pharma entrepreneurship- guidlines for developing pharma entrepreneurship
-
Upload
kandyjoshi -
Category
Documents
-
view
273 -
download
10
Transcript of pharma entrepreneurship- guidlines for developing pharma entrepreneurship
1
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
STUDENT DECLARATION
I hereby declare that this project report titled
“GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT” in
MEDISTREAM BIOTECH (P) LTD.
Is executed as per the course requirement for the post graduate program in management. I
hereby ensure that the project report has not been submitted by me or any other person to any
other university or institution for degree or diploma. It’s my own work.
Place:
Date:
Kandarp Joshi
P-MBA(KBIPER)
2
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
THE PROJECT IS DEDICATED TO ALL THE
STUDENTS OF PHARMA MBA
Who desire to be an entrepreneur someday…
3
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been possible without the
kind support and help of many individuals and organizations. I would like to extend my
sincere thanks to all of them.
I am highly indebted to Mr. D. M. Joshi for their guidance and constant supervision as well
as for providing necessary information regarding the project & also for their support in
completing the project.
I would like to express my gratitude towards my parents & member of KBIPER Pharma
MBA for their kind co-operation and encouragement which help me in completion of this
project.
I would like to express my special gratitude and thanks to industry persons for giving me
such attention and time.
My thanks and appreciations also go to my colleague in developing the project and people
who have willingly helped me out with their abilities.
4
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
ABSTRACT
When it comes to starting a business people always think of a business which gives lots and
lots of profit and has less competition. The cost of entering the business is also considered
while starting a business which affects and restricts the new business entries.
Entrepreneurship is not a joke, not every second person starting a business is called
entrepreneur. An entrepreneur is the person which starts the business and has the ability to
sustain in the market with it by bringing innovation in the current working style.
As it is known that the driving force of any new business is finance, but I have observed this
and has been proven here under by my project that the driving force of any business is not
finance it is just a secondary part the main thing is strategy and ability to pull the business
further. The project elicits a special case of pharma industry, “MEDISTREAM” a firm which
has evolved through the literary fighting world of pharma business without any huge and
unnecessary investments.
My topic “GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN
GUJARAT” is a detailed description of how to start a business in pharma industry and how
to survive in it.
5
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
OBJECTIVE OF STUDY
It is said that every day two new pharma companies open and one of them closes in the
pharma industry, it is very important to learn how to survive. As it is said for business that it
is very easy to open a business and also to shutdown it but it is very hard to survive in the
business.
The objective of the study is to know the tricks and the strategies to be applied in a pharma
industry to survive and progress. Medistream is an organization which is developing very fast
and is applying the strategies that are proving effective in the competitive pharma world. It
has well established its market in Gujarat this is the reason for studying its ways of doing the
business in local market.
In addition to this I, have also analyzed a failure pharma company to know some of the
factors that lead to dilution of the company. As this company was established at the same
time when Medistream was established, and now it is on the verge of close down.
PRIMARY OBJECTIVE:-
The primary objective to find out characteristics, nature and working of a pharma company
in various cities of Gujarat, this studies help in establishing entrepreneurship in Gujarat of a
pharma company.
SECONDARY OBJECTIVE
6
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
The secondary objective is to find out actual working style of a developing company which
helps in getting idea about, how to penetrate in the local markets of Gujarat.
1. INDUSTRIAL PROFILE 1
The pharmaceutical industry develops, produces, and markets drugs licensed for use as
medications. Pharmaceutical companies can deal in generic and/or brand medications. They
are subject to a variety of laws and regulations regarding the patenting, testing and marketing
of drugs. The main aim of a particular Pharmaceutical Industry is to develop research
and distribute drugs in order to provide health care for the people in the society. The
Pharmaceutical Industry like other industries is subjected to follow certain rules and
regulations.
The Pharmaceutical Industry needs to follow rules about patent, marketing as
well as testing of drugs that are scheduled to come to the market as medicines. Since the
inauguration of the Pharmaceutical Industry in the 19th century, it has covered a long way
and now it has become one of the most influential and successful industry in the world with
both controversy and praise on its part.
Pharmaceutical Industry is very much dependent upon the developments
and discoveries that are made to search new types of drugs and also to search for new kind
of medicines. One can also see differences within the industry regarding the same drug or
report and different companies within the Pharmaceutical Industry look to follow different
paths for the same thing. Drug Discovery and Drug Innovation are two very
aspects in the Pharmaceutical Industry:
Drug Discovery: Drug Discovery is a process through which potential drugs
are designed or discovered. It has been observed in the past that most of the drugs were
7
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
invented by means of isolating the active component from remedies which are traditional in
nature or through another kind of discovery known as serendipitous discovery.
Drug Development: This process is taken forward after the discovery is
done and a thing is identified as a potential drug. The development takes place immediately
after that as the component is turned into a medicine. So this is also considered as a very
important process and has great importance in the Pharmaceutical Industry.
For the first time ever, in 2006, global spending on prescription drugs topped $643 billion,
even as growth slowed somewhat in Europe and North America. The United States accounts
for almost half of the global pharmaceutical market, with $289 billion in annual sales
followed by the EU and Japan. Emerging markets such as China, Russia, South Korea
and Mexico outpaced that market, growing a huge 81 percent.
US profit growth was maintained even whilst other top industries saw slowed or no growth.
