1.

Porters Five Force Modelin Pharma Industries

2. Industry Competition
Most competitive industries in the country with as many as 10,000 different players.
Top player in the country has only 6% market share and top five have 18%.
High growth prospects.
Very low entry barriers.
Fixed cost requirement is low and need for working capital is high.
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3. Bargaining Power of Buyers
End user of the product is different from the influencer (read Doctor).
Consumer has no choice but to buy what doctor says.
Buyers are scattered and they as such does not wield much power in the pricing of the products.
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4. Bargaining Power of Suppliers
Pharma industry depends upon several organic chemicals.
Very competitive and fragmented industry.
Chemicals are largely a commodity.
Suppliers have very low bargaining power.
Pharma industry can switch from their suppliers without incurring a very high cost.
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5. . Barriers to Entry
Most easily accessible industries for an entrepreneur in India.
Capital requirement for the industry is very low, creating a regional distribution network is easy.
Point of sales is restricted in this industry in India.
Creating brand awareness and franchisee amongst doctors is the key for long-term survival.
Quality regulations by the government may put some hindrance for establishing new
manufacturing operations.
Impending new patent regime will raise the barriers to entry.
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6. Threat of Substitutes
One of the great advantages of the pharma industry.
Demand for pharma products continues and the industry thrives.
Key reasons for high competitiveness in the industry is that as an on going concern.
Key reasons for high competitiveness in the industry is that as an on going concern.
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7. Conclusion
Industry is not static in nature, it's dynamic.
Larger players in the industry will survive with their proprietary products and strong franchisee.
In the Indian context, companies like Cipla, Ranbaxy and Glaxo are likely to be key players.
Change in the patent regime, will see new proprietary products coming up, making imitation
difficult.
Government too will have bigger role to play.
8. Expiration date
9. The expiration date, required in several countries, specifies the date up to which the
manufacturer guarantees the full potency and safety of a drug. In the United States,
expiration dates are determined by regulations established by the FDA. The FDA
advises consumers not to use products after their expiration dates.
10. A study conducted by the U.S. Food and Drug Administration covered over 100
drugs, prescription and over-the-counter. The results showed that about 85% of them
were safe and effective as far as 15 years past their expiration date. Joel Davis, a
former FDA expiration-date compliance chief, said that with a handful of
exceptionsnotably nitroglycerin, insulin, some liquid antibiotics;
outdated tetracyclines can cause Fanconi syndromemost expired drugs are probably
effective.
11. The American Medical Association (AMA) issued a report and statement on
Pharmaceutical Expiration Dates. The Harvard Medical School Family Health Guide
notes that, with rare exceptions, "it's true the effectiveness of a drug may decrease
over time, but much of the original potency still remains even a decade after the
expiration date".
12. The expiration date is the final day that the manufacturer guarantees the full potency
and safety of a medication. Drug expiration dates exist on most medication labels,
including prescription, over-the-counter (OTC) and dietary (herbal) supplements. U.S.
pharmaceutical manufacturers are required by law to place expiration dates on
prescription products prior to marketing. For legal and liability reasons, manufacturers
will not make recommendations about the stability of drugs past the original
expiration date.