and generics. Indian pharmaceutical sector is self sufficient in meeting domestic demand and exports successfully to various markets globally. The existence of process patents in India till January 2005 fuelled the growth of domestic pharmaceutical companies and developed them in areas like organic synthesis and process engineering, as a result of which, Indian pharmaceuticals sector is able to meet almost 95 percent of the country’s pharmaceutical needs. India is globally recognized as a low cost, high Page 10 of 75 quality bulk drugs and formulations manufacturer and supplier. Contract Research, a nascent industry in India has witnessed commendable growth in the last few years. As per Yes Bank /OPPI report (2007-08), formulation segment (including domestic formulation and formulation exports) constituted 72%of the total pharmaceutical industry (in terms of sales) while bulk drugs and contract research constituted 25% and 3% of pharmaceutical industry respectively.
Fig: Segment-wise sales BULK DRUGS Bulk drug industry is the backbone of the Indian pharmaceutical industry. Growth of Indian bulk drug industry in the last five decades has been impressive and highest among developing countries. From a mere processing industry, Indian bulk drug industry has evolved into sophisticated industry today, meeting global standards inproduction, technology and quality control. Today, India stands among the top five producers of bulk drugs in the world. The market is fragmented with far too many players. About 300 organised companies are involved in the production of bulk drugs in India. Over 70 percent of India’s bulk drug production is exported to more than 50 countries and the balance is sold locally to other formulators. Indian bulk drugindustry is mainly concentrated in the following regional belts - Mumbai to Ankleshwar, Hyderabad to Madras and Chandigarh. Around, 18000 bulk drug manufacturers exist in India. Some major producers of bulk drugs in Indian pharmaceutical industry are Ranbaxy Laboratories, Sun Pharma, Cadila, Wockhardt, Aurobindo Pharma, Cipla, Dr. Reddy’s Laboratories, Orchid Pharmaceuticals & Chemicals, Nicholas Piramal, Lupin, Aristo Pharmaceuticals, etc. Most are involved bulk as well as formulations while a few are solely into bulk drugs. India is the world’s fifth largest producer of bulk drugs. The market size is expected to grow at higher percentages in future years with more and more international companies depending on India to meet their bulk-drug supply needs. Moreover, India is way ahead of competitors in the total number of Drug Master File (DMF) filings. Of the overall DMF filings to US FDA, the portion of filings by Indian players has jumped from around 14% in 2000 to 46% of total filings in 2008( January-June) This growth in proportion speaks volumes about the quality standards followed in Indian manufacturing facilities.
•
Page 11 of 75 Classification of Indian Pharmaceutical Industry On the basis of formulations, the pharmaceutical industry can further be classified into:
• Prescription medicines: • Also known as ethical formulations. They can be dispensed only on the prescription from a qualified medical practitioner. • Over-the-counter medicines: • Also known as OTC formulations. They can be dispensed even in the absence of prescription, e.g. analgesics, cough drug, etc.
On the basis of formulations patent, pharmaceutical industry can be classified as
• Branded formulations: They are ethical formulations prepared using a bulk drug under product patent and are marketed by a single pharmaceutical company. • Generics: They are formulations that do not contain any patented bulk drug and can be manufactured by more than one company.
Understanding the Dynamics of the Generics Industry
An innovator pharmaceutical product is protected throughout the effective life of its patent, enabling the patent owner to reap the benefits of monopoly pricing. When the innovator patent expires, generic manufacturers can enter the market and sell their products at a cheaper price. The speaker will discuss what hurdles the generic company has to overcome to launch a generic pharmaceutical, how the entry of generics onto the market affects the innovator product and how the healthcare authorities are focusing on generic drugs as a way of reducing the prescribing within our healthcare system. Topics covered include:
• The economic case for generic pharmaceuticals • Factors affecting generic entry • Consequences of generic entry • Generics going forward
Page 12 of 75 How the Price of a Product is Set – An Introduction to Global Pharmaceutical Pricing and Reimbursement
Establishing prices for pharmaceutical products is a complex process involving integrated approaches to strategy development, as well as an appreciation of the very different pricing and funding systems and requirements adopted by governments. In this introduction to pharmaceutical pricing and reimbursement, Adam Barak, Director of ABPPC and former Head of European Pricing at GlaxoWellcome, will review the main issues facing pharmaceutical manufacturers when developing optimal pricing strategies including:
• The corporate strategy: company commercial objectives as it impacts pricing • Implementing the corporate strategy: integration of pricing within the commercial strategy • Price and value • Government health spending controls: demand-side and supply-side • Different price-setting systems in Europe • Which price? How prices are built up • International price differentials • Parallel trade
Indian Pharmaceutical Sector: Economic value & Government police
The Indian pharmaceutical industry, which is now meeting over 95% of the country's pharmaceutical needs, was almost non-existent before 1970. With the compound annual growth of 19.8% the industry has grown from Rs.4 billion in 1970 to Rs.290 billion in 2003. The pharma sector has shown tremendous growth over the years. About 250 Indian pharmaceutical companies hold 70% of the market share with top players controlling about 7% of the market share.
On 1st January 2005, the Government of India issued patent ordinance according to which the Indian pharma companies can no longer produce patented drugs.
Page 13 of 75 So now the companies have started exploring new business opportunities, including contract research (drug discovery and clinical trials), co-marketing alliances and contract manufacturing.
A few years ago, investment in R&D was as low as 0.001% of the total R&D worldwide, but now companies are focusing on drug discovery and R&D. They are spending over 5% of their turnover on R&D e.g. Wockhardt (8%), Cipla (4%), Cadila (4.45%).
The value of Indian Over-The-Counter Medicines (OTCs) market is over US$ 940 million and is growing at the rate of 20% per year. There are about 61 US FDA approved plants in India, which will help Indian companies grab the opportunity of contract manufacturing.
The NPPA (National Pharma Pricing Authority), sets prices of different drugs, which leads to lower profitability for the companies. Indian pharma market is one of the least penetrated in the world: India accounts for almost 16% of the world population while the total size of industry is just 1-2% of the global pharma industry
Large no. of small players increases competition and reduces efficiency
The new patent product regime will bring with it new innovative drugs. This will increase the profitability of MNC pharma companies and will force domestic pharma companies to focus more on R&D Large number of drugs going off-patent in Europe and in the US between 2005 to 2009 offers a big opportunity for the Indian companies to capture this market Can become a global outsourcing hub for pharmaceutical products
New markets are opening Aging of the world population, Growing incomes, Growing attention for health. Containment of rising health-care cost. High Cost of discovering new products and fewer discoveries Stricter registration procedures
High entry cost in newer markets.
Threats from other low cost countries like China and Israel exist
Mature pharmaceutical market: is expected to grow at 1% ~ 4% by 2013
Emerging pharmaceutical market: is expected to grow at 13% ~ 16% by 2013 Page 14 of 75 High growth in generic segment as $123bn worth patent will expire by 2012 ($18.4bn benegit to India) generics space and the increasing litigation instances in the US are compelling Indian companies to consider opportunities beyond US
CUSTOM DUTY . . Exemption of custom duty for import of all capital goods inputs, consumables and reference standards for R&D purposes
Extension of customs duty exemption to more life saving drugs and other anti–Aids and anti–cancer formulations
EXCISE DUTY Goods manufactured in R&D centres should be exempted from excise duty and service tax Extension of excise duty exemption to more life saving Extension of excise duty exemption to more life saving
OTHERS
Strengthen and increase capital outlay for academic institutions engaged in scientific research Requirement of a single window clearances instead of multiple clearances from different institutions for testing a new molecule Passing of Central Drug Authority Bill –pending for the last five years
Removal of cost based price controls Continuation of the tax shelter in specified zones like Himachal Pradesh, Sikkim and Jammu Cut off date for the tax holiday should be extended till March 31, 2012.{1}
Benefit should be expanded to cover expenditure incidental to research carried outside R&D facility such as clinical trials, bio- equivalence studies etc carried on in India or in any foreign country.
Acc. to new proposal:
b) Co.’s which have set up overseas subsidiaries in India, will have to pay tax on their earnings earned abroad c) US companies who are outsourcing services to overseas India will be at a disadvantage as their earnings from these countries will now be treated as income, and they would be liable to pay tax on it.
Existing practice wherein companies who are outsourcing services earned tax credits on income earned through those services
Shocker to Indian pharma companies engaged in contract manufacturing and research services (could adversely affect their outsourcing services business as majority of their clients belong to US.)
Page 15 of 75
ADVANTAGE IN INDIA
Competent workforce:
India possessa skillful work force with high managerial and technical competence.
Cost-effective chemical synthesis:
The track record for development, particularly in the area of improved cost-beneficial chemical synthesis for various drug molecules is excellent.
Page 16 of 75 Legal & Financial Framework:
India is a democratic country with 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. Globalization:
The country is committed to a free market economy and globalization. Above all, it has a 70 million middle class market, which is constantly growing.
Consolidation:
After many years, the international pharmaceutical industry has discovered great opportunities in India. The process of consolidation, which has become a popular phenomenon in the world pharmaceutical industry, has started taking place in the Indian pharmaceutical industry as well. The Indian pharmaceutical industry
Page 17 of 75 ADVANTAGES IN INDIA
Page 18 of 75 Indian Pharmaceutical Sector: Future Scenario
The Indian companies are using the revenue generated from generic drug sales to promote drug discovery projects and new delivery technologies. Contract research in India is also growing at the rate of 20-25% per year and was valued at US$ 10- 120million in 2005. India is holding a major share in world's contract research business activity and it continues to expand its presence.
Clinical Research Outsourcing (CRO), a budding industry valued over US$ 118 million per year in India, is estimated to grow to US$ 380 million by 2010, as MNCs are entering the market with ambitious plans.
By revising its R&D policies the government is trying to boost R&D in domestic pharma industry. It is giving tax exemption for a period of ten years and relieving customs and excise duties of all the drugs and material imported or exported for clinical trials to promote innovative R&D. The future of Indian pharmaceutical sector is very bright because of the following factors:
• Clinical trials in India cost US$ 25 million each, whereas in US they cost between US$ 300-350 million each. • Indian pharmaceutical companies are spending 30-50% less on custom synthesis services as compared to its global costs. • In India investigational new drug stage costs around US$ 10-15 million, which is almost 1/10th of its cost in US (US$ 100-150million).
•
Page 19 of 75 SWOT ANALYSIS
Strengths:-
• Cost effective technology • Strong and well-developed manufacturing base • Clinical research and trials • Knowledge based, low- cost manpower in science & technology • Proficiency in path-breaking research • High-quality formulations and drugs • High standards of purity • Non-infringing processes of Active Pharmaceutical Ingredients (APIs) • Future growth driver • World-class process development labs • Excellent clinical trial centers
• Chemical and process development competencies Weaknesses
• Low Indian share in world pharmaceutical market (about 2%) • Lack of strategic planning • Fragmented capacities • Low R&D investments • Absence of association between institutes and industry • Low healthcare expenditure • Production of duplicate drugs
• • Opportunities
Page 20 of 75 • Incredible export potential • Increasing health consciousness • New innovative therapeutic products • Globalization • Drug delivery system management • Increased incomes • Production of generic drugs • Contract manufacturing • Clinical trials & research • Drug molecules
Threats
• Small number of discoveries • Competition from M N Cs • Transformation of process patent to product patent (TRIPS)
TOP TEN PHARMACEUTICAL COMPANIES BY WORLDWIDE SALES (2007-08)
Page 21 of 75 INDIAN PHARMA MARKET
India pharma Mkt size FY09 Rs 93881 ($19 bn) cr on the basis of sales, g=13% India is the world’s 4th largest producer of pharmaceuticals by volume (accounting for around 8% of global production) In value terms, production accounts for around 1.5% of the world
5,600 smaller licensed generics manufacturers
share is around 70% India produces 22% of world generics Per capita consumption of drugs is very low $93 as compared to $412(Japan), $222(Germany), $191(US) India among top 5 bulk drug producers in world Ranbaxy is 7th world’s largest generic manufacture
Page 22 of 75 Page 23 of 75 Page 24 of 75 Top 10 companies contributes 30% of market share (or basis of standalone sales)
MARKET SHARE % Company Name Cipla Ltd. 5.60
Ranbaxy Laboratories Ltd. 4.76
Dr. Reddy'S Laboratories Ltd. 4.47
Sun Pharmaceutical Inds. Ltd. 4.03
Aurobindo Pharma Ltd. 2.98
Cadila Healthcare Ltd. 2.07
Glaxosmithkline Pharmaceuticals Ltd. 1.79
Matrix Laboratories Ltd. 1.60
Ipca Laboratories Ltd. 1.36
Orchid Chemicals & Pharmaceuticals Ltd. 1.29
Page 25 of 75 Market Share of key drug
50
Page 26 of 75 Page 27 of 75 MERGERS AND ACQUISITIONS IN THE INDIAN PHARMACEUTICAL INDUSTRY
Announce Deal Target Target Acquirer Reason date Value Country Betapharm Dr.Reddy’s Front end line in 570 Germany Labs Germany Feb-06 Espama Wockhardt Front end line in 11 Germany Gmbh Germany May-04 Ranbaxy Daichii Low cost33.5 Japan Sankyo manufacturing and supply chain management Nov-05 Roche’s API Dr.Reddy’s Increasing 58.97 Mexico Facility Labs presence in Contract Mfg
Oct-05 Avecia Nicholas Increasing 17.1 UK,Canada Piramal presence in Contract Mfg
Distribution Channel
Distribution is the process of delivering the product to the marketing channels and consumers. It encompasses the various activities involved in the physical flow of product from the producer to the consumer.