Despite this, the pharmaceutical industry is — and has been for years — the most profitable
of all businesses in the U.S. In the annual Fortune 500 survey, the pharmaceutical industry
topped the list of the most profitable industries, with a return of 17% on revenue The
Indian Pharmaceutical Industry today is the front runner of India’s science-
based industries with wide ranging capabilities in the complex field of drug manufacture and
technology. A highly organized sector, the Indian Pharmaceutical Industry is estimated to be
worth $ 4.5 billion, growing at about 8 to 9 percent annually. It ranks very high in the third
world, in terms of technology, quality and range of medicines manufactured. From simple
headache pills to sophisticated antibiotics and complex cardiac compounds, almost every
type of medicine is now made indigenously.
8
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Fig 1 :- Location of pharma industries in India1
9
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
1.1 INDIAN PHARMA INDUSTRY 1
Indian Pharmaceutical Industry plays a key role in promoting and sustaining
development in the vital field of medicines, boasts of quality producers and many units
approved by regulatory authorities in USA and UK. International companies associated with
this sector have stimulated, assisted and spearheaded this dynamic development in the past
53 years and helped to put India on the pharmaceutical map of the world.
The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered
units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical
companies control 70% of the market with market leader holding nearly 7% of the market
share. It is an extremely fragmented market with severe price competition and government
price control.
The pharmaceutical industry in India meets around 70% of the country's demand for bulk
drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals
and injectibles. There are about 250 large units and about 8000 Small Scale Units, which
form the core of the pharmaceutical industry in India (including 5 Central Public Sector
Units). These units produce the complete range of pharmaceutical formulations, i.e.,
medicines ready for consumption by patients and about 350 bulk drugs, i.e., chemicals
having therapeutic value and used for production of pharmaceutical formulations.
Following the de-licensing of the pharmaceutical industry, industrial licensing for most of the
drugs and pharmaceutical products has been done away with. Manufacturers are free to
produce any drug duly approved by the Drug Control Authority. Technologically strong and
totally self-reliant, the pharmaceutical industry in India has low costs of production, low
R&D costs, innovative scientific manpower, strength of national laboratories and an
10
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
increasing balance of trade. The Pharmaceutical Industry, with its rich scientific talents and
research capabilities, supported by Intellectual Property Protection regime is well set to take
on the international market
1.2 ADVANTAGE INDIA
Competent workforce: India has a pool of personnel with high managerial and
technical competence as also skilled workforce. It has an educated work force and English is
commonly used. Professional services are easily available.
Cost-effective chemical synthesis: Its track record of development,
particularly in the area of improved cost-beneficial chemical synthesis for various drug
molecules is excellent. It provides a wide variety of bulk drugs and exports
sophisticated bulk drugs.
Legal & Financial Framework: India has a 60 year old democracy and hence
has a solid legal framework and strong financial markets. There is already an established
international industry and business community.
Information & Technology: It has a good network of world-class
educational institutions and established strengths in Information
Technology.
11
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Globalization: The country is committed to a free market economy and
globalization. Above all, it has a 70 million middle class market, which is
continuously growing.
Consolidation: For the first time in many years, the international
pharmaceutical industry is finding great opportunities in India. The process of consolidation,
which has become a generalized phenomenon in the world pharmaceutical industry, has
started taking place in India.
1.3 CURRENT SCENARIO
The Growth Scenario
India's US$ 4.1 billion pharmaceutical industry is growing at the rate of 14 percent per year.
It is one of the largest and most advanced among the developing countries.
Over 20,000 registered pharmaceutical manufacturers exist in the country. The domestic
pharmaceuticals industry output is expected to exceed Rs260 billion in the financial year
2002, which accounts for merely 1.3% of the global pharmaceutical sector. Of this, bulk
drugs will account for Rs 54 bn (21%) and formulations, the remaining Rs 210 bn (79%).
12
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
2. SOME OF THE MANAGEMENT THEORIES VERY IMPORTANT IN PHARMA MARKETING
2.1 PARETO’S RULE 2
In 1906, Italian economist Vilfredo Pareto created a mathematical formula to describe the
unequal distribution of wealth in his country, observing that twenty percent of the people
owned eighty percent of the wealth. In the late 1940s, Dr. Joseph M. Juran inaccurately
attributed the 80/20 Rule to Pareto, calling it Pareto's Principle. While it may be misnamed,
Pareto's Principle or Pareto's Law as it is sometimes called can be a very effective tool to
help you manage effectively.
Where It Came From
After Pareto made his observation and created his formula, many others observed similar
phenomena in their own areas of expertise. Quality Management pioneer, Dr. Joseph Juran,
working in the US in the 1930s and 40s recognized a universal principle he called the "vital
few and trivial many" and reduced it to writing. In an early work, a lack of precision on
Juran's part made it appear that he was applying Pareto's observations about economics to a
broader body of work. The name Pareto's Principle stuck, probably because it sounded better
than Juran's Principle.
13
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
As a result, Dr. Juran's observation of the "vital few and trivial many", the principle that 20
percent of something always are responsible for 80 percent of the results, became known as
Pareto's Principle or the 80/20 Rule.
What It Means
The 80/20 Rule means that in anything a few (20 percent) are vital and many(80 percent) are
trivial. In Pareto's case it meant 20 percent of the people owned 80 percent of the wealth. In
Juran's initial work he identified 20 percent of the defects causing 80 percent of the problems.
Project Managers know that 20 percent of the work (the first 10 percent and the last 10
percent) consume 80 percent of your time and resources. You can apply the 80/20 Rule to
almost anything, from the science of management to the physical world.
You know 20 percent of your stock takes up 80 percent of your warehouse space and that 80
percent of your stock comes from 20 percent of your suppliers. Also 80 percent of your sales
will come from 20 percent of your sales staff. 20 percent of your staff will cause 80 percent
of your problems, but another 20 percent of your staff will provide 80 percent of your
production. It works both ways.
