The Pill Company

Diving Deeper into the Indian

Pharmaceutical Industry
Case Crunch’21 Preliminary Round Case Study
Pharmaceutical Market in India

● India is the largest provider of generic drugs globally.

Indian pharmaceutical sector supplies over 50% of
global demand for various vaccines.

● Indian pharmaceutical sector is expected to grow to

US$ 100 billion, while medical device market is
expected to grow US$ 25 billion by 2025.

● Pharmaceutical export includes bulk drugs,

intermediates, drug formulations, biologicals, Ayush
and herbal products and surgical.

● India’s domestic pharmaceutical market turnover

reached Rs 1.4 lakh crore (US$ 20.03 billion) in 2019,
up 9.8% y-o-y from Rs 129,015 crore (US$ 18.12
billion) in 2018
Company Profile
The Pill Company is a new entrant in the Pharma
01 industry. It stepped into this sector in August, 2013.
They are a pharmaceutical and biologics based
Indian startup.

The company has its headquarters set up in

02 Bangalore. Currently, the largest production house
is in Rajasthan. The company has leveraged the
cheap labour in the city.

The Pill company has an specially designated

03 in-house team of 20 highly qualified scientists. This
is to ensure a smooth Research and Development
process.

In December 2013, the company patented the

04 White Pill. They are fearful of a decline in revenue
due to patent expiry.
Company Services

The company has a large portfolio of drugs for major

01 disease areas, including respiratory, neurological,
cardiovascular and gastrointestinal diseases.

It has been successful in producing specially designated

02 pills for each disease category, the most successful one
being the White Pill, used for treating neural diseases.

The company's patent expires in 2022. They have applied

03 for an extension which might take 2-3 years to get
approved. There is a possibility that generic drugs might
enter the market in that time.
Keeping this in mind, the company is looking to enhance
04 their production facilities to match the changing needs of
the market.
The Pill Company: Revenue Analysis

Drug Category Revenue in 2018

Blue Pill Gastrointestinal 40M

White Pill Neurological 70M

Red Pill Respiratory 54M

Green Pill Cardiovascular 36M

Supply Overview The Pill Company: Region-wise Supply Composition

Total Neurological Patients

Region Population (In Millions) Population Composition (%)
(In Millions)

North India 160.8 11.89 3.22

East India (E + NE India) 316.2 23.38 5.69
South India 252.5 18.67 5.81
Central India 446.2 32.99 10.71
West India 176.9 13.08 5.31
Total 1352.6 100.00 30.73
Your Task

1. How can the company ensure to maximize profit before the generic drugs enter
the market? Is it feasible to invest more money and time in research so as to get
a patent extension? How can the company compete with the generic drugs?

2. What are the reasons for revenue decline in 2019? Suggest a more profitable
revenue model for the same.

3. The executives at The Pill Company also aim to increase the brand presence of
the company. Formulate a marketing strategy for the company with a goal of
enhancing brand value and increasing outreach among the potential
high-customer zones.

Please upload your solution on Dare2Compete before the stated deadline