MarketTHE BUSINESS OF PHARMACEUTICALS UPFRONT Bafna Pharmaceuticals sets up new R&D facility Glenmark inks pact with Medicis Pharma Chennai-based pharmaceutical company, Bafna Pharmaceuticals has invested approximately Rs 12 crore Our News Bureau for setting up a new formulation R&D facility in Chennai

lenmark Pharmaceuticals Page 17 G(GPL) has entered into an exclusive agreement with Medicis Pharmaceutical to co-develop and commercialise a specialty pharmaceutical product in North America for the Connecting thoughts treatment of acne vulgaris. The agreement focuses on a topical pharma product to be developed from Glenmark's pipeline. In a statement from Glenn Saldanha, Managing Director and Chief Executive Officer, Glenmark Pharmaceuticals mentioned, "Both Glenmark and Medicis have extensive experience in the dermatological market segment and this collaboration will allow us to bring a promising new treatment alternative to patients." Pursuant to terms of the agreement, Glenmark will receive a one-time up-front payment of $5 million from Medicis, and is eligible to receive additional payments upon achieving certain development milestones and royalty upon commerci- alisation. Glenmark Generics (GGI), the United States subsidiary of Glenmark Generics Limited (GGL) has also settled its all pending litigation between Glenmark and Medicis Pharmaceutical relating to the patent actions regarding Fluocinonide, the generic version of Medicis' Vanos cream and Ciclopirox Olamine, the generic version of Medicis' Loprox gel. Under the terms of the agreement, Glenmark will be able to market and distribute its generic version of Vanos cream under license from IT is the 'x' factor without which companies probably have no way out. And the life sciences segment is no Medicis as early as December 2013, or earlier in certain exception. As the common thread that binds the industry, if telepresence is implemented in certain areas of circumstances. In addition, the segment, can save costs, time etc. Arshiya Khan writes about the different business models and areas that Glenmark will also have a could ease profitability in the life sciences industry license to launch a generic version of Loprox gel 0.77 percent supplied by Medicis magine recruiting a pharma healthcare space like Indraprastha appropriate investments in technology immediately. GPL has a employee in the US when you are and Global Healthcare to become more effective and efficient, significant presence in Ibased out of , or training who have resorted to this model. internally and externally, across the branded generics markets medical representatives (MRs) all entire value chain. across emerging economies across the region while being based out The business and the market Life sciences companies work with including India. The of Mumbai. It sounds interesting, but In today's economic scenario, like many external parties, from universities company along with its how can it be possible? Telepresence, every other industry, life and clinical research organisations subsidiary has 12 also referred to as high definition science/pharma companies cannot (CROs), to advertising and regulatory manufacturing facilities in videoconferencing (HDVC by LifeSize), continue to conduct 'business as agencies, banks, and law firms. Some four countries and has five could eventually make this happen as usual'— they must reinvent all aspects meetings are sporadic, others occur R&D centres. there are quite a few players in the of their businesses and make regularly, and many entail travel.