How It Can Help
The value of the Pareto Principle for a manager is that it reminds you to focus on the 20
percent that matters. Of the things you do during your day, only 20 percent really matter.
Those 20 percent produce 80 percent of your results. Identify and focus on those things.
When the fire drills of the day begin to sap your time, remind yourself of the 20 percent you
need to focus on. If something in the schedule has to slip, if something isn't going to get
done, make sure it's not part of that 20 percent.
14
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
There is a management theory floating around at the moment that proposes to interpret
Pareto's Principle in such a way as to produce what is called Superstar Management. The
theory's supporters claim that since 20 percent of your people produce 80 percent of your
results you should focus your limited time on managing only that 20 percent, the superstars.
The theory is flawed, as we are discussing here because it overlooks the fact that 80 percent
of your time should be spent doing what is really important. Helping the good become better
is a better use of your time than helping the great become terrific. Apply the Pareto Principle
to all you do, but use it wisely.
Manage This Issue
Pareto's Principle, the 80/20 Rule, should serve as a daily reminder to focus 80 percent of
your time and energy on the 20 percent of you work that is really important. Don't just "work
smart", work smart on the right things.
Pareto charts are used to graphically display the relative importance of groups or segments of
data. This makes it easier to identify which problems are most important. Typically, the data
groups in a Pareto chart are displayed as a histogram or vertical bar chart, in descending
order of significance.
2.2 BEYOND THE 4PS: THE BASIC TENETS OF RELATIONSHIP MARKETING3
Traditional marketing has followed a set of principles called the 4Ps. These basic principles
remain important components of any pharmaceutical care marketing plan and have been
extensively reviewed elsewhere. Relationship marketing does not replace these basic
15
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
principles, but rather offers a fresh perspective through which to view and implement them.
Briefly, the 4Ps refer to:
Product -- This is the item or, in the case of pharmaceutical care, the service being
marketed. Although relationship marketing can be applied to any service, it is best
suited to programs that involve repeated interactions between the pharmacist and
patient, such as disease state management or pharmacotherapy assessment and
monitoring.
Price -- Setting the appropriate price for a product or service is essential to marketing
it successfully. Here, relationship marketing can be used to assess patients' price
sensitivity and willingness to pay for a service before it is implemented.
Promotion -- In addition to advertising, promotional activities include publicity,
public relations, and personal selling. The latter is especially crucial to the success of
relationship marketing, which emphasizes one-on-one interactions between patients
and pharmacists.
Place -- Making the product available at the right time and the right place is also
important to the success of pharmaceutical care. From a relationship marketing
perspective, pharmacists need to know their target markets well enough to tailor place
considerations to patients' needs.
In addition, a fifth P, positioning, which addresses how the product or service will be viewed
in the minds of prospective patients, is also important to consider. Positioning involves
identifying and evaluating the niche for the service, which is another key element in
relationship marketing.
16
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
As a philosophy, relationship marketing moves beyond these basic principles to embrace
several other key concepts.
One-on-one marketing. Whereas traditional promotional tactics such as running
advertisements in newspapers are aimed at a mass market, relationship marketing
tactics target selected customers. Using this approach requires the pharmacist to pay
greater attention to relationship building and personal selling.
Identifying groups of like-minded customers who share a common desire or
concern. Instead of trying to be all things to all patients, pharmacies that engage in
relationship marketing focus on providing high-quality services to carefully selected
groups of patients or other partners.
Retaining patients. Pharmacies often focus their promotional efforts on one-time
events or services, such as a blood pressure screening day, a month-long diabetes
awareness campaign, or a seasonal influenza vaccination program. Although these
activities may work well for drawing customers to the pharmacy, they typically offer
little incentive for patients to return on a regular basis to take advantage of other,
longer-term clinical services. Relationship marketing offers tools to build and sustain
relationships with the pharmacy's existing customers, such as patients who come in
for a medication refill then choose to participate in a drug therapy assessment
program.
Taking a longer-term view. Instead of a narrow, one-sale-at-a-time view of
organization-client interactions, relationship marketing emphasizes developing close
17
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
and continuing collaborations between an organization (the pharmacy) and its target
markets (patients) and various stakeholders in patient care (physicians, insurers, and
suppliers). Relationship marketing also requires recognizing that relationships take
time to grow and mature. Thus, using this approach, the goal of an initial patient
encounter should be less to close the sale than to assess the patient's needs and begin
to establish the value of pharmacy services.
A 2000 estimate of pharmacy patronage showed that the equivalent of the entire U.S.
population (approximately 275 million people at the time) visited pharmacies each week.[11]
Pharmacists' remarkable access to patients gives them numerous opportunities to initiate and
build therapeutic relationships. However, for these bonds to form, interactions between
patients and pharmacists must be meaningful, with each meeting building on the previous
interaction. For relationship marketing to succeed, interactions between pharmacists and
patients need to represent more than discrete transactions so that patients can understand the
value of the services pharmacists can provide, be they disease management services or
regularly performed drug regimen reviews
2.3 THE PRODUCT LIFE CYCLE IMPORTANCE IN PHARMA5
Introduction5
All products and services have certain life cycles. The life cycle refers to the period from the
product’s first launch into the market until its final withdrawal and it is split up in phases.
During this period significant changes are made in the way that the product is behaving into
the market i.e. its reflection in respect of sales to the company that introduced it into the
market. Since an increase in profits is the major goal of a company that introduces a product
into a market, the product’s life cycle management is very important. Some companies use
18
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
strategic planning and others follow the basic rules of the different life cycle phase that are
analyzed later.