Distribution takes care of the functions such as transportation, warehousing and inventory management and facilitates the flow of products from the producer to the consumers.
Page 28 of 75 Distribution confers place and time utility on product by making it available to the user at the right time. Distribution involves planning, implementing and controlling of the physical flow of materials and final goods from the point of origin to the point of use to meet consumer requirements at a profit for the enterprise.
As we have already seen that pharmaceutical product are not sold directly to the consumer, it takes some time and a mediator for the product to reach the end user, thus in between the producer and the end users there are many levels of intermediaries who facilitate the movement of goods and perform various other functions.
These intermediaries are termed as members of the distribution channel. In the pharmaceutical industry the manufacturing company supplies it’s products to the carrying and forwarding agent, who in turn supplies the distributor, the distributor supplies the products either to the doctors, the retailers or any government agencies, any of these three make the products available to the consumer for use.
In many places intermediaries such as sub stockiest and freelance wholesalers also exit who serve small retailer with limited capital. With drugs changing many hands before final delivery, the distribution structure in the pharmaceutical industry is very complex and has high costs.
To choose a particular distribution channel is most important as it tends to affect all other marketing decisions, in general the flow of pharmaceutical products is as follows for all companies.
In order to have a better understanding of the distribution process in the pharmaceutical industry, let’s do a micro study and analysis of each intermediary of the distribution channel these distribution channel helps the company to sell it’s product to the consumers.
As a company cannot sell its products in the market directly, it has to depend on the various intermediaries in the distribution channel, if it tries to sell directly it could be a highly expensive practice for the company.
C&F Agent
It is the first intermediary of the pharmaceutical distribution channel. They are know as clearing and forwarding agent, sometimes also referred to as super-stockiest or company depot etc. The C&FA is agency which is hired by the company or its depot. The C&F agents perform various functions some of which are as follow:-
Organizational Structure of CFA
In the stores departments there are stores assistants and packers who handle all the order. In the office & accounts department there are two subsections. One is the billing section & the other is the accounting section. In the billing section there are computer operators, records & dispatch worker, claims settlement department. The accounts department has accountants & one assistant accountant.
Page 29 of 75 Ranbaxy’s CFA handle the order of the distributors from all parts of Maharastra & Goa and accordingly checks stock. Forecasts the demand if possibly and place the order with the company and receives the order.
The CFA has certain restrictions upon it:-
1. The orders which are received from the distributors who are approved by the company will only be handled.
2. The orders have to be dispatched with a 48 hrs of receiving the order.
3. The order has to be processed with 24 hrs.
Accounting Department:-
The account department deals with the maintenance of account of the transaction of the CF It deals with all monetary realization of payments from the distributors.
This department assesses each division’s sales and helps in monitoring flow of money.
Billing Department:-
This section is mainly concerned with billing of the orders were each divisions billing takes place separately. The billing section prepares the invoice of the order and forwards it to the stores department for further processing and delivery of goods.
This department thus maintains daily routine order and prepares month end sales closing report of the various divisions of ranbaxy.
Page 30 of 75 Stores Department:
Stores are the warehouse or godown of the depot where the medicines of the different divisions are stored.
Ranbaxy godown is in total 24,740 sqft. The warehouse further has the following, section.
1. Non AC godown. 2. AC godown. 3. Walking cooler 4. Breakage/expiry/return section.
The order that are collected from the company are checked for any breakage during transportation and the ones in proper state are stored as per their division and temperature required for medicines.
The stores department also sees for expiry stock and returns it to the company. Thus a store is an important part of the CFA.
Flow Chart for C&F Agent
Stockiest/Distributor
Stockiest or the distributor is the second intermediary in the channel of distribution after the C&F agent. The stockiest is appointed by the company.
The difference between stockiest and C&F agent is that stockiest has stocks of many companies and acts as a channel member of distribution for various companies at the same time whereas the C&F agent has stock of a single company and is the channel member of distribution for the same company. The number of stockiest depends on the market of company in the give territory stockiest are of two types:-
A. Direct stockiest:-
Direct stockiest is the one who purchase medicine directly from the super- stockiest\ C&Fagent.
B .Indirect stockiest:-
Indirect stockiest is the one who purchase medicines from the direct stockiest of the company.
The work force for the stockiest depends upon the total company’s he has and his market coverage. Generally three kind of people are employed at stockiest outlet, namely at sales, counter & accounts.
The work force for the stockiest depends upon the total company’s he has and his market coverage. Generally three kind of people are employed at stockiest outlet, namely at sales, counter & accounts. Stockiest at any instant know the exact amount of stock he holds by the usage of computer.
Page 31 of 75 He forecasts the demand as per his requirements and places the order to the respective companies super stockiest. The stockiest supplies the various chemists as per their order. He takes possession of expiry and breakage material from the chemists in favors of the company.
Chemists/Retailer
The chemist/retailer is the next level of intermediary after the stockiest and who comes in contact with the contact with the consumer in the distribution channel. The chemist can either be attached to the hospital or exist in general market.
The chemist works with a small capital and caters to a small territory. Generally the chemist possesses medicines which are fast moving.
The drug stores should mandatory have a medically qualified (diploma holder) person at the shop. They enjoy power in the distribution chain also because. • Retailer act as important information sources for companies to identify successful doctor and their prescription preferences. • Retailers maintain product availability near the prescribing doctor to translate the prescription into sale. • Many patients often rely on retailer for medical advice. As a result, powerful drugs are routinely and illegally, sold over the counter by pharmacists thereby making them strong influencers • Retailer at time also substitute prescribed drug with available substitutes or high margin drugs. • At many places retailer-company-doctor nexus exists where retailer and companies exercise due influence over doctor‘s prescription of brands.
Companies understand the bargaining power of retailer and keep them happy by offering discounting deals at least once a month to retailers over and above the fixed commissions for various drugs.
Marketing Trends of Pharmaceutical Industry
Pharmaceutical marketing is the business of selling pharmaceutical or drugs. The pharmaceutical industry is different from most industries where the purchaser, the payer and the user are the same person.
The Pharmaceutical industry is different
In the pharmaceutical industry the product are usually not chosen by the consumer or paid for by the consumer. Physicians control the choice of many drugs through prescription writing.
Page 32 of 75 Advertising to physicians
Physicians are perhaps the most important players in pharmaceutical sales. They write the prescriptions that determine which drugs will be used by the patient. Influencing the physician is key to pharmaceutical sales. Historically this was done with large pharmaceutical sales forces. A medium- sized pharmaceutical company might have a sales force of 1000 representatives. The largest companies have tens of thousand of representatives….
Direct To Consumer Since the 1980 new marketing for prescription drugs to consumer have become important. Patients are far less deferential to doctors and will inquire about, or even demand, to receive a medication they have seen advertised on television. In the Untied State recent years have seen an increase in mass media advertisement for pharmaceuticals.
The Payers
Public and private insure affect the writing of prescription by physicians through formularies that restrict the number and type of drugs that the insure will cover. Not only can the insurer affect drug sales by including or excluding a particular drug from a formulary, they can affect sales by placing bureaucratic hurdles to prescribing certain drugs.
The marketing of medicine has a long history. The selling of miracle cures, many with little real potency, has always been common. Marketing of legitimate non prescription medications, such as pain relievers or allergy medicine, has also long been practiced. Mass marketing of prescription medications was rare until recently.
Sales representative called upon physicians regularly providing information and free drug samples to the physicians. This is still the approach today; however, economic pressures on the industry are causing pharmaceutical companies to rethink the traditional sales process to physicians.
Pharmaceutical companies are developing processes to influence the people who influence the physicians. There are several channels by which a physician may be influenced, including self- influence through research, peer influence, direct interaction with pharmaceutical companies, patients and public and private insurance companies. There are a number firm that specializes in data and analytics for pharmaceutical marketing.
A. Individual Research
Physicians discover pharmaceutical information from such sources as the physician’s desk references and online sources.
They also rely upon pharmaceutical branded e-detailing sites, pharmaceutical sales and non-sales representatives, and scholarly literature. Scholarly literature can be in the form of medical journal articles reprints, often delivered by sales representatives at their place of employment or at conference exhibition
B. Peer Influence
Page 33 of 75 Key Opinion leaders:
Key opinion leaders (KOL) are respected individuals. Such as college professors. Who influence physicians through their professional status. Pharmaceutical companies generally engage key opinion leaders (KOL) early in the drug development process to provide advocacy and key marketing feedback. Some pharmaceutical companies identify key opinion leader through direct inquiry of physicians.
Colleagues:
Physicians acquire information through informal contacts with their colleagues, including social events. Professional affiliations, common hospital affiliations, and common medical school affiliations. An influential physician may also be a key opinion leader. Some pharmaceutical companies identify influential colleagues through commercially available prescription writing and patient level data.
C. Direct Contact with Pharmaceutical Sales Representatives:
Currently, there is large number of pharmaceutical sales reps in India pursing the pharmaceutical prescribes. A given pharmaceutical representative will often try to see a physician every few weeks. Representative often have a call list of about 200 physicians with 120 targets that should be visited in 4-6 week cycles.
D. Patients:
Since the 1980’s new method of marketing for prescription drugs to consumers have become important. Patients are far less deferential to doctors and will inquire about or even demand, to receive a medication they have seen advertised on television.
Thus by developing a proper marketing strategy for its product a pharmaceutical enterprise can succeed in this highly competitive business scenario.
C&F AGENCY
1. Number of distributor to whom, the products are supplied by CFA.
The total distributors to whom the CFA cater to 40% are from Ranbaxy, 35% from HLL, and the rest 25% are from Nestle. CFA’s major area of focus is Ranbaxy, because the monthly turnover of Ranbaxy is much higher as compared to the other two companies.
Doctors 2. Preferred pharmaceutical companies of the doctors.
The total doctor interviewed 23% preferred cipla, 23% preferred emcure, 22% Ranbaxy, and 32% preferred other companies like Pfizer, United Biotech, Astra and Torrent.
Page 34 of 75 Chemists 3. Mode of payment followed by chemists:
Majority of the chemists surveyed preferred both credit as well as cash payment.
Average credit period given by distributors:
The majority of the chemists surveyed had a credit period ranging from twenty two to thirty days.
5. Percentage of over the counter (OTC) sales to total sales to total sales:
Out of the chemists surveyed by the researcher maximum chemists had over the counter sales of ten to twenty percent of their total sales.
Distributors:
6. Best companies with respect to settlement of issues.
According to survey sun pharma is the best company in term of settlement of issues which could be in matter relating to settlement for breakage, expiry etc.
7. Bodies preferred by distributors in settlement of their issues.
The majority of the distributors prefer government agencies for the settlement of their issues.
Conclusion
C&F Agent
1. There is a standardized mode of operation in the CFA.
2. C&F Agent do not process any order which are not accompanied with a cheque of payment, thereby eliminating any risks of non payment.
3. The structure of CFA facilitates easy transport of products when required.
Page 35 of 75 Stockiest
1. The number of stockiest agent of a company depends on its market.
2. The stockiest gives discount to the chemists on volume purchase and cash purchase.
Chemist
1. Chemists purchase decision totally depends on the prescription of the doctors and it also depends on the demand from the consumer.
2. Chemists maintain product availability near the prescribing doctor to translate the prescription into sale.
3. Many patients often rely on chemists for medical advice. As a result, powerful drugs are routinely, and illegally, sold over the counter by chemists thereby making them strong influencers.
Suggestions
Company should keep upgrading the knowledge and skill of their representatives and executive. Company should have a greater interaction with the retailers & stockiest. Company should have more activities with the doctor in order to promote the brand and also create greater brand recognition. Maximum effort should be placed by the representative to improve company image and build on the goodwill which has already been generated. Company should take frequent review and feedback by mass survey of retailer as well as distributor. Chemists must be given a lot of value added service like free health camps, free gift, lucky draw schemes etc. The presentation skill of the medical representatives should be excellent as the majority of the business rests on their shoulder and how they are able to convince the doctor, they should be frequently appraised on the same.
Page 36 of 75 Limitation of the study
The prospects of the study were tampered due to the following reasons:-
1. The project was required to be complete within a short period therefore time constrained was a major hurdle.
2. The majority of respondents were reluctant to share information which hampered getting information.
3. Our own knowledge of the subject was minimal, which made it difficult for us to understand certain aspects of pharmaceutical industry.
Research Methodology
Marketing research is systematic gathering, recording and analysis of data collection of techniques to access the response to various parameters related to a given project and accordingly prepare a report based on which the company can make decision .The objective of the research is to find out correct scenario of pharmaceutical industry in relation to various parameter. The opportunities in it after defining the research objective, the second stage of marketing research is developing the research plan and work in it.
Research plan:
The entire process of study was divided into following categories. 1. Field work 2. Desk research 3. Analysis 4. Report writing
All above categories are important and dealt appropriately while doing project work.
1) Field Work:
This involves the meeting with the chemists, stockiest, company C&F agent and taking interview about the subject.
2) Desk Research:
Data sources- for the purpose of this, project data was collected from primary and secondary sources.
