Contents

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

Industry profile.................................................................................. ...............3
INDIAN PHARMACEUTICAL INDUSTRY.........................................................4
Market Share of MNCs & Local Companies..........................................8
ADVANTAGE INDIA...................................................................................10
THE GROWTH SCENARIO...................................................................10
STEPS TO STRENGTHEN THE INDUSTRY............................................11
Sector structure/Market size....................................................................12
Role of Pharmaceutical Industry in India GDP..........................................15
Booming Pharma Sector in India..............................................................16
India’s top 10 pharma companies............................................................17
Major players...........................................................................................18
Ranbaxy Laboratories........................................................................18
Dr. Reddy's Laboratories...................................................................18
Nicholas Piramal................................................................................19
Cipla.............................................................................. ....................19
Biocon...............................................................................................20
Serum Institute of India.....................................................................20
Key Trends in the Pharmaceutical Industry..............................................22
Business Innovation is Restructuring the Value Chain.......................22
Market Share and Margins are Declining...........................................22
Consumers have Less Access to New Drugs......................................23
Sales & Marketing.............................................................................24
Channel Management.......................................................................25
New Product Development and Rollout.............................................25
Business Model and Strategies................................................................29
SWOT Analysis.........................................................................................38
Chapter 2 Company profile..........................................................................40
Company products............................................................................. ......43
Medicine.............................................................................. ..............43
MAXYNIM – P (Nimesulide + Paracetamol)........................................43
Maxiclox-LB (Amoxicillin + Cloxacillin)..............................................44
Gusto (A complete Energy Drink)......................................................45
Chapter 3.............................................................................. .........................46
RESEARCH METHODOLOGY............................................................................46
Research process.....................................................................................47
RESEARCH DESIGN..................................................................................48
Data Collection..................................................................................48
SAMPLE DESIGN................................................................................ .......49
Chapter 4.............................................................................. .........................51
Analysis and observation...............................................................................51
Chapter 5.............................................................................. .........................62
Conclusion................................................................................................. .....62
Chapter 6 Recommendation...........................................................................64
Recommendation to the company.....................................................65
Annexure............................................................................................... .........66
Bibliography......................................................................................... ....67
Questionnaire..........................................................................................68
 Chapter 1
Industry profile
 INDIAN PHARMACEUTICAL INDUSTRY

The Indian Pharmaceuticals sector has come a long way, being almost non-
existing during 1970, to a prominent provider of health care products, meeting
almost 95% of country’s pharmaceutical needs. The domestic pharmaceutical
output has increased at a compound growth rate (CAGR) of 13.7% per annum.
Currently the Indian pharma industry is valued at approximately $ 8.0 billion.
Globally, the Indian industry ranks 4th in terms of volume and 13th in terms of
value. Indian pharmaceuticals industry has over 20,000 units. Around 260
constitute the organized sector, while others exist in the small scale sector.
The pharmaceutical industry in India is going through a major shift in its business
model in the last few years in order to get ready for a product patent regime from
2005 onwards.
This shift in the model has become necessary due to the earlier process patent
regime put in place since 1972 by the Government of India. This was done
deliberately to promote and encourage the domestic health care industry in
producing cheap and affordable drugs. As prior to this the Indian pharmaceutical
sector was completely dominated by multinational companies (MNCs). These
firms imported most of the bulk drugs (the active pharmaceutical ingredients)
from their parent companies abroad and sold the formulations (the end products
in the form of tablets and capsules, syrups etc.) at prices unaffordable for a
majority of the Indian population.

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

science-based industries with wide ranging capabilities in the complex field of
drug manufacture and technology. A highly organized sector, the Indian Pharma
Industry is estimated to be worth $ 4.5 billion, growing at about 8 to 9 percent
annually. It ranks very high in the third world, in terms of technology, quality and
range of medicines manufactured. From simple headache pills to sophisticated
antibiotics and complex cardiac compounds, almost every type of medicine is
now made indigenously.
Playing a key role in promoting and sustaining development in the vital field of
medicines, Indian Pharma Industry boasts of quality producers and many units
approved by regulatory authorities in USA and UK. International companies
associated with this sector have stimulated, assisted and spearheaded this
dynamic development in the past 53 years and helped to put India on the
pharmaceutical map of the world.
The Indian Pharmaceutical sector is highly fragmented with more than 20,000
registered units. It has expanded drastically in the last two decades. The leading
250 pharmaceutical companies control 70% of the market with market leader
holding nearly 7% of the market share. It is an extremely fragmented market with
severe price competition and government price control.
The pharmaceutical industry in India meets around 70% of the country's demand
for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals,
tablets, capsules, orals and injectibles. There are about 250 large units and
about 8000 Small Scale Units, which form the core of the pharmaceutical
industry in India (including 5 Central Public Sector Units). These units produce
the complete range of pharmaceutical formulations, i.e., medicines ready for
consumption by patients and about 350 bulk drugs, i.e., chemicals having
therapeutic value and used for production of pharmaceutical formulations.

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

most of the drugs and pharmaceutical products has been done away with.
Manufacturers are free to produce any drug duly approved by the Drug Control
Authority. Technologically strong and totally self-reliant, the pharmaceutical
industry in India has low costs of production, low R&D costs, innovative scientific
manpower, strength of national laboratories and an increasing balance of trade.
The Pharmaceutical Industry, with its rich scientific talents and research
capabilities, supported by Intellectual Property Protection regime is well set to
take on the international market.
Indian pharmaceutical industry is undergoing fast paced changes. The Indian
Generics market is witnessing rapid growth opening up immense opportunities
for firms. This is further triggered by the fact that generics worth over $40 billion
are going off patent in the coming few years which is close to 15% of the total
prescription market of the US. The Indian pharmaceutical companies have been
doing extremely well in developed markets such as US and Europe, notable
among these being Ranbaxy, Dr. Reddy’s Labs, Wockhardt, Cipla, Nicholas
Piramal and Lupin. The companies have their strategies in place to leverage
opportunities and appropriate values existing in formulations, bulk drugs,
generics, Novel Drug Delivery Systems, New Chemical Entities, Biotechnology
etc. The industry ranks fourth globally in terms of volume and in terms of value, it
is ranked thirteenth. The industry has thrived so far on reverse engineering skills
exploiting the lack of process patent in the country. This has resulted in the Indian
pharmaceutical players offering their products at some of the lowest prices in the
world. The quality of the products is reflected in the fact that India has the highest
number of manufacturing plants approved by US FDA, which is next only to that
in the US. Multinational companies have traditionally dominated the industry,
which is another trend seeing a reversal. Currently, it is the Indian companies
which are dominating the marketplace with the local players dominating a
number of key therapeutic segments. The market is also very fragmented with
about 30,000 entities and the organized sector consisting of about 300 entities.
Consolidation is increasing in the industry with many local players building a
global outlook and also growing inorganically through mergers and acquisitions.
The Key to success in this industry is research & development. R&D is the
starting of the industry value chain and is also the most important value creator.
Companies that involve in R&D do so in specific areas. They chose specific
therapeutic areas to target based on their strengths in the market, and the
commercial potential.
This led to a revision of Government of India’s (GOI) policy towards this industry
in 1972 allowing Indian firms to reverse engineer the patented drugs and produce
them using a different process that was not under patent. The entry of MNC’s
was also discouraged by restricting foreign equity to 40%. The licensing policy
was also biased towards indigenous firms and firms with lesser foreign equity1.
All these measures by GOI laid foundations to a strong manufacturing base for
bulk drugs and formulations and accelerated the growth in the Indian
Pharmaceutical Industry (IPI), which today consists of more than 20,000
players1. As a result the Indian pharmaceutical industry today not only meets the
domestic requirement but has started exporting bulk drugs as well as
formulations to the international market.
Currently the main activities of Indian pharmaceutical industry are broadly
restricted to producing
(i) Bulk drugs and (ii) formulations with very few companies risking investing in
primary research aimed at developing and patenting new drugs. The bulk drug
business is essentially a commodity business, where as the formulation business
is primarily a market driven and brand oriented business. Multinational
companies which have entered the Indian market have mostly restricted
themselves to formulation segment till date. The domestic pharmaceutical
industry (MNC’s and Domestic) meets about 90% of the country’s bulk drug
requirement and almost the entire demand for formulations2. The economics of
bulk drug business and that of formulation business are quite different. Since a
majority of the Indian companies are producing both bulk as well as formulations,
these are considered together for the purpose of the present study.

