Submitted in partial fulfillment of the requirements for the Award of Degree of Master of Business Administration to Kurukshetra University (SESSION 2011-2012)
ACKNOWLEDGEMENT
First and foremost, I would like to express my sincere gratitude to Mrs. Supriya Dhillon Additional Director,Kaim College, CH. Dadri. without whose support and encouragement I would not have achieved what I have today. I extend my deepest thanks to my mentor and guide, Mrs. Anamika, Faculty, Galaxy Global Group of Institutions for providing me the necessary information whenever required and for his valuable comments and contribution. Her consistent support and cooperation showed the way towards the successful completion of the project. I am sincerely grateful to Mr. Mohit Aggarwal (Sale Manager, Cipla pharmaceuticals) for their help and guidance in preparing my project report. At last but not least I express my greatest gratitude to my parents who provided me the moral support and encouragement.
(Shilpi Singla)
Preface
CERTIFICATE -1
This is to certify that report entitled, "Chemist behaviour towards generic product" submitted for the degree of MBA in subject of summer training report, is a bonafide research project earned out by Shilpi Singla, student under my supervision and no part of this report has been submitted for any other degree. The assistance and help received during the course of investigation have been fully Acknowledged.
Contents Part- A
Serial No. 1. 2. 2.1 2.2 2.3 2.4 2.5 3. 4. 5. 6. Title Introduction to the Indian Pharmaceutical Industry Introduction to Cipla Mission & Vision Global Presence Manufacturing and R&D facilities Mergers and acquisitions Products Organizational Structure Board Of Directors SWOT Analysis Awards Page no.
Part-B
Serial No. 1. Title Introduction to the Project Research Methodology Data Analysis and Interpretation Conclusion and Suggestions Questionnaire Bibliography Page no.
PHARMA INDUSTRY OVERVIEWThe Indian Pharmaceutical Industry today is in the front rank of Indias 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 countrys 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.
ADVANTAGE IN 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 democracy and 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. Globalization: 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
2. Introduction to Cipla
Introduction
Cipla was registered as a public company with an authorized Capital of Rs 6 lakhs on August1935. This was started as a small drug and medicines manufacturer under the name TheChemical, Industrial and Pharmaceutical Laboratories, which came too popularly called as Cipla. Cipla was officially opened on September 22, 1937 when the first products were ready for the market. Khwaja Abdul Hamied founded Cipla. In college, he found Chemistry fascinating. He set sail for Europe in 1924 and got admission in Berlin University as a research student of The Technology of Barium Compounds". He earned his doctorate three years later. He gave the company all his patent and proprietary formulas for several drugs and medicines, without charging any royalty. Cipla Ltd. has displayed remarkable understanding to grow both vertically and horizontally. Since its formation, Cipla has repeatedly scored success in its industrial ventures by tapping opportunities in the market, even in a fierce competition in the international environment. Today, the company is under the chairmanship of Sh. Yusuf Hamied the Company's principal activities are to manufacture chemicals and pharmaceutical products. The company has more than 1,000 products in the domestic market including generic AIDS drugs, antibiotics, anti-asthmatics, anti-cancer, anti-inflammatory, anti-depressant and other drugs. It produces its products at 10 manufacturing plants located throughout the country. Cipla is the leader in the domestic retail pharmaceutical market, ahead of GlaxoSmithKline. The products of the Company are sold in India, Africa, Middle East, Europe, Americas, Asia and Australia. It also exports raw materials, intermediates, prescription drugs, over- the-counter products, and veterinary products to more than 160 countries around the world. A strong financial base and marketing standing are the main reasons of companys consistent and rapid growth that sustained even more than four decades.
MISSION The mission of caring for life, which continues to this day and God willing it will continue in the future.
Manufacturing set up for formulations Baddi, Himachal Pradesh Manufacturing of tablets & capsules, formulations
for an undisclosed inhaled drug. ipla talk with big pharma, Takeda mulls and number of globalpharma players, including Pfizer about potential generic supplydeals
2.5 Products:
Pharmaceuticals:
Cipla manufactures anabolic steroids, analgesics/antipyretics, antacids, anthelmintics, antiarthritis, anti-inflammatory drugs, anti-TB drugs, antiallergic drugs, anticancer drugs, antifungal, antimalarials, antispasmodics, antiulcerants, immunosuppressants etc, Animal Health Care Products: These include: aqua products, equine products, poultry products, products for companion animals, and products for livestock animals. OTC: These include: child care products, eye care products, food supplements, health drinks, life style products, nutraceuticals & tonics, skin care products, and oral hygiene products. Flavour & Fragrance: Cipla manufactures a wide range of flavours, which are used in foods and beverages, fruit juices, baked goods, and oral hygiene products. Cipla fragrances have wide ranging applications such as in personal care products, laundry detergents and room fresheners.
3. Organizational Structure
Organizational Structure
4. BOARD OF DIRECTORS
Whole-time Director
Mr. S. Radhakrishnan
Non-Executive Directors
Mr. V.C. Kotwal Dr. H.R. Manchanda Mr. M.R. Raghavan Mr. Ramesh Shroff Mr. Pankaj Patel Dr. Ranjan Pai
5. SWOT Analysis
STRENGTHS:
1. Ranks #2 in the retail prescription market in India; 2.18 brands that feature among the top-300 brands; 3. Large basket of 1,500 formulations. 4. Partnered 8 leading generics companies in the US for nearly 125projects. 5. Exports to over 175 countries that contribute 54% of total turnover. 6. Company has an extensive distribution network. 7. One of the countrys best R&D process.