Page 37 of 75 Primary data was collected from chemists, stockists, company C&Fagent.The secondary data collected from the internet and magazines and books. In addition to this, observations were done while working with M R.
3) Analysis:
This data is then summarized and try to find out problem in distribution channels and try to Give suggestion.
4) Report writing:
The last step is report writing that consist presentation of data, conclusion nearly and orderly.
Method of data collection
A structured questionnaire was prepared and on the basis of that questionnaire data was collected. To collect appropriate data the research surveyed 25 Chemists, 6 stockiest Ranbaxy C&F agent and 7 Doctors. And observations were made while doing field work with the marketing executives.
Research Approach- Through survey Research Instrument- Questionnaire Form of questions- Structured questionnaire & observations Sample unit- Chemist, stockiest, C&F agent & doctors Sample area- Pune Contact method- Personal interview
Page 38 of 75
LEADING COMPANY ANALYSIS RANBAXY
About The Company In Brief
Mission
“To become a research based international pharmaceutical company and be premier community based organization in primary health care to achieve ‘health for all’ in our service areas’.
Company The Indian pharmaceutical industry is at center stage in the global healthcare arena and ranbaxy endeavors to be at the forefront in delivering the India centric advantages to the advanced and developing countries of the world.
From a small domestic company at inception, Ranbaxy has grown formidably to be a billion dollar institution that was envisioned by late Dr Parvinder Singh, chairman and managing director, Ranbaxy in early 90’s.
Ranbaxy laboratories limited, is one of Indian’s largest pharmaceutical company, headquartered in India, it is an integrated, research based , international pharmaceutical company, producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies
It is ranked amongst the top ten generic companies worldwide. The company has manufacturing operations in 7 countries with a ground presence in 46 countries and their products are available in over 125 countries.
Ranbaxy was incorporated in 1961 and went public in 1961 and went public in 1973. For the twelve months ended dece mber 31, 2005, the company’s global sales were at US $1178 mn*.Overseas market accounted for 75% of global sales. The company’s largest market USA with the sales of US $332, accounted for 28% while Europe and BEIC (Brazil, Russia, India, China) countries contributed 17%and 29% to global sales.
Ranbaxy has an expanding international portfolio of affiliates, joint ventures and representative office across the globe with a presence in top 10 pharmaceutical markets of the world such as USA,Japan,Germany,France,UK,Italy,Spain,Canada,China and Mexico along with strong operation in India, Brazil and South Africa. Additionally it has a presence in 22 of the 25 EU countries.
Page 39 of 75 While Ranbaxy aggressively pursues its internationalization strategy, it focuses equally on growth through the enhancement of its market share in India. A strong market presence and a significant distribution network give the company an edge over its competition .A balanced geographical presence coupled with a strong product flow from a wide therapeutic range serve as the business building block of the company.
Research & Development (R&D)
Ranbaxy is among the few Indian pharmaceutical companies to recognize the important of research & development (R& D) and invest early in it. The first basic research activity was initiated way back in the year 1973. Later when Ranbaxy drew its ambitious global plans, it embarked on R&D in a significant way by establishing its first R&D center in gurgaon ( on the outskirts of New Delhi, India) in 1994.
With the commissioning if its new R&D center, in august 2005, Ranbaxy now has in place, a total of three modern state-of-the-artmulti-disciplinary research facilities, in the same campus at gurgaon (near New Delhi),India.Ranbaxy views its R&D capabilities as a vital component of its business strategy that will provide the company with a sustainable, long-term competitive advantage. The company today has a pool of 1,100 scientists who engaged in path-breaking research.
Amongst the pharmaceutical companies in India.Ranbaxy has the largest R&D budget with an R&D spend of 7% of sales in 2004. The company plans to progressively increase its investment in R&D to 9%-10%of sales by 2007.
Physical distribution
With a strong focus on prompt customer service.Ranbaxy distributes its product either directly or through 150 stockiest located in various regions throughout the country.
Sales and marketing
The company has an organized marketing and sales team to reflect better alignment of product/field deployment with the therapeutic area concept to bring synergies in marketing efforts.
Ranbaxy operates in India through its marketing divisions which are as follows:
Pharma Stan care Crossland Rextar Ranbaxy CV Super specialty Dreamland Maxim URO Rexcel CV life Page 40 of 75 Asthma Solus
Ranbaxy Cardio Vascular
The company’s vision is to achieve significant business in proprietary prescription product by 2012 with a strong presence in developed market. It also aspires to be amongst the top 5 generic players in US with $5 Bn in sales by 2012.
To translate these objectives into reality and to optimize value creation, the company has adopted a multi-pronged strategy. Entering high potential new markets with value added product offering and actively seeking overseas acquisition opportunities in the US & in EUROPE will be the major thrust areas for Ranbaxy, in the coming years.
Together with the commitment of a 9,000 strong multicultural workforce, Ranbaxy continues to aggressively pursue its mission to become a research-based international pharmaceutical company. Ranbaxy is always at the forefront in addressing healthcare needs of countries it operates in.
Golden peaks-
1961- Company incorporated
1973- Ranbaxy goes public.
1977- Ranbaxy’s first joint venture in Lagos (Nigeria) is setup.
1983- A modern dosage form facility at dewas (MP) in India goes on stream.
1984- Ranbaxy research foundation is established.
Stancare, Ranbaxy’s second pharmaceutical marketing division, starts functioning.
1987- Production start-up at the Toansa (Punjab), makes Ranbaxy the country’s largest manufacturer of antibiotics/antibacterial.
1988- Ranbaxy’s Toansa plant gets US FDA approval.
1990- Ranbaxy is granted US patent for Doxycyline.
1991- New state-of-the-art facility for cephalosporin set up at Mohali US patent granted for
cephalosporin.
1992- Company enters into an agreement with Eli Lilly & Co of USA for setting up a joint venture in China Ranbaxy (Guangzhou China) limited. Ranbaxy enunciates its corporate mission to based a research based international pharmaceutical company.
Page 41 of 75 1993- The new research center at Gurgaon (New Delhi), become fully operational.Establised regional headquarters in London (USA) and Raleigh (USA).
1994- Ranbaxy’s Acquires Ohm laboratories, a manufacturing facility in the US.
1997 - Ranbaxy laboratories limited crosses a sales turnover of Rs 10,000 million, with its exports reaching an all time high of RS 5,000 million.
1998- Ranbaxy enter USA, world’s largest pharmaceuticals market, with products under its own name.
1999- Buyer AG, Germany and Ranbaxy sign an agreement where Bayer obtains exclusive development and worldwide marketing right to an oral once daily formulation of ciprofloxacin, originally developed by Ranbaxy.
2000- Ranbaxy acquires Bayer’s Generics business (trading under the name of basics) in Germany. Ranbaxy forays into Brazil, the largest pharmaceutical market in South America and achieves global sales of US $2.5 million in this market.
2001- Ranbaxy took a significant step forward in Vietnam by initiating the setting up of a new manufacturing facility with an investment of US $10 million. Ranbaxy achieved a turnover of US $600 million for the year 2001 and moved closer to achieving the target of billion dollars by 2004.
Ranbaxy USA crosses sales of US $100 million, fastest growing company in the US.
2003- Ranbaxy receives The Economic Times Award for corporate Excellence for ‘the company of the year, 2002-2003’.
2004- Ranbaxy successfully invalidates Pfizer’s 995 Lipitor US patent. Ranbaxy acquires unbranded generic company, after acquiring a wholly-owned subsidiary RPG (Avetis) SA.
The company joined the elite club of Billion Dollar companies, achieving global sales of US $1 Bn (on MAT basis) in February 2004.
2005- Ranbaxy launches operations in Canada.
Ranbaxy’s joint venture with Nippon Chemiphar in Japan (Nihon Pharmaceutical industry limited) launches- Vogseal for diabetes, the first product of the joint venture.
Ranbaxy opens its third state of the art R&D facility in Gurgaon campus H.E. DR .A. P J Abdul Kalam, the president of India, inaugurated the facility in Aug 05.
2006- Ranbaxy successfully invalidates Pfizer’s 995 Lipitor US patent.
Ranbaxy acquires unbranded generic business of GSK in ITALY & SPAIN.
Ranbaxy acquires the leading Romanian Pharma company Terapia for US $324Mn.
Ranbaxy successfully invalidates Atorvastatin patent in Austria.
Page 42 of 75 Ranbaxy places US$ 440 Mn FCCB (Foreign currency convertible bonds) issue, the largest in healthcare segment in India.
Ranbaxy enters into a strategic alliance with Zenotech for its basket of oncology product to be marketed under the Ranbaxy brand in various global markets. Cipla Ltd company profile
India’s second largest pharmaceutical firm Cipla Ltd, edged out the multinational giant GlaxoSmithKline which was reigning supreme in the country for long, in terms of drug sales last year.
Consistently maintaining a fast-track growth momentum, Cipla has registered an 80-percent jump in net profit for the quarter ended on March 31 2006, driven by growth in domestic sales and exports.
In the fourth quarter, Cipla posted a net profit of 1.90 billion rupees. Net sales grew 63 percent to 8.7 billion rupees. Cipla's exports in the quarter grew 63.7 percent while domestic sales rose 56.4 percent. Cipla anticipates 15 to 20 percent growth in this year.
Cipla Limited: Background
Based in India’s commercial capital Mumbai, The Chemical, Industrial & Pharmaceutical Laboratories, currently Cipla was founded by Khwaja Abdul Hamied in the year 1935.
K A Hameid gave the company all his patent and proprietary formulas for several drugs and medicines, without charging any royalty. On August 17, 1935, Cipla was registered as a public limited company with an authorised capital of Rs 6 lakhs. Cipla started markeing its product on September 22, 1937.
Today, Cipla is a leading player in anti-infective and anti-asthmatic formulations. The company also specializes in the manufacturing of steroids and hormones. Cipla manufactured ampicillin for the first time in the country in 1968. In 1983, Cipla developed two anticancer drugs, vinblastine and vincristine from the common garden plant Vinca rosea in association with the National Chemical Laboratory. The company pioneered the manufacture of the antiretroviral drug, zidovudine, in technological collaboration with Indian Institute of Chemical Technology in 1993. In 1997 Cipla became the first company in the world by launching transparent Rotahaler, a dry powder inhaler device. In 1998 the company launched lamivudine, and became one of the few companies in the world to offer all three component drugs of retroviral combination therapy (zidovudine and stavudine already launched).Cipla received clearance from the Drugs Controller General of India to manufacture and market the country's first non-nucleoside reverse transcriptase inhibitor (NNRTI), nevirapine, for the treatment of AIDS.
Cipla Ltd.: R&D
Cipla's R&D division focuses on the development of new products and new drug delivery systems across a range of therapies. The company is spending over 4 per cent of its total turnover on R&D activities. It filed 55 ANDAs during 2004-05 and received approval for 11 products from US FDA. Page 43 of 75 The company supplies drugs to treat over 2 lakh HIV-positive patients worldwide. The company has also been among the major suppliers of anti-malarial drugs and drugs for schistosomiasis to international markets. It has a research alliance with a Bangalore-based biotech company Avesthagen, to develop biotherapeutic products.
Cipla Ltd.: Board of Directors
Chairman & Managing Director Dr. Y.K. Hamied
Joint Managing Directors Mr. M.K. Hamied Mr. Amar Lulla
Non-Executive Directors Dr. M.K.Gujar Mr. V.C. Kotwal Dr. H.R. Manchanda Mr. S.A.A. Pinto Mr. M.R. Raghavan Mr. Ramesh Shroff
Manufacturing and R&D facilities
Mumbai
Corporate Office and R& D centre for formulations
Vikhroli Manufacturing of bulk drugs & formulations (Liquid Orals, Aerosols), R&D bulk drugs & formulations
Bangalore
Manufacturing of bulk drugs & formulations (R&D Bulk drugs) Approved by US FDA (for bulk drugs); WHO
Patalganga
Manufacturing plant for bulk drugs & formulations (R&D Bulk drugs)
Kurkumbh
Manufacturing facility for bulk drugs & formulations (R&D Bulk drugs)
Page 44 of 75 Goa
Manufacturing set up for formulations
Baddi, Himachal Pradesh
Manufacturing of tablets & capsules, formulations
Products
Cipla has the largest product basket among all the pharmaceutical players in India ranging from prescription to OTC to animal health, besides a big kitty for active pharmaceutical ingredients (APIs) or bulk drugs.
