RESULTS AND DISCUSSION - Information and Library …shodhganga.inflibnet.ac.in/bitstream/10603/13465/11/09_chapter 4.pdf · Study of strategies of top 30 Indian pharmaceutical companies

203

RESULTS AND DISCUSSION

Study of strategies of top 30 Indian pharmaceutical companies (by domestic turnover) to succeed globally

204

4.1 General Introduction:

The researcher has collected both the primary and secondary data. The primary data is

collected by direct interaction by using formal questionnaire and interviews.

A pilot study was conducted and accordingly the interview pattern and questionnaire

have been suitably modified to extract more information.

The collected data are inline with the overall pharmaceutical industries present status

and leads to the future growth.

The graphical representation followed by the statistical analysis. Each hypothesis has

been tested using the statistical tools like Chi Square, Bi Nomial, Descriptive and

Spearman’s correlation coefficient tool and the inference have been drawn by doing

the hypothesis testing and validation.

The senior people of the top 30 Indian pharmaceutical industries and people

associated have been questioned formally and informally and the data collected and

compiled and tabulated and made the graphical representation.

The collected data compiled and presented in tabular section along with the discussion

for reference.


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Indian pharmaceutical companies have survived on the strength of reverse

engineering where by taking the process patent of patented drugs and by doing the

improvement in the chemistry and engineering, has made a niche in the generic

business.

Table: 4.1

Indian pharmaceutical companies are going for products already /getting off patented in future.

Sr. Title Details Num 1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited Yes 1 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited Yes 1 8 Alkem Laboratories Limited Yes 1 9 Abbott (India) Limited Yes 1 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited Yes 1 13 Sanofi Aventis (India) Limited Yes 1 14 Alembic Limited Yes 1 15 Novartis (India) Limited Yes 1 16 Mankind Pharma Limited Yes 1 17 Torrent Pharmaceuticals Limited Yes 1 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited Yes 1 20 Micro Labs Limited Yes 1 21 Emcure Pharmaceuticals Limited Yes 1 22 FDC Limited Yes 1 23 Unichem Laboratories Limited Yes 1 24 Macleods Pharmaceuticals Limited Yes 1 25 USV Limited Yes 1 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited Yes 1 29 Elder Pharmaceuticals Limited Yes 1 30 Merck (India) Limited Yes 1

Yes – 1 and No- 2


206

Table: 4.2

Indian pharmaceutical companies are opting for the large generic volume (2006-07).

Sr. No Title Details Num

1 Ranbaxy Laboratories 78% 3 2 Cipla Limited 93% 1 3 GlaxoSmithKline (India) Limited 100% 1 4 Piramal Healthcare Limited 92% 1 5 Zydus Cadila Limited 84% 3 6 Sun Pharmaceutical Industries Limited 82% 3 7 Pfizer (India) Limited 100% 1 8 Alkem Laboratories Limited 96% 1 9 Abbott (India) Limited 100% 1 10 Lupin Laboratories Limited 84% 3 11 Dr. Reddy’s Laboratories Limited 60% 4 12 Aristo Pharma Limited 100% 1 13 Sanofi Aventis (India) Limited 100% 1 14 Alembic Limited 91% 1 15 Novartis (India) Limited 95% 1 16 Mankind Pharma Limited 100% 1 17 Torrent Pharmaceuticals Limited 91% 1 18 Intas Pharmaceuticals limited 92% 1 19 Wockhardt Limited 81% 3 20 Micro Labs Limited 94% 1 21 Emcure Pharmaceuticals Limited 90% 1 22 FDC Limited 96% 1 23 Unichem Laboratories Limited 91% 1 24 Macleods Pharmaceuticals Limited 98% 1 25 USV Limited 82% 3 26 Ipca Laboratories Limited 87% 2 27 Glenmark Pharmaceuticals Limited 84% 3 28 Cadila Pharmaceuticals Limited 92% 1 29 Elder Pharmaceuticals Limited 95% 1 30 Merck (India) Limited 95% 1

Very High Volume 90% & above 1 High Volume 85-90% 2 Low Volume 70-85% 3

V2

Very Low Volume 70% & below 4


207

Fig. 4.1

It is clear that all Indian pharmaceutical companies are going for the off patented

drugs and presently it is a major constituent of their portfolio.

Fig. 4.2

Indian pharmaceutical companies are opting for large generic volume.

70%3%

24%3%

90% & above

85-90%

70-85%

70% & Below

Indian pharmaceutical companies are going for products already / getting off patented in the near future.

100%

No

Yes


208

Pharmaceuticals can be divided into two parts:

1. The one which is considered as bulk drugs (Active Pharmaceutical

Ingredients).

This is not considered as a part of generics.

2. All the dosage form like oral solid, liquid and injectable will fall under the

head of generics and have been considered.

The generic market consists of branded formulation, generic formulation and

institutional tenders.

Exclusions,

1. Contract research

2. In licensing and out licensing deals

3. The milestone payment against the research development

With the data shown in Fig. 4.2 it is clear that Indian pharmaceutical companies are

going for the products already off patented and are going to be off patented in the near

future. The pie chart indicates that 70% Indian pharmaceutical companies have the

generic volume as more than 90% of their total volume.

More than 30% of global generic volume is presently catered by Indian

pharmaceutical companies.

Any drug which has an annual sales of more than Rs.4,500 crore (US$ 1 billion)

globally is considered a block buster drug. The patent is given for 20 years but the

patent holder tries to increase the patent by adding novelty and tries to extend its

validity. The few Indian pharma companies have tried to challenge the process patent

of block buster drug (Table 4.3).


209

Table: 4.3

Indian pharmaceutical companies to challenge the process patent of Block buster drugs.

Sr. Title Details Num 1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited No 2 9 Abbott (India) Limited No 2

10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited No 2 15 Novartis (India) Limited No 2 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited No 2 18 Intas Pharmaceuticals limited No 2 19 Wockhardt Limited No 2 20 Micro Labs Limited No 2 21 Emcure Pharmaceuticals Limited No 2 22 FDC Limited No 2 23 Unichem Laboratories Limited No 2 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited No 2 26 Ipca Laboratories Limited No 2 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited No 2 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


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Table: 4.4

Indian pharmaceutical companies already challenged block buster drugs for Exclusive Marketing Rights (EMR).


1 Ranbaxy Laboratories Yes 1 2 Cipla Limited No 2 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited No 2 5 Zydus Cadila Limited No 2 6 Sun Pharmaceutical Industries Limited No 2 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited No 2 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited No 2 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited No 2 15 Novartis (India) Limited No 2 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited No 2 18 Intas Pharmaceuticals limited No 2 19 Wockhardt Limited No 2 20 Micro Labs Limited No 2 21 Emcure Pharmaceuticals Limited No 2 22 FDC Limited No 2 23 Unichem Laboratories Limited No 2 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited No 2 26 Ipca Laboratories Limited No 2 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited No 2 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2

In order to market a generic drug in United States of America (USA), a company

needs to file Abbreviated New Drug Application (ANDA). When filing an

Abbreviated New Drug Application (ANDA), the company is required to certify that

its product is not infringing any patent rights or the patent is invalid (para IV

certification). If the company successfully proves that the patent in invalid of if it is


211

the first one to get approval for the generic version, it gets market exclusively for 180

days during which no other generic company is permitted to enter the market. This

exclusivity is available under the Drug Price Competition and Patent Restoration Act

of 1984 or better known as the Hatch-Waxman Act. A successful first to file para IV

Abbreviated New Drug Application (ANDA) can bring immense profits to the

company.