Market Share of MNCs & Local Companies

The exports constitute almost 40% of the total production of pharmaceuticals in
India. India’s pharmaceutical exports are to the tune of $3.5bn currently, of which
formulations contribute nearly 55% and the rest 45% comes from bulk drugs.
The export revenue now contributes almost half of the total revenue for the top 3
pharma majors: Dr Reddy’s, Ranbaxy and Cipla. The other major exporters are
Wockhardt Limited, Sun Pharmaceutical Industries Ltd. and Lupin Laboratories.
The formulations and exports are largely to developing nations in CIS, South
East Asia, Africa, and Latin America. In the last 3 years generic exports to
developed countries have picked up.

POST 2005 SCENARIO

By issuing the patent ordinance, India met a WTO commitment to recognize
foreign product patents from January 1, 2005, the culmination of a 10-year
process. In this new scenario, the Indian pharmaceutical manufacturers won’t be
able to manufacture patented drugs.
To adapt to this new patent regime, the industry is exploring business models,
different from the existing traditional ones.
New Business Models include:
• Contract research (drug discovery and clinical trials)
• Contract manufacturing
• Co-marketing alliances
 ADVANTAGE INDIA
Competent workforce: India has a pool of personnel with high managerial and
technical competence as also skilled workforce. It has an educated work force
and English is commonly used. Professional services are easily available.

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

in the area of improved cost-beneficial chemical synthesis for various drug
molecules is excellent. It provides a wide variety of bulk drugs and exports
sophisticated bulk drugs.

Legal & Financial Framework: India has a 53 year old democracyand hence
has a solid legal framework and strong financial markets. There is already an
established international industry and business community.

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

institutions and established strengths in Information Technology.

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

globalization. Above all, it has a 70 million middle class market, which is
continuously growing.
Consolidation: For the first time in many years, the international pharmaceutical
industry is finding great opportunities in India. The process of consolidation,
which has become a generalized phenomenon in the world pharmaceutical
industry, has started taking place in India.

THE GROWTH SCENARIO

India's US$ 3.1 billion pharmaceutical industry is growing at the rate of 14
percent per year. It is one of the largest and most advanced among the
developing countries.
Over 20,000 registered pharmaceutical manufacturers exist in the country. The
domestic pharmaceuticals industry output is expected to exceed Rs260 billion in
the financial year 2002, which accounts for merely 1.3% of the global
pharmaceutical sector. Of this, bulk drugs will account for Rs 54 bn (21%) and
formulations, the remaining Rs 210 bn (79%). In financial year 2001, imports
were Rs 20 bn while exports were Rs87 bn.

STEPS TO STRENGTHEN THE INDUSTRY

Indian companies need to attain the right product-mix for sustained future growth.
Core competencies will play an important role in determining the future of many
Indian pharmaceutical companies in the post product-patent regime after 2005.
Indian companies, in an effort to consolidate their position, will have to
increasingly look at merger and acquisition options of either companies or
products. This would help them to offset loss of new product options, improve
their R&D efforts and improve distribution to penetrate markets.

Research and development has always taken the back seat amongst Indian
pharmaceutical companies. In order to stay competitive in the future, Indian
companies will have to refocus and invest heavily in R&D.
 Sector structure/Market size
The Indian pharmaceutical industry is driving product development and breaking new
grounds in medicine research worldwide.
The Indian domestic pharmaceutical market is estimated to be US$ 10.76 billion in 2008
and is expected to grow at a high compound annual growth rate (CAGR) of 9.9 per cent
till 2010 and thereafter at a CAGR of 9.5 per cent till 2015.
Currently, the Indian pharmaceutical industry is one of the world's largest and most
developed, ranking 4th in volume terms and 13th in value terms. The country accounted
for 8 per cent of global production and 2 per cent of world markets in pharmaceuticals.
The Indian pharmaceutical off shoring industry is slated to become a US$ 2.5 billion
opportunity by 2012, thanks to lower R&D costs and a high-talent pool in India.
Exports
India exported drugs worth US$ 7.2 billion in 2007-08 to the US and Europe, followed by
Central and Eastern Europe, Latin America and Africa.
A report by industry research firm, RNCOS forecasts that pharmaceutical exports will
grow at a CAGR of 18.5 per cent between 2007-08 and 2011-12. This growth will be
fuelled by multi-billion dollar patent expirations and growth in the global generics market.
Pharmaceuticals exports (valued in US dollar terms) registered an impressive growth
rate at 30.7 per cent during April-October 2008 compared to the corresponding period
last year.
Growth
India's pharmaceuticals market is expected to grow by about 12-13 per cent in 2009,
says a study by consulting firm IMS.
During February 2009, India's drug retail industry continued its healthy growth recording
13.3 per cent higher sales over the same month last year.
A recent study by Yes Bank estimates the domestic formulations market to touch US$
21.5 billion by 2015.
The Indian vaccine market was worth US$ 665 million in 2007-08 and is growing at over
20 per cent. Exports contribute over US$ 360 million, while the domestic market for
vaccines is US$ 300 million.
Rural Market
According to estimates rural areas account for 21 per cent of the country's
pharmaceuticals market. In 2006-07, the rural Indian pharmaceuticals market was
estimated at around US$ 1.4 billion, having grown at about 40 per cent in 2006-07
against 21 per cent in the previous year.
Pharmaceutical Retail
India has 5.5 million chemists and druggists, and the organised retail market accounts
for just 2 per cent of the industry but is posting a year-on-year growth of 30-40 per cent.
The country's pharmaceutical retail market is expected to cross the US$ 10 billion mark
in 2010 and be worth an estimated US$ 12 billion- US$ 13 billion by 2012.
Generics
According to a report by IMS Health, the Indian generic manufacturers will grow to more
than US$ 70 billion as drugs worth approximately US$ 20 billion in annual sales faced
patent expiry in 2008. With nearly US$ 80 billion worth of patent-protected drugs to go
off patent by 2012, Indian generic manufacturers are positioning themselves to offer
generic versions of these drugs.
Diagnostics Outsourcing/ Clinical Trials

The Indian diagnostics and pathology laboratory business is presently around US$ 864
million and is growing at a rate of 20 per cent annually.
Moreover, the US$ 200-million Indian clinical research outsourcing market will reach up
to US$ 600 million by 2010, according to a joint study done by KPMG and the
Confederation of Indian Industry (CII) in September 2008.
Research & Development
• In a bid to boost R&D in the pharmaceutical sector, the government will provide
US$ 422.96 million for establishing six National Institutes of Pharmaceutical
Education and Research over the next five years.
• Biotechnology major, Biocon, will be investing US$ 20.11 million in the next fiscal
in enhancing its R&D.
Government Initiative
The Government has taken various policy initiatives for the pharmaceutical sector
• Government has offered tax-breaks to the pharmaceutical sector. Units are
eligible for weighted tax deduction at 150 per cent for the R&D expenditure
incurred.
• Steps have been taken to streamline procedures covering development of new
drug molecules, clinical research etc.
• Government has launched two new schemes—New Millennium Indian
Technology Leadership Initiative and the Drugs and Pharmaceuticals Research
 Programme—specially targeted at drugs and pharmaceutical research.
Investment
• According to Ministry of Commerce, domestic investment in the pharmaceutical
sector is estimated at US$ 6.31 billion.
• The drugs and pharmaceuticals sector has attracted FDI worth US$ 1.43 billion
from April 2000 to December 2008.
Road Ahead
The Indian pharmaceutical industry will see tremendous growth in the coming years as
consumer spending on healthcare is increasing in India. Consumer spending on
healthcare is expected to increase from 7 per cent of GDP in 2007 to 13 per cent of GDP
by 2015.