Prescription
Amoebicides/Antiprotozoals Anabolic steroids Anaesthetics Analgesics/Antipyretics Antacids Anthelmintics Anti-inflammatory drugs Anti-TB drugs Antiacne drugs Antiallergic drugs Antialzheimer drugs Antiasthma drugs Antibiotics and Antibacterials Anticancer drugs Anticoagulants and Antiplatelet agents Antidepressants Antidiabetics Antidiarrhoeals Antiemetics/Antinauseants Antiepileptic drugs Antiflatulents Antifungals Antigout drugs Antimalarials Antimigraine drugs Antiobesity drugs Antiosteoporotic agents Antiparkinsonian drugs Antipsychotics Antispasmodics Antiulcerants Antivirals Anxiolytics Appetite stimulants Asthma related devices Cardiovascular agents Cerebral vasodilators Page 45 of 75 Cholesterol reducers Digestive supplements Diuretics Erectile dysfunction therapy Expectorants/Cold preparations/Mucolytes Eye and ear preparations Haematopoietic drugs Haemostatics Hematinic preparations Hepatobiliary drugs Hormone replacement therapy Hormone-related drugs Hypnotics Immunosuppressants Iron chelators Laxatives Muscle relaxants Narcotic analgesics Nasal preparations Neuromuscular blocking agents Nutritional supplements Peripheral vasodilators Rectal preparations Systemic corticosteroids Topical corticosteroids Topical preparations Urological products Uterine stimulants
OTC
Cipla’s over-the-counter drugs portfolio comprises the following segments
Analgesics - Oral Artificial Sweetener Calcium Preparations Child Care Cold & Flu Constipation Cosmetics & Skin Care Dental Care & Oral Hygiene Diarrhoea Food Supplements Indigestion Infant Food Medicated Plasters Medicated Shampoos New Products to be Launched Others Protein Supplement Soar Throat & Cough Toiletries
Page 46 of 75 Tonics Urinary Alkalinizer
Cipla: Future Outlook
Cipla keeps the steady momentum of growth with an overall growth of more than 57% in income from operations for the quarter ended March 2006. Currently, we are one of the largest exporters of pharmaceutical products in India, exporting APIs and formulation products to more than 160 countries including the U.S., and a number of countries in Europe, Africa, Australia, Latin America and the Middle East.
Both the international as well as the domestic business have recorded a growth of more than 56% and 63% respectively, in the last quarter. All the major segments including anti-asthmatics, cardiovascular and anti-biotics/bacterials segments have shown good performance in the domestic market.
In the exports markets, anti-retrovirals, anti-malarials, anti-asthmatics, anti-depressants and cardiovascular segments have performed well.
In April 2006, Cipla raised US$ 170 million (Rs. 762.20 crores) through an issue of 1,10,46,310 Global Depository Receipts (GDRs). Each GDR represents one equity share of Rs.2 each and was priced at US$ 15.39 (equivalent to Rs.690). The said GDRs have been listed on the Luxembourg Stock Exchange and the Company has already applied to Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE) for having the underlying shares listed.
The Board of Directors recommended the issue of bonus shares in the ratio of three shares for every two shares held and the shareholders have approved the same through a postal ballot on 21st March, 2006.The record date for determining the members who are entitled to the bonus shares is 25th April, 2006.
Consequent to the issue of GDRs and bonus shares, the paid-up equity share capital will stand increased to Rs. 155.46 crores.
Cipla has created strong reserve position and its reserves touched to Rs 1493.66 crore during the year ended March 2005. It has reduced its investments in the mutual funds drastically during 2004-05 which declined to Rs 18.30 crore from Rs 180.37 crore to part finance its ongoing expansion programmes.
As Cipla turns 70, the company is set to achieve further improvement with commissioning of its expansion projects and launching of new products. It has 140 ongoing projects with five companies in the US. It has a strategic alliance with the US generics major Watson, IVAX, Eon etc. Its alliance partners have filed 31 ANDAs and it is expected that they will filled additional 35 ANDAs in the next 12-15 months.
Shareholding Pattern
Page 47 of 75 The company has an equity capital base of Rs. 60.2 crore and the number of shares outstanding amount to 6.02 crore. The face value per share is Rs. 10 and the current market price is hovering around Rs. 1,075. The market capitalisation as on May 14, 2001 was Rs. 6468.27 crores. The promoters are holding 41.2% stake in the company. The free float available in the market is 46.8%.
Board of Directors
Dr Y K Hamied-Chairman & Managing Director M K Hamied - Whole Time Director H Chawla - Whole Time Director Amar Lulla - Whole Time Director D R Narang - Director Dr H R Manchanda - Director S A A Pinto - Director Ramesh Shroff - Director V C Kotwal - Director B K Khare - Director
Business Overview
The present businesses of Cipla can be broadly classified into:
• Domestic branded formulation sales (74% of total sales; 19-20% operating profit margin) • Domestic unbranded formulation sales (7% of total sales; over 10% operating profit margin) • Exports (19% of total sales; around 38-40% operating profit margin). Breakup of exports is as follows: o Europe (25%) o US (32%) o Africa (17%) o Middle East (14%) o Asia (7%) and o Australia (5%)
Cipla has been relatively low profile on its R&D initiatives compared to the domestic peers, all of whom have set their sights on discovering new chemical entities (NCEs). But lately, R&D spend of Cipla has increased by 25% to Rs. 300 mn (4% of sales) and the company has an R&D team of 200 people. In future the R&D expenditure is expected to grow at a faster pace compared to sales and might rise to over 5% of sales.
The business environment for Cipla has become highly competitive in the last few years. The major factors affecting Cipla are as folows:
• New Drug R&D costs are prohibitive, which has made MNCs to spread their R&D costs through Page 48 of 75 Mergers / Acquisitions. • In Indian Pharmaceutical Sector prices of over 60% of the Drugs/Formulations is controlled by the government through DPCO. For Cipla DPCO coverage is around 55% • Low entry barriers in the bulk drugs market has led to a situation of over-capacity, which has made major domestic players, shift their focus towards formulations segment. As a result Cipla , which is earning nearly 80-85 percent of its sales from formulations is facing increasing competition.
• With the focus on post 2005 era, MNCs are strengthening their position in India through marketing tie-ups with local majors and fully owned subsidiaries. This can lead to even higher degree of competition.
The management of Cipla has consistently demonstrated its vision in backing the right strategy and consistently de-risking the business. This is reflected in the choice of therapeutic groups and the individual products that it has focussed on, the marketing route adopted for its export business and the kind of R&D projects taken up by the company. All this has translated into superior topline growth, higher profit margins and one of the most impressive returns on equity among its peers.
Exports will be the key growth driver in the coming years - The exports of the company are expected to move up from 19% of sales in FY00 to 40-50% of sales by FY05.
Increase in the R&D efforts - R&D spend of Cipla increased by 25% to Rs. 300 mn (4% of sales) and the company has an R&D team of 200 people. Going forward, the R&D spend will grow at a faster pace compared to sales and rise to over 5% of sales.
Performance of Segments
The sales breakup for the FY99 and FY00 is as follows:
Percentage Period ended 03/99 03/00 change Sales value(Rs mn) Aerosols 607.2 770.2 +26.84% Chemicals 981.7 1,208.2 +23.07% Creams 109.6 166.6 +52.01% Injections 337.8 449.2 +32.98% Liquids 290.7 365.9 +25.87% Tablets & capsules 3,843.5 4,632.9 +20.54% Others 1.1 4.3 +290.91% Sales volume(unit) Aerosols (000 Nos) 8,887.2 11,093.0 +24.82% Chemicals (Ton) 474.9 540.4 +13.79%. Creams (Ton) 106.6 205.3 +92.59% Injections (000 Litres) 287.8 416.0 +44.54% Liquids (000 Litres) 1,944.8 2,523.5 +29.76% Tablets & capsules (Million) 2,966.4 3,490.9 +17.68% Unit realization (Rs/unit) Page 49 of 75 Aerosols (000 Nos) 68,321 69,430 +1.62% Chemicals (Ton) 2,067,242 2,235,775 +8.15% Creams (Ton) 1,028,021 811,710 -21.04% Injections (000 Litres) 1,173,787 1,079,813 -8.01% Liquids (000 Litres) 149,480 145,012 -2.99% Tablets & capsules (Million) 1,295,675 1,327,145 +2.43%
Products
Main brands, as % of retail sales, are:
Market Therapeutic Growth Brand % sales DPCO share (%) segment (% yoy) Ciplox 8.9 8.3 Anti-infective 4.5 Y Norflox 7.6 7.1 Anti-infective 5.0 Y Novamox 7.0 5.4 Anti-infective (7.5) N Asthalin-Inh 3.9 7.5 Anti-asthmatic 17.5 Y Novaclox 3.8 2.9 Anti-infective 15.0 Y Aerocort 3.2 6.1 Anti-asthmatic 22.5 Y Cefadur 3.2 2.8 Anti-infective 30.0 Y Asthalin 3.2 6.0 Anti-asthmatic 7.5 Y Ciplox-TZ 2.6 18.5 Intestinal disinfection 40.0 Y Theo Asthalin 2.5 4.8 Anti-asthmatic 12.0 Y Norflox-TZ 2.4 24.1 Intestinal disinfection 21.2 Y Ibugesic Plus 2.4 2.0 Anti-inflammatory 17.5 Y Restyl 2.0 7.0 Tranquilizer 17.0 N
SWOT Analysis Strengths:
Cipla has a voluminous product portfolio containing more than 200 brands some of which are the leading brands in their respective category. The company has excellent process R&D skills which are considered to be one of the best in the country. The company has an extensive distribution network. Weaknesses:
The company's margins have fallen during the last two years. The main reason for this has been an increase in the cost of raw materials. The company does not have a well defined succession plan and this could lead to leadership gap in the future. Opportunities:
The relaxation of DPCO will be a big boost for the company and this might improve the profit margin as 55% of the company's sales are regulated by DPCO. The company has already made ANDAs (Abbreviated new drug application) in USA and it provides a great opportunity for growth for the company. Threats:
The entry of foreign players will pose a major threat to the company. Page 50 of 75 The lack of focus on basic R&D could pose problem in post-patent regime.
LUPIN PHARMACEUTICALS
History & Milestones
Year Milestones 2009 Lupin acquired majority stake in Multicare Pharmaceuticals Philippines Inc.
2008 Lupin expanded its product basket in Japan-Kyowa and received ten products approval from Ministry of Health & Labour Welfare, Japan.
Lupin acquired Hormosan Pharma GmbH, a Generic Company in Germany.
Lupin acquired stake in Generic Health Pty Ltd., in Australia.
Lupin acquired Pharma Dynamics in South Africa.
2007 Lupin acquired Vadodara based Rubamin Laboratories Ltd (rechristened to Novodigm Ltd).
Lupin acquired Kyowa Pharmaceutical Industry Company Limited, a leading Generic Company in Japan.
Commercial production was started at the New finished dosage facility at Jammu.
Lupin received “Best new manufacturer of the year” award from Amerisource Bergen.
2006 A new facility was set up at Jammu.
Maiden Bonus share were issued in the ratio of 1:1.
Maiden issue of Foreign Currency Convertible Bonds (FCCB) aggregating US $100 mn, which are listed on Singapore Stock Exchange.
2005 Maiden Employees Stock Option Plan was implemented.
US FDA and MHRA (UK) approvals were received for Goa.
New Lovastatin plant at Tarapur was approved by the US FDA.
2004 WHO approval was received for State of the art formulation Plants at Goa and Aurangabad.
Page 51 of 75 2003 Lupin had successfully implemented SAP ERP across the Company to unify all business functions and processes.
Introduced collaborative messaging and workflow solution on the intranet.
Oral Cefaclor injectible Plant at Mandideep was approved by US FDA.
Lupin Pharmaceuticals Inc. USA, was formed for trading, marketing and developmental activities in the US.
2002 Exports to the Advanced Markets crossed Rs.1000 mn.
Rising trend of exports as a % of total revenue – up 33% year-over-year.
Patent filings crossed 100.
Five ANDAs were filed.
New Anti-TB facility was commissioned at Aurangabad.
Rablet was rated by ORG-Marg as the second best launch of FY 2002-03.
2001 Lupin became the only Asian Pharmaceutical company to receive US FDA approvals for its sterile cephalosporin facility.
A state of the art US FDA approvable oral cephalosporin bulk active plant was commissioned.
State of the art R&D Centre at Pune was commissioned.
Lupin commenced supply of Cephalosporin bulk actives to its alliance partners in the US.
Lupin Laboratories Ltd was amalgamated with Lupin Chemicals Ltd, whose name was changed to Lupin Limited.
2000 The Cefotaxime facility was approved by the US FDA.
The Company’s restructuring operations yielded encouraging results.
Work commenced on the R&D Centre at Pune.
1999 Lupin’s injectable cephalosporin bulk active plant at Mandideep was approved by UK MCA.
1997 Lupin’s injectable Cephalosporins dosages plant at Mandideep obtained UK MCA approval.
Lupin’s formulations facility at Aurangabad was upgraded.
Three plants of Lupin, manufacturing Cefaclor at Mandideep, 7 ACCA at Ankleshwar and Rifampicin at Tarapur, got US FDA approvals.
ICMA Technology award was given for injectable Cephalosporins.
1996 Government of India conferred the ‘Best Exporter’ Award on Lupin.
Company received the ICMA Technology award for injectable Cephalosporins.
1992 Fermentation Plant of Lupin Chemicals Ltd was established at Tarapur, Maharashtra.
Sterile Plant for injectable Cephalosporins (bulk) was commissioned at Mandideep.
Lupin Laboratories Ltd and Lupin Chemicals Ltd raised money through IPOs in 1993-94.
Page 52 of 75 Won FICCI’s award for contribution towards rural development.
1991 Injectable cephalosporin (bulk and dosages) production was initiated at Mandideep.
Lupin won the ICMA technology award for successfully manufacturing Vitamin B6.
1989 Joint venture in Thailand – Lupin Chemicals (Thailand) Ltd was established.
Two Plants Ankleshwar and Mandideep received US FDA approvals for maintaining stringent quality standards.
1988 The Lupin Human Welfare and Research Foundation (LHWRF) was founded by Dr Desh Bandhu Gupta to provide an alternative, sustainable and replicable model of rural development.