WEAKNESSES
1. Domestic growth was steady at 10 per cent. 2. Growth in formulation exports was affected due to various factors including non availability of important raw materials, lower tender business in anti- retroviral. 3. Impact of IPR regime.
Opportunities
1. 46 ANDAs (Abbreviated New Drug Application) pending for approval in US. 2. Plans of launching bio-similar, particularly relating to theoncology, anti-asthmatic and anti- arthritis categories 3. Around 10% contributions to the revenue from the Indore SEZ to start coming in from FY2013E. 4. Bio- therapeutic: a new and promising area. 5. Agreement with avesthagen.
THREATS 1. Some pending legal cases on account of alleged overcharging in respect of certain
drugs under the drug price control order 2. Sensitive to fluctuation in foreign currency exchange rates.
6. AWARDS
Cipla Director Received Padma Bushan Award in 2005 i.e Dr. Y.K Hamied. In 1976 cipla launches medicinal aerosols for asthma. In 1980 won Chemexil Award for excellence of exports. In 1988 won National Award for Successful Commercialization of Publicly Funded in R&D. 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).
Overview:With the growth of Indian pharmaceuticals industry, now it has been clear that Indians are now more health conscious. They used to visit doctors or healthcare consultants for the treatment of any acute or chronic disease. But even in todays scenario there are lot many peoples who used to take either self medication or treatment from unqualified person. Major reason of this is cost effectiveness because if they visit qualified doctors for small-2 health problem, they will have to pay Rs 50 to Rs 200 as consultation fee and Rs 50 to 200 for cost of medicine. These unqualified healthcare professional used to provide whole treatment with in Rs 20 to Rs 50. These are basically RMPs and some chemist counters who are providing this type of treatment. They majorly used generics drugs as dispensing medicines to provide cost effective treatment. For any healthcare professional the purchase rate of generics drugs is almost 10 to 20 % as compared to prescribed drug. There are many companies which are providing generics drug start from leading Pharma companies to local level companies. This report is basically based on the survey done on chemist level to know about the generic drugs practices going on chemist level.
Chemists who are majorly involved:Major generics drugs are used by those chemists who have their self practice. They are having their setup either at busy location or in remote area of towns. Basically these chemist counters are famous in between middle class and low class peoples, to provide so called treatment.
Promotional package:
Few leading companies are providing gifts with certain purchase of quantity. They are providing CFL tubes, Scissors, brass casseroles, towels, glow sign boards. Wing has one unique strategy for their product Diclowin-plus that they are providing coupons inside the box of Diclowin-plus, each coupon has some score mention in it. Chemist has to collect certain coupons up to certain score on which there are prizes like Steam press, stroll bag, fan, and heater.
Some local generics companies operating in Ambala: Ombiotic Curewell Sincom Laborate Origin Pharma
Cipla: nicip, nicip plus, cetcip, okaset, nicip MR, cipzox, Duocip, Cipladine, Maxirich
Ranbaxy: Fenec Plus, afenec plus zentamycin inj Intas: intagesic MR, intagesic, nimcet gold, nimcet MR, oflatas 200, oflatas OZ
Research Methodology
Nature of Research:
A Exploratory cum descriptive approach was followed since this involved conducting the survey in which data is collected about the sales of different products to know about the sales of various molecules in Haryana.It is aimed specially at collecting information from various chemists operating in the Haryana.
Research design:
The field survey for the project was conducted through a structured questionnaire for chemists(see Appendix). The questionnaire contained mostly close ended and some open ended questionsaimed to know about the sales and availability of Diff. molecules considered in the study. All the data collected, is primary data as well as secondary data is used in study.
The study is based on primary data as well as secondary data is involved in it. The researcher has conducted a survey and primary data is collected with the help of structured questionnaire filled by the researcher during personal interview with the respondents
Research Instrument:
Structured questionnaire contained close-ended questions and a few open-ended questions, issued as a tool for collection of data. Also there are some secondary data collected by company website, whole sailors, threw companys internal departments.
Analysis Patterns:
In order to analyze the collected data the researcher has used the techniques of Percentage and Ratio analysis with the major drugs of the company which have a competitive market share.
Q1. Type of practice in percentage? Q2. In Self practice which type of patients comes to you (in percentage)? Q3.for which type of diseases you get patients for self practice? Q4. Which medicine you dispense mostly in self practice? Q5. Which company products mostly you use in self dispensing? Q6. Reason of choosing any particular companys product? Q7. Your comments on the marketing of generics drugs companies? Q8. Total Average cost of medicine you provide to your customer? Q9. Which Stockiest provides you good service and how?
Questionnaire
Your comments on the marketing of generics drugs companies? Field person: Gift policy: Promotional package: Stockiest involvement:
Total Average cost of medicine you provide to your customer? Below Rs 20: Rs 20 to 50: Above Rs 50: Which services company provides you in keeping of the generic medicine of the company? Delivery on time: Lowest rate: Fair dealing: Credit policy: Any other: ___________________
Bibliography
http://www.cipla.com/ http://www.cipla.com/corporateprofile/financial/pdf/cipla_ar_2011_12.pdf Kothari, C.R. (2004), Research Methodology-Methods and techniques, Second Edition, New Age International (P) limited, Publisher, New Delhi.
http://www.cci.in/pdf/surveys_reports/indias_pharmaceutical_industry.pdf http://www.idma-assn.org/Speech.pdf