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An Overview of Pharmaceuticals Industrie PDF
An Overview of Pharmaceuticals Industrie PDF
In Bangladesh Pharmaceutical sector is one of the most developed hi tech sector which is
contributing in the country's economy. After the promulgation of Drug Control Ordinance -
1982, the development of this sector was accelerated. The professional knowledge, thoughts and
innovative ideas of the pharmacists working in this sector are the key factors for this
development. Due to recent development of this sector we are exporting medicines to global
market including European market. This sector is also providing 95% of the total medicine
requirement of the local market. Leading Pharmaceutical Companies are expanding their
business with the aim to expand export market.
There are several sectors on which Bangladesh can be proud of and undoubtedly the
pharmaceutical sector is one of these sectors, rather it is the sector, which is the second-largest
contributor to the government exchequer. There are about 231 companies in this sector and the
approximate total market size is about Taka 76,500 million per year of which about 94% of the
total requirement of medicines is created by the local companies and the rest 6% is imported.
The imported drugs mainly comprise of the cancer drugs, vaccines for viral diseases, hormones
etc.
A corporate scenario of
Currently the Zirabo plant consists of several buildings with state of the art technology.
Dedicated cephalosporin manufacturing building, a specialized manufacturing building for the
production of lyophilized products, insulin and amino acids and newly built liquid and semisolid
manufacturing building and large warehouse is also in operation.
Another multipurpose building for housing the Research & Development operation along with
the canteen facility is also there. Currently all the products are coming from the plant at Zirabo.
The company now produces almost all types of dosage forms covering nearly all therapeutic
area.
Incepta now has one of the largest and competent sales force and large distribution network of its
own, operated from 18 different locations throughout the country. A most dynamic skilled and
dedicated marketing team comprising of pharmacists and doctors are at the core of the marketing
operation. These highly skilled professionals play a crucial role in providing the necessary
strategic guideline for the promotion of its product.
Incepta also conducts research and development in order to fulfill unmet needs of the medical
community in Bangladesh and abroad.The company sells its products in Bangladesh and also has
begun exporting to both developed and developing countries around the world.In 2011, the
company became the first firm to start manufacturing vaccines for the local Bangladesh market.
The responsibilities for the technical aspects of Quality Assurance are defined in the Quality
Manual. It encompasses all activities necessary to generate, maintain and verify the quality of
drugs.
Quality Surveillance is responsible for the implementation of the Quality Management System in
different areas in collaboration with different departments. Quality Surveillance play active role
in conducting external and internal audits with their follow-ups.
Research & Development is responsible for formulation development and method development,
implementing technical transfer to Production and Quality Control, and also covers process
validation, cleaning validation, method validation and follow up stability.
Incepta Pharmaceuticals Ltd.:
The Market Leader’s Vision and Mission
Vision:
The vision of Incepta Pharmaceuticals Ltd. wants to become a research based global
pharmaceutical company in addition to being a highly efficient generic manufacturer. It would
also like to discover and develop innovative, value-added products that improve the quality of
life of people around the world and significantly contribute towards the growth of Bangladesh.
Mission:
Provide people globally with high quality health care products at affordable prices in order to
improve access to medicine and to provide employees an enabling environment that facilitates
realization of their full potential.
Teamwork:
We know that to be a successful company we must work together, frequently transcending
organizational and geographical boundaries to meet the changing needs of our customers.
Performance:
We strive for continuous improvement in our performance, measuring results carefully, and
ensuring that respect for people are never compromised.
Community:
We aim to become nation's most admirable business enterprise through our honest and intelligent
approach to everything that we do. We strive to support the community where we live and to also
support our nation as far as possible at the time of its need. We truly believe that we can only
survive and grow if our nation remains healthy.
PESTEL Analysis of Incepta Pharmaceuticals:
Political
Political
Economical
1. Currency fluctuation has significant impact on pharmaceutical industry.
2. Increased pressure on pricing of drugs.
3. Cheap labor cost lead to an increase in profit margin for this industry.
4. Recent growth figures have proved to be better than the projection, which demonstrates that
the growth prospect of the sector is justified.
5. Recession in Global economy.
Social
1. 1. Population of Bangladesh is continuously increasing which boost this industry.
2. 2. Poor people cannot buy the expensive medicines.
Legal:
1. WHO's current good manufacturing practices (CGMP) should be strictly followed by the
companies.
2. Global inconstancy increasing
3. Increased litigation in the pharmaceutical Industry
4. The industry requires more rationalization.
Basic Strategies of Incepta Pharmaceuticals Ltd:
Marketing Strategy:
Marketing strategy is developed with the goal of increasing sales and achieving a sustainable
competitive advantage. It includes all basic and long-term activities in the field of marketing that
deal with the analysis of the strategic initial situation of a company and the formulation,
evaluation and selection of market-oriented strategies. Incepta has its own marketing stategy and
core marketing concept based on which it’s been successfully marketed its products to the
consumes throughout the years. Product: Filastin 30 (Filastin 30 pre-filled syringe injection):
Each pre-filled syringe contains 0.5 ml sterile solution which contains Filgrastim (G-CSF) 300
microgram (30 MU) as Filgrastim concentrated solution EP.
channel strategy:
Incepta has alarge distribution network that covers whole country and products available in every
single drug house. The distribution centers are in 18 major cities in Bangladesh. products are
supplied in daily basis in all the major cities and towns of the country. Remote areas are also
supplied rhythmically to ensure timely availability of products to all customers.