Role of Pharmaceutical Industry in India GDP

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

• It ranks 4th in the world, pertaining to the volume of sales
• The estimated worth of the Indian Pharmaceutical Industry is US$ 6
billion
• The growth rate of the industry is 13% per year
• Almost most 70% of the domestic demand for bulk drugs is catered by
the Indian Pharma Industry
• The Pharma Industry in India produces around 20% to 24% of the
global generic drugs
• The Indian Pharmaceutical Industry is one of the biggest producers of
the active pharmaceutical ingredients (API) in the international arena
• The Indian Pharma sector leads the science-based industries in the
country
• The pharmaceutical sector has the capacity and technology pertaining
to complex drug manufacturing
• Around 40% of the total pharmaceutical produce is exported
• 55% of the total exports constitute of formulations and the other 45%
comprises of bulk drugs
• The Indian Pharma Industry includes small scaled, medium scaled,
large scaled players, which totals nearly 300 different companies
• There are several other small units operating in the domestic sector
 •

Booming Pharma Sector in India

India, a US$ 8.2 Billion pharmaceutical market, represents one of the most
emerging pharmaceutical markets in the world. According to the RNCOS latest
report “Booming Pharma Sector in India”, in near future, the potential and
opportunities within this market will increase by several folds. The market,
presently driven by over a billion population, an expanding GDP, and rapid
epidemiological transitions, is expected to be the major player in the global
pharmaceutical market both in terms of its large domestic market and also as a
pharmaceutical export hub.
The research study contains unique market-based research and provides
detailed and objective analysis on the Indian pharmaceutical market. It presents
a thorough statistical and analytical overview on the Indian pharmaceutical
market, and provides past, present and future data on the entire structure,
composition and working of the Indian pharmaceutical market. The research
extensively discusses the opportunities and challenges that are expected to arise
within and from the pharmaceutical market.
Research Highlights
Between 2007-08 and 2011-12, the Indian domestic pharmaceutical market is
expected to grow at a CAGR of nearly 16%. The size of the domestic
pharmaceutical market is larger than export market. However, owing to the
growth of global generics market, stringent price controls in the domestic market,
and better margins, the export market is growing much faster than the domestic
market. Traditional branded generics presently dominate the Indian
pharmaceutical market but the future will see strong growth in the specialty
branded generics and patented drug segments .Drugs for diabetes and
cardiovascular diseases are expected to see the fastest growth among all
therapy areas during 2007-2011.The retail pharmaceutical market in India is
presently highly unorganized; however, a vast opportunity exists for the
organized market. Over the last few years, Cipla, Ranbaxy and GlaxoSmithKline
are controlling the top three positions in the Indian pharmaceutical market.
 India’s top 10 pharma companies

Rank Company Revenue2004 Revenue2008

(Rs crore) (Rs crore)

1 Ranbaxy Laboratories 4,461 25,196

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

3 Cipla 1,842 3,763

4 Sun Pharma Industries 1,110 2,463

5 Lupin Labs 1,180 2,215

6 Aurobindo Pharma 1,260 2,080

7 GlaxoSmithKline Pharma 1,228 1,773

8 Cadila Healthcare 1,091 1,613

9 Aventis Pharma 1,005 1,483

10 Ipca Laboratories 980 1,080

 Major players
Ranbaxy Laboratories
Sri S T Kalairaj, Chairman
Ranbaxy is the leader in the Indian pharmaceutical market, taking in $1.174
billion in revenues for a net profit of $160 million in 2004. It was the first Indian
pharmaceutical to have a proprietary drug (extended-release ciproflaxin,
marketed by Bayer) approved by the U.S. FDA, and the U.S. market accounts for
36% of its sales. 78% of Ranbaxy’s sales are from overseas markets; its offices
in 44 countries manage manufacturing in 7 countries and distribution in over 100.
IMS Health estimated that Ranbaxy is among the top 100 pharmaceuticals in the
world and that it is the 15th fastest growing company. By 2012, Ranbaxy hopes
to be one of the top 5 generics producers in the world, and it consolidated its
position with the purchase of French firm RGP Aventis in 2003. Ranbaxy also has
higher aspirations, however, “to build a proprietary prescription business in the
advanced markets.” To this end, it keeps a dedicated research facility in Gurgaon
staffed with over 1100 scientists. They currently have two molecules in Phase II
trials and 3-5 in pre-clinical testing. It spent $75 million in R&D in 2004, a 43%
increase over its 2003 expenditure.
CEO Brian Tempest is the only non-Indian on the senior management
team.38,39
Dr. Reddy's Laboratories
K. Anji Reddy, Chairman
Founded in 1984 with $160,000, Dr. Reddy’s was the first Asia-Pacific
pharmaceutical outside of Japan and the sixth Indian company to be listed on the
New York Stock Exchange. It earned $446 million in fiscal year 2005, deriving
66% of this income from the foreign market. In order to strengthen its global
position, Dr. Reddy acquired UK-based BMS Laboratories and subsidiary
Meridian Healthcare.
Although 58% of Dr. Reddy’s revenues come from generic drugs, the company
was committed to WTO-compliance long before the 2005 bill took effect, and
most of these products were already off patent. Dr. Reddy has long been a
research-oriented firm, preceding many of its peers in setting up a New Drug
Development Research (NDDR) in 1993 and out-licensing its first compound just
four years later. Dr. Reddy’s has since outlicensed two more molecules and
currently has three others in clinical trials.
Although Dr. Reddy’s is publicly-traded, the Reddy family (including
founder/chairman K. Anji Reddy, son-in-law/CEO GV Prasad and son/COO
Satish Reddy) holds a hefty 26% share in the company.11,44
Nicholas Piramal
Asish Mishra, Chairman
Now a company grossing $350 million per year, Nicholas Piramal started its
existence with the 1988 acquisition of Nicholas Laboratories and grew through a
series of mergers, acquisitions and alliances. The company has formed a name
for itself in the field of custom manufacturing. It cites its 1700-person global sales
force as another core strength; with its acquisition of Rhodia’s inhalation
anaesthetics business, Nicholas Piramal gained a sales and marketing network
spanning 90 countries34.
Nicholas Piramal is well-poised for the challenge of surviving in the aftermath of
product patent protection. The company has respected intellectual property rights
since its inception and refused to "support generic companies seeking first-to-file
or early-to-market strategies." Instead, it decided to make its own intellectual
property and opened a research facility last November in Mumbai with hopes of
launching its first drug in 2010 at a cost of $100,000.24,33
Cipla
Dr. Yusuf K. Hamied,
Chairman and Managing Director
Cipla burst into the international consciousness in 2000 with Triomune, an AIDS
treatment costing between $300 and $800 per year that infringed upon patents
held by several companies who were selling the cocktail for $12,000 per year.
Long before this news, Cipla had been building a strong global presence, and it
now distributes its 800-odd products in over 140 countries. Privately-held Cipla
holds a prominent spot in its home country as well; it is the leader in domestic
sales, having just unseated GlaxoSmithKline for the first time in 28 years.
Revenue in 2004 totaled $552 million (using Rs 43.472 = $1) about 75% of which
was derived in India. Cipla did not report having a research program.8,18
Biocon
Dr. Kiran Mazumdar-Shaw, Chairman and Managing Director
Originally an extension to an Irish chemicals company seeking to break into the
Indian market, Biocon is now the leading biotech in India, bringing in Rs 646.36
crore (almost $150 million) in revenue for fiscal year 2004. It initially made its
money by producing enzymes, but Biocon recently decided to become a
research-oriented company with the goal of bringing a proprietary new drug to
market.
The company went public in March 2004, and "its shares were oversubscribed by
33 times on opening day." Eight months later it launched Insugen, a bio-insulin
that is its first branded product. Biocon also has two wholly-owned subsidiaries,
Syngene and Clinigene, that perform custom research and clinical trials.3,14,31
Serum Institute of India
Dr. Cyrus Poonawalla, Chairman
The Serum Institute of India can make the enviable claim that 2 out of every 3
children in the world are immunized with one of their vaccines. It is the world’s
largest producer of measles and DTP vaccines, and its portfolio includes other
vaccines, antisera, plasma products and anticancer compounds. The Serum
Institute earned Rs 565 crore ($130 million) in revenue in fiscal year 2005, selling
mainly to UN agencies and to the Indian government. The Serum Institute is part
of the Poonawalla Group, whose holdings include a horse stud farm and
manufacturers of industrial equipment and components.1,4,40
 Key Trends in the Pharmaceutical Industry
Recent breakthroughs in genomics and proteomics may be mind-boggling to
most. And, although news reports remind us regularly of the strides
pharmaceutical companies are making in the fight against disease and pain, little
is reported about the increasing struggles pharmaceutical companies face in this
fight.
In fact, the pharmaceutical industry is experiencing unparalleled change and
challenges. All of the usual suspects that impact business today are at play:
globalization, treatment and pricing economics, government controls and
technology.1 However, in an era of continuing consolidation, innovation abounds
not only in R&D, but also in business models.