The understanding of a product’s life cycle, can help a company to understand and realize
when it is time to introduce and withdraw a product from a market, its position in the market
compared to competitors, and the product’s success or failure. For a company to fully
understand the above and successfully manage a product’s life cycle, needs to develop
strategies and methodologies, some of which are discussed later on.
Part 1: Product Life Cycle Model Description
The product’s life cycle - period usually consists of five major steps or phases: Product
development, Product introduction, Product growth, Product maturity and finally Product
decline. These phases exist and are applicable to all products or services from a certain make
of automobile to a multimillion-dollar lithography tool to a one-cent capacitor. These phases
can be split up into smaller ones depending on the product and must be considered when a
new product is to be introduced into a market since they dictate the product’s sales
performance.
19
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Fig 2 :- Product Life Cycle5
1. Product Development Phase
Product development phase begins when a company finds and develops a new product idea.
This involves translating various pieces of information and incorporating them into a new
product. A product is usually undergoing several changes involving a lot of money and time
during development, before it is exposed to target customers via test markets. Those products
that survive the test market are then introduced into a real marketplace and the introduction
phase of the product begins. During the product development phase, sales are zero and
revenues are negative. It is the time of spending with absolute no return.
2. Introduction Phase
20
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
The introduction phase of a product includes the product launch with its requirements to
getting it launch in such a way so that it will have maximum impact at the moment of sale. A
good example of such a launch is the launch of “Windows XP” by Microsoft Corporation.
This period can be described as a money sinkhole compared to the maturity phase of a
product. Large expenditure on promotion and advertising is common, and quick but costly
service requirements are introduced. A company must be prepared to spent a lot of money
and get only a small proportion of that back. In this phase distribution arrangements are
introduced. Having the product in every counter is very important and is regarded as an
impossible challenge. Some companies avoid this stress by hiring external contractors or
outsourcing the entire distribution arrangement. This has the benefit of testing an important
marketing tool such as outsourcing. Pricing is something else for a company to consider
during this phase. Product pricing usually follows one or two well structured strategies. Early
customers will pay a lot for something new and this will help a bit to minimize that sinkhole
that was mentioned earlier.
Later the pricing policy should be more aggressive so that the product can become
competitive. Another strategy is that of a pre-set price believed to be the right one to
maximize sales. This however demands a very good knowledge of the market and of what a
customer is willing to pay for a newly introduced product. A successful product introduction
phase may also result from actions taken by the company prior to the introduction of the
product to the market. These actions are included in the formulation of the marketing
strategy. This is accomplished during product development by the use of market research.
Customer requirements on design, pricing, servicing and packaging are invaluable to the
formation of a product design. A customer can tell a company what features of the product
are appealing and what are the characteristics that should not appear on the product. He will
describe the ways of how the product will become handy and useful. So in this way a
company will know before its product is introduced to a market what to expect from the
customers and competitors. A marketing mix may also help in terms of defining the targeted
audience during promotion and advertising of the product in the introduction phase.
21
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
3. Growth Phase
The growth phase offers the satisfaction of seeing the product take-off in the marketplace.
This is the appropriate timing to focus on increasing the market share. If the product has been
introduced first into the market, (introduction into a “virgin”1 market or into an existing
market) then it is in a position to gain market share relatively easily. A new growing market
alerts the competition’s attention. The company must show all the products offerings and try
to differentiate them from the competitors ones. A frequent modification process of the
product is an effective policy to discourage competitors from gaining market share by
copying or offering similar products. Other barriers are licenses and copyrights, product
complexity and low availability of product components.
Promotion and advertising continues, but not in the extent that was in the introductory phase
and it is oriented to the task of market leadership and not in raising product awareness. A
good practice is the use of external promotional contractors. This period is the time to
develop efficiencies and improve product availability and service. Cost efficiency and time-
to-market and pricing and discount policy are major factors in gaining customer confidence.
Good coverage in all marketplaces is worthwhile goal throughout the growth phase.
Managing the growth stage is essential.
Companies sometimes are consuming much more effort into the production process,
overestimating their market position. Accurate estimations in forecasting customer needs will
provide essential input into production planning process. It is pointless to increase customer
expectations and product demand without having arranged for relative production capacity. A
company must not make the mistake of over committing. This will result into losing
customers not finding the product “on the self”.
22
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
4. Maturity Phase
When the market becomes saturated with variations of the basic product, and all competitors
are represented in terms of an alternative product, the maturity phase arrives. In this phase
market share growth is at the expense of someone else’s business, rather than the growth of
the market itself. This period is the period of the highest returns from the product. A
company that has achieved its market share goalenjoys the most profitable period, while a
company that falls behind its market share goal, must reconsider its marketing positioning
into the marketplace. During this period new brands are introduced even when they compete
with the company’s existing product and model changes are more frequent (product, brand,
model). This is the time to extend the product’s life.
Pricing and discount policies are often changed in relation to the competition policies i.e.
pricing moves up and down accordingly with the competitors one and sales and coupons are
introduced in the case of consumer products. Promotion and advertising relocates from the
scope of getting new customers, to the scope of product differentiation in terms of quality
and reliability. The battle of distribution continues using multi distribution channels2. A
successful product maturity phase is extended beyond anyone’s timely expectations. A good
example of this is “Tide” washing powder, which has grown old, and it is still growing.
