Principles of ManagementNiveditaSachinNishaAmarKrishnaUmeshPradeepAvinashNehaDhavalArvindRahulSandeep1This template can be used as a starter file to give updates for project milestones.

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1An insight of PHARMACEUTICAL Industry2

2PHARMACEUTICAL INDUSTRYThe first Indian pharmaceutical company, Bengal Chemicals and Pharmaceutical Works, which still exists today as one of 5 government-owned drug manufacturers, appeared in Calcutta in 1930.The Indian pharmaceutical industry currently tops the chart amongst India's science-based industries and is estimated to be worth $ 6 billion, growing at about 10 percent annually.The industry has over 60,000 generic brands across 60 therapeutic categories and manufactures more than 400 different active pharmaceutical ingredients (APIs)The IPI is globally the 3rd largest in terms of volume and 13th largest in terms of value 3Some general terms and Regulatory authoritiesAPI/Bulk DrugFormulationGenericInnovator/ NCETherapeutic categories

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Drug development phase5

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Current IPI scenarioThe Economist Intelligence Unit (EIU) forecast that IPI will double to 29USD billion by 2016Aging populationChanging disease profileForeign direct investment (FDI) inflowMedical tourismThe country is essentially a branded generics market with local manufacturers comprising nearly 75%

7Mission: Enriching lives globally with Quality & affordable Pharmaceuticals.

Global Presence: Ground operations in 43 countries, products sold over 150 countriesManufacturing : 16 manufacturing facilities spread across 8 countries. TAG LINE :- Trusted medicines healthier lives

CHAIRMAN :- Dr. Tsutomu Une

CEO & MD :- Arun Swahney

Headquarters :- Gurgaon, Haryana, India

Established :- 19612012 Revenues :- US$ 2.3 billion

Employees :- More than 14,600

Areas of Business :- Develops, manufactures & Markets Generics; Branded Generics; Value added & OTC, ARVs, API & intermediates

Product portfolio :- Over 500 molecules

Listings:- BSE, NSE, Luxemburg stock exchange8RANBAXY at a Glance

HISTORY1937- Founded by Ranjit Singh and Dr. Gurbax Singh in Amritsar & hence the name RANBAXY ( combination of RANjit & gurBAX )1952- Bhai Mohan Singh joined in as a partner1961 Company incorporated with 1st manufacturing plant in Okhla.1973 Ranbaxy goes public1977 Ranbaxy first joint venture in Lagos (Nigeria) is setup1983 A modern dosage forms facility at Dewas (MP) in India goes on Stream.1990 Ranbaxy got its first US patent for Doxycycline1994 Established regional headquarters in UK and USA. Listed in Luxenburg stock exchange

9ACQUISITIONS & MERGERS1967 Lepatit ( 1st unit installed in collaboration in 1961, Okhla)1995 Unicher ( Thailand)1996 Rima Pharmaceuticals( Semisynthetic penicillin )2000 German Generic business BAYER2003 Generic business of RPG Aventis life science ( France)2006 Mutual Pharmaceuticals & 5 others ( US for generic)2007 Avesthan ( Indias 1st discovery based Bio-tech company)

10Alliance & Subsidairy ALLIANCE :- 1994 Manufacture & market Cefactor with Eli-Lilly in US ( Ranbaxy was benefited with USFDA, rules & regulations, Eli-Lilly got affordable manufacturing & market share )

Subsidairy :-1995 Ranbaxy Pharmacetical Inc.1995 Ohm labs Inc.1996 Ranbaxy UK inc.11JOINT VENTURES1993 Ranbaxy Eli-lilly ( Manufacturing )1993 Ranbaxy Guangzhou China ( Bulk Drug Formulations)1984 Ranbaxy Malayasia Sdn Bhd ( Generics)2007 Zenotech Lab. Ltd. ( Onco products for India)12Vision & StrategiesBhai Mohan Singh ( 1952-93 )Strategy was to focus on API & Manufacture genricsParvinder Singh ( 1993 99 )GlobalisationAcquisitions in UK,US & INDIASetup State of art R&D, Gurgaon,IndiaFocus on Urology, Anti Infectives, Respiratory, Anti Inflamatory, & metabolic disorders 13Strategy was to focus on generics & supply to international market.Parvinder singhs strategy was to make Ranbaxy a global Company, he started doing aquisuitions & mergers in International & domestic ground. He believed that R& D will be the main driving engine for any pharmaceuticals so he setup The R&D in gurgaon.Mainly focusedd on these therapies.