Business Innovation is Restructuring the Value Chain

The value chain is restructuring as business innovations are implemented. For
example, nearly half of the health-insured population in the United States now
receives pharmacy care from pharmaceutical benefits managers (PBMs). As a
consequence, the mail order channel has grown dramatically, with supply chain
requirements differing from those of the hospital or retail store channel.
Additionally, drug manufacturers and health care providers are implementing
disease management programs that provide specialized services for a specific
disease.2 These programs allow drug manufacturers to get much closer to the
consumer and to better control inventory levels and, subsequently, demand
planning. Companies that choose to ignore or languish in optimizing their sales
and distribution channel strategies may well miss prime opportunities to develop
consumer loyalty and lower-cost-to-serve channels.

Market Share and Margins are Declining

Declining market share and margins are being experienced for the first time in
many years. The number one culprit is the increased competition from generics.
However, price pressures, shortened new drug exclusivity periods, mergers,
acquisitions, consolidation and escalating R&D costs also play significant roles.3
Overall drug utilization continues to be a source for growth. However, as
competition increases and companies achieve intended globalization, erosion of
market share and margins will have greater and greater impact on profitability.
UPS Consulting anticipates that as the attempts to preserve market share,
margin and growth intensify, those companies that address cost and efficiency
structures within their supply chain will be best positioned to meet Wall Street
expectations. In the coming years, pharmaceutical companies that do not adapt
to optimized cost- and business-effective structures will risk survival.

Consumers have Less Access to New Drugs

While it is helpful that consumers are becoming more knowledgeable – due to
mass communications (including advertising), consumer Websites and consumer
demand for information – knowledge is not turning into power. Managed care use
of formularies, HMO use of therapeutic interchange and step-care therapy
prevent many consumers from buying drugs of their choice.2 once formularies
and treatment programs are defined, the power rests primarily with pharmacists,
who choose how they will fill prescriptions.
Shifts in treatment and buying decision power will continue to change, requiring
more agile, tiered marketing and nonrevenue product fulfillment. Mass
communications and sales processes that have traditionally focused on
educating and building awareness within the medical provider community will
need to anticipate and accommodate power shifts. More recently, large
pharmaceutical companies have started mass marketing to U.S. consumers.
However, the growing limitations of consumer influence may render such
programs profitless in the future. As the focus of control changes, information
needs and the needs of various decision makers will need to be addressed to
successfully and profitably launch new products.
Sales & Marketing
The increasing use of formularies, therapeutic interchange and step-care therapy
by managed care means that sales and marketing efforts should cater to the root
of these programs: cost management in treatment programs.2 Marketing efforts
must address the total cost management needs of both managed care and
providers.
Moreover, the time in which sales and marketing has to generate and influence
demand is shrinking due to increased generics competition and shortening
exclusivity periods. These shrinking timeframes and price pressures require that
new product marketing and sales methods continuously address evolving sales
channels. Pharmaceutical companies and their partners must also be able to
quickly build differentiating capability in marketing to such sales channels.
For example, with drug manufacturers now marketing directly to consumers – via
television in the United States and via the Internet worldwide – this new sales
and marketing channel may only be appropriate for certain products. The
McKinsey Quarterly, 2002 second quarter, stated that direct-to-consumer (DTC)
advertising produced mixed results, and while DTC budgets have significantly
increased, efficacy has not.4 Identifying and evaluating the efficacy of evolving
sales channels should become integral to the commercialization process.
Lastly, the information needs of the consumer are dramatically different from
those of managed care and provider organizations. We believe that retailer and
provider direct channels, along with additional evolving sales channels, also
present a whole new cadre of needs. CRM and customer support will need to be
expanded to meet these new categories of need. Although they generate extra
cost, these direct channels also present new opportunities to build loyalty and get
closer to real-time demand.
Channel Management
As new channels develop, pharmaceutical companies will need to re-evaluate
channel strategies. These new channel opportunities paired with the increasing
role of PBMs and disease management programs could present a ripe-for-
picking time to address channel costs and performance for both nonrevenue and
revenue business streams.2
On the nonrevenue side, pharmaceutical companies can investigate the value of
alternative distribution for samples and literature. For example, distributing direct
to disease management programs or leveraging the role of retail pharmacies
may provide opportunities to strengthen retail relationships and gather more
accurate demand information.
On the revenue side, shifting to cost- and performance-based channel
management can lead to cost savings, more reliable distribution and improved
demand visibility. Drug makers can now sell direct to retailers and providers
through e-marketplaces such as the Worldwide Retail Exchange and Global
Healthcare Exchange.8 Additionally, as PBMs and disease management
programs continue to evolve and mature, drug makers should anticipate their
technology and information needs in order to seek ways to integrate their
fulfillment, customer management and financial processes.