Dr. Reddy’s, the first Indian company to get the 180 days exclusivity for marketing

fluoxetine 40 mg in August 2001, saw its sale of generics increasing from Rs.30.4

crores in 2000-01 to Rs.406 crores in the year 2001-02. Sale of fluoxetine 40 mg

contributed 81% of total generics sales and about half of Dr. Reddy’s operating profit

in the financial year 2001-02. Patent litigation under para IV is highly risky also as a

failure means a loss of several years of hard work and huge legal expenses.

Companies also engage in developing non-infringing processes for Abbreviated New

Drug Application (ANDA) filing.

A Matrix laboratory was the first Indian company to develop a non-infringing process

for manufacturing citaopram. The company was able to reap huge benefits with its

sales of the product were Rs.560 crore till the year 2005-06. Another commercially

successful example is the cefotaxime process developed by Lupin.

Since 2002, both Ranbaxy and Dr. Reddy’s Laboratory have taken steps towards

registering themselves as the first movers in the generics for a number of drugs. Data

obtained from the Food and Drug Administration (FDA) shows that while Ranbaxy

has been able to obtain approvals for 22 drugs as the ‘first time generics’ between year

2002 and 2005, Dr. Redyy’s has been able to obtain similar approvals for 8 drugs.

More recently Glenmark got first to file status for three drugs having combined

revenue of over Rs.9,000 crore (US $2 billion). The three drugs are Zetia (Ezetimibe)

with annual sales of Rs.6,750 (US $1.5 billion) in the United States of America (USA)

in 2008, Tarka (Trandolapril + Verapamil) with annual sales of Rs.324 crores (US $72

million) and Cultivate (Fluticasone lotion) with annual sales of Rs.166 crores (US $37

million).


212

Only few companies, particularly Ranbaxy and Dr. Reddy’s had Abbreviated New

Drug Applications (ANDAs) in their name till recently. Companies like Cipla had

Abbreviated New Drug Applications (ANDAs) in the names of their marketing

partners in the United States of America (USA). This situation has changed

dramatically in the recent times and more companies are engaged in securing

Abbreviated New Drug Applications (ANDAs). From 161 Abbreviated New Drug

Application (ANDAs) filed by four companies – Ranbaxy, Dr. Reddy’s, Wockhardt

and Lupin in the last quarter of year 2003, the number has gone up to 701 Abbreviated

New Drug Applications (ANDAs) files by 17 companies by the second quarter of year

2007. Abbreviated New Drug Application (ANDA) approvals held by Indian firms as

percentage of total approvals have gone up sharply from 7% in year 2001 to 21% in

year 2006 to 30% in year 2008 and to 35% in year 2009 till 23rd February.

Fig. 4.3

It is clear from the Fig. 4.3 that three Indian pharma companies have already

challenged the process patent and have won the Exclusive Marketing Rights (EMR).

Ranbaxy, Dr. Reddy’s and Glenmark have so far challenged the blockbuster drugs of

multinational to get Exclusive Market Rights.

Indian pharmaceutical companies already challenged Block Buster drugs for Exclusive Marketing Rights

(EMR)

90%

10%

No

Yes


213

Fig. 4.4

With the research it is clear that 27% of Indian pharmaceutical company’s intent to

challenge the process patent of block buster drug from Fig 4.4. Pharmaceutical

companies like Cipla, Piramal Healthcare, Zydus Cadila, Lupin Laboratories and Sun

Pharmaceuticals are also having the strategy for challenging the process patent of the

block buster drugs.

India has a good scientific base and has reasonably good academic institutes in

addition it has large English speaking literate population. The Research &

Development (R&D) is a huge cost in west. On an average a drug discovery takes 12

to 15 years with more than Rs.5,850 crores (US$ 1.3 billion) investment. Western

companies are looking for Research & Development (R&D) outsourcing from India

to reduce this spending.


214

Table: 4.5

Indian pharmaceutical companies to build independent Research & Development (R&D) infrastructure.

Sr. Title Details Num 1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited No 2 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited No 2 15 Novartis (India) Limited No 2 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited No 2 18 Intas Pharmaceuticals limited No 2 19 Wockhardt Limited No 2 20 Micro Labs Limited No 2 21 Emcure Pharmaceuticals Limited Yes 1 22 FDC Limited No 2 23 Unichem Laboratories Limited No 2 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited Yes 1 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited No 2 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


215

Table: 4.6

Indian pharmaceutical companies building up Research & Development (R&D) infrastructure for research contract

collaboration. Sr. Title Details Num 1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited No 2 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited No 2 15 Novartis (India) Limited No 2 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited No 2 18 Intas Pharmaceuticals limited No 2 19 Wockhardt Limited No 2 20 Micro Labs Limited No 2 21 Emcure Pharmaceuticals Limited Yes 1 22 FDC Limited No 2 23 Unichem Laboratories Limited No 2 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited Yes 1 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited No 2 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


216

Table: 4.7

Indian pharmaceutical companies – Research & Development (R&D) in terms of scientist’s strength as in the year 2009.

Sr. Title Details Num 1 Ranbaxy Laboratories 750 1 2 Cipla Limited 550 2 3 GlaxoSmithKline (India) Limited 300 2 4 Piramal Healthcare Limited 400 2 5 Zydus Cadila Limited 250 3 6 Sun Pharmaceutical Industries Limited 400 2 7 Pfizer (India) Limited 150 4 8 Alkem Laboratories Limited 100 4 9 Abbott (India) Limited 50 4 10 Lupin Laboratories Limited 450 2 11 Dr. Reddy’s Laboratories Limited 700 1 12 Aristo Pharma Limited 75 4 13 Sanofi Aventis (India) Limited 125 4 14 Alembic Limited 125 4 15 Novartis (India) Limited 150 4 16 Mankind Pharma Limited 75 4 17 Torrent Pharmaceuticals Limited 200 3 18 Intas Pharmaceuticals limited 300 2 19 Wockhardt Limited 200 3 20 Micro Labs Limited 136 4 21 Emcure Pharmaceuticals Limited 200 3 22 FDC Limited 50 4 23 Unichem Laboratories Limited 158 4 24 Macleods Pharmaceuticals Limited 112 4 25 USV Limited 170 4 26 Ipca Laboratories Limited 200 3 27 Glenmark Pharmaceuticals Limited 400 2 28 Cadila Pharmaceuticals Limited 300 2 29 Elder Pharmaceuticals Limited 100 4 30 Merck (India) Limited 150 4

Very High Volume 600 < 1 High Volume 300-600 2 Low Volume 200-300 3 V3

Very Low Volume <200 4


217

Fig. 4.5

It has been found that out of 30 Indian pharmaceutical companies, 11 companies that

is 37% (Fig 4.5) are building independent Research & Development (R&D)

infrastructure (Table 4.5 and 4.6) and have deployed sizeable number of scientists

(Table 4.7) to meet this collaborative research requirement. The Research &

Development has been given the status of a profit centre and is a money churner.