1310/14/2013Vision & StrategiesDevinder Singh Brar ( 1999 2004 )Enacted Vision Garuda achieve US$ 5 billion by 2012, focussing more on International Market.Focus on NDDRBrian W.Tempest ( 2004 05)Operations oriented rather than strategist or visioneryFocussed more on Indian Markets ( infection, Urology, inflamation, respiratory & metabolic disorders)Believed in people development & training of staff14Enacted vision as it writtenHe too followed Parvinder singhs strategy & foccused more on New drug discovery & research of products Brian was more of operation oriented person rather than a strategist or visonery typeHe foccused more onto Indian Markets & explored the opportunities in therapies like Following this strategy In India Ranbaxy becamem leader in UrologyHe believed in people development 7 training of staff

1410/14/2013Vision & StrategiesMalvinder Singh ( 2005-08)Focussed both for globalisation by acquisition & mergers as well as creating strong Domestic baseOutlicensing, In licensing & launching of innovative productsEnsure right doctor coverage & expansion in reachCompany achieved a sales of $40.6 billion in 2006 ( against set goal of $5 billion)15Malvinder singh believed in Further carrying the objectives of making ranbaxy global. He also followed Brians philosophy that to grow in pharmateutical industry one should have strong prescense in domestic market.He believed in outlicensing ( for your info :- Ranbaxy had outlicensed statin to PDl, international market & made good money out of it), inlicensing of new molecules & innovative products because of incresing competiotion in generic market.Self explanatoryDevinder singh had set Vision garuda with objective of $ 5 billion till 2012, it was surpassed in 2006, in half the time & by cumulative surplus

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ACQUISITION by DAIICHI SANKYOPoor financial positionNo major R&D breakthroughIncreasing price war & stiff competition in generics marketNeeded funds to achieve its objective.2nd largest & innovator company in JapanDemand for low cost production by japan govt.Difficult with high investments in R&D & lack of affordable manufacturing.Needed an affordable generic manufacturer. 16

Anti-Infective

We have a significant presence in the Anti-infective segment. Ranbaxy having leadership position in key market in Anti-infective and critical care.

Molecules- Amoxicillin+clavulanic Acid, Ciprofloxacin and Amoxicillin.

Indication-Complicated UTI,URTI and Typhoid.

Target Customer- GPs, Consulting Physicians, Urologist, chest physicians, gynecologist, paediatricians etc.Major competitor Mankind , Dr Reddy , Torrent , Hetro.

17Pain and musculoskeletal

Overview Due to Increasing hectic lifestyle & aging population, demand of anti-inflamatory & muscle relaxants have always been in demand.

Molecules Paracetamol, diclofenac, Tramadol, Tapentadol, etorocoxib and ketorolac

Indication Pain associated with Muscle, Musculoskeletal, Joints, post operative & Dental pain

Target Customers Surgeons, orthopedics, dentist & GPs

Major competitor Mankind, Cadila, Aristo, Cipla

18Anti-retroviral

Ranbaxy is the first generic companies to offer ARVs to various National AIDS treatment programmes in Africa.

Molecules mainly Zidovudine, lamivudine along with other combinations.

Indication Confirmed HIV cases

Target Customers Physicians & Chest Physicians with HIV practise

Major Competitors:- Cipla,Mylan

19Dermatology

We have a major focus in dermatology with a presence across markets, including the US, India and Brazil.

We have a robust franchise in the Anti-acne segments.

Molecules- Luliconazole

Indications- Atopic Dermatitis

Target Customers- Dermatologist, Gps

Major competitor Zydus, Alchem , Abbot , Intas , Glenmark.

20CardiovascularCardiovascular Ailments are on the rise all over the world due to changing lifestyles .As a result there is increasing needs for C.V.S Drug.Cardiologist are main targeted Customer.

Major competitor- sun pharma , cipla , Dr Reddys , Lupin.

Molecules- Atorvastatin, Rosuvastatin, Simvastatin, Losarten. Olmesarten.

Indications-Atherosclerosis , C.H.D , C.H.F, Chest pain. Hypertension, Hyperlipidemia.

Target Customers- Cardiologist, Physicians, GPs

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Gastrointestinal is another significant therpatic Segment for Ranbaxy.

Major competitor- Cipla . Sun pharma ,lupin, Macleods are the main competitor for Ranbaxy.

Molecules- pantaprazole, Rabeprazole, omeparazole, a-b-peginterferron

Indications : -ulcer,bleeding,Inflammation,polyps.

Target Customers- Gasteroenterologists, surgeons, orthopedics, GPs, Pediatrics,

22Gastrointestinal

There is a growing globel population of patients with ailments respiratory

Major competitor- Cipla , sun pharma , G.S.K, lupin , macleods pharma

Molecules- Ambazone Loratadine combination ,Montelukasts

Indications : - Indication-Chronic obstructive pulmonary disease.colour change.nose flarring,Retraction.

Target Customers- Chest physician are main customer

23Respiratory

Ranbaxy have a wide range of drug for central nervous system

Major competitor- sun pharma , intas pharma , lupin and abott pharma

Molecules- sertaline .Gabapentin and olanzapine.