5. Decline Phase
The decision for withdrawing a product seems to be a complex task and there a lot of issues
to be resolved before with decide to move it out of the market. Dilemmas such as
maintenance, spare part availability, service competitions reaction in filling the market gap
23
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
are some issues that increase the complexity of the decision process to withdraw a product
from the market. Often companies retain a high price policy for the declining products that
increase the profit margin and gradually discourage the “few” loyal remaining customers
from buying it. Such an example is telegraph submission over facsimile or email. Dr. M.
Avlonitis from the Economic University of Athens has developed a methodology, rather
complex one that takes under consideration all the attributes and the subsequences of product
withdrawal process. Sometimes it is difficult for a company to conceptualize the decline
signals of a product.
Usually a product decline is accompanied with a decline of market sales. Its recognition is
sometimes hard to be realized, since marketing departments are usually too optimistic due to
big product success coming from the maturity phase. This is the time to start withdrawing
variations of the product from the market that are weak in their market position. This must be
done carefully since it is not often apparent which product variation brings in the revenues.
The prices must be kept competitive and promotion should be pulled back at a level that will
make the product presence visible and at the same time retain the “loyal” customer.
Distribution is narrowed. The basic channel is should be kept efficient but alternative
channels should be abandoned. For an example, a 0800 telephone line with shipment by a
reliable delivery company, paid by the customer is worth keeping.
Analysis Of Product Life Cycle Model
a. There are some major product life cycle management techniques that can be used to
optimize a product’s revenues in respect to its position into a market and its life cycle. These
techniques are mainly marketing or management strategies that are used by most companies
worldwide and include the know-how of product upgrade, replacement and termination. To
24
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
comprehend these strategies one must first make a theoretical analysis of the model of
product life cycle. In the mid 70’s the model of product life cycle was under heavy criticism
by numerous authors. The reasons behind this criticism are described bellow: a. The shift
changes in the demand of a product along a period of time makes the distinction of the
product life cycle phase very difficult, the duration of those almost impossible to predict and
the level of sales of the product somewhat in the realm of the imagination.
b. There are many products that do not follow the usual shape of the product life cycle
c. The product life cycle does not entirely depend on time. It also depends on other
parameters such as management policy, company strategic decisions and market trends.
These parameters are difficult to be pinpointed and so are not included in the product life
cycle. The model of product life cycle also depends on the particular product. There would
be different models and so different marketing approaches. There are basically three different
types of products: a product class (such as a cars), a product form (such as a station wagon,
coupe, family car etc of a particular industry) and a product brand of that particular industry
(such as Ford Escort). The life cycle of the product class reflects changes in market trend and
lasts longer than the life cycle of the product form or brand. In the other hand the life cycle
of a product form or brand reflects the competitiveness of a company (i.e. sales, profits) and
therefore follows more closely the product life cycle model.
Nevertheless, a product manager must know how to recognize which phase of its life cycle is
a product, regardless of the problems in the model discussed above. To do that a good
method is the one, suggested by Donald Clifford in 1965, which follows. • Collection of
information about the product’s behavior over at least a period of 3 – 5 years (information
will include price, units sold, profit margins, return of investment – ROI, market share and
value).
25
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
• Analysis of competitor short-term strategies (analysis of new products emerging into the
market and competitor announced plans about production increase, plant upgrade and
product promotion).
• Analysis of number of competitors in respect of market share.
• Collection of information of the life cycle of similar products that will help to estimate the
life cycle of a new product.
• Estimation of sales volume for 3 – 5 years from product launch.
• Estimation of the total costs compared to the total sales for 3 – 5 years after product launch
(development, production, promotion costs). The estimate should be in the range of 4:1 in the
beginning to 7:1 at the stage where the product reaches maturity.
Product Cannibalism
Product cannibalization occurs when a company decides to replace an existing product and
introduce a new one in its place, regardless of its position in the market (i.e. the product’s life
cycle phase does not come into account). This is due to newly introduced technologies and it
is most common in high tech companies. As all things in life there is negative and positive
cannibalization. In the normal case of cannibalization, an improved version of a product
replaces an existing product as the existing product reaches its sales peak in the market. The
26
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
new product is sold at a high price to sustain the sales, as the old product approaches the end
of its life cycle. Nevertheless there are times that companies have introduced a new version
of a product, when the existing product is only start to grow. In this way the company sustain
peak sales all the time and does not wait for the existing product to enter its maturity phase.
The trick in cannibalization is to know when and why to implement it, since bad, late or early
cannibalization can lead to bad results for company sales.
Unfavorable Cannibalization
Cannibalization should be approached cautiously when there are hints that it may have an
unfavorable economic effect to the company, such as lower sales and profits, higher technical
skills and great retooling. The causes of such economic problems are given bellow.
• The new product contributes less to profit than the old one: When the new product is sold at
a lower price, with a resulting lower profit than the old one, then it does not sufficiently
increase the company’s market share or market size.
• The economics of the new product might not be favorable: Technology changes can force a
product to be cannibalized by a completely new one. But in some cases the loss of profits due
to the cannibalization is too great. For example a company that produced ready business
forms in paper was forced to change into electronic forms for use in personal computers.
Although the resulting software was a success and yield great profits, the sales of the paper
forms declined so fast that the combined profit from both products, compared to the profits if
the company did not cannibalize the original product showed a great loss in profits.
Defensive Cannibalization Strategies
27
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Controlled cannibalization can be a good way to repel attackers as deforesting can repel fire.
A market leader has many defensive cannibalization strategies that are discussed bellow.