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Therefore, communication tools such as these companies say that HDVC systems help in reducing the pharma/biotech/lifesciences is a new need for travel, enabling people to meet target audience they are tapping, as this sooner and more frequently, and to industry has a wide geographical resolve issues quickly. As Shivashankar footprint. As Shivashankar feels, K, Country Manager-India, LifeSize videoconferencing is becoming feels, "It is a compelling tool for better pervasive. Also it is not confined to cost management, effective bring benefits only to a particular communication and even a measure to business segment. He cites an example reduce the carbon footprint of a — a good analogy to this would be cell company." phones. A cell phone is no longer sold Also, despite reduced spending in a as just a business enabler; it is a simple recessionary climate, most companies communication tool applicable to all realise that investing in HDVC solutions individuals that need to communicate. provides long-term savings compared to He links the two; similarly, direct travel, by enabling cost-effective videoconferencing is useful for every long-distance communications. Such user that wants a good visual advantages, coupled with more flexible communication experience. services, are expected to eventually Getting specific to the life sciences drive wider adoption and growth for industry, Rajesh Menon VP—Global HDVC. Enterprise Solutions BU, Tata Cost effectiveness, time saving, life Communications concurs, "The life like experience and instant—these are sciences industry should consider the the benefits in a nutshell. And it differs technology immediately to assess its when you get more specific to potential strategic value. Organisations industries. Though there are huge can gain significant competitive Pharma companies should investments involved, it saves a lot on advantage from deploying the seriously consider telepresence as the other areas. And companies have technology early." He outlines the focus a key component of any benefited from the same. As areas, "Pharma companies should enterprise-wide collaboration, as Abhimanyu Gupta, Director, Actis seriously consider telepresence as a key those that do this can expect to Technologies says, "The reason for component of any enterprise-wide boost productivity of their highest- these larger investments has been ROI collaboration, as those that do this can value employees, see significant that companies have achieved in their expect to boost productivity of their competitive advantage, positively experiences with videoconferencing." highest value employees, see significant And therefore, they are ready to invest. competitive advantage positively affecting the bottom line As a result telepresence is replacing face affecting the bottom line." to face meetings thereby saving on time Gupta strikes a similar chord, Rajesh Menon, and costs, yet giving an immersive, "Compared to other sectors we believe VP- Global Enterprise Solutions BU lifelike experience with several people that a focus on collaboration in research Tata Communications separated across continents getting the and scientific activities will be where a impression of being in the same room. significant improvement in work Players like Actis Technologies, processes can take place. The other dynamic and competitive space like Avaya, LifeSize, Tata Communications, areas in which we have seen significant pharma/biotech—its ability to provide a Cisco etc, who can give a wide improvements are recruitment and very powerful platform for bandwith, are already offering these reviews of their representatives, so we collaboration that is required for services. What's more interesting is that plan to focus on these areas with the business success in this space, points solutions that we propose." out Gupta. The different areas where video conferencing can work, Gupta The cost factor feels, ranges from the R&D teams Depending on the format or capacity researching a new product, the of the facility/room, and the technology marketing teams launching the product, employed, video conferencing can cost medical representatives who need to be anything from Rs 3-4 lakh to Rs 30-40 monitored or strategic initiatives by the lakh per room. Gupta gives an insight board. Each of these activities is into the Actis business model. In case of considerably enhanced by a high several global Indian businesses and definition videoconferencing platform. multinationals, the infrastructure has Agrees Menon, "Pharma industry in been built on an organisation-wide, India and worldwide can benefit by global scale and would have involved deploying telepresence in two key areas an investment of Rs 5-10 crore. ie sales training and R&D. Both these While many feel that since areas are critical success areas for an telepresence involves the use of high organisation and many dollars are spent end technologies it involves a huge on these." He shares the details, the capital as well. But Shivashankar says, reason for R&D segment's high it a myth that HDVC means big potential is because R&D in the pharma investments. HDVC technology industry is lengthy and complex, often significantly improves the quality of a involving multiple research teams video call even at existing scattered around the globe, doctors, Compared to other sectors we infrastructure levels. He explains that regulators, legal and compliance believe that a focus on HDVC products are available at a price groups, sales and marketing teams etc. collaboration in the research and of under $2,500. This has been the These are best involved at the very benchmark price for standard beginning of the development process scientific activities will be where a videoconferencing products for a long to ensure the company focuses on the significant improvement in work time. He adds that the 'high' in the most marketable products possible. processes can take place HDVC is for high quality and not so This means lot of collaboration much for high price. involved and if they can get this done Abhimanyu Gupta on telepresence which will give the Director Promising areas LifeSize immersive experience then Actis Technologies Video conferencing has several many a dollars can be saved, says benefits, but there is one that is Menon. extremely important for businesses in a Explaining the need for pharma

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companies to include telepresence in Some business models their business model, Menon says, the Every organisation and industry has best way to ensure success of a drug is its unique set of needs, and hence, the through a well educated and highly customised offerings available. motivated sales force. Pharmaceutical Telepresence is gaining prominence as sales reps need to know everything we see big, small and mid-sized about the new drug, including how it companies have implemented the same. fares against competition, how to As Shivashankar counts his client list, mitigate any side effects etc. He which includes big names like Reliance continues to say that this will help Industries, Larsen & Tubro, ACC, them ensure maximum success for the etc to SMBs and mid-cap companies drug. As a result, pharmaceutical sales such as Virgin mobile, Sistema and teams spend a considerable amount of Obetee (a carpet manufacturing time in training, which takes them out company based in Mirzapur (UP), it of the field and sacrifices short-term only shows the penetration level and earnings for long-term gain. Giving a players have pulled up their socks by quick solution Menon adds, "With modelling their business the right way. telepresence, these same sales reps can For example; TCL has re-invented the get the training helping them to business model for telepresence by leverage the information faster having a pioneering the public room model. This significant impact on the bottom line." means that companies can optimise on costs by using public rooms like those of the Taj Hotels in India without having to set up their own room. The cost for the same is Rs 7,500 per hour in the Taj rooms in India and Rs 6,000 per hour in CII rooms, which is a part of a Telepresence holds a bright special promotional offer. prospect, as collaboration with Besides this, customers can also external parties—long a hallmark setup rooms in their offices and TCL of the life sciences industry can help them find the right product at becomes even more critical. the right price points, informs Menon. Therefore to be successful, However, at LifeSize demonstrations companies must adopt innovative are offered out of demo rooms setup by technologies, in particular unified LifeSize and its partners or even by communications and collaboration setting up the videoconferencing tools systems in customer's premises. Cisco does it through its partners and established briefing centres and centres Anil Bhasin of excellence, by showcasing the Senior Vice President features, capabilities and benefits of its Cisco India & SAARC solutions to customers in the market, informs Anil Bhasin, Senior Vice President, Cisco India & SAARC. particular unified communications and collaboration tools. Supported by fully Future prospects integrated network architecture, unified It is a compelling tool for better "In order for life sciences’ communications has the power to cost management, effective companies to be more efficient and transform how companies interact with communication and even a effective across the entire value chain physicians and patients, research and measure to reduce the carbon and to address the challenges today and develop new drugs, manage footprint of a company in the future, telepresence holds a manufacturing operations, and bright prospect," opines Bhasin. He collaborate and communicate., feels feels, this will be especially true as Bhasin. Gupta concurs, "There is Shivashankar K collaboration with external parties— enormous potential in this sector which Country Manager - India long a hallmark of the life sciences is only beginning to be tapped now. I LifeSize industry, becomes even more critical. expect a year on year growth of 30-40 Therefore, to be successful, companies percent in this sector." must adopt innovative technologies, in [email protected]

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