Indications : Epilepsy .Neuropatic pain , Alzheimer.

Target Customers- Neuropshychiatrist, neuro physicains.

24Central nervous system

25OTC PRODUCTS OF RANBAXY OTC (OVER THE COUNTER)

OTC PRODUCTS OF RANBAXY WHAT IS OTC PRODUCTSOver the counter (OTC) drugs are the medicines sold directly to customer without prescription from a health care professional.ORIGIN OF OTC PRODUCTS Those products which become widely prescribed & known to the patient, are purchased directly at the chemist counter e.g. Revital, crocin, saridon, volini etc.Common public have in general knowledge about these drugs hence doctors do not or rarely prescribe them Hence they are purchased Over The Counter.

26OTC PRODUCTS BY RANBAXY BRAND NAME GENERIC NAME THERAPUTIC SEGMENT REVITAL RangeCINSENG, VITAMINS & MINERALS VITAMINS & MINERALS SUPLEMENT

CINSENG, VITAMINS & MINERALS (WOMENS)

CINSENG, VITAMINS & MINERALS ISOFLAVONES (50 +)

SOY PROTEIN SUPLEMENTVOLINI RangePAIN RELIEF GEL & SPRAYANALGESIC TOPICALAYURVEDIC PAIN RELIEF GELCHERICOF COMPLETE COUGH SYRUP COUGH COLD AND ALLERGY PEPFIZEFFERVESCENT DIGESTIVE ENZYMESGASTROINTESTINALGARLIC PEARLSGARLIC OIL FOR ALL ROUND HEALTH GESDYPDIGESTIVE ENZYMES27Supply Chain & distribution28DISTRIBUTION PROCESS WAREHOUSE

INR69

CFA

INR70 INR72 STOCKIST SEMI STOCKIST

INR80 HOSPITAL/ RETAILER INSTITUTION INR100 PATIENT29

INR 80Warehouse : Dewas( M.P )

CFA Locations :West : Ahmedabad, Indore, Mumbai, Nagpur, Pune, RaipurEast : Cuttack, Guwahati, Kolkata, Patna, RanchiNorth: Delhi, Ghaziabad, Jaipur, Jammu, Lucknow, Panchkula, ZirakpurSouth : Banglore, Chennai, Cochin, Madurai, Secunderabad, Vijaywada

30ROUTE PLAN Mumbai LocalSTATION FROMSTATION TODESPATCH DAYSMATERIAL TO BE RECEIVED BY DISTRIBUTORPrincess StreetKurlaSaturdayMondayBandraDahisarTuesdayWednesdayGhatkoparMulundThursdayFriday3132BCG MATRIX:Products offered?

33Porters 5 Forces ModelCompetitors of Ranbaxy in India are:-

Dr. ReddysPfizerCiplaAbbotAurobindo PharmaGlaxo Smith KlineLupinSun PhrmaceuticalsCadilla HealthcareWockhardtPharmaceutical company has to face various competitive rivalries among the other pharmaceutical companies34COMPETITIVE RIVALRY35THREATS OF ENTRY Pharmaceutical Industry easy Entry

Capital requirement are very low

Creating a regional distribution network is easy

Brand awareness franchisee amongst the doctor is the key for the long term survival Quality regulations by government may put some hindrance for establishing new manufacturing operations

36THREAT OF SUBSTITUTES There also is bend towards ayurvedic & homeopathic methods of medicine

There are many product which are close substitutes to each other causing substitution at Retail - Point.37Bargaining Power of Suppliers The chemical industry is again very competitive and fragmented

Easily switch from their suppliers without incurring a very high cost3810/14/2013Bargaining Power of Buyers Buyers are scattered and they as such does not yield power in the pricing of the products.

Government with its policies plays an important role in regulating pricing.SWOT Analysis3940SWOT ANALYSIS:Top 10 global Generic company with a spread over 125 countries.Strong presence in international market with major share.State of Art R&D facilities.Large pool of skilled technical manpower both in India and abroad. Non Infringing products of Active Pharmaceuticals Ingredients.High standards of purity.

STRENGTH: WEAKNESS:41Low share of India in World Pharmaceutical Production (1.2% of world production but having 16.1% of world's population).Very low level of Biotechnology in India and also for New Drug Discovery Systems.Low level of strategic planning for future and also for technology forecasting.Absence of Association between Institutes and Industry..It is heavily dependent on Generics for revenue generation.Constantly regulated government Policies- operational efficiency affected.

