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Action Learning Project

Market Potential in UAE for AlphaMD Analytics Company

Global MBA

S P Jain School of Global Management

Bhumika KatariaJasleen Sethi Kim Hongrak

CONTENTS

2

001 Introduction

002 Literature Review

003 Research Methodology

004 Recommendations & limitations

005 Appendix

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1Introduction

Action Learning Project

1.1

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A note on study about the company

• AMD Analytics is a start-up focused on providing solutions to life sciences by conducting custom market research

High quality solution Global site Various projectLife science

• In operations since last 1 year and have offices in US & India. They also have presence in Canada & EU.

• The company provides high quality solutions to clients within life sci-ences (pharma, medical device, biopharma, di-agnostics and imaging).

• Executed projects for various companies at different stages of

growth.

• 20 member team right now & growing.

Growing up

1.2

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Objective of study

• Detailed study of Pharmaceutical Sector in UAE

• Analyzing their current and unmet needs

• Proposing a market strategy to approach the right target market

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2Literature review

Action Learning Project

2.1

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Study on Pharma Sector in UAE

• Local manufacturing Pharma companies - 8

• Most developed Pharma sector • Strong growth in

trading in Pharma sector

• Investments in Healthcare sector DHC and DuBiotech projects

• Strong healthcare infrastructure • Huge scope - medi-

cal tourism industry – Dh 1billion rev-enue in 2015

• Increment in open-ing of pharmacies in grocery shops

• highest per-capita expenditures in medicines • Huge potential for growth

– changing lifestyle • Increase in income and

awareness of self-monitor-ing devices

• No. of registered pharma companies - 2688 • Market Size - 53.8 AED • Growth rate – 7.9%

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2.2 Generic challenges faced by pharmaceutical companies in UAE

Market highly relies on

imports for hi-tech

prescriptions

Local manu-facturing sector is

small Focuses on basic

medicines

Pace of regional

innovation is slower

Prevalence of counterfeit products

entering and exiting from

UAE

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2.3 Ansoff matrix

AMD analytics company to enter new market with

existing services(pharmaceutical)

• Market Development

PESTEL

TOWS

Categorize business

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2.4 Ansoff matrix – PESTEL analysis

SocialEconomicPolitical

Healthcare is regulated at both Federal and Emirate level

UAE is benefitting from the health related free zones like DuBiotech

Both soft and hard infrastructure are a challenge.

Increase by 3.3% ,GDP in 2012

Product life cycle cost has short-ened and in-licensing, R&D & mar-keting costs have risen

UAE have an open economy with a high GDP per capita, more than 30.000 US dollars (according to IMF (2014))

Substantial annual trade surplus

UAE’s population from different cul-tural background .Thus, each group has its own set of unique health-care needs.

The increasing obesity amongst associated health risks.

Public activism has also increased through the harnessing of new so-cial networking technologies.

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2.4

EnvironmentalLegalTechnology

Create new business prospects in terms of new therapy systems and service provisions.

Demand for  customized treatments have unleashed new opportunities.

Many pharmaceutical companies to work in partnership with IT compa-nies to improve electronic process-ing, increase efficiency, reduce costs, and protect patient confiden-tiality.

Law No. 4 prohibits opening of medi-cal stores and pharmaceutical facto-ries without license.

License applicants for pharmacy or medical store can be only UAE na-tionals.

Imports and distribution of imported pharmaceutical products can only be done if they are registered with the Ministry of Health.

Law contains various labelling re-quirements.

Environmental Impact Assessment (EIA) program.

To minimize environmental impact & to preserve the pre-existing natural heritage.

State-of-the-art waste disposal facil-ities, to conserve and recycle water and energy.

More than 60 events & campaigns to drive the message of sustainabil-ity to all sections of the community.

Ansoff matrix – PESTEL analysis

2.5 Ansoff matrix – TOWS analysis of AlphaMD

TOWS

Threat

Weakness Strength

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• Nominal amount to be paid as initial payment(20%)• Fixed project pricing (not overcharging)• Follow SLAs and mention KPIs in contracts.• Experts in medical and pharma field• Conduct project globally

• Positive outlook for Biotech, Pharma industry• Increase attention of people on health• Huge potential for growth in healthcare sector• Increase in per-capita expenditures in medicine

• More than 50 numbers local and global consulting firm in Mumbai• Increasing cost of human capital

• Solely focus on pharma industry

Opportunity

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3Research Methodology

Action Learning Project

3.1

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STEP 1 STEP 2 STEP 3 STEP 4 STEP 5

• Identify SME Pharma & Biotech firms based

in UAE.

• Parameter Identification and preparation of

discussion guide

• Identifying the key pa-rameters for prioritized organizations through in-depth Interview

• Prioritize the list through Decision ma-trix

• Identifying the critical Needs and quality drivers for these organizations by taking in-depth interviews with key stakeholders and implementing CTQ Trees model

• Assess the performance re-quirements for these organi-zations that AMD can satisfy and pitch in UAE market.