New Product Development and Rollout

In new product development, highly specialized niche companies are
demonstrating that they can bring innovation faster. With escalating R&D costs,
we believe drug manufacturers that leverage the intellectual property of such
companies, as well as facilitate collaborative efforts through alliances and
partnerships, can better manage risk and portfolio profitability. As more parties
participate in the race for innovation, integrating research, development and
design efforts will become a source for competitive advantage. Technology,
information sharing and process integration will become paramount to lowering
costs and optimizing intellectual property.
Additionally, once a new product has been developed, the cycle for
commercializing that product and rolling it out must become tighter. With
exclusivity periods shortening and generics gaining higher market share, the time
it takes to get product commercialized and demand generated will directly affect
the profitability and life of that product.5 Forrester Research calculates that the
per-day cost in lost sales for a $1 billion drug is $2.74 million.
Regulations and compliance also affect the transition from development to
rollout. The FDA allows new drugs to be marketed in the United States
immediately following approval, but Europe often experiences delays of up to 12
months between drug approval and market availability.2 Tighter and more
intelligent synchronization between production, fulfillment, marketing and channel
networks will enable faster rollouts. Reverse logistics of information and feedback
will need to be considered along with fulfillment and demand generation
processes.
Lastly, formula and indication strategy, along with life-cycle management, will
need to take place as part of – not after – new product development.
Organizations that assume profitability from original patent and license
expirations could be severely damaged financially by product innovations from
competitors. Pharmaceuticals can no longer depend on patents to guarantee
future product revenue streams. Instead, organizations must be prepared by
anticipating innovation and competition, by designing alternative and extending
formulas, researching alternative indications and obtaining timely regulatory
approval for indications and expansion into other global regions.
Therapeutic Area wise Total Pharma Market

Category Value Market Share%

Anti-Infective 16.4
Gastrointestinal 10.9
Cardiac 10.3
Respiratory 10.2
Vit./Minerals/Nutrient 9.6
Pain/Analgesics 9.5
Dermatologic 5.4
Gynecology 5.3
Neuropsychiatry 5.3
Antidiabetics 4.4
Opthologicals 1.7
Others 11.0
Total 100.00

Figure 2 presents market share of top therapeutic segment in the year 2001 with
projection made for year 2010

Business Model and Strategies

One of the repeated mantras of pharmaceutical company strategy over the past decade
has been increasing scale Companies can only afford the considerable costs of drug
development and distribution by growing larger. This is well summarized in the Price
Waterhouse Coopers report Analysis and Opinions on M&A Activity (Price Waterhouse
Coopers, 1999). The three observed business models from this broad strategy are:

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

number of drugs that achieve substantial global sales (usually in excess of
$1 billion). The success of this model depends on achieving large returns
 from a small number of drugs in order to pay for the high cost of the drug
discovery and development process for a large number of candidates.

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

smaller niche markets. The success of this model is not dependent on
sales of a small number of drugs. However, the model only works for small
markets where distribution costs are low, particularly without a blockbuster
to help pay for the high development costs.

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

have recognized the blockbuster model as the dominant model (Mercer
Management Consulting, 2001). However interest in alternative models is
growing as consideration is being given to the marketing of biotech drugs
with smaller markets and higher treatment costs and the expectation of
more personalized medicine.

The primary strategy of the big established pharmaceutical companies has been
to increase scale through mergers and acquisitions. By building scale, the latter
stages of their product pipelines have at least a handful of highly prospective
blockbuster drugs. Scale also offered the capacity to both fund in-house research
and draw in external research through a variety of licensing arrangements and
alliances. Since the number of New Chemical Entities (NCEs) at the latter stage
is so small and returns are so uncertain these solutions may last a very short
duration. The gaps in the pipeline, expiration of existing blockbuster patents, and
the failure of the expected blockbusters are producing another round of Merger &
Acquisitions. The expected growth rates by the financial markets to sustain
current valuations require a significant and questionable expansion in the number
of new large selling drugs. Another strategy has been for pharmaceutical
companies to diversify their business activities into lower risk activities. For
example, Merck went into Medco or Johnson & Johnson expanded into
household health products. As Merck recently spun off its Medco unit, it is not
clear that the financial markets have rewarded this strategy.
Another diversification strategy is to focus on a comparatively large number of
niche market drugs rather than blockbusters. A number of European companies
have followed this strategy. While their total sales of Pharmaceuticals place them
in the top rank of pharmaceutical companies they have only one or two
blockbuster drugs. This diversification strategy lessens dependence on the
discovery of new blockbusters, but development and marketing costs need to be
minimized for the smaller markets to be profitable On the other hand, some
biotech firms used a discovery breakthrough to develop a blockbuster of their
own, and eventually succeeded in marketing through an alliance with a global
pharmaceutical company. In some instances, biotech firms also have funded
independent drug discovery through direct access to the venture capital market.
In other cases, large pharmaceutical companies through alliances and licensing
have supported their research. Very small number of biotech companies rose to
the top ranks from a single successful blockbuster drug. On the other 3hand,
many biotech companies fail to realize these goals and become contract
research organizations or go out of business. There is a strong need for alternate
business models due to the instability and un sustainability of current
pharmaceutical business strategies and structure. Details of the blockbuster
model are presented below.
The Blockbuster Business Model
Due to its complex and uncertain nature of drug development and distribution
system, the industry’s economics call for few high selling drugs to mitigate the
risks and enhance the profitability. Figure 2 presents the 10 largest global
Pharmaceutical companies by sales of pharmaceuticals for 2002 together with
total sales of those drugs with global sales exceeding $US1 billion
(‘blockbuster’). There are only 40 blockbusters highly concentrated with the three
largest companies representing on average 41% of pharmaceutical sales of
these comp
Figure 2 Blockbuster sales by major pharmaceutical companies (Credit
Suisse First Boston, 2008)

The blockbuster model requires that the later stages of the development pipeline
always contain drugs of blockbuster potential. This also requires a consistent and
dedicated approach to drug R&D with considerable in house research expertise
and successfully utilizing public domain research or using various alliance
strategies and licensing arrangements to bring prospective drugs into the later
stage drug development. The risk involved in this strategy is that there may not
be new blockbusters to replace those losing patent protection since the number
of blockbuster drugs at any point in time is relatively small. Some companies
failed to invest adequately in the pipeline resulting in lack of blockbusters to keep
sales growing as in the case (Gambardella, 1995) of SmithKline, which failed to
reinvest the proceeds of its Tag a met success in upstream research, and it was
forced to merge with Beecham in 1989. Some companies have combined
mutually supportive capabilities such as the ability to develop valuable drug
development pipeline and a strong sales and distribution infrastructure as in the
case of the merged company AstraZeneca – Astra with the blockbuster drug
Losec and Zeneca with the financial strength and scale to under write further
R&D. The blockbuster model requires cost improvements in the developmental
costs to reduce the uncertainty in the model. In 1990s, Ely Lilly's efforts to
improve in efficiency of its drug development pipeline for its blockbuster drugs
through quality, speed and value (QSV) concept. Lilly emphasized to improve
speed to market, leveraging existing products and establishing a global and
focused therapeutic area presence. Their focused activities and more disciplined
approach of the drug discovery and development process (Burgleman, Maidique
and Wheelwright, 2001)
Resulted in a remarkable performance in share price. Despite these
improvements, the cost of R&D per drug has climbed exponentially over the last
30 years (Grabowski and Vernon, 1994). Recent estimates put the cost of R&D
per drug at $802M whereas the equivalent study conducted 10 years previously
and adjusted to 2000 dollars put the cost at $318M (Di Masi, 2001).
Consolidations in the industry increase the risks in the blockbuster model and
uncertainty of the economics of new drug development. It is difficult to achieve
stable and predictable returns when fewer blockbusters are replenished in the
portfolio while facing the constantly emerging competition from follower drugs.
The industry data shows that the follower drug competition has cut market exc
lucidity from 4 years in the 1980s to less than 1 year in the 1990s
(Pharmaceutical Research and Manufacturers of America, 2001). From the
lessons learned from the other industries such as automotive, chemical, and
personal care industries the pharmaceutical industry need to leverage its value
chain to gain efficiencies in supply chain costs.
2.2 Operational Model and Supply Chain Management
In the changing pharmaceutical landscape, all the supply chain components
need to gain efficiency in order to sustain the growth and profitability of the past
performance. Recent market withdrawals of products in COX-2inhibitors and
regulatory disappointments of several promising drugs, big pharmaceutical
companies that continue to reply on old investment and commercialization model
based on the blockbuster drugs will face the challenge of shifting the drug
development to specialty products. About 75 of the new chemical entities (NCEs)
entering the market are specialty products and/or biologics produced by the small
to medium size biotech companies. The challenge of being profitable through
smaller chemical entities needs to be managed by developing more niche
products either internally or through partnerships. One element of this new
model, as learnt from the other industries such as the specialty chemicals and
personal care is the cost and resource management. Efficiencies need to be
gained in minimizing the costs and resources until these products have large
growth potential. Timing is also an important factor in bringing these products into
the market as quickly as possible
Formulation
Drug
Clinical
Distribution
Marketing
Discovery
Development
& Manufacture
& Sales