218

Fig. 4.6

The Fig. 4.6 above indicates that 50% of the Indian pharmaceutical companies have

Research & Development scientist in the range of 100-200 and 27% in the range of

300-600 numbers of scientists, in order to make the strong presence in the new

development and technologies.

Indian pharmaceutical companies – Research & Development in terms of Scientist strength

7%

27%

16%

50%

600 <

300-600

200-300

<200


219

Table: 4.8

Indian pharmaceutical companies creating the facilities for Active Pharmaceutical Ingredients (API) form to meet the

United States Food and Drug Administration (USFDA) guidelines.

Sr. Title Details Num 1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited No 2 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited Yes 1 15 Novartis (India) Limited Yes 1 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited Yes 1 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited Yes 1 20 Micro Labs Limited Yes 1 21 Emcure Pharmaceuticals Limited Yes 1 22 FDC Limited Yes 1 23 Unichem Laboratories Limited Yes 1 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited Yes 1 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited Yes 1 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


220

Table: 4.9

Indian pharmaceutical companies creating facilities for Active Pharmaceutical Ingredients (API) form to meet the Medicines

and Healthcare Products Regulatory Agency (MHRA) guidelines.

Sr. Title Details Num 1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited No 2 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited Yes 1 15 Novartis (India) Limited Yes 1 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited Yes 1 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited Yes 1 20 Micro Labs Limited Yes 1 21 Emcure Pharmaceuticals Limited Yes 1 22 FDC Limited Yes 1 23 Unichem Laboratories Limited Yes 1 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited Yes 1 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited Yes 1 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


221

Table: 4.10

Indian pharmaceutical companies creating facilities for Active Pharmaceutical Ingredients (API) form to meet the Medicines

Control Council (MCC) guidelines.

Sr. Title Details Num

1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited No 2 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited Yes 1 15 Novartis (India) Limited Yes 1 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited Yes 1 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited Yes 1 20 Micro Labs Limited Yes 1 21 Emcure Pharmaceuticals Limited Yes 1 22 FDC Limited Yes 1 23 Unichem Laboratories Limited Yes 1 24 Macleods Pharmaceuticals Limited Yes 1 25 USV Limited No 2 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited Yes 1 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


222

Table: 4.11

Indian pharmaceutical companies creating facilities for Active Pharmaceutical Ingredients (API) form to meet the

Therapeutic Goods Administration of Australia (TGA) guidelines.


1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited No 2 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited Yes 1 15 Novartis (India) Limited Yes 1 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited Yes 1 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited Yes 1 20 Micro Labs Limited Yes 1 21 Emcure Pharmaceuticals Limited No 2 22 FDC Limited Yes 1 23 Unichem Laboratories Limited Yes 1 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited Yes 1 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited Yes 1 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


223

Fig. 4.7

Looking into the strengths, competency and the capability to deliver consistent

results, Indian pharmaceutical companies have developed a good recognition world

wide and commands greater acceptability.

It is clear from the research Fig. 4.7 that, 63.33% of Indian pharmaceutical companies

have already built up the manufacturing facility for Active Pharmaceutical Ingredients

(APIs) to meet the regulatory approval of United States Food and Drug Application

(USFDA) (Table 4.7).


224

Fig. 4.8

It is clear from Fig. 4.8 that 66.67% Indian pharmaceutical companies have already

built up the manufacturing facility for Active Pharmaceutical Ingredients (APIs) to

meet the regulatory approval of Medicines and Healthcare Products Regulatory

Agency (MHRA).


225

Fig. 4.9



meet the regulatory approval of Medicines Control Council (MCC). The companies

like Cadila Pharma, Unichem Labs, and Ipca Laboratories are in the race for creating

manufacturing facilities of Active Pharmaceuticals Ingredients (API) to meet the

regulatory approval of Medicines Control Council (MCC) (South Africa).


226

Fig. 4.10



meet the regulatory approval of Therapeutic Goods Administration of Australia

(TGA). The companies like Cadila Pharma, Sun Pharmaceuticals, Micro Labs,

Unichem Labs and Ipca Laboratories have manufacturing facilities for Active

Pharmaceutical Ingredients (API) to meet the regulatory approval of Therapeutic

Goods Administration of Australia (TGA) for their respective bulk drugs.


227

Table: 4.12

Indian pharmaceutical companies creating facilities for dosage form to meet the United States Food and Drug Administration

(USFDA) guidelines. Sr. No Title Details Num

1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited Yes 1 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited Yes 1 15 Novartis (India) Limited Yes 1 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited Yes 1 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited Yes 1 20 Micro Labs Limited Yes 1 21 Emcure Pharmaceuticals Limited Yes 1 22 FDC Limited Yes 1 23 Unichem Laboratories Limited Yes 1 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited Yes 1 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited No 2 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


228

Table: 4.13

Indian pharmaceutical companies creating facilities for dosage form to meet the Medicines and Health care Products

Regulatory Agency (MHRA) guidelines. Sr.No. Title Details Num

1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited Yes 1 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited Yes 1 15 Novartis (India) Limited Yes 1 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited Yes 1 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited Yes 1 20 Micro Labs Limited Yes 1 21 Emcure Pharmaceuticals Limited Yes 1 22 FDC Limited Yes 1 23 Unichem Laboratories Limited Yes 1 24 Macleods Pharmaceuticals Limited Yes 1 25 USV Limited Yes 1 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited Yes 1 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


229

Table: 4.14

Indian pharmaceutical companies creating facilities for dosage form to meet the Medicines Control Council (MCC) guidelines.

Sr.No Title Details Num 1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited Yes 1 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited Yes 1 15 Novartis (India) Limited No 2 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited Yes 1 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited Yes 1 20 Micro Labs Limited Yes 1 21 Emcure Pharmaceuticals Limited Yes 1 22 FDC Limited Yes 1 23 Unichem Laboratories Limited Yes 1 24 Macleods Pharmaceuticals Limited Yes 1 25 USV Limited No 2 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited Yes 1 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


230

Table: 4.15

Indian pharmaceutical companies creating facilities for dosage form to meet the Therapeutic Goods Administration of Australia

(TGA) guidelines. Sr. No. Title Details Num

1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited Yes 1 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited Yes 1 15 Novartis (India) Limited No 2 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited Yes 1 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited Yes 1 20 Micro Labs Limited Yes 1 21 Emcure Pharmaceuticals Limited No 2 22 FDC Limited Yes 1 23 Unichem Laboratories Limited Yes 1 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited Yes 1 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited Yes 1 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


231

Fig. 4.11

It is clear from Fig. 4.11 that majority of Indian pharmaceutical companies have built

up their manufacturing facility for dosage to meet the regulatory approval of United

States Food and Drug Application (USFDA). The list of Indian pharmaceutical

companies for dosage form manufacturing facility includes, Cipla Limited, Sanofi

Aventis, Ranbaxy Laboratories, Piramal Healthcare, Sun Pharmaceutical and few

more.