1987 Cephalexin Plant at Mandideep and 7 ADCA plant at Ankleshwar went on stream.
1981 Ethambutol production was started
1980 Lupin commissioned a formulations plant and an R&D center at Aurangabad.
1972 Lupin Laboratories Pvt Ltd was incorporated.
1968 Lupin commenced business.
Corporate Overview
Headquartered in Mumbai, India, Lupin Limited today is an innovation led transnational pharmaceutical company producing a wide range of quality, affordable generic and branded formulations and APIs for the developed and developing markets of the world. Dr. Desh Bandhu Gupta’s vision and dream to fight life threatening infectious diseases and manufacture drugs of highest national priority led to the formation of Lupin in the year 1968. His Vision, his inimitable commitment and verve have steered Lupin to achieving the distinction of becoming one of the fastest growing Generic players globally.
Lupin first gained recognition when it became one of the world’s largest manufacturers of Tuberculosis drugs. Over the years, the Company has moved up the value chain and has not only mastered the business of intermediates and APIs, but has also leveraged its strengths to build a formidable formulations business globally.
The Company today has significant market share in key markets in the Cardiovascular (prils and statins), Diabetology, Asthma, Pediatrics, CNS, GI, Anti-Infectives and NSAIDs therapy segments, not to mention global leadership positions in the Anti-TB and Cephalosporins segments. The Company’s R&D endeavours have resulted in significant progress in its NCE program. The Company’s foray into Advanced Drug Delivery Systems has resulted in the development of platform technologies that are being used to develop value-added generic pharmaceuticals.
Our Drugs and products reach over 70 countries in the world. Today, Lupin has the unique distinction of being the fastest growing top 10 Generics players in the two largest pharmaceutical markets of the world – The U.S (ranked 9th by prescriptions & growing at 92 %) and Japan (ranked 7th and growing at 23%). The company is also the fastest growing, top 5 pharmaceutical players in India (ORG IMS - March 2009) and the fastest growing Generic player in South Africa (ranked 6th and growing at over 30 % annually.- IMS March 2009)
Lupin’s world class manufacturing facilities, spread across India and Japan, have played a critical role in enabling the Company realize its global aspirations. Benchmarked to International standards, these facilities are approved by international regulatory agencies like US FDA, UK MHRA, Japan’s MHLW, TGA Australia, WHO, and MCC South Africa.
Going forward, our research backbone, best-in-class class manufacturing capabilities, marketing and servicing depth globally will stand us in good stead. The company will continue to focus on identifying and developing niche segments, a differentiated product portfolio in all its chosen markets backed up by strategic partnerships and in-licensing, and investment in new areas such as biosimilars - well on-course to becoming a top 10 global generics powerhouse.
MISSION Page 53 of 75 Guided by its mission to become an Innovation led, Transnational Pharmaceutical Company, Lupin’s scientific pool of close to 450 researchers constantly strive to develop new technologies and products.
Lupin Research Park (LRP) at Pune, spread across 19 acres is the hub of the Company’s research activity. The Centre harbours a culture that fosters innovation and helps shape inventions into innovative commercial products.
Today, the Company has the proficiency to develop a wide range of pharmaceuticals, across the value chain encompassing complex APIs to value-added difficult-to-develop formulations. During 2007-08, the total investment of the Company in R&D (excluding depreciation) was over Rs.2,000 mn, 7.5% of consolidated net sales.
Vision
“To be an Innovation - led Transnational Pharmaceutical Company”
• Superior Performance • Integrity • Entrepreneurship • Customer Orientation • Working Together • Respect for People
FINANCIAL CONDITION Data as on: 11 Nov 2009 12:13 India time Shares issued: 86171140 Market capitalization: Rs 115,383.16 million
52 week high Rs 1,380.00 52 week low Rs 518.00 52 week high date 10 Nov 2009 52 week low date 17 Nov 2008 Avg price (50 day) Rs 1,237.97 Avg volume (50 day) 51245 Avg price (200 day) Rs 1,001.11 Avg volume (200 day) 46316
Business Development and Partnerships
At Lupin, we strive to help people lead healthier lives through delivering affordable and accessible medication to patients across the world. We are engaged in discovering, developing and commercializing innovative medicines that satisfy unmet medical needs.
We recognize the contributions made by our partners in achieving this objective and believe in leveraging successful partnerships in the areas of
Page 54 of 75 discovery, technology, products and commercial operations.
Over the years we have executed several business development transactions including product in/out-licensing, co-development agreements, technology licenses, joint ventures, and acquisitions – that are collectively enabling Lupin to make medical treatment accessible to a larger patient population across the globe.
Our Strengths are:
• Fully Integrated pharmaceutical company • Strong Research Base in the areas of Generics, New Chemical Entity, Novel Drug Delivery Systems, New Biological Entity, research • World Class GMP Compliant Manufacturing Facilities approved by international regulatory agencies • Sound Technology Base and expertise to scale up technology to deliver innovative products • Strong Global Footprint : USA, India, Japan, Australia, UK, Germany, CIS • Large Dynamic Sales Force
• Robust Distribution Network
General Awards
Year Awards 'Wal-Mart Supplier Award of Excellence' for overall commitment, performance, on-time shipping, innovative 2008 programs and overall partnership.
Amerisource Bergen, one of the largest and leading wholesalers in the US conferred the “Best New 2007 Manufacturer of the Year, Generics Rx” to Lupin Pharmaceuticals Inc.
Cardinal Health conferred two awards – the “Trade Representative of the Year” and the “Quality Supplier
Award” to Lupin Pharmaceuticals Inc. ALKEM LABORATORIES
INTRODUCTION
Alkem Laboratories Ltd. is one of India's top ten pharmaceutical companies with a turnover of US$220 million. The company is engaged in manufacture and marketing of pharmaceutical formulations, neutraceuticals and food additives.
Alkem's products are widely prescribed by the medical profession in India and some of the Indian Pharma industry's top brands are Alkem brands. Taxim (Cefotaxime) Alkem's No.1 brand is amongst top 5 brands of the Indian Pharmaceutical Industry. The genesis of Alkem growth has been organic i.e. by building mega brands. This is one of the major areas of core competence in Alkem.The Company has UKMHRA and MCC approved manufacturing facilities. Alkem products are exported to around 40 countries worldwide including regulated European markets.
Alkem - The Indian Pharma major is rapidly moving towards globalization. After significant research Alkem extends its endeavor in global health food market. Sucralose and inulins (55% FOS) are being manufactured through dedicated manufacturing facilities.
Page 55 of 75 ABOUT THE FOUNDER Shri Samprada Singh is one of the most respected and successful entrepreneurs of the Indian Pharmaceutical industry. Currently, Shri Samprada Singh is the Chairman of the Alkem Group of Companies which produces a turnover of US $ 250 mio. Shri Samprada Singh's success is noteworthy since he started his enterprise from scratch and through tremendous dynamism, vision and leadership, he has managed to turn it into a premier company in the Indian Pharmaceutical Industry. Alkem Laboratories Limited, is today the No.6 pharmaceutical company in India. In fact, Alkems products are supplied to approximately 30 countries, worldwide. The credit for this huge success is to be given to none other than Shri Samprada Singh for seeing Alkem through its various stages of progress Today, Alkem is a huge corporate house and a name to reckon with in the Indian pharmaceutical industry.
SHRI SAMPRADA SINGH was born into a family of agriculturists in Bihar. During his high school days, India's struggle for independence had intensified and he was instinctively drawn into this historic cataclysm. Mr. Singh drew his inspiration from his uncle, a freedom fighter, and went onto eschew foreign textiles and choose Khadi, a symbol of patriotism even at the tender age of 13. Mr. Singh also took an active plunge in the 1942 QUIT INDIA Movement. His intense patriotism made him decide at that stage to contribute significantly to his beloved motherland.
Mr. Singh entered Gaya College, Patna University in 1946 to specialize in Commerce. During his four years as an undergraduate, Mr. Singh exhibited his dynamism through various student activities.
It was understood that after his B.Com. Degree from Patna University in 1950, Mr. Singh would join his family activities in the agricultural sector and introduce advanced and modern farming techniques. However, successive draughts in the State of Bihar from 1951 onwards, compelled him to look elsewhere to nourish his entrepreneurial zeal. In 1953, Mr. Singh made a small beginning as a Retail Chemist. In 1960, he started a business of Pharmaceutical distribution in Patna under the banner of 'Magadh Pharma'. Due to his sincerity, hard work and affable nature, Mr. Singh was able to acquire the distributorship of several renowned multinationals and soon, successfully built up a sound distribution network in the eastern region of India. Realizing the limitations of expanding in the distribution business, in the year 1972, Mr. Singh became the founder Director of a Bombay based Pharmaceutical company.
Later, Mr. Singh went on to launch a new company of his own, under the name of ALKEM LABORATORIES LIMITED in 1973-74. The sole objective of this venture was to serve his countrymen with high quality and affordable medicines. His brother, Mr. B. N. Singh, a post graduate in Political Science, joined him in this new venture as a Director.
Under the able leadership of Mr. Samprada Singh, ALKEM has shown a spectacular growth. Today, Alkem enjoys a place of distinct honour and respect in the Indian Pharmaceutical Sector.
In the year 2004, Mr. Samprada Singh was honoured with the prestigious "Life Time Contribution Award" by the Express Pharma Excellence Awards, which is reckoned by many as the Oscar of the Indian Pharmaceutical Industry.
In June 2002, Mr. Singh received yet another award. The 'Medicine Update Lifetime Achievement - Health Care Award' went onto honour his achievement in the pharmaceutical industry as one of it's most successful entrepreneurs.
In October 2000, Mr. Singh was conferred upon with the 'Life Time Achievement Award' by Pharma Business and Technology, one of the most distinguished and respected entrepreneurs of the Indian Pharmaceutical industry.
Page 56 of 75 Over the years, Alkem has developed a reputation for its strength in sales and marketing through strong brand building. Alkem has 12 brands listed in the top 300 brands in India, as per IMS. Alkem is rated the No.2 company in the overall antibacterials segment and No.1 in Cephalosporin formulations. Alkem also has significant presence in several other therapy areas such as Gastroenterology, Orthopedics, Oncology, Neuropsychiatry, Cardiovascular and Gynaecology, to name a few. In fact, in several of these segments, Alkem is considered to be a brand leader.
SBUs
Alkem's domestic business is modeled through a strong and established therapy focused Strategic Business Unit's (SBU's)
The following gives the therapy focus of the respective SBU's
Therapy focused SBU's Main Ulticare Bergen Mediva Pentacare Cytomed
Anti-infective Anti- Anti- Cardio Anti- Oncology infective osteoporosis Vascular Parkison's Gastroenterolo HIV gy Anti- Anti-bacterial Anti Diabetic Anti- Therapy protozoal depressants NSAIDs Pain IVF Anti- Management Anti- Nutraceuticals malarial psychotics
Nutritionals Anxiolytics Futura Institutional Alkem Health Derma Alkem Sales Foods Pharma
Branded Generics Public Sector Natural Nutritional Dermatological Bottom of Through trade Govt Institution OTC Health Foods Products Pyramid channels Markets
Whilst the Main Pharma Division, Ulticare and Bergen, are the main revenue generators, the newer specialty divisions, Pentacare (Neuropsychiatry), Mediva (Cardio - Diabeto), Cytomed (Oncology) and dermacare (dermatology) are growing very rapidly and are enhancing their market share in the chronic segment space with a wide range of products in their respective categories.
Page 57 of 75 Page 58 of 75 Alkem Pharma
Mikatax 100 Amikacin Sulphate 100mg
Mikatax 250 Amikacin Sulphate 250mg
Mikatax 500 Amikacin Sulphate 500mg
Nucool MPS Gel Aluminium Hydroxide 250mg + Magnesium Hydroxide 250mg + Dimethicone 50mg / 5ml
Nucool Dried Aluminium Hydroxide Gel 300mg + Magnesium Aluminium Silicate Hydrate 50mg + Magnesium Hydroxide 25mg + Simethicone 25mg.