Figure 3 Pharmaceutical Supply Chain

Figure 3 presents the pharmaceutical supply chain, which integrates the

processes from drug discovery tom distribution to create value for the patents.
Drug discovery and clinical development can be enhanced in this supply chain by
leveraging the technology. Currently, the process is very lengthy, labor-intensive
and highly regulated. The legacy IT systems and multiple, disparate data sources
that are resident internally and externally in many companies is hampering the
improvement in this are a .Marketing and sales is another area where scale
delivers clear advantage. Sales per representative typically rise allocated for
marketing, where as less than 20% for R&D. Any efficiencies gained in this area
of supply chain can have a major impact on company value. A survey of US
pharmaceutical companies suggests that marketing and sales capability
accounts for 42% of the variation in financial performance (George and Perone,
2001 and Blumberg and Perone, 2001). Most of the new blockbuster drugs are
launched with a comprehensive and expensive global marketing campaign that
involves the full range of marketing tools including media advertising,
comprehensive information packs, special events for doctors, conference
presentations, dedicated sales forces and the Internet. Sales and distribution
activities in the supply chain is emerging as a major issue for pharmaceutical
companies. Traditionally in the US, clinical settings (hospital, in-patient facilities)
have accounted for about 25% of pharmaceutical sales while the remainder have
been distributed through various wholesale and retail channels.
Typically the manufacturer sold the drugs to a wholesaler which distributed the
drug to retail pharmacies. In this relationship the doctor, who has been the focus
of marketing campaigns, had an unrestricted ability to prescribe drugs as he saw
fit. Traditionally marketing to physicians involves sending more sales reps to the
doctors with each new drug launched. Accordingly, the number of sales reps has
been rising rapidly, at 20%, compared with Drug Discovery Clinical Development
Formulation& Manufacture& Sales Distribution SUPPLIERS REGULATIONS
Physicians at only 3%. Pharmaceutical companies are seeking ways around the
doctor channel such as direct-to customer (DTC) and various forms of the
Internet delivery.
3.1 Emerging Business Models and Strategies
In order to prepare for the future, integrated pharmaceuticals companies have a
variety of strategic alternatives to position themselves in the future market. They
can leverage the value chain and recapture the value like the personal care and
chemical industries have done in the 1990’s (Chitra, 1999 and 2000). They can
concentrate on individual slices of the integrated value chain, such as cardiology,
urology or CNS. Another option is to focus on individual functions of the value
chain such as lead identification, drug development, production or marketing &
sales. Finally, integrated firms can continue to follow the current strategy of
acquire and integrate the newly acquired companies into current organizational
structures with elimination of redundancy. The primary strategic alternative is to
concentrate on integrated slices of the value chain. This will require companies to
separate their existing business structures into multiple fully integrated
organizations focusing on specific segments or markets with focus on market
orientation from process orientation. The responsibility lies with individual
organizations for research, development, production and marketing and sales.
Resources can be obtained from internal service providers (e.g., central
headquarters) or external service firms based on competitive pricing. A
secondary strategic alternative for large integrated pharmaceutical companies is
to focus on the individual functions of the supply chain or the individual segments
of the value chain, which provide a clear sustainable benefit to profitability.
Companies must decide regarding which functions the firm should retain
internally, which functions the firm should source to outside partners and which
technologies the company will need to retain and grow. In addition the companies
develop strategies to select and orchestrate synergistic partners. As a result of
this strategy, value chain segments can be separated into independent units,
which can be divested or maintained as profit centers. The final strategic
alternative, acquire and integrate smaller firms, is the current strategy followed by
the industry. An example of this strategy is the acquisition of Viceroy
Pharmaceuticals by Pfizer recently. However, this strategy becomes increasingly
competitive and difficult as the industry continues to consolidate. Sooner it will
Become hard to follow this strategy as the few remaining firms will be too large
acquire to maintain the current growth. Just like in the other industries such as oil
and chemical industries, the integrated firms will begin to yield to the specialists
of one segment or a function. Already, the market is beginning to reward the
segment and market specialists as shown in Figure 5. The current blockbuster
model is very risky, expensive and time and resource intensive. The alternative to
the blockbuster model is to consider the other options used by the biotech
companies and the generic drug manufacturers. The approach of some smaller
biotech companies is to focus on specialty products and/or biologics. In 1996,
25% of the NDAs targeted specialty products and 75% targeted the primary care
products. But in 2003, the trend is the reverse with 75% for the specialties and
25% for the primary care. This approach can reduce the risk compared to the
current blockbuster model, since these NCEs are targeted for very specific target
patient populations. But the drug development cost is very high and time to
market these drugs is still very long.

Building Supply Chain Capabilities in the Pharmaceutical Industry

SWOT Analysis
Strengths
• Cost Competitiveness
• Well Developed Industry with Strong Manufacturing Base
• Access to pool of highly trained scientists, both in India and abroad.
• Strong marketing and distribution network
• Rich Biodiversity
• Competencies in Chemistry and process development.
Weaknesses
• Low investments in innovative R&D and lack of resources to compete with
MNCs for New Drug Discovery Research and to commercialize molecules
on a worldwide basis.
• Lack of strong linkages between industry and academia.
 • Low medical expenditure and healthcare spend in the country
• Production of spurious and low quality drugs tarnishes the image of
industry at Home and abroad.
• Shortage of medicines containing psychotropic substances. There are
4000 such brands of medicines that fall under the Narcotics Drugs and
Psychotropic Substances (NDPS) Act, 1985.Under a clause of this Act, the
retailer has to sign the consignment note provided by the stockist. The
police check this note regularly to prevent these medicines getting
diverted to the drug mafia and they can arrest the retailer if the signatures
are under suspect. To protest against this clause, the retailers have
stopped stocking these medicines, some of which is life saving.
Opportunities
• Significant export potential.
• Licensing deals with MNCs for NCEs and NDDS.
• Marketing alliances to sell MNC products in domestic market.
• Contract manufacturing arrangements with MNCs
• Potential for developing India as a centre for international clinical trials
• Niche player in global pharmaceutical R&D.
• Supply of generic drugs to developed markets.
Threats
• Product patent regime poses serious challenge to domestic industry
unless it invests in research and development
• R&D efforts of Indian pharmaceutical companies hampered by lack of
enabling regulatory requirement. For instance, restrictions on animal
testing outdated patent office.
• Drug Price Control Order puts unrealistic ceilings on product prices and
profitability and prevents pharmaceutical companies from generating
investible surplus.
• Lowering of tariff protection
• The new MRP based excise duty regime threatens the existence of many
small scale pharma units, especially in the states of Andhra Pradesh and
 Maharashtra, that were involved in contract manufacturing for the larger,
established players.
These companies are now shifting their manufacturing from these states to states like
J&K that enjoy tax holidays.
 Chapter 2
Company profile
 Company profile
Maxycon is a pharmaceutical company headquartered in India. The company
strong portfolio of businesses, geographies and products gives us an edge in an
increasingly competitive Indian market and allows us to provide affordable
medication to people across the country, regardless of geographic and socio-
economic barriers.
MAXYCON PHARMACEUTICAL PVT. LTD.:
Maxycon pharmaceutical pvt. Ltd was founded in the year 2008 with a clear
mission to improve human health by offering quality Pharmaceuticals so much
vital to the society today. We at P.I. L.act as -Catalyst’ in bringing world class
products to the companies customers. We identify market needs & work to
achieve competative advantage in the market place for the companies
customers, by offering high quality APls & their formulation at affordable rates.