OPPORTUNITIES:Growing health awareness.New diagnoses and new social diseases.New therapy approaches.Spreading attitude for soft medication (OTC drugs)Spreading use of Generic Drugs.GlobalizationEasier international trading.Supply of generics drugs to developed markets.42Improvement in distribution network & brand buildingThe land of opportunities Africa is still unexplored due to economic calamities, the company can establish its brand value by reaching the segment and their by increasing the market share.Unexplored markets in India ready to be in licensed (FTL).43THREATS:Competition From MNCsContainment of rising health-care cost.High Cost of discovering new products and fewer discoveries.Stricter registration procedures.High entry cost in newer markets.High cost of sales and marketing.Competition, particularly from generic products.Switching over form process patent to product patent.Drug price control order put unrealistic ceilings on product prices and profitability and prevent company from generating investible surplus

44Stringent FDA RegulationFDA has become strict. Due to this every procedure is monitor.Hence, recent we know that Ranbaxy have to pay a penalty of $500 million Dollars impose by USFDA.Secondly European union has impose a penalty of $110 million Dollars for delaying the generic molecule in the European market.Exchange rate fluctuations.Exchange rate fluctuations. Global economic slowdown. Only focuses on generic market and have less patented drugs. Most of the companies have segmented Africa which is considered to be the land of opportunities.

45Need of InnovationSWOT Analysis suggests use of Strengths to overcome Weakness by coping with ThreatStrengthsSTATE OF ART R & D FACILITIES.Well Trained & specialised employee strength.Reach in terms of Therapy, operations & Market coverage.Global manufacturing facilities.

ThreatsThreat of competitors & substitution in generic market.Fluctuating market share.Changes in Govt. Policies for products with high customer base.

46SOLUTION47Focus on uncontested market share by offering a Product or Service that is unique in Market space, where there is no or less competition.

INNOVATIVE PRODUCT48INTRODUCINGThe New Age AntimalarialIndias First New drug developed by Ranbaxy

BLUE OCEAN STRATEGYAccording to a Market Survey :- PRICE was the least preferred factor. Expected least Adverse event with a Drug.Expected Fast symptomatic relief & Complete cure .A unique feature like Patient compliance was most needed & ignored by competitors.

49Did synriam have these features ?INNOVATION Vs conventional50Key BenefitsSynriam (AM+PQP)OTHER Anti malarialsA+LAS+SPCure Rates97.9%(Irrespective of meals)97.4%(When given with meals)82.6%Fever Clearance Time18 Hrs.24 Hrs.31.2Hrs.Gametocyte Clearance100% at day-4298.9% at day-42No Data AvailablePatient ComplianceOne Pill a day2 Pills a dayAs 2nd dose has to be taken just after 8 hours of 1st dose4 pills /day (1 OD for 3 days)(Twice daily for 3 days )(Min. 5 days therapy and may continue till report comes negative)INNOVATION Vs conventionalKey BenefitsSynriam (AM+PQP)OTHER Anti malarialsA+LAS+SPConvenience of therapyFixed Dose Combination Fixed Dose Combination Co-blister packing(Food independent)(Fatty food dependent)Body Weight DependencyIndependentDependentDependentAffordabilityRs.130/- for complete treatmentAvailable in different prices according to the Brand. Average Price > 150Available in different prices according to the Brand. Average Price > 150Source Availability SYNTHETICPLANT SOURCEPLANT SOURCE51

52AcheivementsGolden Peacock award, 2012 in the Innovative product & Services.53ASSOCHAM innovation award by Shri Jaipal Reddy, Hon.Minister for Science,Technology & Earth sciences.

Within a year of launch, SYNRIAM has achieved landmarks,2 million SYNRIAM pills used & More than 7,00,000 patients benefited.

INNOVATIVE PRODUCTS & SERVICESNDDS technology : Novel drug delivery system used to provide enteric coating for slow release.HYNOV inj : A single shot inj. Of HyNov vs 3 inj. Of other brands for patients with compromised knees in Osteoarthritis.SODOX : Indias 1st superoxide antioxidant, which is bodys 1st line of defence & blocks generation of free radicals right at the source. Also purely Veg product. 54

Guilty for selling adulterated drugs & paid penalty worth $500 mn.2006 :- USFDA issued letters to Paonta sahib & Dewas Manufacturing plants2008:- USFDA banned import of 30 drugs manufactured at these plants2011:- Ranbaxy signed a consent decree with USFDA & settled claims with US department of justice.55CONTROVERSIESCONTROVERSIESPIL against Ranbaxy products.Hospitals imposing ban on use of Ranbaxy pills. Daichi Sankyo accusing former Owner of concealing facts concerning USFDA & USDOJ investigations.Recently a ban was imposed on import of drugs from Mohali plant.OHM Laboratories a manufacturing facility owned by Ranbaxy under USFDA scanner.56

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58BIBLIOGRAPHYwww.ranbaxy.comwww.myranbaxy.comwww.businessstandard.comRanbaxy world 2013www.hindustantimes.comwww.natures.com

59THANK YOU