• Cannibalize before competitors do: Cannibalization of a company’s product(s) before a
competitor does, is a defensive strategy to keep the competitor of being successful. Timing is
the key in this strategy. Do it too soon and profits will drop, do it to late and market share is
gone.
• Introduction of cannibalization as a means of keeping technology edge over competition: A
good strategy is for a company, that is the market leader, to cannibalize its products as
competitors start to catch up in terms of technology advancements. (For example “Intel
Corporation” cannibalized its 8088 processor in favor of the 80286 after 2 ½ years, the 80286
in favor of the 386 after 3 years, the 386 in favor of the 486 after 4 years, the 486 in favor
with the Pentium after another 4 ½ and so on). So the market leader dictates the pace and
length of a product’s life cycle. (In the case on Intel the replacement of 486 to Pentium took
so long because competitors had not been able to catch up).
• Management of cannibalization rate through pricing: When cannibalization of a product is
decided, the rate at which this will happen depends on pricing. The price of the new product
should be at a level that encourages a particular mix of sales of the old and new product. If
the price of the new product is lower than the price of the old then cannibalization rate slows
down. If the opposite happens then the cannibalization rate is increased. Higher prices in new
products can reflect their superiority over w old ones.
28
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
• Minimization of cannibalization by introducing of the new product to certain market
segments: Some market segments are less vulnerable to cannibalization to others. This is
because there is more or less to lose or gain for each of them. By choosing the right segment
to perform the cannibalizations of a product a company can gain benefits without loses and
acquire experience on product behavior.
2.4 GOVERNMENT ASPECTS AND REGULATORY AFFAIRS IN PHARMA WORLD6
Forming A Company In India
The Companies Act of 1956 sets down rules for the establishment of both public and private
companies. The most commonly used corporate form is the limited company, unlimited
companies being relatively uncommon. A company is formed by registering the
Memorandum and Articles of Association with the State Registrar of Companies of the state
in which the main office is to be located.
Foreign companies engaged in manufacturing and trading activities abroad are permitted by
the Reserve Bank of India to open branch offices in India for the purpose of carrying on the
following activities in India:
# To represent the parent company or other foreign companies in various matters in India, for
example, acting as buying/selling agents in India, etc.
# To conduct research work in which the parent company is engaged provided the results of
the research work are made available to Indian companies
# to undertake export and import trading activities
29
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
# to promote possible technical and financial collaboration between Indian companies and
overseas companies.
Application for permission to open a branch, a project office or liaison office is made via the
Reserve Bank of India by submitting form FNC-5 to the Controller, Foreign Investment and
Technology Transfer Section of the Reserve Bank of India. For opening a project or site
office, application may be made on Form FNC-10 to the regional offices of the Reserve Bank
of India. A foreign investor need not have a local partner, whether or not the foreigner wants
to hold full equity of the company. The portion of the equity thus not held by the foreign
investor can be offered to the public.
Approval Of Name
The first step in the formation of a company is the approval of the name by the Registrar of
Companies (ROC) in the State/Union Territory in which the company will maintain its
Registered Office. This approval is provided subject to certain conditions: for instance, there
should not be an existing company by the same name. Further, the last words in the name are
required to be "Private Ltd." in the case of a private company and "Limited" in the case of a
Public Company. The application should mention at least four suitable names of the
proposed company, in order of preference. In the case of a private limited company, the name
of the company should end with the words "Private Limited" as the last words. In case of a
public limited company, the name of the company should end with the word "Limited" as the
last word. The ROC generally informs the applicant within seven days from the date of
submission of the application, whether or not any of the names applied for is available. Once
a name is approved, it is valid for a period of six months, within which time Memorandum of
Association and Articles of Association together with miscellaneous documents should be
filed. If one is unable to do so, an application may be made for renewal of name by paying
additional fees. After obtaining the name approval, it normally takes approximately two to
three weeks to incorporate a company depending on where the company is registered.
30
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Memorandum of articles
The Memorandum of Association and Articles of Association are the most important
documents to be submitted to the ROC for the purpose of incorporation of a company. The
Memorandum of Association is a document that sets out the constitution of the company. It
contains, amongst others, the objectives and the scope of activity of the company besides also
defining the relationship of the company with the outside world.
The Articles of Association contain the rules and regulations of the company for the
management of its internal affairs. While the Memorandum specifies the objectives and
purposes for which the Company has been formed, the Articles lay down the rules and
regulations for achieving those objectives and purposes.
The ROC will give the certificate of incorporation after the required documents are presented
along with the requisite registration fee, which is scaled according to the share capital of the
company, as stated in its Memorandum. A private company can commence business on
receipt of its certificate of incorporation.
A public company has the option of inviting the public for subscription to its share capital.
Accordingly, the company has to issue a prospectus, which provides information about the
company to potential investors. The Companies Act specifies the information to be contained
in the prospectus.
The prospectus has to be filed with the ROC before it can be issued to the public. In case the
company decides not to approach the public for the necessary capital and obtains it privately,
it can file a "Statement in Lieu of Prospectus" with the ROC.
31
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
On fulfillment of these requirements, the ROC issues a Certificate of Commencement of
Business to the public company. The company can commence business immediately after it
receives this certificate.
Certificate Of Incorporation
After the duly stamped Memorandum of Association and Articles of Association, documents
and forms are filed and the filing fees are paid, the ROC scrutinizes the documents and, if
necessary, instructs the authorised person to make necessary corrections. Thereafter, a
Certificate of Incorporation is issued by the ROC, from which date the company comes in to
existence. It takes one to two weeks from the date of filing Memorandum of Association and
Articles of Association to receive a Certificate of Incorporation. Although a private company
can commence business immediately after receiving the certificate of incorporation, a public
company cannot do so until it obtains a Certificate of Commencement of Business from the
ROC.