MPPL’s GLOBAL OPERATION :

MPPL is well positioned in the international arena. The company Global business
plan includes supply of Pharma Active Ingredients (APls)-mainly semi synthetic
penicillins and cephaosporins to a wide range of Formulation manufacturers. The
company customer base includes’ international names such as ACETO, HELM,
DOLDER, BAYER & BASF.
The company geographical projected reach Spain, Africa, Asia, CIS countries &
Latin, American Countries etc. We have been supplying to all these customer will
be 2010 where all the company products are ‘very highly accepted both for their
high quality as well as RRODUCT STEVEDORING.
Also MPPL is the accredited formulation supplier to a host of Non-Government
Organization (N.G.O’s) and various overseas Government bodies namely

• W.H.O.
• UNDP
• Medicines
 • Sans
• Franchise
• Red Cross
• Various
• Church bodies
• DOH

MPPL’s DOMESTIC OPERATION:

Primarily the company range of products is being promoted widely in & around
highly developed & matured market of Delhi city. The company products. Sales
are scaling exponential growth rate solely due to the acceptance at Doctor’s level
as well as product quality. Currently the company’s product basket contains
about 15 product & we envisage to’ add additional 40 - 50 products by the end of
2010. The. Company’s core strengths are antibiotics & injectables and this is all
due to the company strengths in Antibiotics APIs.
In the very near future the company Product range shall cover practically all the
Therapeutic areas.
MANUFACTURING & QUALITY CONTROL:
At MPPL we practice W.H.O., CGMP standards of manufacturing procedures
complemented with W.H.O standard procedures for PRODUCT STEVEDORING.
This standard of products stevec’oring ensures ultimate quality standards both
for the company range of APls as well as formulations.
 Company products
Medicine
MAXYNIM – P (Nimesulide + Paracetamol)
It is new nonsteroridal anti-inflammatory drug and after administration leads to
adequate analgesia and antipyretic effect. The advantage of nimesulide over
other NSAIDs is that it causes minimal gastric irritation.
M.O.A: It is a weak inhibitor of prostaglandin synthesis. It appears to act at
different at stage of the inflammatory reaction and the mechanism by which it
exert its action are complex. It leads to inhibition of superoxide anion generation
in vitro by activated neutrophils, inhibition of histamine release from tissue must
cells and basophils, it cause a inhibition of platelet activating factor synthesis in
stimulated human neutrophils and inhibition of synthesis of metalloproteinase
thus preventing brakedown of osteoarthritic human cartilage.

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

highly bound to plasma proteins and is extensively metabolised in liver.The major
Metabolite is pharmacologically active.
ONSET OF ACTION: 32- 60mins.
DURATION OFACTION: 8-10 hours.
ADVERSE EFFECT: Nausea, vomiting, deiarrhoea, heart burn, epigastric pain,
pruritus, skin rash headache, somnolence, dizziness.
CONTRAINDICATIONS: Active peptic ulcer, moderate to severe hepatic
impairment.
SPECIAL PRECAUTIONS: Renal impairment-heart failure.
INDICATIONS : Osteoarthritis, reheumatoid arthritis, low back pain,
dismenorrhoea and other gynaecological disorders, dental and postoperative
pain, in reducing pain of ear, nose and throat and inflammation. Pain of
malignancy, sports injuries. Fever ect.
DOSAGES:
 • Adult 100mg bd.
• CHILDEN : 5mg /kg/day divided in 2 or 3 daily doses.

Maxiclox-LB (Amoxicillin + Cloxacillin)

Amoxicillin (INN), formerly amoxycillin (BAN), is a moderate-spectrum,
bacteriolytic, β-lactam antibiotic used to treat bacterial infections caused by
susceptible microorganisms. It is usually the drug of choice within the class
because it is better absorbed, following oral administration, than other β-lactam
antibiotics.
Amoxicillin is susceptible to degradation by β-lactamase-producing bacteria, and
so may be given with clavulanic acid to decrease its susceptibility.
Formulation
Amoxicillin in trihydrate form is available as capsules, chewable and dispersable
tablets plus syrup and pediatric suspension for oral use, and as the sodium salt
for intravenous administration. It is one of the most common antibiotics
prescribed for children, and the liquid forms are helpful where the patient might
find it difficult to take tablets or capsules. It has three ionizable groups. A once
daily dosing form (Moxatag) was approved by the American FDA in January
2008.
Composition
Each Vial contains:
Amoxycillin Sodium I.P. equivalent to Anhydrous Amoxycillin 1g
Cloxacillin Sodium I.P. equivalent to Cloxacillin 1g

Gusto (A complete Energy Drink)

Oral Eletrolytes
Electrolyte deficiency may arise in body particularly in infants due to
gastroenteritis. Also vomiting and diarrhoea due to different cuases may lead to
electrolyte inbalance. Orale preparations of flavoured electrolytes (as
recommended by W.H.O. ) are indicated in mild cases. For severe conditions
Eletrolytes are to be administered by parenteral route. Potassium
supplementation is given with some diuretics.
Indications : Replacement of Eletrolytes and liquid in mild to moderate losses
due to diarthoea or vomiting. Eletrolytes depletion state.
Dosage : Adults: Daily dose to be equivalent to patient's water requirements for
maintenance and replacement. Of losses preferably calculated on basis of body
surface area. Upto 2-3 litres daily. Children: Up to 5 yrs. 400ml -1.6 litre daily(8-
12ml/kg body weight per hr.depeding on need). Older children 2-3 litres spread
over 24hrs.
 Chapter 3
RESEARCH
METHODOLOGY
 RESEARCH METHODOLOGY
Research is defined as human activity based on intellectual application in the
investigation of matter. The primary purpose for applied research is discovering,
interpreting, and the development of methods and systems for the advancement
of human knowledge on a wide variety of scientific matters of our world and the
universe.

Research process
 RESEARCH DESIGN

The objective of the study gives a clear indication about the nature of the study.
Market survey is one of the best examples of descriptive research. This is a one
shot research study at a given point of time, and consists of a sample of the
population of interest. Its advantages are that it gives a good overall picture of
the position at a given time. It can cover many variables of interest, and is not
affected by the movements of elements in the sample, because other elements
can be substituted for them.
The research consisted of two stages.

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

Primary sources
The basic requirement of the study was to determine the perspective
customer and experience of the respondent. The sample for the research
includes different individuals of various age groups and having different
professions and qualifications. Data was collected through the interview of
doctor. The questionnaire was containing questions regarding the personal
details of individuals and then some light questions regarding their knowledge
related to pharma companies.
For the purpose of primary data collection questionnaire is used.
• The primary source of data was interviews conducted as part of the
survey.
• The sample size for the survey was 30.
• Data was collected through discussions with the doctor .

Data collection methods

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

SAMPLE DESIGN
The population for the study was spread over a large geographical area
and due to the time constraint, conducting a census survey was not possible. So
a sample of respondent was selected from the whole population. Sample design
consisting of following factors was prepared for the purpose of the study ---
Population
All the doctor are selected from NCR region.
Sample size
A sample size of 30 respondents was considered appropriate for the
purpose of the study. These respondents are the doctor.
Sampling Procedure
Contact Method: personal meetings
Sampling technique
All the respondents were not willing to share information. So all the
respondent who are easily accessible and willing to share the information were
administered the structured questionnaire to get the desirable information. These
respondents were selected randomly on the basis of convenience of the
research. Convenience sampling has been used for collection of data.
Sample composition:
✔ Government doctor
✔ Private doctor

Sampling area: Delhi & NCR

Sample survey was done, in which questionnaires were made and filled up by
various doctor in different geographical areas in Delhi & NCR in order to gauge
their general opinion about pharmaceutical companies, Maxycon’s offerings, their
views on the visibility of company’s products & suggestions for the improvement
of awareness of Maxycon pharmaceutical.