Zithium Oral Suspension Azithromycin 100 mg / 5ml
Zithium DS Suspension Azithromycin200 mg / 5ml
Zithium 100 DT Azithromycin 100 mg DispersibleTablet
Zithium 250mg Azithromycin 250 mg
Zithium 500mg Azithromycin 500 mg
Broadicillin Drops AmpicillinTrihydrate Equivalent to Ampicillin125 mg /ml
Broadicillin 250mg Capsules AmpicillinTrihydrate Equivalent to Ampicillin250 mg
Broadicillin 500 mg Capsules AmpicillinTrihydrate Equivalent to Ampicillin 500 mg
Broadicillin Dry Syrup AmpicillinTrihydrate Equivalent to Ampicillin125 mg / 5 ml
Broadicillin 100 mg Inj. AmpicillinTrihydrate Equivalent to Ampicillin 100 mg
Broadicillin 250 mg Inj. AmpicillinTrihydrate Equivalent to Ampicillin250 mg
Broadicillin 500 mg Inj. AmpicillinTrihydrate Equivalent to Ampicillin500 mg
Calciperl Calcium Carbonate 1.25gm, from organic source of Oyster shell, eqv to elemental Calcium 500mg+Vitamin D3 125 IU
Calciperl Syrup Calcium Carbonate 625mg eqv to elemental Calcium 250mg+Vitamin D3 125 IU per 5ml
Jakfer Syrup Ferric Ammonium Citrate 160 mg Eqv.to Elemental Iron 32.8 mg + Cyanocobalamine 7.5 mcg + Folic Acid 0.5 mg / 15 ml
Jakfer Syrup Ferric Ammonium Citrate 160 mg Eqv.to Elemental Iron 32.8 mg + Cyanocobalamine 7.5 mcg + Folic Acid 0.5 mg / 15 ml
Alflox 400 Norfloxacin 400mg
Alflox 100 mg DT Norfloxacin 100mg Dispersible Tablets
Omepraz 20 Omeprazole 20mg
Fenceta Ibuprofen 400mg + Paracetamol 500mg
Fenceta Perm Oil Mahanarayan Taila + Gandha Biroja Taila + Erand Beej Taila + Nilagiri Taila + Karpoor + Pudina Taila
Fenceta Suspension Ibuprofen 100mg + Paracetamol 125mg /5ml
Totalderm cream Beclomethasone 0.5% w/w + Neomycin 0.5% w/w + Clotrimazole 1.0% w/w Page 59 of 75
Movace 100 Aceclofenac 100 mg
Movace Plus Paracetamol 500 mg + Aceclofenac 100 mg
Movace SR 200 Aceclofenac 200 mg Sustained Release Tablets
Lycofol Syrup Each 10ml contains: Lycopene 1000 mcg +VitA 1600 IU + Vit E 10 IU + Ascorbic Acid-Vit. C, 50 mg.+Selenium 35 mcg+ Elemental Zinc 3mg + Manganese 2 mg + Iodine 100mcg + Copper 500mcg + Thiamine Hydrochloride 2mg + Riboflavin 3mg+Pyridoxine HCl 1.5mg
Colpep Syrup Chlorpheniramine Maleate 1mg + Sodium Citrate 60mg + Phenylephrine 2.5mg + Paracetamol 125 mg / 5ml
Colpep Phenylephrine 5mg + Chlorpheneramine Maleate 2mg + Caffine 20mg + Paracetamol 500mg
Indikof C Codeine Sulphate 10mg + CPM 4mg / 5ml
Indikof A Dextromethorphan Hcl 10mg+Cetirizine 2.5mg + Menthol 2.5mg / 5ml
Indikof B Ambroxol 30mg + Terbutaline 1.25mg + Guaiphenesin 100mg + Menthol 2.5mg / 5ml
Ronflox OZ Ofloxacin 200mg + Ornidazole 500mg
Ronflox 200 Ofloxacin 200mg
Ronflox 400 Ofloxacin 400mg
Ronflox Suspension Ofloxacin 50mg / 5ml
Diet Protien Liquid Protein, as Protein Hydrolysate, 333mg-Eqv. To 53.28mg of Nitrogen + Vit.B6 0.75mg + D-Panthenol 2.50mg + Niacinamide 22.50mg + Iron Choline Citrate 15.00mg + Zinc,as Zinc Sulphate, 2.66mg + Magnesium Chloride 3.33mg + Manganese Chloride 0.03mg / 5ml
Diet Protien Powder Carbohydrate 71.0g + Protein 23.0g + Calcium 650.0mg + Vit.C 30.0mg + Niacinamide 20.0mg + Magnesium 12.0mg + Iron 5.0mg + Zinc 5.0mg + Vit.B1 3.0mg + Vit.B2 3.0mg + Calcium Pantothenate 3.0mg + Vit.B6 2.0mg + Folic Acid 1.0mg + Iodine 0.1mg + Vit.B12 3.0
Rapirol 20 Rabeprazole 20 mg
Rapirol D Rabeprazole 20 mg + Domperidone 30 mg, 10mg immediate release + 20mg Sustained Released
Rosita XT Suspension Ferrous Ascorbate eqv. To Elemental Iron 30 mg + Folic Acid 500 mcg / 5 ml
Rosita XT Ferrous Ascorbate eqv. To Elemental Iron 100 mg + Folic Acid 1.5 mg
Termipil Mifepristone 200mgTabs
Pregclear Misoprostol 200mcg Tabs
3Cef + 375 Cefoparazone Sodium 250mg + Sulbactum 125mg
3Cef + 750 Cefoparazone Sodium 500mg + Sulbactum 250mg
3Cef + 1.5g Cefoparazone Sodium 1000mg + Sulbactum 500mg
Zenegra 100 Sildenafil Citrate 100mg
Zenegra 50 Sildenafil Citrate 50mg Mikatax 100 Amikacin Sulphate 100mg
Mikatax 250 Amikacin Sulphate 250mg
Mikatax 500 Amikacin Sulphate 500mg
Nucool MPS Gel Aluminium Hydroxide 250mg + Magnesium Hydroxide 250mg + Dimethicone 50mg / 5ml
Nucool Dried Aluminium Hydroxide Gel 300mg + Magnesium Aluminium Silicate Hydrate 50mg + Magnesium Hydroxide 25mg + Simethicone 25mg.
Zithium Oral Suspension Azithromycin 100 mg / 5ml
Zithium DS Suspension Azithromycin200 mg / 5ml
Zithium 100 DT Azithromycin 100 mg DispersibleTablet
Zithium 250mg Azithromycin 250 mg
Zithium 500mg Azithromycin 500 mg
Broadicillin Drops AmpicillinTrihydrate Equivalent to Ampicillin125 mg /ml
Broadicillin 250mg Capsules AmpicillinTrihydrate Equivalent to Ampicillin250 mg
Broadicillin 500 mg Capsules AmpicillinTrihydrate Equivalent to Ampicillin 500 mg
Broadicillin Dry Syrup AmpicillinTrihydrate Equivalent to Ampicillin125 mg / 5 ml
Broadicillin 100 mg Inj. AmpicillinTrihydrate Equivalent to Ampicillin 100 mg
Broadicillin 250 mg Inj. AmpicillinTrihydrate Equivalent to Ampicillin250 mg
Broadicillin 500 mg Inj. AmpicillinTrihydrate Equivalent to Ampicillin500 mg
Calciperl Calcium Carbonate 1.25gm, from organic source of Oyster shell, eqv to elemental Calcium 500mg+Vitamin D3 125 IU
Calciperl Syrup Calcium Carbonate 625mg eqv to elemental Calcium 250mg+Vitamin D3 125 IU per 5ml
Jakfer Syrup Ferric Ammonium Citrate 160 mg Eqv.to Elemental Iron 32.8 mg + Cyanocobalamine 7.5 mcg + Folic Acid 0.5 mg / 15 ml
Jakfer Syrup Ferric Ammonium Citrate 160 mg Eqv.to Elemental Iron 32.8 mg + Cyanocobalamine 7.5 mcg + Folic Acid 0.5 mg / 15 ml
Alflox 400 Norfloxacin 400mg
Alflox 100 mg DT Norfloxacin 100mg Dispersible Tablets
Omepraz 20 Omeprazole 20mg
Fenceta Ibuprofen 400mg + Paracetamol 500mg
Fenceta Perm Oil Mahanarayan Taila + Gandha Biroja Taila + Erand Beej Taila + Nilagiri Taila + Karpoor + Pudina Taila
Fenceta Suspension Ibuprofen 100mg + Paracetamol 125mg /5ml
Totalderm cream Beclomethasone 0.5% w/w + Neomycin 0.5% w/w + Clotrimazole 1.0% w/w
Movace 100 Aceclofenac 100 mg
Movace Plus Paracetamol 500 mg + Aceclofenac 100 mg
Movace SR 200 Aceclofenac 200 mg Sustained Release Tablets
Lycofol Syrup Each 10ml contains: Lycopene 1000 mcg +VitA 1600 IU + Vit E 10 IU + Ascorbic Acid-Vit. C, 50 mg.+Selenium 35 mcg+ Elemental Zinc 3mg + Manganese 2 mg + Iodine 100mcg + Copper 500mcg + Thiamine Hydrochloride 2mg + Riboflavin 3mg+Pyridoxine HCl 1.5mg
Colpep Syrup Chlorpheniramine Maleate 1mg + Sodium Citrate 60mg + Phenylephrine 2.5mg + Paracetamol 125 mg / 5ml
Colpep Phenylephrine 5mg + Chlorpheneramine Maleate 2mg + Caffine 20mg + Paracetamol 500mg
Indikof C Codeine Sulphate 10mg + CPM 4mg / 5ml
Indikof A Dextromethorphan Hcl 10mg+Cetirizine 2.5mg + Menthol 2.5mg / 5ml
Indikof B Ambroxol 30mg + Terbutaline 1.25mg + Guaiphenesin 100mg + Menthol 2.5mg / 5ml
Ronflox OZ Ofloxacin 200mg + Ornidazole 500mg
Ronflox 200 Ofloxacin 200mg
Ronflox 400 Ofloxacin 400mg
Ronflox Suspension Ofloxacin 50mg / 5ml
Diet Protien Liquid Protein, as Protein Hydrolysate, 333mg-Eqv. To 53.28mg of Nitrogen + Vit.B6 0.75mg + D-Panthenol 2.50mg + Niacinamide 22.50mg + Iron Choline Citrate 15.00mg + Zinc,as Zinc Sulphate, 2.66mg + Magnesium Chloride 3.33mg + Manganese Chloride 0.03mg / 5ml
Diet Protien Powder Carbohydrate 71.0g + Protein 23.0g + Calcium 650.0mg + Vit.C 30.0mg + Niacinamide 20.0mg + Magnesium 12.0mg + Iron 5.0mg + Zinc 5.0mg + Vit.B1 3.0mg + Vit.B2 3.0mg + Calcium Pantothenate 3.0mg + Vit.B6 2.0mg + Folic Acid 1.0mg + Iodine 0.1mg + Vit.B12 3.0
Rapirol 20 Rabeprazole 20 mg
Rapirol D Rabeprazole 20 mg + Domperidone 30 mg, 10mg immediate release + 20mg Sustained Released
Rosita XT Suspension Ferrous Ascorbate eqv. To Elemental Iron 30 mg + Folic Acid 500 mcg / 5 ml
Rosita XT Ferrous Ascorbate eqv. To Elemental Iron 100 mg + Folic Acid 1.5 mg
Termipil Mifepristone 200mgTabs
Pregclear Misoprostol 200mcg Tabs
3Cef + 375 Cefoparazone Sodium 250mg + Sulbactum 125mg
3Cef + 750 Cefoparazone Sodium 500mg + Sulbactum 250mg
3Cef + 1.5g Cefoparazone Sodium 1000mg + Sulbactum 500mg
Zenegra 100 Sildenafil Citrate 100mg
Zenegra 50 Sildenafil Citrate 50mg
Page 60 of 75 DR . REEDY ABOUT COMPANY
1985
- The Company was incorporated on 2nd November. The Company was promoted by Dr. K. Anji Reddy and his associates who were also the promoters of Standard Organics, Ltd.
- In May, the Company issued 7,50,000 equity shares of Rs 10 each for cash at par linked to 1,50,000 - 15% secured redeemable non-convertible debentures of Rs 100 each for cash at par in the proportion of one debenture for five equity shares held including the oversubscription from the public. The allotment was made as follows:
- (i) 12,550 equity shares linked to 2,510 debentures were issued to business associates
- (ii) 850 shares linked to 170 debentures were issued to the employees
- (iii) 2,80,500 shares linked to 56,100 debentures issued to the non-resident Indians and (iv) 5,25,850 shares linked to 1,05,170 debentures were issued to the public.
1986
- 10,06,500 equity shares then issued at par out of which 2,56,500 equity shares were reserved and allotted to promoters, etc. The remaining 7,50,000 equity shares were issued linked to debentures of which the following shares were reserved for preferential allotment:
- (i) 15,000 shares to business associates of the Company (only 12,550 shares taken up);
- (ii) 37,500 shares to employees of the company (only 850 shares taken up) and 3,00,000 shares to non-resident Indians (only 2,80,500 shares taken up). The balance 3,97,500 shares along with the unsubscribed portion of 58,600 shares out of the preferential quota were offered for public subscription during June.
- 1,16,250 additional shares linked to debentures were allotted to retain oversubscription (46,500 shares to promoters and 69,750 shares to the public. GOLDEN PEACK
1988
- 13,660,500 No of equity shares forfeited.
- (15 months), a plan was drawn for the expansion and modernisation of formulations division. ICICI and IFCI sanctioned term loans of Rs 198 lakhs and Rs 132 lakhs respectively.
1989
- An explosion at the Company's plant resulted in stoppage of production for 2 months. Two new products namely, a Ciprolet and Enam were introduced by the Company's formulation division while the Company's bulk drug division commenced manufacture of ciprofloxacin, a new drug. The Company exported goods such as Methyldopa, Cephalexin etc., worth Rs 2.68 crores. Page 61 of 75 - 6,83,125 rights shares issued (prem. Rs. 15 per share; prop. 1:2). Additional 1,02,470 shares allotted to retain oversubscription. Another 34,155 shares (prem. Rs 15 per share) allotted to employees. 1990
- The Company started manufacturing a new bulk drug by the name Omeprazole which was launched in the market by the brand name "OMEZ".
1991
- 10,92,950 bonus equity shares issued in prop. 1:2.
1992
- 32, 78,850 bonus equity shares issued in prop. 1:1.
1993
- Subject to necessary approvals being obtained, a separate company in the name of `Dr. Reddy's Dignostics Ltd.' was to be set up for the manufacture of dragnostics kits. The Company proposes to invert to the extent of 60% in the equity capital of the company.