Miscellaneous Documents
The documents/forms stated below are filed along with Memorandum of Association and
Articles of Association on payment of filing fees (depending on the authorised capital of the
company):
# Declaration of compliance, duly stamped
# Notice of the situation of the registered office of the company
# Particulars of Directors, Manager or Secretary
32
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
# Authority executed on a non-judicial stamp paper, in favour of one of the subscribers to the
Memorandum of Association or any other person authorizing him to file the documents and
papers for registration and to make necessary corrections, if any
# The ROC’s letter (in original) indicating the availability of the name.
Tax regulation
Businesses liable for income tax must obtain a tax identification card and number [known as
Permanent Account Number (PAN)] from the Revenue Department. In addition to this,
businesses liable to withhold tax must necessarily obtain a Tax Deduction Account Number
(TAN). Both the PAN and the TAN must be indicated on all the returns, documents and
correspondence filed with the Revenue Department. The PAN is also required to be stated in
various other documents such as the documents pertaining to sale or purchase of any
immovable property (exceeding Rs. five lakh), sale or purchase of a motor vehicle, time
deposit (exceeding Rs. 5 lakh), contract for sale or purchase of securities (exceeding Rs. 10
lakh), to name a few.
Rules applicable
Companies (Central Governments') General Rules and Forms,1956
Approving authority
One copy has to be submitted along with a forwarding letter addressed to the concerned
Registrar of Companies
33
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
The Declaration Must Be Submitted With The Following Annexures
# Document evidencing payment of fee
# Memorandum and Articles of Association
# Copy of agreement if any, which the proposed company wishes to enter into with any
individual for appointment as its managing or whole-time director or manager
# Form 18
# Form 32 (except for section 25 company)
# Form 29 (only in case of public companies)
# Power of Attorney from subscribers
# Letter from Registrar of Companies making names available
# No objection letters from directors/promoters
# Requisite fees either in cash or demand draft
Fees
Fee payable depends on the nominal capital of the company to be registered and may be paid
in one of the following modes. Cash/postal order (upto Rs.501-), demand draft favouring
Registrar of Companies/Treasury Challan should be payable into specified branches of
Punjab National Bank for credit
34
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Time limit/practice notes
Time-Limit
It should be submitted before incorporation or within 6 months of the name being made
available. Top
Practice Notes
The declaration has to be signed by an advocate of Supreme Court or High Court or an
attorney or pleader entitled to appear before the High Court or a secretary or chartered
accountant in whole-time practice in India who is engaged in the formation of the proposed
company or person named in the articles as director, manager or secretary.
The Registrar of Companies has to be satisfied that not only the requirements of section
33(1) and (2) have been complied with but be also satisfied that provisions relating to
number of subscribers, lawful nature of objects and name are complied with.
The Registrar will check whether the documents have been duly stamped and also whether
the requirements of other laws are met.
Any defect in any of the documents filed has to be rectified either by all the subscribers or
their attorney, or by any one subscriber holding the power of attorney on behalf of other
subscribers.
35
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
This form is to be presented to the Registrar of Companies within three months from the date
of letter of Registrar allowing the name.
This declaration is to be given on a non-judicial stamp paper of the requisite value . The
stamp paper should be purchased in the name of the person signing the declaration.
This declaration is to be given by all the companies at, the time of registration, public or
private.
The place of Registration No. of the company should be filled up by mentioning New
Company therein.
The Registrar of Companies will now accept computer laser printed documents for purposes
of registration provided the documents are neatly and legibly printed and comply with the
other requirements of the Act. This will be an additional option available to the public to use
laser print besides offset printing for submitting the memorandum and articles for the
registration of companies.
Where the executant of a memorandum of association is illiterate, he shall give his thumb
impression or marks which should be described as such by the subscriber or person writing
for him.
An agent may sign a memorandum on behalf of a subscriber if he is authorised by a power-
of-attorney to do so. In the case of an illiterate subscriber to the memorandum and articles of
association, the thumb impression or mark duly attested by the person writing for him should
be given. The person attesting the thumb mark should make an endorsement on the document
36
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
to the effect that it has been read and explained to the subscriber. The Registrar of
Companies will not accept zerox copies of the memorandum and articles of association for
the purposes of registration of companies.
Managerial Remuneration
# Any person in order to be appointed as the Managing Director of the company should be a
resident of India. Any person, being a non-resident in India, must obtain an Employment
Visa from the concerned Indian mission abroad at the time of their appointment as the
Managing Director.
# Whereas private companies are free to pay any remuneration to its directors, public
companies can remunerate their directors only within the specified limits.
# In case of public companies, in the event of absence or inadequacy of net profits in any
financial year, managerial remuneration is limited to amounts varying from Rs 75,000 to Rs
2,00,000 per month, depending on the effective capital of the company. In case of an
expatriate managerial person, perquisites in the form of children’s education allowance,
holiday passage money and leave travel concession provided to him would not form part of
the said ceiling of remuneration.
# In case of a managerial position in two companies, remuneration can be drawn from one or
both companies provided that the total remuneration drawn from the companies does not
exceed the higher maximum limit admissible from any one of the companies of which he is a
managerial person. With the registrar of companies of the state in which the company is to be
registered.