Then in the last stage all information gathered was analyzed and the areas in
which maxycon was lacking were identified. The recommendations were given as
per the findings of the project.
 Chapter 4
Analysis and
observation
 Chapter- 4
Analysis and observation
The research tool used was the questionnaire containing eleven questions. The
survey was conducted in the region of Delhi and NCR. The data was collected
through personal meeting with the respondents. The questionnaire was designed
after conducting a pilot survey, which included personal meeting with the users of
any insurance company, and also few connoisseurs were asked from their points
of views, which helped greatly in designing an effective questionnaire.
All the respondents were not willing to share information. So all the respondent
who are easily accessible and willing to share the information were administered
the structured questionnaire to get the desirable information. These respondents
were selected randomly on the basis of convenience of the research.
Convenience sampling has been used for collection of data. The selection
criterion was same in the entire region i.e. distributing one questionnaire each to
the peoples who is willing to fill it. Also the respondents were instructed little and
were helped for any other doubts they carried. The respondents were very co
operative and sincere.
The discussion will be covering all the parameters of the questionnaire including
each and every bit of every question and also the demographics details at the
end of the questionnaire.
The statistical tool is used everywhere where it is required. The main statistical
tools are Mean, standard deviation. Bar and pie charts are also used for the
analysis. Cross tabulation method is used which help in doing analysis easily and
accurately.
 1. What is the frequency of your visitor (patient) daily?
(1) 0-10 (2)10-20 (3) More than 20

Interpretation
The above figures shows that 45% of the doctors says that there are around 20
and more than 20 patients coming to their clinic daily and around 40% says that
there are 10-20 peoples( patient) visiting clinic daily.

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

(1) Only one day in a week (2) Alternative day in a week
(3) More than three days

Interpretation
From the above graph it is shown that around 75% of the doctors are opening
their clinic for more than 3 days in a week and there are only few doctors who are
open for only one day in a week these are mainly the doctors which are specialist
in some area.
 3. How much time do you devote to them?
(1) 0-5min. (2) 5-10min. (3) more than 10min.

Interpretation
When asked about the time devoted per patient most of the doctors are devoting
a good amount of time on their visitors (patient/ M.R.). Around 50% of the doctors
are devoting more than 10 minutes on a single patient.
 4. Which pharma company’s medicine do you prefer to them?
(1) Ranbaxy (2) Cipla (3) Dr.Reddy
(4)Cadila (5) Glaxo

Interpretation
The above figure reveals that around 30% of the doctors are recommending
drugs of Ranbaxy Company to their patient. And there is also good amount of
doctors who is recommending drugs of cipla and Dr.Reddy Company. While
there are only a few number of doctors who are recommending Glaxo and Cadila
company drugs.
 5. What is the reason for recommendation to the particular company?
Brand name Good products
Wide range of products Tie up with company

Interpretation
When asked for the reason for recommendation to the particular company most
of the doctors says that because they have the tie up with the company that`s
why they are recommending the drugs of the particular company. There are
around 30% of the doctors who are saying so. There are around 25% doctors
who are recommending due to a good brand name of the company while the
good product range is also among the reasons for the recommendation.
 6. Do you meet M.R. in regular schedule
(1) Yes (2) No

Interpretation
The above figure reveals that the most of the doctors are meeting the M.R. on a
regular basis when asked about the timings they said that the time of meeting is
fixed and only in that time the M.R. are allowed to meet.
 7. Do you also prefer that medicine that is being recommended by M.R. of a
particular company?
(1) Yes (2) No

Interpretation
The above figure reveals that the most of the doctors are recommending the
drugs preferred by the particular medical representativearound 75% of the
doctors meet with M.R. and discuss about the product of the particular company.
.
 8. Have you heard about Maxycon Company?
Yes No

Interpretation
Overall we see that most of the doctors around 60% are not aware about the
company and only 40% doctors are aware about company.
 9. If yes from where did you come to know about Company?
Electronic media Internet
Print Work shops
M.R. Others

Interpretation
Now as we see the most of the doctors around 40% get aware about the
company through medical Representative of the company. Some of the doctors
gets information about through work shops around 25% and some of them are
knows through the internet and print media.
Chapter 5
Conclusion
 Conclusion
• Overall majority of the doctors have said that they look for each aspect but
they give attention to the medicine on the bases of their personal
experience, and also many said that they take medicine from that
company which give better result and also having a brand name.
• Companies like RANBAXY, CIPLA,DR.REDDY ,CADILA GLAXO
SMITHKLINE is chosen most of the time on the basis of brand name and
better product features, and RANBAXY,CIPLA,DR.REDDY are chosen
most of the time because of good network in the market and presence in
the sector for a relatively longer period than other company
• The doctor and people mainly get awareness about company through the
medical representative and media but there is very less effect of
advertisement seen in creating awareness.
• Among the factors that the doctor generally considered while prescribed
any patient, like result of the medicine and side effect of the medicine are
the most important factors that are considered by doctor.
• When asked about the satisfaction level of the doctors from the company
most of the doctors replied favourably i.e. they are satisfied while there are
only a few doctors who show dissatisfaction with the company.
• Most of the doctors are unaware about the company because of company
is new in market
 Chapter 6
Recommendation
Recommendation to the company
.

• The number of medical representative in Maxycon Company should be

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

needs to be aware about Maxycon Company

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

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

M.R.

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

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

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

the products offered by any company.

• The company should have to make expenditure on Research and

development in order to make new products

Annexure
 Bibliography
Search engine
• www.google.com
• www.msn.com
• www.wikipedia.com

Websites
• www.maxycon.com
• www.pharmaceutical-drug-manufacturers.com
• www.ficci.com
• www.bharatbook.com
• www.researchandmarkets.com
• www.pwcglobal.com/

Books
• Walton, J. 2001, “Investors’ views on Merger and acquisition, alliance
and licensing activity in the pharmaceutical industry”, in Kettler 2001.
• Agarwal, S., Desai, S., Holcomb, M. and Oberoi, A. 2001, ‘Unlocking
the value of Big Pharma’.
• Grabowski, H. and Vernon, J. 1994, ‘Returns to R&D on new drug
introductions in the 1980s’, Journal of Health Economics vol. 13, pp.
383-406.
 Questionnaire
(The information supplied by the respondent will be kept confidential and will be
used only for the research purpose)
Personal Information:
Name: __________________________________________________________
Contact No: ______________________________________________________
______________________________________________________________
__
QUESTIONNAIRE
1. What is the frequency of your visitor (patient) daily?
(1) 0-10 (2)10-20 (3) More than 20
2. How many days in a week you see the patient?
(1) Only one day in a week (2) Alternative day in a week
(3) More than three days
3. How much time do you devote to them?
(1) 0-5min. (2) 5-10min. (3) more than 10min.
4. Which pharma company’s medicine do you prefer to them?
(1) Ranbaxy (2) Cipla (3) Dr.Reddy
(4)Cadila (5) Glaxo

• What is the reason for recommendation to the particular company?

Brand name Good products
Wide range of products Tie up with company
5. Do you meet M.R. in regular schedule
(1) Yes (2) No
6. Do you also prefer that medicine that is being recommended by M.R. of a
particular company?
(1) Yes (2) No
7. If yes then on what basis (please specify)
………………………………………………………………………………………
8. Have you heard about Maxycon Pharmaceutical Company?
Yes No
9. If yes from where did you come to know about Company?
Electronic media Internet
Print Work shops
M.R. Others
10. According to you what company has to do to increase their business?
……………………………………………………………………………………
……………………………………………………………………………………