Methodology

3.2

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STEP 1 - Identified 50 SME Pharma & Biotech firms based in UAE

ALP_Document_CompanyDetails50_final

3.3

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STEP 2 - Parameter Identification

1. Product Launch

2. Franchise model

3. Marketing activities

4. Business development

5. Payer Insights

6. Business Analytics

7. Competitive Intelligence

8. Market research

9. Channel and contracting

3.4

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STEP 2 – Interview discussion guide

Microsoft Word Document

3.5

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STEP 3 - Qualitative Analysis through In-depth interviews

Interviewee 1 Interviewee 2 Interviewee 3

Name Mr. Rajendra H. Bhandari Mr. Benson Dr. Fayyaz Vakil

Title Advisor Director Business Unit Manager

Company Neopharma Aras Medical Devices and Equipment Gulf Pharmaceuticals

Call +971565396926 +971504606805 +971507102311

Interview

• Details of interviewees

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3.5 STEP 3 - Qualitative Analysis through In-depth interviews

• Medical reps should be efficient to convince doctors & physicians

• Overall Insights from the in-depth interviews

• Competitive intelligence is the most important parameter

• product launch activities, market research, channel & contracting

• For Medical Devices & Equipment companies, delivery time key factors

• For R&D companies, product development & selection based on customers’ needs

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3.5 STEP 3 - Qualitative Analysis through In-depth interviews

• Consumer insights are gained with the help of IMS health and marketing team (internal or external)

• Overall Insights from the in-depth interviews

• For medical devices company type, contracting is done mainly for the maintenance of the products

• IMS health is a popular research agency working for many organizations to provide them with market data

• Ministry of Health is sole regulatory authority to govern the systems & processes of this sector

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STEP 4 – Decision matrix 1

Parameters Product Launch

Franchise model

Marketing activities

Business development

Payer Insights

Business Analytics

Competitive Intelligence

Market research

Channel & contracting

Weighted total

Weights.

Distribution & trading

3 

0 

3 

4 

5 

3 

5 

3 

5 

Marketing 5 3 5 3 5 3 5 4 5

Manufacturing & R&D 5 3 3 3 3 3 4 4 5

Medical Devices

3 

0 

4 

3 

3 

3 

5 

5 

3 

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STEP 4 – Decision matrix 2

Parameters Product Launch

Franchise model

Marketing activities

Business development

Payer Insights

Business Analytics

Competitive Intelligence

Market research

Channel & contracting

Weighted total

Weights.  16

 6

 15

 13

 16

 12

 19

 16

 18

 

Distribution & trading

3 

0 

3 

4 

5 

3 

5 

3 

5 

Marketing 5 3 5 3 5 3 5 4 5

Manufacturing & R&D 5 3 3 3 3 3 4 4 5

Medical Devices

3 

0 

4 

3 

3 

3 

5 

5 

3 

9 87 654 3 21

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STEP 4 – Decision matrix 3

Parameters Product Launch

Franchise model

Marketing activities

Business development

Payer Insights

Business Analytics

Competitive Intelligence

Market research

Channel & contracting

Weighted total

Weights.  16

 6

 15

 13

 16

 12

 19

 16

 18

Distribution & trading

21 

0 

12 

12 

25 

6 

45 

18 

40 

Marketing 35 3 20 9 25 6 45 24 40

Manufacturing & R&D 35 3 12 9 15 6 36 24 40

Medical Devices

21 

0 

16 

9 

15 

6 

45 

30 

24 

9 87 654 3 21179

207

180

166

3.6

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STEP 4 – Decision matrix 4

Parameters Product Launch

Franchise model

Marketing activities

Business development

Payer Insights

Business Analytics

Competitive Intelligence

Market research

Channel & contracting

Weighted total

Weights.      

Distribution & trading

45 

40 

179 

Marketing 45 40 207Manufacturing & R&D 36 40 180

Medical Devices

45 

30   

166 

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STEP 4 – Conclusion from decision matrix analysis

• Marketing pharmaceutical companies scores the highest and hence has the

highest scope.

• R&D and distribution and trading pharmaceutical companies have got the

next highest weighted score.

• Medical devices company type seem to prefer competitive intelligence and

market research activities.

• The most important parameters for almost all companies types are

Competitive Intelligence and Channel and Contracting.

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STEP 5 – CTQ Trees

Need

Driver 1

Driver 2

Driver 3

Requirement 1

Requirement 2

Requirement 3

Requirement 4

Requirement 5

Requirement 6

Identifying critical needs Identifying the quality drivers Identifying performance requirements

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STEP 5 – CTQ Trees for Alpha MD

• Budget friendly quality services

• Competitive Intelligence

• Channel & Contracting

• Market Research

• Gather primary intelligence without internal bias

• Affectively aggregate primary and secondary info.