India has taken major lead in manufacturing and today outside United States of

America (USA) maximum number of United States Food and Drug Administration

(USFDA) approved plants are in India.


232

Fig. 4.12

It is clear from Fig. 4.12 that 73.33% of the Indian pharmaceutical companies have

already built up their manufacturing facility for dosage to meet the regulatory

approval of Medicines and Healthcare Products Regulatory Agency (MHRA).


233

Fig. 4.13

It is clear from the Fig.4.13 that 66.67% of the Indian pharmaceutical companies have

already built up their manufacturing facility for dosage to meet the regulatory

approval of Medicines Control Council (MCC).


234

Table: 4.16

Indian pharmaceutical companies tie up with Multinational companies (MNCs) for the contract manufacturing for dosage form.

Sr.No. Title Details Num 1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited No 2 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited Yes 1 15 Novartis (India) Limited No 2 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited Yes 1 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited Yes 1 20 Micro Labs Limited Yes 1 21 Emcure Pharmaceuticals Limited Yes 1 22 FDC Limited No 2 23 Unichem Laboratories Limited Yes 1 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited Yes 1 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited Yes 1 29 Elder Pharmaceuticals Limited Yes 1 30 Merck (India) Limited No 2

Yes – 1 and No- 2


235

Table: 4.17

Indian pharmaceutical companies having the manufacturing sites in the developed country for the contract manufacturing of dosage

form. Sr. No Title Details Num

1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited No 2 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited No 2 15 Novartis (India) Limited No 2 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited Yes 1 18 Intas Pharmaceuticals limited No 2 19 Wockhardt Limited Yes 1 20 Micro Labs Limited Yes 1 21 Emcure Pharmaceuticals Limited No 2 22 FDC Limited No 2 23 Unichem Laboratories Limited No 2 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited No 2 26 Ipca Laboratories Limited No 2 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited Yes 1 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


236

Fig. 4.14

From the Fig. 4.14 above, it is clear that 63.33% Indian pharmaceutical companies are

tying up with multinational firms for contract manufacturing of dosage form in India.

Indian pharmaceutical companies have started exploring their business in the new era

of the contract manufacturing opportunities for the reputed multinational companies

of the world in order to acquire more quanta of the business. Indian pharmaceutical

companies have gone for major tie ups with multinational companies. Many of the

Indian pharmaceutical legends like Ranbaxy, Dr. Reddy’s Laboratories, Glenmark

Pharmaceuticals and Zydus Cadila have built up their manufacturing plants for dosage

form in India as well as in the developed countries in order to cater to contract

manufacturing strategy.


237

Fig. 4.15

From the Fig.4.15 above, it is clear that 40% of the Indian pharmaceutical companies

have manufacturing facilities for their dosage form in the developed countries of the

world.


238

Table: 4.18

Indian pharmaceutical companies having turnover in Rs. crores for the Financial Year 2007 - 2008.

Sr.No. Title Turnover Num 1 Ranbaxy Laboratories 5,986 1 2 Cipla Limited 4,231 1 3 GlaxoSmithKline (India) Limited 1,701 2 4 Piramal Healthcare Limited 2,873 1 5 Zydus Cadila Limited 2,266 1 6 Sun Pharmaceutical Industries Limited 3,356 1 7 Pfizer (India) Limited 1,267 2 8 Alkem Laboratories Limited 1,070 2 9 Abbott (India) Limited 1,171 2 10 Lupin Laboratories Limited 2,707 1 11 Dr. Reddy’s Laboratories Limited 4,914 1 12 Aristo Pharma Limited 789 3 13 Sanofi Aventis (India) Limited 873 3 14 Alembic Limited 1,015 2 15 Novartis (India) Limited 776 3 16 Mankind Pharma Limited 842 3 17 Torrent Pharmaceuticals Limited 1,354 2 18 Intas Pharmaceuticals limited 1,062 2 19 Wockhardt Limited 2,653 1 20 Micro Labs Limited 835 3 21 Emcure Pharmaceuticals Limited 1,186 2 22 FDC Limited 730 3 23 Unichem Laboratories Limited 671 3 24 Macleods Pharmaceuticals Limited 630 3 25 USV Limited 826 3 26 Ipca Laboratories Limited 1,091 2 27 Glenmark Pharmaceuticals Limited 2,621 1 28 Cadila Pharmaceuticals Limited 743 3 29 Elder Pharmaceuticals Limited 551 3 30 Merck (India) Limited 315 4

Very High Volume 2,000< 1 High Volume 2,000-1,000 2 Low Volume 1,000-500 3

V1_FY_08



239

Table: 4.19

Indian pharmaceutical companies having turnover in Rs. crores for the Financial Year 2008 – 2009.

Sr.No. Title Turnover Num 1 Ranbaxy Laboratories 7,241 1 2 Cipla Limited 4,960 1 3 GlaxoSmithKline (India) Limited 1,542 2 4 Piramal Healthcare Limited 3,281 1 5 Zydus Cadila Limited 2,862 1 6 Sun Pharmaceutical Industries Limited 4,272 1 7 Pfizer (India) Limited 1,428 2 8 Alkem Laboratories Limited 1,161 2 9 Abbott (India) Limited 1,302 2 10 Lupin Laboratories Limited 3,776 1 11 Dr. Reddy’s Laboratories Limited 6,790 1 12 Aristo Pharma Limited 980 3 13 Sanofi Aventis (India) Limited 983 3 14 Alembic Limited 1,116 2 15 Novartis (India) Limited 804 3 16 Mankind Pharma Limited 1,086 2 17 Torrent Pharmaceuticals Limited 1,586 2 18 Intas Pharmaceuticals limited 1,223 2 19 Wockhardt Limited 3,592 1 20 Micro Labs Limited 966 3 21 Emcure Pharmaceuticals Limited 1,375 2 22 FDC Limited 835 3 23 Unichem Laboratories Limited 727 3 24 Macleods Pharmaceuticals Limited 749 3 25 USV Limited 1,058 2 26 Ipca Laboratories Limited 1,284 2 27 Glenmark Pharmaceuticals Limited 2,093 1 28 Cadila Pharmaceuticals Limited 752 3 29 Elder Pharmaceuticals Limited 619 3 30 Merck (India) Limited 389 4


