Marketing Management

Herbion Pharma Pakistan (Pvt) Ltd.

In

Introduction of Pharmaceutical Industry of Pakistan

• At the time of independence, we did not have any pharma units.

• The establishment of national companies started in 1960s. • Today, we have 600 pharmaceutical companies

operating in Pakistan, out of which 386 are manufacturing units.

• Low cost of production and huge potential of  this sector have attracted multinational companies.

• 30 multinationals are currently operating in the country. • As awareness about health increased, Health expenditures

have been more than doubled in the last 7 years.

Some key statistics of the industry

Companies operating in the industry 600

Number of employees Over 100,000

Registered Drugs 47,000

Registered Molecules 1,100

R&D expenditure 1% of the profit

Average growth Rate 11%

Market share of Multinationals companies 45%

Market share of Local companies 55%

Market Leader GlaxoSmithKline

Major Players in Industry

Names Market Share

GSK 11.60%

Sanofi Aventis 4.10%

Getz Pharma 3.90%

Abbott Lab 3.80%

Roche 3.10%

Merck 2.90%

Pakistan Pharma Industry (Cont’d)

• The raw materials are mostly imported from China and India. These raw materials are very much expensive to develop.

• The pharmaceutical industry is highly capital intensive. Most of the manufacturing machines are imported from foreign countries.

• The manufacturing side requires its employees to minimum have bachelors degree.

Research & Development

• In Pakistan, the focus of the research and development department is on the packaging and the marketing of the products. Research on product development is very expensive. Millions of dollars are spent on developing a single molecule of a medicine.

Local Demand and its basic driver

• The population of 160 million people is a basic demand driver. There is an annual growth of 2% in the population. The declining health conditions and the burden of diseases demand the local pharmaceutical industry to produce products that could cure them.

Herbion Pharma Pakistan (Pvt) Ltd

Introduction

• Founded in 1983, the company started marketing and distributing its products during 1997 in the Commonwealth of Independent States (CIS) i.e. former Soviet Union, in addition to Pakistan. Herbion gradually expanded its operations to CIS and other European, Far Eastern and North American markets by focusing on developing a well established & strong field force network and marketing structure that eventually paved the way for its success.

Introduction (Cont’d)

• Operating in more than 21 countries. Sales and marketing network is spread over 4 regions across the 3 continents of the globe i.e. North America, Europe and Asia.

Objectives

• To establish and maintain leadership position in each country of operation.

• To consistently increase market share in each geographic country.• To establish our brand image as of high quality products.• To explore markets in existing and new geographic locations around the

world.• To become a customer oriented company striving for their satisfaction• To create a work environment which motivates, recognizes and rewards

achievements at all levels of the organization.• To be a contributing corporate citizen for the betterment of society, and

to exhibit a socially responsible behavior.

Segments

Respiratory Care Child Care Nutrinal Care Digestive Care Reproductive Care

Products

• LINKUS (Syrup) • INTELLAN (Capsules & Syrup) • ALFAGIN • LINKUS LOR / LINKUS LOZENGES • NEEMPLAST• VERONA (Tablets) • EVICA (Capsules)• BONJIGAR• ENTOBAN• INSTY • WINNER (Capsules)

SWOT ANALYSIS

STRENGTHS

• Exercise strong strategic planning in achieving annual goals.

• About 45 distributors throughout Pakistan.• Captures almost the entire country including Azad

Jammu Kashmir.• Have strong market position in some cities e.g.

Faisalabad, Peshawar, Quetta and Multan.• Have high skilled professionals and man power.• Uses above moderate production technologies.

WEAKNESSES

• One-third of the revenue is generated from some major products, that is, LINKUS Syrup, ALFAGIN, and VERONA Tablets.

• Having weak market position in major cities e.g. Karachi, Lahore, and Islamabad.

• Dependent on some products, though number of products is lesser as compare to other pharmaceuticals companies.

• Number of customers is less.• No plan to boost R&D• Operating condition on Peshawar and Mingora is tough.• Investment portfolio is weak as there are only two projects

primarily, syrups and capsules.

OPPORTUNITIES

• Incredible export potential • Increasing health consciousness • New innovative therapeutic products • Globalization • Drug delivery system management • Growing incomes• Clinical trials & research • Aging of the world population• New diagnoses and new social diseases.• Spreading use of Generic Drugs.

THREATS

• Small number of discoveries • Competition from MNCs • High Cost of discovering new products and fewer

discoveries• Competition, particularly from generic products

Action Plan

• A new project is to be established within three months, five products will be launched thereof which will further diversify the portfolio risk.

Thank You