1994
- The Company proposed to invest Compact Electric Ltd., which was in the process of setting up a plant at Chennai for manufacturing energy efficient electric filament/discharge lamps in Collaboration with Li-Tech Corporation, South Korea. The Company set up a subsidiary `Reddy Hong Kong Ltd.' in Hong Kong for marketing the Company's products in Main Land China and Far East countries. Partnership Process / Partnering Areas
Dr. Reddy’s is actively pursuing a wide range of partnering interests that leverage its diverse product development activities, broad commercial presence, and unique infrastructure and capabilities.
Commercial Partnerships:
We have a strong commercial presence in some of the largest and fastest growing pharmaceutical markets such as the US, UK, Germany, India, Russia, CIS, Romania and Venezuela. In all these markets, our strong product pipeline and customer focus have delivered successful product launches and increase in market share.
In the unbranded generic markets, we have built a broad customer base, including all major retailers, wholesalers/ distributors, pharmacy benefit managers, regional/nonwarehousing chains and independents. We have successfully in-licensed, co-developed, and acquired products with various partners in the US. In the branded space, our regulatory expertise, highly motivated and knowledgeable field force and large product portfolio have driven sales, market position and market share. We welcome opportunities to leverage our commercial organization to maximize the value of our partners' assets.
Pharmaceutical Services (CPS) business is today a partner of choice for all the strategic outsourcing needs of innovators worldwide. With strengths in IP - advantaged product development & scale up, world-class manufacturing capability and a strong network of strategic partners, CPS provides integrated services to our partners, including extensive Chemistry & Process R&D expertise (including steroids, cytotoxic and hormonal APIs), cGMP compliant API & USFDA inspected finished dosages manufacturing.
Product Development partnerships:
Dr. Reddy’s vertically-integrated product development platform includes an R&D team of over 950 professionals that develop products across the entire pharmaceutical value chain – Active Pharmaceutical Ingredients, Branded/Generic Formulations, Specialty Pharmaceuticals, Biologics, and New Chemical Entities. We welcome the opportunity to explore various licensing and co-development partnerships across this entire pipeline spectrum.
Dr. Reddy’s is actively pursuing a wide range of partnering interests that leverage its diverse product development activities, broad commercial presence, and unique infrastructure and capabilities.
Page 62 of 75 Commercial Partnerships:
Dr. Reddy’s have a strong commercial presence in some of the largest and fastest growing pharmaceutical markets such as the US, UK, Germany, India, Russia, CIS, Romania and Venezuela. In all these markets, our strong product pipeline and customer focus have delivered successful product launches and increase in market share.
In the unbranded generic markets, we have built a broad customer base, including all major retailers, wholesalers/ distributors, pharmacy benefit managers, regional/nonwarehousing chains and independents. We have successfully in-licensed, co-developed, and acquired products with various partners in the US. In the branded space, our regulatory expertise, highly motivated and knowledgeable field force and large product portfolio have driven sales, market position and market share. We welcome opportunities to leverage our commercial organization to maximize the value of our partners' assets.
Contract/ Outsourcing services:
Dr.. Reddy’s Custom Pharmaceutical Services (CPS) business is today a partner of choice for all the strategic outsourcing needs of innovators worldwide. With strengths in IP - advantaged product development & scale up, world-class manufacturing capability and a strong network of strategic partners, CPS provides integrated services to our partners, including extensive Chemistry & Process R&D expertise (including steroids, cytotoxic and hormonal APIs), cGMP compliant API & USFDA inspected finished dosages manufacturing.
Product Development partnerships:
Dr. Reddy’s vertically-integrated product development platform includes an R&D team of over 950 professionals that develop products across the entire pharmaceutical value chain – Active Pharmaceutical Ingredients, Branded/Generic Formulations, Specialty Pharmaceuticals, Biologics, and New Chemical Entities. We welcome the opportunity to explore various licensing and co-development partnerships across this entire pipeline spectrum.
- `Reddy Biomed Ltd.' was incorporated as a joint venture between the Company and a Russian Company `Joint Stock Company of open type named after 1:1. Machnikov' for manufacturing and marketing formulation in Russia.
- Effective 1st April, Standard Equity Fund was merged with the Company. Pursuant to the scheme of amalgamation 2,63,062 equity shares of Rs 10 each of the Company were issued to the shareholders of erstwhile Standard Equity Fund in the ratio of one equity share of the Company for ten equity shares of the erstwhile Standard Equity Fund Ltd.
- During July the Company issued 4301076 Global Depository Receipts at a price of US $11.16 per GDR. The Company allotted 4301076 equity shares of Rs 10 each at a premium of Rs 340 per share underlying the GDRs.
- The company issued 4,301,076 GDSs representing 4,301,076 equity shares of the Company, par value Rs.10 ("Shares"), in a private placement in 1994 pursuant to Regulation S and Rule 144A under the Securities Act of 1933 (the "Securities Act"). The GDSs are listed on the Luxembourg Stock Exchange and each GDS represents one Share. As of May 4, 2001, there were 1,789,285 GDSs outstanding representing 1,789,285 Shares.
1995
- Formulation division launched two new products namely Lanzap, an anti-Ulcerant drug and Peristil, drug for gastric disorder. The bulk drug division commenced the production of six new products viz., Finasteride, Nimesulide, Fluoxetine, Hydrochloride, Terbinafine, Hydrochloride, Risperidone and Clozapine. The Company was in the process of setting up a subsidiary in the Antilles Kingdom of Netherlands for licensing the manufacture and marketing of drugs.
- 263,062 equity shares issued to the shareholders of erstwhile standard Equity Fund Ltd. Pursuant to the scheme of amalgamation.
1996
- Four new products viz. Nise, Stamlo Beta, Sparfloxacin and Finast were launched. Finast, a drug for treatment of benign prostiate enlargement was launched for the first time in India. Under the bulk drugs category two new drugs viz. Sparfloxacin & Croratidine were launched.
Page 63 of 75 - The diagnostics division entered into a technical collaboration agreement with Board of Radiation and Isolope, technology for manufacture & marketing of radioimmonuassay kits for the production of diagnostic and therapeutic recombinant protections, the Bio-technology division entered into a technical collaboration agreement with Viral Therapeutics Inc. U.S.A.
1997
- In view of the company's long term plans in the area of diabetic care, the company launched Reclide (Glicazide), its first product in the theraupeutic segment. Also, in its commitment to promote innovative products, the company entered into a marketing alliance to market Netacryl, a bio adhesive (n-butyl-2-cyno acrylate) used for the closure of external surgical and post traumatic wounds.
- The Company set up a Critical care division to commercialise products from the research foundation and the first product to be marketed by the division was Miitotax an anti-cancer product used in the treatment of breast and ovarian cancer.
- The city-based drug major Dr. Reddy's Laboratories has perfected the formulation of an anti-diabetic compound, glitazone for commercial marketing.
- DRF has signed a licensing agreement with the Denmark-based Novo Nordisk, according to which the latter would obtain an exclusive worldwide license to develop and market pharmaceutical products based on compounds discovered and patented by the former.
- Dr. Reddy's Research Foundation has finally signed the agreement for clinical testing of its four diabetes compounds of glitazone with the European drug major; Nova Nordisk.
- Dr Reddy's Labs, the Hyderabad based pharmaceutical company, is forming two new joint ventures in Brazil and Uzbekistan.
- The Hyderabad-based Dr Reddy's Laboratories is manufacturing an anti-ulcer formulation right from the basic stage for competitor, Ranbaxy Laboratories, as part of its strategy aimed at creating more value for its bulk drugs.
1998
- Dr. Reddy's Laboratories (DRL) has launched its first anti-cancer drug Mitotax (Paclitaxel). The product is produced in-house at Dr. Reddy's Research Foundation (DRF) from the extracts of the yew tree and formulated in a dedicated facility in Hyderabad.
- Dr. Reddy's Laboratories (DRL) has ended its collaboration with the French company, bioMerieux. The collaboration agreement, which envisaged DRL to market bioMerieux's diagnostic reagents and instruments in India, has come to an end on 13th November. - Dr. Parvinder Singh, Chairman & Managing Director of Ranbaxy Laboratories and Dr. K Anji Reddy, Chairman of the Rs 5000 million Dr. Reddy's Group of pharmaceutical companies, were conferred with the prestigious `Ishidate Award' of the Federation of Asian Pharmaceutical Associations (FAPA).
- The merger with Cheminor Drugs (the swap ratio at nine shares of Dr. Reddy's Laboratories for 25 shares of Cheminor), has made DRL the third largest pharmaceutical company in Inida with participation in every element of the value chain.
1999
- Dr. Reddy's Laboratories Ltd. (DRL) has set up an in-house effluent treatment plant at its bulk pharmaceuticals manufacturing facility located at Bollaram Industrial Development Area.
- Dr. Reddy's Laboratories is setting a new trend in the Indian pharmaceutical sector by installing a `satellite' discovery research laboratory in the United States.
- The company has two US-FDA approved plants. It has been exporting its products to the UK, Switzerland, Germany, Spain, Italy and the Netherlands. It also started exporting its formulations in a big way to Russia and has set up an office there. DRL has signed a joint venture agreement with the Khetan group, Nepal, for setting up a joint venture for the manufacture and marketing of finished formulations in Nepal and other neighbouring countries. It also signed a
Page 64 of 75 marketing and distribution agreement with Organics, Israel, for a wide range of sophisticated diagnostic kits. The products are recognized by WHO and other leading organisations in the healthcare industry.
2000
- Dr. Reddy's Laboratories and the Gribbles Group of Australia have signed a memorandum of understanding to form a joint venture company for establishing a network of 50 pathology laboratories and up to 200 specimen collection centres in India over the next five years.
- The Board has approved merger of Cheminor Drugs Ltd. with the company. Nine equity shares of the company will be allotted for every 25 equity shares of CDL held. The Company has decided to issue 7,50,000 equity shares under ESOS.
- The employees of the formulation unit-II of the company at Bachupally have decided to go on an indefinite strike from 17th June.
- The Company has introduced a five-day week from January and change in timings. A small group of employees has called for a strike from June 19.
- For the first time in the country, pharma major Dr. Reddy's Laboratories has launched an initiative to document clinical studies of drugs on the Internet.
- DRF 2725, an anti-duabetic molecule discovered by Dr. Reddy's Research Foundation and licensed to Novo Nordisk in June 1998, has entered phase II trials of clinial development.
- Dr. Reddy's Laboratories Ltd., the Hyderabad-based pharmaceutical company, has acquired three brands in the segment of women's health from Dai-Ichi Karkaria Ltd.
- In a move to enhance the market share in the domestic formulations segment, Dr. Reddy's Laboratories Ltd. has decided to set up a specialised field-force to work in close partnership with the medical community besides regroupes its older products.
- The company has entered into an exclusive co-marketing and development agreement with Par Pharmaceuticals Inc. covering fourteen generic pharmaceuticals products.
2001
- In April 2001, as a first step towards taking its molecules through clinical development on its own, Dr. Reddy's Laboratories has selected Simbec Research Limited, a well-known UK-based Clinical Research Organization (CRO), for conducting clinical trials of DRF 4832. DRF 4832 is a PPAR agonist for treatment of cardiovascular complications.
- Dr. Reddy's Laboratories Ltd. has ended a two-year-old marketing partnership with the US-based Schein Pharmaceutical Inc following Schein's takeover by Watson Pharmaceutical Inc.
- The Company has entered into an exclusive co-marketing and development agreement with Par Pharmaceuticals Inc., the US-based manufacturer and distributor of a broad line of generic drugs.
- Dr Reddy's Laboratories has gone online with all its phase III and phase IV clinical trials on new products using an application being deployed on a website.
-Eli Lilly has sued Dr Reddy's for infringement of one of the patents on olanzapine, the key ingredient in Lilly's antidepressant drug Zyprexa.
- Reddy US Therapeutics, Inc, a biopharmaceutical company based in suburban Atlanta and a subsidiary of Dr Reddy's Laboratories Limited, has announced the formation of a scientific advisory board consisting of scientists and physicians to advise it on its drug discovery research and development programs.
- Dr. Reddy's Laboratories Ltd's product insert of its human recombinant granulocyte colony stimulating factor -- Filgrastim injection (Grastim), an anti-cancer formulation -- has got approval from the Drug Controller General of India (DGCI). Page 65 of 75 - In April 2001, Dr. Reddy's Laboratories began trading on the New York Stock Exchange (code: RDY). The price to the public per ADS was $10.04. Total amount raised (net) was $ 124 million. - In May 2001, the company decided to terminate the GDS programme. Once the facility is terminated, the Shares underlying the GDSs will be deposited in Dr. Reddy's American Depositary Share ("ADS") facility with Morgan Guaranty Trust Company of New York as depositary ("the Depositary"). In May 2001, Novartis Pharma AG and Dr. Reddy's Laboratories announced that they have entered a licensing agreement for a novel anti-diabetes agent. Under terms of the agreement Dr. Reddy's will grant Novartis worldwide exclusive rights to development and commercialisation of their insulin sensitiser DRF 4158 in type 2 diabetes, in return for up to USD 55 million in upfront and milestone payments for specific clinical and regulatory endpoints, as wellas royalties. Dr. Reddy's will have co-promotion rights for DRF 4158 in India.