V1_FY_09



240

Table: 4.20

Indian pharmaceutical companies invested in Research & Development in Rs. crores

in the Financial Year 2007 – 2008. Sr. No. Title Details Num

1 Ranbaxy Laboratories 639 1 2 Cipla Limited 155 3 3 GlaxoSmithKline (India) Limited 75 4 4 Piramal Healthcare Limited 91 4 5 Zydus Cadila Limited 118 3 6 Sun Pharmaceutical Industries Limited 161 3 7 Pfizer (India) Limited 24 4 8 Alkem Laboratories Limited 15 4 9 Abbott (India) Limited 20 4 10 Lupin Laboratories Limited 154 3 11 Dr. Reddy’s Laboratories Limited 344 2 12 Aristo Pharma Limited 30 4 13 Sanofi Aventis (India) Limited 571 1 14 Alembic Limited 44 4 15 Novartis (India) Limited 40 4 16 Mankind Pharma Limited 15 4 17 Torrent Pharmaceuticals Limited 87 4 18 Intas Pharmaceuticals limited 95 4 19 Wockhardt Limited 81 4 20 Micro Labs Limited 28 4 21 Emcure Pharmaceuticals Limited 40 4 22 FDC Limited 10 4 23 Unichem Laboratories Limited 32 4 24 Macleods Pharmaceuticals Limited 15 4 25 USV Limited 70 4 26 Ipca Laboratories Limited 37 4 27 Glenmark Pharmaceuticals Limited 47 4 28 Cadila Pharmaceuticals Limited 118 3 29 Elder Pharmaceuticals Limited 10 4 30 Merck (India) Limited 20 4

Very High Volume 500< 1 High Volume 500-200 2 Low Volume 200-100 3

V2_RD_08



241

Fig. 4.16

From the Fig. 4.16 it is clear that, 30% of the Indian pharmaceutical companies are

having a total turnover in the range of Rs.1,000 - 2,000 crores in the financial year of

2007-2008.


242

Fig. 4.17

From the Fig. 4.17 it is clear that, 37% of the Indian pharmaceutical companies are

having a total turnover in the range of Rs.1,000 - 2,000 crores in the financial year of

2008-2009.


243

Fig. 4.18

From the Fig. 4.18 above it is clear that 16.67% of the Indian pharmaceutical

companies have already invested Rs.100-200 crores in Research & Development

(R&D). It is clear that of late Indian pharmaceutical companies are focusing on

Research & Development (R&D) and investing significantly. For any Indian pharma

company to remain ahead of the value chain it must have one Research &

Development (R&D) capability. This strategy alone will separate the achievers.

In order to become a major global player, many of the Indian pharmaceutical biggies,

are having extensive concentration over the international markets. Many of them are

using various techniques for grabbing the international sector of the pharma world,

due to which the domestic market gets less focus as compared with the international

market. In last five years the Indian pharma market has doubled from Rs.22,500

crores (US$ 5 billion) to Rs.49,500 crores (US$ 11billion) and it is further expected to

grow to Rs. 90,000 crore (US$ 20 billion) by the year 2015. Hence, it is necessary for

the Indian pharma industry to strike a perfect balance between the domestic market

and international market for becoming a successful player in the pharma world.


244

Table: 4.21

Indian pharmaceutical companies having sales turnover from domestic market in Rs. crore for the Financial Year 2007-2008.

Sr. No. Title Details Num 1 Ranbaxy Laboratories 1,638 1 2 Cipla Limited 1,673 1 3 GlaxoSmithKline (India) Limited 1,513 1 4 Piramal Healthcare Limited 1,231 2 5 Zydus Cadila Limited 1,192 2 6 Sun Pharmaceutical Industries Limited 1,064 2 7 Pfizer (India) Limited 976 3 8 Alkem Laboratories Limited 1,021 2 9 Abbott (India) Limited 901 3 10 Lupin Laboratories Limited 852 3 11 Dr. Reddy’s Laboratories Limited 749 3 12 Aristo Pharma Limited 724 3 13 Sanofi Aventis (India) Limited 665 3 14 Alembic Limited 608 3 15 Novartis (India) Limited 597 3 16 Mankind Pharma Limited 712 3 17 Torrent Pharmaceuticals Limited 658 3 18 Intas Pharmaceuticals limited 607 3 19 Wockhardt Limited 637 3 20 Micro Labs Limited 539 3 21 Emcure Pharmaceuticals Limited 659 3 22 FDC Limited 557 3 23 Unichem Laboratories Limited 501 3 24 Macleods Pharmaceuticals Limited 489 4 25 USV Limited 459 4 26 Ipca Laboratories Limited 403 4 27 Glenmark Pharmaceuticals Limited 435 4 28 Cadila Pharmaceuticals Limited 354 4 29 Elder Pharmaceuticals Limited 291 4 30 Merck (India) Limited 267 4


V1_DOM_08

Very Low Volume >500 4


245

Table: 4.22

Indian pharmaceutical companies having sales turnover from Domestic market in Rs. crores for the Financial Year 2008-2009.

Sr. No Title Details Num 1 Ranbaxy Laboratories 1,802 1 2 Cipla Limited 1,874 1 3 GlaxoSmithKline (India) Limited 1,524 1 4 Piramal Healthcare Limited 1,470 2 5 Zydus Cadila Limited 1,270 2 6 Sun Pharmaceutical Industries Limited 1,223 2 7 Pfizer (India) Limited 1,082 2 8 Alkem Laboratories Limited 1,104 2 9 Abbott (India) Limited 986 3 10 Lupin Laboratories Limited 974 3 11 Dr. Reddy’s Laboratories Limited 769 3 12 Aristo Pharma Limited 860 3 13 Sanofi Aventis (India) Limited 743 3 14 Alembic Limited 637 3 15 Novartis (India) Limited 618 3 16 Mankind Pharma Limited 907 3 17 Torrent Pharmaceuticals Limited 705 3 18 Intas Pharmaceuticals limited 658 3 19 Wockhardt Limited 735 3 20 Micro Labs Limited 604 3 21 Emcure Pharmaceuticals Limited 743 3 22 FDC Limited 619 3 23 Unichem Laboratories Limited 517 3 24 Macleods Pharmaceuticals Limited 576 3 25 USV Limited 572 3 26 Ipca Laboratories Limited 507 3 27 Glenmark Pharmaceuticals Limited 512 3 28 Cadila Pharmaceuticals Limited 342 4 29 Elder Pharmaceuticals Limited 311 4 30 Merck (India) Limited 305 4


V1_INT_08

Very Low Volume >500 4


246

Fig. 4.19

From the Fig. 4.19 it is clear that 23.34% of the Indian pharmaceutical companies are

having a sales turnover in the range of Rs.500-1,000 crores only from the domestic

market sector.


247

Fig. 4.20

From the data it is clear that Indian pharmaceutical companies are focusing on

international business but as domestic market is also expanding there is shift in

attention towards domestic market. In order to become a global player, the Indian

pharmaceutical companies need to have balanced approach.


248

Table: 4.23

Indian pharmaceutical companies having strategy for collaboration with multinational companies.


1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited Yes 1 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited Yes 1 15 Novartis (India) Limited No 2 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited Yes 1 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited Yes 1 20 Micro Labs Limited Yes 1 21 Emcure Pharmaceuticals Limited Yes 1 22 FDC Limited Yes 1 23 Unichem Laboratories Limited Yes 1 24 Macleods Pharmaceuticals Limited Yes 1 25 USV Limited Yes 1 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited Yes 1 29 Elder Pharmaceuticals Limited Yes 1 30 Merck (India) Limited No 2

Yes – 1 and No- 2


249

Table: 4.24

Indian pharmaceutical companies having strategy for contract research.