• Thorough & global view of competitive landscape

• Understand reform based needs of customers

• Implement value based pricing & contracting

• Differentiate by getting a product out of lowest cost for clients

• Examine & synchronize activities with regulatory.

• Build relationships to assess needs of different players.

• Determine specific take-away to capitalize on short amount of time.

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4Recommendations &

Limitations

Action Learning Project

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Conclusion

• Competitive intelligence >> market research >> channel & contracting.

• Marketing pharma companies to focus highly on competitive intelligence data.

• The SME companies require to outsource only if the services are cheaper.

• The companies do not compromise on the quality at the same time.

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Recommendations

1. Provide high quality competitive in-telligence with effective Street Combing

2. Budget friendly services owing to pri ce-sensitive market

3. Efficient contracting → special show er equipment companies→ help des alination

4. Accelerate the usage of Ayurvedic & Naturopathy in UAE

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Recommendations

6. Build relations with MOH of Dubai → counterfeiting and sales without pres cription

5. Promote medicines dealing with obe sity, diabetes and heart-related disea ses  

7. Come up with Me Too Market strateg ies for R&D pharmaceutical compani es

4.3

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Limitations

• Revenue and Market Cap not disclosed for most SMEs as they are found to be closed and smaller groups.

• Dubai Healthcare City and Dubai Healthcare Authority denied to disclose data for any of the companies as it was against their privacy policies.

• Unavailability of responses from the potential SME clients.

• Insights based on limited in-depth interviews conducted from three industry experts.

• Quantitative(questionnaire) to be conducted is not available.

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5Action Learning Project

Appendix

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5.1 Meeting log

• 07/05/2016 – 45 mins – Dr. Kaushik De • 21/06/2016 – 20 mins – Dr. Kaushik De • 04/07/2016 – 35 mins – Dr. Kaushik De • 04/08/2016 – 5 mins – Dr. Kaushik De

• 14/06/2016 – 60 mins – Dr. Balakrishna Grandhi • 21/06/2016 – 20 mins – Dr. Balakrishna Grandhi • 03/07/2016 – 60 mins – Dr. Balakrishna Grandhi • 21/07/2016 – 90 mins – Dr. Balakrishna Grandhi

• 03/07/2016 - 20 mins – Dr. Dhrupad Mathur • 03/08/2016 - 15 mins – Dr. Dhrupad Mathur

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http://www.thenational.ae/business/industry-insights/economics/pharmaceutical-sector-in-the-uae-is-in-good-healthhttp://www.khaleejtimes.com/nation/uae-health/uae-pharmaceutical-sector-witnessing-healthy-growthhttp://www.thenational.ae/business/economy/drug-manufacturing-to-increase-in-the-uaehttp://www.middleeasthealthmag.com/cgi-bin/index.cgi?http://www.middleeasthealthmag.com/nov2011/feature3.htmhttp://abcdubai.olasoft.com/uploaded/web/Challenges%20Facing%20the%20UAE%20Healthcare%20Sector%20IP%20in%20the%20UAE%20English%20&%20Arabic.pdfhttp://www.pwc.com/gx/en/industries/pharmaceuticals-life-sciences/pharma-2020/explore-the-data-analysis.htmlhttps://www.google.ae/url?sa=t&rct=j&q=&esrc=s&source=web&cd=10&cad=rja&uact=8&ved=0ahUKEwi70fOQ8P_NAhXGVBQKHVDCBgMQFghVMAk&url=https%3A%2F%2Fwww.lw.com%2Fthoughtleadership%2Fhealthcare-regulation-in-uae&usg=AFQjCNEoarhXDje8UItjYxwBtaqI5zbuFA&sig2=KT0Gwfm_Ox1tLrMLO49PhQ&bvm=bv.127178174,bs.1,d.d24 http://www.zawya.com/mena/en/story/ZAWYA20140909105007/ http://www.zonescorp.com/en/about-us/corporate-social-responsibility-csr http://www.theprospectgroup.com/healthcare-in-the-united-arab-emirates-uae-81878/ http://www.strategic-planet.com/2011/01/a-pestle-analysis-for-the-pharmaceutical-industry/https://www.asdreports.com/market-research-report-4392/pest-analysis-healthcare-services-sector-uaehttp://www.thenational.ae/business/industry-insights/economics/pharmaceutical-sector-in-the-uae-is-in-good-health#page1http://www.bi-me.com/main.php?id=1247&t=1http://usuaebusiness.org/wp-content/uploads/2014/06/HealthcareReport_Update_June2014.pdfhttps://www.mindtools.com/pages/article/newTED_03.htmhttps://www.mindtools.com/pages/article/ctq-trees.htmhttps://www.mindtools.com/pages/article/newTMC_90.htm

5.2 References

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Thank you

Action Learning Project