- The agreement has received US regulatory clearance and has become effective from July 30, 2001. This event has triggered an upfront payment of 5 million US dollars from Novartis. Dr. Reddy's hasreceived this payment.
2002
- The Board has appointed Mr. Krishna G.Palepu as Additional Director on the Board of the Company.
- Dr Norton Peet to head Dr. Reddy's discovery services venture.
- Appointment of Mr Anupam Puri as Additional Director, Recommended a dividend of Rs 2.50 on equity share of Rs 5 each. To convene AGM on August 26, 2002, To re-appoint Mr Satish Reddy as Managing Director and COO for a period of 5 years wef October 01, 2002 subject to the approval of the shareholders.
-Dr Reddy's appoints Uday Saxena as Chief Scientific Officer.
-Dr Reddy's Laboratories Ltd has informed that the Company has granted 1813 stock options to an employee of the Company at the meeting of the Compensation Committee of Board of Directors held on August 26, 2002.The options have been granted at a price of Rs 884 per option, which is equivalent to weighted average share price of the Company of last 30 days on BSE.
-DataEdge deploys direct material procuremet solution for Dr Reddy's
-DCGI orders for the removal of word 'filgrastim' from its anti-cancer drug Grastim
-Introduces VRS scheme in the company
-Decides to revoke interim dividend of Rs 2 per share
-Signs definitive agreement to acquire BMS Lab & Meridian Healthcare UK
-Pondicherry unit starts operations
-Files application for a new drug- amlodipine maleate
-Launches Bicalutamide under the brand name 'Tabi' which is indicated for the treatment of advanced prostate cancer
-Launches Montelukast (generic name), a non-steroidal drug indicated for prohylaxis and treatment of asthma, in India
-Unveils asthma drug Emlucast
-Launches Mizolastine, non-sedative anti-histamine drug under the brand name Elina
-Grants 2,59,400 stock options under ESOP (Employee Stock Option Plan)
-Anti-cancer molecule DRF-1042 completes phase I clinical trials
-Files an Abbreviated New Drug Application (ANDA) with the US Food & Drug Administration (FDA) for Clopidogrel Bisulfate tablets 75 mg with Para IV certification on all listed Orange Book patents
Page 66 of 75 -Hikes annual spend on R&D from 6% to 8% of turnover
-Leads among Indian companies in getting international patents
-Files Paragraph IV certifications on two patents for Pfizer's Norvasc
-Pfizer files suit against Dr Reddy's over Norvasc patent
-Announces USFDA approval for Tizanidine HCL tablets
-Gets USFDA approval for Zanaflex
-Gets final approval from US Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Ciprofloxacin Tablets 100, 250, 500 and 750 mg
-Announces ANDA filing for Terbinafine tablets
-Novo Nordisk announces its decision to suspend the ongoing clinical trials on the anti-diabetic molecule of Dr Reddy's Laboratories Ltd.
-Values its brand at Rs 3,362 crore in March 2002
-Judgment of US court goes against Dr Reddy's Laboratories in a patent violation case over the antibiotic Cipro
-Promoters holding slips from 31.5% to 26%
-Gets ex-parte temporary injunction stopping Sun Generics from manufacturing and marketing pharmaceutical preparations bearing the trademark OMZ 20
-Launches Dr. Reddy's Foundation For Health Education
-Launches Breast Cancer Helpline in Mumbai
-Receives USFDA approval for Amlodipine Maleate
-Launches Broncho-Vaxom for patients suffering from repeated respiratory tract infections
-Launches OncoQuest, India's first real time helpline for doctors
-Unveils Omeprazole in injectable form in the domestic market
-Wins the case against Pfizer in US court
-Wins national award for excellence in corporate governance
2003
-Withdraws paediatric dosage of Nimesulide from the market
-Launches Ibuprofen - First product under Dr Reddy's label in the US market
-Unveils Tolterodine Tartrate drug for the treatment of urinary incontinence
-Novartis discontinues trials on Dr Reddy's compound DRF-4158
-Drops three new compounds from its research pipeline that were undergoing or had completed pre-clinical development or animal trials
Page 67 of 75 -Dr Reddy's anti-diabetis drug receives a set back as Danish Pharma company Novo Nordisk suspends the trails on the drug
-Announces completion of Insulin trails by Novo Nordisk
-Pfizer files patent application against Dr Reddy's
-Announces the completion of a 15 year agreement with Leiner Health
-Filed a second case against Pfizer in the US
-Announces ANDA filing for Olanzapine ODT
-Aventis sues Dr Reddy's Lab for patent infringement
-Announces ANDA filing for Ondansetron HC1 Tablets, Equivalent to 16 mg Base
-Dr. Reddys Board approves merger of Zenovus Biotech Ltd., a wholly owned subsidiary
-Files a new drug application (NDA) with the US Food and Drugs Administration (USFDA)
-Gets US approval for Serzone generic
-Dr Reddy's complaint on Sertraline dismissed
-Closes down its 14 year old diagnostic business
-DRL's brand value estimated at Rs 2,767 crore, human resources valued at Rs 2,908 crore as on 31/03/2003
-Eli Lilly agrees to dismiss with prejudice its wilful infringement claim in Olanzapine patent challenge
-Announces ANDA filing for Rosiglitazone Maleate
-Glaxo files suit over Dr Reddy's for patent infringement
- Gets USFDA approval for Nefazodone HCL tablets
-Dr. Venkateswarlu retires from Dr Reddy's Laboratories Board
-Company has announced that it has signed an agreement with PLIVA for development and marketing of oncology products in Europe.
2004
-Dr Reddy's files Abbreviated New Drug Application with USFDA for Sumatriptan
-Dr Reddy's appoints Dr Dennis Langer as President for North America
-Rotary Club presents Vocational excellence award to Anji Reddy
-Launched Redotil (racecadotril), the first anti-hypersecretory agent for the management of acute diarrhea in India
-Dr Reddy's Laboratories shifts North American headquarters from its old home office in Upper Saddle River in New Jersey to more modern facilities in the Somerset Corporate Centre at Bridgewater in central New Jersey
- Dr Reddy's acquires US firm Trigenesis
- Dr Reddy's' Omez gets 'WordStar' award Page 68 of 75 -Dr Reddy's Laboratories Ltd, the Hyderabad-based global pharmaceutical major, has obtained the tentative approval of the United States Food and Drugs Administration (USFDA) for the abbreviated new drug application filed on Fluconazole, indicated for the treatment of fungal infection
- Receives approval from US Food and Drug Administration (FDA) for ciprofloxacin tablets.
-Establishes new captive BPO unit
-Dr. Reddy's wins award for energy management
2005
-Dr Reddys launches India's first drug for treatment of diabetic foot ulcers
-Dr Reddys wins WorldStar awards for anti-counterfeit & patient protection packaging
-DRL unveils new programme for underprivileged youth
-India's Dr Reddy's Laboratories Ltd has received approval from the US Food and Drug Administration to market nizatidine tablets in multiple strengths
-Dr Reddys sets up India's first major drug development company
-Dr Reddys launches 'Voboliv' Metaoxine to enter hepatoprotactives market
-Dr Reddys announces the launch of "Save The Foot" initiative to reduce Diabetic Food Amputations
2006
-Dr Reddys Laboratories Ltd has informed that the Company has entered into an agreement with Merck
-Dr Reddys Laboratories Ltd has launches 'Z&D'- a Zinc Sulphate formulation indicated as Adjuvant therapy along with ORS in the management of Acute and persistent Diarrhea. Available in 10 & 20 mg Dispersible orange flavoured Tablets as well as in 10mg/ml & 20mg/ml Dry Syrup for pediatric use, this product is intended to supplement the ORS (Oral Rehydration Salt) market.
-Dr Reddy's launches 'Doxobid' - a new oral bronchodilator for asthma & COPD
-Dr Reddys Laboratories Ltd has filed a shelf registration statement on Form F-3 with the U.S. Securities and Exchange Commission relating to a proposed offering of American Depositary Shares, or ADSs of up to 13.5 million shares, excluding the underwriter's over-allotment option.
2007 - Dr Reddy's Laboratories Ltd rolled out Redituxa, its brand of rituximab, a monoclonal antibody (MAb) used in the treatment of Non-Hodgkin's Lymphoma (NHL).
-Dr Reddys Laboratories Ltd has appointed Ms. Kalpana Morparia as an Additional Director on the Board of the Company by way of a circular resolution dated June 05, 2007.
2008
- Dr Reddys Laboratories Ltd has acquired Jet Generici Sri, a Company engaged in the sale of generic finished dosages in Italy.
-Dr Reddy's Laboratories Ltd has signed a definitive agreement to acquire BASF's pharmaceutical contract manufacturing business and related facility in Shreveport, Louisiana, USA.
- Hyderabad: Dr Reddy's Laboratories Ltd unveiled Omez Insta for patients suffering from severe gastritis and those on Ryle's tube feeding in India. Page 69 of 75 - Dr Reddys Laboratories Ltd has appointed Dr. Bruce L A Carter as an Additional Director on the Board of the Company.
SALES & MARKETING
, Through a field force of 600 marketing associates. This helps us develop and market an exclusive portfolio for local needs, with a pricing strategy that promotes both access and profitability. IT aim to bring the Rural team on par with other divisions in terms of field processes and to ramp up productivity, while we expand to other states.
Maharashtra and Uttar Pradesh to reach 180,000 doctors and 40,000 retailers In FY 2009, the India Marketing Team initiated a project to cover the rural areas in the states of
ANNEXURE Page 70 of 75 :- Questionnaire for C&F Agent
Name of CFA
Address:-
Telephone:
1. How many companies do you handle as CFA?
2. What is the commission that u receive from the various companies?
3. What are the various modes of payment to the company?
4. If the payment is on credit-basis, then what is the average credit period that the companies allow?
5. Do you have to make some deposits in advance to the companies, if yes what is the value?
6. How many distributors do supply the product?
7. How prompt are the distributors in making their payments? Very prompt prompt not prompt 8. What is the average credit time period you allow for the distributors?
9. How much inventory levels do you maintain?
10. Do the company’s promptly settle for breakages/expiry stocks? Yes No
11. What is the communication mode & frequently of the same with the company?
12. What is the mode of your delivery system?
13 What is the various equipment available at CFA?
Page 71 of 75 14. What is the total number of employees at the CFA?
15. What is your turnover (monthly)?
16. Do you give frequent feedback &appraisals to the companies about their product? Yes Sometimes Never
Questionnaire for Distributors Distributor name:-
DL number:-
Address:-
Telephone:-
1. What is the margin given by the pharmaceuticals company?
2. Which are the territories that you cover?
3. What are various modes of payment?
4. What is the average credit period that that companies allow for the payments?
5. Do you want an extended credit period? Yes No
6. How many retailers do you cater to?
7. In case of a conflict who would you prefer to settle or manage the conflict?
Independent individual Institutions like courts Government agencies like drugs controller
8. Are you satisfied with the financial rewards that the companies provide you like (margins, bonuses, and re-imbursements)? Yes No
9. Do the companies indulge in non-financial rewards like certificates, public recognition, and memento?
Page 72 of 75 10. Are you motivated by such non-financial rewards? Yes No
11. What is credit policy you follow with the retailer\chemists?
12. What is procedure expiry\breakage settlement?
13. What is your monthly turnover?
14. Mention 3 best companies on the following parameters? Settlement of issues
Product
Services
Questionnaire for Chemists Name:- Address:-
Telephone:-
1. What is the margin you get from the company?
2. How many hospitals do you have a tie-up with?
3. Do you supply medicines only through prescription? Always not always
4. If not then what is % of over the counter sales out of the total sales?
5. Which companies’ medical representative do rate best on the following par ammeters? Regularity of visit Posse’s information\knowledge about the product Behavior \conduct
6. What is the mode of payment that you follow?
7. What is the average credit period given to you by the distributors?
8. How many days inventory do you maintain?
Page 73 of 75 9. How many customers on an average do you cater to a daily basis?
10. What is your monthly sales revenue? BIBLIOGRAPHY
1. www.google.com 2. www.scribd.com 3. www.wikipidia.com 4. www.enclopedia.com 5. www.pharmaceuticals.com
This is to certify that AMIT RANJAN student of SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION & RESEARCH, Pune has com pleted his field work report at LUMBINI BEVERAGES PVT. LTD. on the topic of “A COMPRATIVE ASSESSMENT ON SALES PROMOTION ACTIVITIES AND MARKET SHARE OF PEPSI vis-a-vis COCA-COLA” and has submitted the field work report in partial fulfillment of POST GRADUATE DIPLOMA IN MANAGEMENT for the academic year 2007-09 He has worked under our guidance and direction. The said report is based on bonafide information.
Project guide Director
Prof. Vishal Bhole Prof. Sunil Kumar (Lecturer) Date:- Place:-
DECLARATION
Page 74 of 75 I herby declare that the project titled “A COMPRATIVE ASSESSMENT ON SALES PROMOTION ACTIVITIES AND MARKET SHARE OF PEPSI vis-a-vis COCA-COLA” is an original piece of research work carried out by me under the guidance and supervision of Prof. Vishal Bhole. The information has been collected from genuine & authentic sources. The work has been submitted in partial fulfillment of the requirement of POST GRADUATE DIPLOMA IN MANAGEMENT for the academic year 2007-09.
Place: Signature:
Date AMIT RANJAN
Page 75 of 75