Sr. No Title Details Num 1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited No 2 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited Yes 1 15 Novartis (India) Limited No 2 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited Yes 1 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited Yes 1 20 Micro Labs Limited No 2 21 Emcure Pharmaceuticals Limited Yes 1 22 FDC Limited No 2 23 Unichem Laboratories Limited No 2 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited Yes 1 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited Yes 1 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


250

Table: 4.25

Indian pharmaceutical companies having strategy for joint venture.


1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited No 2 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited No 2 15 Novartis (India) Limited No 2 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited Yes 1 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited Yes 1 20 Micro Labs Limited No 2 21 Emcure Pharmaceuticals Limited Yes 1 22 FDC Limited Yes 1 23 Unichem Laboratories Limited Yes 1 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited Yes 1 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited Yes 1 29 Elder Pharmaceuticals Limited Yes 1 30 Merck (India) Limited No 2

Yes – 1 and No- 2


251

Table: 4.26

Indian pharmaceutical companies having strategy for clinical research.

Sr. No Title Details Num 1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited No 2 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited No 2 15 Novartis (India) Limited No 2 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited No 2 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited Yes 1 20 Micro Labs Limited No 2 21 Emcure Pharmaceuticals Limited No 2 22 FDC Limited No 2 23 Unichem Laboratories Limited No 2 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited Yes 1 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited Yes 1 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


252

Table: 4.27

Indian pharmaceutical companies having strategy for alternative medicines in Herbal.

Sr. No Title Details Num 1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited Yes 1 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited No 2 7 Pfizer (India) Limited Yes 1 8 Alkem Laboratories Limited No 2 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited Yes 1 14 Alembic Limited No 2 15 Novartis (India) Limited Yes 1 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited No 2 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited No 2 20 Micro Labs Limited No 2 21 Emcure Pharmaceuticals Limited No 2 22 FDC Limited No 2 23 Unichem Laboratories Limited No 2 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited No 2 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited No 2 28 Cadila Pharmaceuticals Limited Yes 1 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


253

Table: 4.28

Indian pharmaceutical companies having strategy for alternative

medicines in Ayurvedic. Sr. No Title Details Num

1 Ranbaxy Laboratories No 2 2 Cipla Limited No 2 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited No 2 5 Zydus Cadila Limited No 2 6 Sun Pharmaceutical Industries Limited No 2 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited No 2 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited No 2 11 Dr. Reddy’s Laboratories Limited No 2 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited No 2 15 Novartis (India) Limited No 2 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited No 2 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited No 2 20 Micro Labs Limited No 2 21 Emcure Pharmaceuticals Limited No 2 22 FDC Limited No 2 23 Unichem Laboratories Limited No 2 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited No 2 26 Ipca Laboratories Limited Yes` 1 27 Glenmark Pharmaceuticals Limited No 2 28 Cadila Pharmaceuticals Limited No 2 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


254

Table: 4.29

Indian pharmaceutical companies having strategy for alternative medicines in Biotech.

Sr. No Title Details Num 1 Ranbaxy Laboratories Yes 1 2 Cipla Limited Yes 1 3 GlaxoSmithKline (India) Limited Yes 1 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited Yes 1 8 Alkem Laboratories Limited Yes 1 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited Yes 1 14 Alembic Limited No 2 15 Novartis (India) Limited Yes 1 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited No 2 18 Intas Pharmaceuticals limited Yes 1 19 Wockhardt Limited Yes 1 20 Micro Labs Limited No 2 21 Emcure Pharmaceuticals Limited Yes 1 22 FDC Limited No 2 23 Unichem Laboratories Limited No 2 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited Yes 1 26 Ipca Laboratories Limited Yes 1 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited Yes 1 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited Yes 1

Yes – 1 and No- 2


255

Table: 4.30

Indian pharmaceutical companies having strategy for work on drug discovery.

Sr. No Title Details Num 1 Ranbaxy Laboratories Yes 1 2 Cipla Limited No 2 3 GlaxoSmithKline (India) Limited No 2 4 Piramal Healthcare Limited Yes 1 5 Zydus Cadila Limited Yes 1 6 Sun Pharmaceutical Industries Limited Yes 1 7 Pfizer (India) Limited No 2 8 Alkem Laboratories Limited No 2 9 Abbott (India) Limited No 2 10 Lupin Laboratories Limited Yes 1 11 Dr. Reddy’s Laboratories Limited Yes 1 12 Aristo Pharma Limited No 2 13 Sanofi Aventis (India) Limited No 2 14 Alembic Limited No 2 15 Novartis (India) Limited No 2 16 Mankind Pharma Limited No 2 17 Torrent Pharmaceuticals Limited No 2 18 Intas Pharmaceuticals limited No 2 19 Wockhardt Limited No 2 20 Micro Labs Limited No 2 21 Emcure Pharmaceuticals Limited No 2 22 FDC Limited No 2 23 Unichem Laboratories Limited No 2 24 Macleods Pharmaceuticals Limited No 2 25 USV Limited No 2 26 Ipca Laboratories Limited No 2 27 Glenmark Pharmaceuticals Limited Yes 1 28 Cadila Pharmaceuticals Limited No 2 29 Elder Pharmaceuticals Limited No 2 30 Merck (India) Limited No 2

Yes – 1 and No- 2


256

Fig. 4.21

It is clear from the Fig. 4.21 presented here that, 67% of the Indian pharma industries

have collaborated with multinational companies.


257

Fig. 4.22

From the Fig. 4.22 it is clear that, 53% of the Indian pharmaceutical companies have

gone for contract research. Pharmaceutical companies like Piramal Healthcare and Dr.

Reddy’s Laboratories follow a strategy for contract research.


258

Fig. 4.23

From the Fig. 4.23 it is clear that, 63% of the Indian pharmaceutical companies

strategically have gone for joint ventures.


259

Fig. 4.24


strategically have gone for clinical research activities.


260

Fig. 4.25


strategically focus on manufacturing herbal medicines as a part of the alternative

medicines segment.


261

Fig. 4.26


strategically focus on New Drug Discovery (NDD) as a part of the alternative

medicines segment.


262

Fig. 4.27


strategically focus on manufacturing ayurvedic medicines as a part of the alternative

medicines segment.


263

Fig. 4.28


strategically focus on manufacturing biological medicines as a part of the alternative

medicines segment.

Each Indian pharma company depending upon its financial strength and its vision can

simultaneously develop few strategies to remain ahead in the business curve.


264

4.2 Results - Hypothesis and Validation.

4.2.1 Definition: Hypothesis:

A supposition a proposition or principle which is supposed or taken for granted, in

order to draw a conclusion or inference for proof of the point in question; something

not proved, but assumed for the purpose of argument, or to account for a fact or an

occurrence; as, the hypothesis that head winds detain an overdue steamer.

4.2.2 Importance of Hypothesis:

Hypothesis supports the research to find an answer to a problem. It is expressed in

declarative form. Hypothesis bridges the gap between theory and empirical inquiry. It

does not matter if the hypothesis is positive or negative toward to the research

problem. Most importantly, it will provide a guideline to the problem.