Pricing Strategies:
Incepta Pharma use market competitor based pricing for Filastin 30. Main competitor of Filastin
30 is Filgrast 30 which is produced by Beacon Pharmaceuticals Ltd. and Neupogen which is
produced by Roche Bangladesh Ltd. If there is strong competition in a market, customers are
faced with a wide choice of who to buy from. They may buy from the cheapest provider or
perhaps from the one which offers the best customer service. But customers will certainly be
mindful of what is a reasonable or normal price in the market. Filastin 30 in a competitive drug
market do not have sufficient power to be able to set prices above their competitors. They tend to
use "going-rate" pricing – i.e. setting a price that is in line with the prices charged by direct
competitors. In effect such businesses are "price-takers" – they must accept the going market price
as determined by the forces of demand and supply. An advantage of using competitive pricing is
that selling prices should be line with rivals, so competitive disadvantage. The main problem is
that the business needs Some other way to attract customers. It has to use non-price methods to
compete – e.g. providing distinct customer service or better availability. In case of increase the
market share of Filastin 30, Penetration pricing can be associated with a marketing objective of
increasing market share or sales volume. In the short term, penetration pricing is likely to result in
lower profits than would be the case if price were set higher. However, there are some significant
benefits to long- term profitability of having a higher market share, so the pricing strategy of
Filastin 30 can often be justified.
pricing strategy of a new products: since the government strictly control price of the pharmacetical
product, a company new product should be adopt ‘shadow or indirect’ pricing method.
Focused Differentiation:
Incepta Pharmaceuticals Ltd. also focuses on market niche, concentrating competitively on a
specific market segment. These types of products are usually charged with premium price and
only a few numbers of companies produces or imports those drugs. In this regard square
pharmaceuticals achieved a good reputation in medicine sector.
Branding strategies:
Global-level Strategies:
Global-level strategies focus Multi domestic, International, Global and Transnational activities. In
this regard Square pharmaceuticals are not maintained above features.
Multinational strategies:
On the above discussion we can say that square pharmaceuticals properly maintain multinational
strategies. Incepta pharma diversified various products in the market; they are exporting their
products from one country to another country. Now they are trying to enter in the foreign marker
with their product.
SWOT analysis of
Incepta Pharmaceuticals Ltd.
Strength
A widely recognized company worldwide
Incepta has state-of-the-art facility, robust technology, validated processes and high quality standard.
Over the last decade Incepta has continuously invested in expanding and modernization
and proven tract record in defect-free manufacturer.
Quality and timely introduction of much needed essential medications-nasal sprays, eye
drops,prefilled syringes, vaccine etc
Weakness:
• Patent law is not updated to accommodate benefits of LDCs. In Bangladesh patents are more
prohibited under Patents and Drugs Act 1911 as amended for time to time and patents and Drugs
Rules 1933. In order to make best use of compulsory licensing and parallel imports, recent patent
law needs to be updated.
• A Task Force was created comprising members from EPB, Drug Authority, Ministry of Health,
Ministry of Commerce, NBR, Bangladesh Bank, Income Tax, Customs and so many but
unfortunately this committee could not work up to level of the requirement.
Opportunities:
Countrywide strong distribution. It has its own large distribution network having 18
depots all over the country.
Transferring sector’s skill or technological know- how to a new business or a new product.
Large production capacity
Launching new and innovative products-facility for biologically derived products has
started its operation.
Threats:
• TRIPS may bring tough competition in the local and export market.
• The sector is dependent on imported raw materials, any fluctuation in raw material prices or rate•
of exchange will have negative affect on competitive prices.
• Entry of multinationals with large-scale investment and strong backward linkage support.
• Imported drugs will be in the local market after enactment of revised drug policy.
• WTO members with strong generic industries that supply Bangladesh must give full patent
protection.
• WHO GMP has changed to cGMP (Current Good Manufacture Practice) which is very much
stringent to be complied by the new entrant specifically.
Porter’s 5 force model is a standard analysis process to identify the external environment of a
company. For Square pharmaceutical ltd we analyzed the external environment of the
pharmaceutical industry of Bangladesh and the analysis revealed the following result.
Research is a critical thrust area for us because it is the foundation upon which our strategy to
introduce new products and delivering quality products to customers' stand. As a result of our
efforts in R & D we have been successful in developing and introducing quality products faster
than our competitors. We have built up a sophisticated R & D facility equipped with state-of-the-
art equipment and facilities. Our R & D is a highly experienced multidisciplinary team. The
objective of this R & D strength is to develop new drug delivery system and various dosage
forms like controlled release, immediate release, melt in the mouth, effervescent formulations,
nasal preparations, cream & ointment preparations, liquid injections like Insulin and large
volume amino acid solution for injection, powder filled vials, prefilled syringe injections, Depot
injections, ophthalmic products, lyophilized products in key therapeutic segments in addition to
the conventional dosage forms.
We have a separate Galenical laboratory for R & D, equipped with all the necessary machineries
& equipments of GMP standard in small scale for the team to develop products.
Our R & D team has pioneered the technology development and subsequent introduction of 138
new products for the first time in Bangladesh market (up to June, 2013). Following are a few of
this long list of products:
Conclusion:
Incepta strongly believes that commitment towards people and the society as a whole positively
contributes towards its business objective. Incepta adopts different strategies which create a
sustainable advantage for the company. It is the first Bangladeshi pharmaceutical company to
implement SAP to manage resources throughout the company operation. This world class
resource management system allows the company to become more efficient and effective in its
day to day operation. Incepta is taking special efforts to ensure presence in the rest of the globe.
Incepta currently sells its product in many countries of Asia, Africa, Central and Latin America
and has started to sell in Europe. In Europe the company has registered its own product in UK
and has started selling. It is evident that Incepta Pharmaceuticals Ltd. will be maintaining its
position and also trying to gain a competitive market share by implementing innovative
strategies in the coming years as it is demanded by the highly competitive local and global
pharmaceutical industry environment.