4.2.3 Significance of Hypothesis:

It offers explanations for the relationships between those variables that can be

empirically tested. It furnishes proof that the researcher has sufficient background and

knowledge to enable him / her to make suggestions in order to extend existing

knowledge. It gives direction to an investigation. It structures the next phase in the

investigation and therefore furnishes continuity to the examination of the problem.

4.2.4 Research methodology:

(The data was analyzed using the Statistical Package for Social Sciences, Windows

Version – 14 software).


265

4.3 Research Title:

Research work on strategies of all top 30 Indian pharmaceutical companies (by

domestic turnover) to succeed globally.

4.4 List of Hypothesis Formulated:

H1: Indian pharmaceutical companies opt for manufacturing and / or marketing of

products already “Off patented" or going to be “Off patented” in the near future to

generate large generic volume.

H2: Indian pharmaceutical companies challenging to the process patent of the “Block

Buster Drugs” would be 25%.

H3: The Indian pharmaceutical companies are building up the Research &

Development (R&D) infrastructure for doing the contract / collaboration research

work for multinational companies.

H4: The establishment of manufacturing facilities for either Active Pharmaceutical

Ingredient (API) or dosage form meeting regulatory requirement of the country to

which these are proposed to be exported helps to increase business volume.

H5: The Indian pharmaceutical companies need to maintain proper balance between

the “domestic market” as well as “international market”.


266

4.5 Hypothesis No: 1

Indian pharmaceutical companies opt for manufacturing and / or marketing of

products already “Off patented" or going to be “Off patented” in the near future to

generate large generic volume.

4.5.1 Rationale:

“Off patented” drugs become a major volume of total drug business though it is very

price sensitive. If any Indian pharmaceutical company has to succeed globally then it

has to have a success story in generic business in order to acquire significant market

share.

Majority of the Indian pharmaceutical companies go ahead for generic business

though it is very price competitive but it holds future for Indian pharmaceutical

companies as between the year 2011 and 2013, Rs.3,60,000 (US $80 billion) drugs are

getting off patented which is highly significant.

The generic drug market in the United States of America (USA) is estimated to be

over Rs.1,35,000 crores (US$30 billion).

In addition, internationally all governments have started sourcing generic drugs which

reduces the health care cost and is a big concern for all governments.

Even in our country, Rajasthan government has issued a tender to generic companies

to supply medicines at cheap value to all government hospitals.

The hypothesis was statistically stated as follows:

There is an association between variables V1and V2,

V1 ‘Indian pharmaceutical companies that are going for products already

off patented or going to be off patented in the near future’

V2 = Indian pharmaceutical companies opting for the large generic volume’.


267

H0 = There is no association between V1 and V2.

H1 = V1 and V2 are Associated with each other.

4.5.2 Test Statistics:

Chi- Square Test:

As V1 and V2 are the discrete categorical variables,

Chi Square Test was thought to be most appropriate test.

4.5.3 Observations: Table: 4.31

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 30.000(a) 3 .001

As per the Table: 4.35, Pearson’s Chi Square Value is 30 with the p-Value = 0.001

with 3 df.

Since the p Value 0.001 is < 0.05, there is an association between V1 and V2.

“H0 is rejected”

“H1 is accepted”

4.5.4 Inference:

The Indian pharmaceutical companies are opting for off patent drugs to generate large

generic volume.

Hypothesis is tested “Positive”.


268

4.6 Hypothesis No: 2 Indian pharmaceutical companies challenging to the process patent of the “Block

Buster Drugs” would be 25%.

4.6.1 Rationale: Indian pharmaceutical companies are challenging the process patent of the block

buster drugs to get “Exclusive Marketing Rights”. It improves profitability

significantly though it is a lengthy, highly expensive, long drawn strategy involving

high risk and high reward.

As more number of drugs are getting off patented the chances of “Para-IV filing”

(Process patent filing) are more promising though multinational companies' use all

kind of tricks in their basket to thwart this process and try to get extension of their

patent period.

Researcher feels that this is the way ahead for the Indian pharmaceutical companies to

succeed globally in the long run.

To test this Hypothesis statistically,

Variables are identified as,

V1 = Indian pharmaceutical companies to challenge the process patent of block

buster drugs .

V2 = Indian pharmaceutical companies already challenged block buster drugs for

Exclusive Marketing Rights (EMR).

H0 = The proposition of the Indian pharmaceutical companies that would challenge

the process patents of block buster drugs be 25%.

H1 = The proposition of the Indian pharmaceutical companies that would not

challenge the process patents of block buster drugs be 25%.


269

4.6.2 Test Statistics: Bi Nominal Proportion

Since V1 and V2 are discrete dichotomous categorical variables measured on Nominal

scale.

4.6.3 Observations:

As per the Table No: 4.36

Observed Proportion is: 27%

Assumed Proportion is: 25%

With p Value: 0.486 (Single Tailed)

Table: Bi Nomial Test Table: 4.32

Category N Observed

Prop.

Test

Prop.

Asymp. Sig.

(1-tailed)

Group 1 Yes 8 0.27 0.25 0.486(a)

Group 2 No 22 0.73 - -

Indian pharmaceutical

companies to challenge

the process patent of

block buster drugs Total - 30 1.00 - -

Since the significant p-Value 0.486 is > 0.05, Test Proportion follows the observed

proportion.



4.6.4 Inference:

It has been confirmed by the research work that out of 30 top Indian pharmaceutical

companies, only 25% of the Indian pharmaceutical companies would challenge the

process patents of the block buster drugs.

The Hypothesis is tested “Positive”


270


The Indian pharmaceutical companies are building up the Research & Development

(R&D) infrastructure for doing the contract / collaboration research work for

multinational companies.

4.7.1 Rationale:

India is having good science institutes, the standard quality of education is high and

majority of the literate professionals speak English. As the cost of research is

exceedingly high in the western world there is an opportunity for Indian

pharmaceutical companies to look for “Out Sourcing” research market.

The world wide outsourcing business Contract Research & Manufacturing (CRAM) is

over Rs.2,25,000 crores (US$ 50 billion) and Indian companies have not covered even

4% of that large pie.

As western research costs have sky rocketed it is becoming difficult for Multinational

companies (MNCs) to carry out research in their respective countries, hence need has

been felt to relocate research facilities to less costly high intellect, English speaking

part of the world like India.

It is a big opportunity for the Indian pharmaceutical companies to grab this market,

hence companies are building Research & Development (R&D) infrastructure to do

research work for contract and in collaboration with Multinational companies

(MNCs).

The typical drug development cycle consumes approximately 12-15 years and cost up

to Rs.4,500 crores (US$ 1 billion).

Clinical trials represent the most expensive phase of compound development

accounting for more than 50% of the total development cost.

To test this Hypothesis statistically:


271


V1= Indian pharmaceutical companies building up independent Research &

Development (R&D) infrastructure.

V2= Indian pharmaceutical companies building up independent Research &

Development (R&D) the contract / collaboration research activity.

H0 = 70% of the Indian pharmaceutical companies are building up the infrastructure

Research & Development (R&D) for the Contract / Collaboration research

activity.

H1 = 70% of the Indian pharmaceutical companies will not be building

infrastructure Research & Development (R&D) for the contract / collaboration

research activity.


Bi Nomial Test. for Proposition:

Test for proposition with assumed proportion is 70%

4.7.3 Observations:

As per the Table 4.37,

Observed Proportion is: 60%

Test Proportion is: 70%

With p Value: 0.270

Table: Bi Nomial Test


272

Table: 4.33

Category N Observed

Prop.

Test

Prop.

Asymp.

Sig. (1-

tailed)

Group 1 No 19 06 0.7 .270(a,b)

Group 2 Yes 11 0.4 - -

Indian Pharmaceutical

Companies to build

Independent Research

& Development

(R&D) Infrastructure

Total - 30 1.0 - -

Group 1 No 19 0.6 0.7 .270(a,b)

Group 2 Yes 11 0.4 - -

Indian Pharmaceutical

Companies building

up Research &

Development (R&D)

Infrastructure for

Research Contract

Collaboration

Total - 30 1.0 - -

Since the significant p-Value 0.27 is > 0.05, Test Proportion follows the observed

proportion.

Hence,



4.7.4 Inference:

The Indian pharmaceutical companies are building up the infrastructure Research &

Development (R&D) for the contract / collaboration research activities.

Hypothesis is tested “Positive”


273


The establishment of manufacturing facilities for either Active Pharmaceutical

Ingredient (API) or dosage form meeting regulatory requirement of the country to

which these are proposed to be exported helps to increase business volume.

4.8.1 Rationale:

As the cost of drugs produced in India is much cheaper than produced in the western

world, it makes sense to put facilities both for Active Pharmaceutical Ingredient (API)

and Dosage form to produce medicines complying the regulatory requirement and

export it to the rest of the world.

The production of the Active Pharmaceutical Ingredients (APIs) and dosage form in

India is at 40% cost than producing in western countries.

Indian pharmaceutical companies are one of the most competitive industries in the

world using right technology and cheap manpower.

Indian companies are building facilities for both Active Pharmaceutical Ingredients

(APIs) and dosage form complying respective regulatory requirement for export

purpose. India has maximum number of United States Food and Drug Administration

(USFDA) approved plants outside United States of America (USA).

The number of United States Food and Drug Administration (USFDA) approved

pharmaceutical manufacturing sites in India is 75 (source USFDA Data, July 2007).

To test this Hypothesis statistically,


V1 = Indian pharmaceutical companies creating the Facilities for the Active

Pharmaceutical Ingredients (APIs) (V1) in the Regulatory Market agencies.

V2 = Indian pharmaceutical companies creating the facilities for the dosage (V2) in


274

the Regulatory market agencies.

H0 = Indian pharmaceutical companies creating facilities for Active Pharmaceutical

Ingredients (APIs) and Dosage at the median value of 2.00.


Ingredients (APIs) and Dosage At the median value less than 2.00.


Ingredients (APIs) and Dosage At the median value greater than 2.00.


Descriptive Statistics:

Descriptive statistics, weighted averages and median was calculated. The Indian

pharmaceutical companies which have regulatory approvals are given the weight age

at 1 and the companies that do not have the regulatory approvals are given the weight

age of 0.

Therefore the maximum value an organization would get was 4.0 and minimum value

was 0.

4.8.3 Observations:

As per the Table 4.38

For Active Pharmaceutical Ingredients (API) plants the values are,

Mean: 1.8

Median: 2.0

Mode: 2.0

For Dosage plants the values are,

Mean: 1.4

Median: 2.0

Mode: 2.0


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Table: Descriptive Statistics

Table: 4.34

hypo_4_score_all_Active

pharmaceutical ingredients

(API)

hypo_4_score_all_dos

Valid 30 30 N

Missing 0 0

Mean 1.8000 1.4000

Median 2.0000 2.0000

Mode 2.00 2.00

Range 4.00 4.00


276

Graph: Descriptive Statistics Active Pharmaceutical Ingredients (API):

.00 1.00 2.00 3.00 4.00

hypo_4_score_all_api

0

2

4

6

8

10

12

14

Freq

uenc

yhypo_4_score_all_api

Fig. 4.29


277

Graph: Descriptive Statistics (Dosage):

.00 1.00 2.00 4.00

hypo_4_score_all_dos

0

5

10

15

20

Freq

uenc

yhypo_4_score_all_dos

Fig. 4.30

Since the maximum scale was at 4.0, the observed value of the Mean is 1.8 in case of

Active Pharmaceutical Ingredients (APIs) and 1.4 in case of dosage, which is less

than expected weighted average of 2.0 and expected median was 2.0 and observed

median was also 2, hence the positional mean (Median) is acceptable.


“H0 and H2 rejected”

4.8.4 Inference:

The above analysis indicates that about 50% of the respondents will go for Active

Pharmaceutical Ingredients (API) and dosage.



278


The Indian pharmaceutical companies need to maintain proper balance between the

“Domestic Market” as well as “International Market”.

4.9.1 Rationale:

Indian pharmaceutical companies major thrust is in international market. However,

any Indian pharmaceutical company can not afford to ignore domestic market to

remain viable as domestic market has also started growing.

Indian pharmaceutical companies have realized that they need to strike balance

between export and domestic market as local market is also very huge and promising.

In the year 2005 pharmaceutical market was Rs.27,000 crores (US$ 6 billion) and

ranked 14th. The present Indian pharmaceutical market is Rs.49,500 crores (US$ 11

billion), which is likely to increase to Rs.90,000 crores (US$ 20 billion) by the year

2015.

Out of Rs.90,000 crores (US$20 billion), urban market will contribute Rs.50,400

crores (US$ 11.2 billion) and rural market will contribute Rs.39,600 crores (US$ 8.8

billion), a significant leap.

Researcher strongly believes that no Indian pharmaceutical company can achieve

global leadership position without having leadership in its own market.

The hypothesis was statistically stated as follows:

There is an association between,

V1 = Indian pharmaceutical companies having Sales turnover in Domestic

market.

V2 = Sales turnover in International market.

H0 = There is no correlation between V1 and V2.


279

H1 = V1 and V2 are correlated.


Spearman’s Correlation Test:

As the variables V1 and V2 are categorical which are measured on the ordinal scale,

hence the Spearman’s correlation coefficient test was suitable for testing.

4.9.3 Observations:

As per the Table 4.39, the rho is 0.401 with the p-Value at 0.028, which is less than

0.05 standard levels.

Table: Spearman’s Correlation

Table: 4.35

hypo_7_v1_rank hypo_7_v2_rank

Correlation

Coefficient 1.000 0.401

Sig. (2-tailed) 0.0 0.028 hypo_7_v1_rank

N 30 30

Correlation

Coefficient 0.401 1.000

Sig. (2-tailed) 0.028 0.0

Spea

rman

's rh

o

hypo_7_v2_rank

N 30 30

Since the Value of the rho coefficient is 0.401, there is a strong correlation between V1

and V2

Hence,




280

4.9.4 Inference:

With the analysis it is clear that the Indian pharmaceutical companies have increased

their focus on “Domestic market”.


…………..

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RESULTS AND DISCUSSION - Information and Library …shodhganga.inflibnet.ac.in/bitstream/10603/13465/11/09_chapter 4.pdf · Study of strategies of top 30 Indian pharmaceutical companies