Documents required to be submitted
37
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
# A printed copy each of the Memorandum and Articles of Association of the proposed
company filed along with the declaration duly stamped with the requisite value of adhesive
stamps from the State/ Union Territory Treasury (For value of stamps to be affixed see
Schedule printed in Part III Chapter 23). Below the subscription clause the subscribers to the
Memorandum should write in his own handwriting his full name and father's, or husband's
full name in block letters, full address, occupation, e.g.,'business executive, engineer,
housewife, etc. and number of equity shares taken and then put his or her signatures in the
column meant for signature. Similarly at the end of the Articles Of Association the subscriber
should write in his own handwriting : his full name and father's full name in block letters, full
address, occupation. The signatures of the subscribers to the Memorandum and the Article of
Association should be witnessed by one person preferably by the person representing the
subscribers, for registration of the proposed company before the Registrar of Companies.
Under column 'Total number of equity shares' write the total of the shares taken by the
subscribers e.g., 20 (Twenty) only. Mention date e.g. 5th day of August, 1996. Place-e.g. ,
'New Delhi'.
# With the stamped copy, one spare copy each of the Memorandum and Articles of
Association of the proposed company.
# Original copy of the letter of the Registrar of Companies intimating the availability of
name.
# Form No. 18 - Situation of registered office of the proposed company.
# Form No. 29-Consent to act as a director etc. Dates on the consent Form and the
undertaking letters should be the same as is mentioned in the Memorandum of Association
signed by the director himself. A private company and a wholly-owned Government
company are not required to file Form No. 29.
# Form No. 32 (in duplicate). Particulars of proposed, directors, manager or secretary.
# Power of attorney duly typed on a non-judicial stamp paper of the requisite value. The
stamp paper should be purchased in the name of the persons signing the authority.
38
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
# No objection letter from the persons whose name has been given in application for
availability of name in Form No. 1-A as promoters/directors but are not interested at a later
stage should be obtained filed with the Registrar at the time of submitting documents, for
registration
# The agreements, if any, which the company proposes to enter with any individual for,
appointment as managing or whole-time director or manager are also to be filed.
Fee payable
Cash or a bank draft/ pay order treasury challan should be drawn in the name of the Registrar
of Companies of the State in which the Company is proposed to be registered as per Schedule
X.
2.5 REPORTING REQUIREMENTS
Annual Accounts
The Indian company law does not prescribe the books of accounts required to be maintained
by a company. It, however, provides that the same should be kept on accrual basis and
according to the double entry system of accounting and should be such as may be necessary
to give a true and fair state of affairs of the company.
The Indian company law requires every company to maintain proper books of account with
respect to the following:
39
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
# All sums of money received and expended and the matters in respect of which the receipt
and expenditure take place
# All sales and purchases of goods by the company
# The assets and liabilities of the company
# In case of companies engaged in manufacturing, processing, mining etc, such particulars
relating to utilization of material or labour or other items of cost.
The first annual accounts of a newly incorporated company should be drawn from the date of
its incorporation upto to the day not preceding the AGM date by more than 9 months.
Thereafter, the accounts should be drawn from date of last account upto the day not
preceding the AGM date by more than 6 months subject to the extension of the time limit in
certain cases. The accounts of the company must relate to a financial year (comprising of 12
months) but must not exceed 15 months. The company can obtain an extension of the
accounting period to the extent of 18 months by seeking a prior permission from the ROC.
The annual accounts must be filed with the ROC within 30 days from the date on which the
Annual General Meeting (AGM) of the company was held or where the AGM is not held,
then within 30 days of the last date on which the AGM was required to be held.
Books of accounts to be kept by company
Every company is required to maintain proper books of account with respect to all sums of
money received and expended, all sales and purchases of goods, the assets and liabilities.
Central Government may also specifically require the maintenance of certain additional
particulars with respect to certain classes of Companies. The books of account relating to
eight years immediately preceding the current year together with supporting vouchers are
required to be preserved in good order. Every profit and loss account and balance sheet of the
company (together referred to as financial statements) is required to comply with the
accounting standards issued by the Institute of Chartered Accountants of India. Any
deviations from the accounting standards, including the reasons and consequent financial
effect, is required to be disclosed in the financial statements.
40
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
The responsibility for the preparation of financial statements on a going concern basis is that
of the management. The management is also responsible for selection and consistent
application of appropriate accounting policies, including implementation of applicable
accounting standards along with proper explanation relating to any material departures from
those accounting standards. The management is also responsible for making judgements and
estimates that are reasonable and prudent so as to give a true and fair view of the state of
affairs of the entity at the end of the financial year and of the profit or loss of the entity for
that period.
Annual Return
Every company having a share capital is required to file an annual return with the ROC
within 60 days from the date on which the AGM of the company was held or where the
AGM is not held, then within 60 days of the last date on which the AGM was required to be
held.
2.6 CREATING ACCOUNTING RELATED INFORMATION
Depreciation
The company law in India permits the use of depreciation rates according to the nature of the
classes of assets. Assets can be depreciated either on the basis of straight-line method (based
on the estimated life of the asset) or on the basis of reducing balance method. The law
prescribes the minimum rates of depreciation. A company may, however, provide for a
higher rate of depreciation, based on a bonafide technological evaluation of the asset.
Adequate disclosure in the annual accounts must be made in this regard.
41
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Dividend
There is no limit on the rate of dividend but there are certain conditions prescribed with
regard to computation of profits that can be distributed as dividend. Generally, no dividend
can be paid for any financial year except out of the profits of that year after making an
adequate provision for depreciation subject to certain conditions.
Dividends may also be distributed out of accumulated profits.
Repatriation of profits
A company has to retain a maximum of 10% of the profits as reserves before the declaration
of dividends. These reserves, inter alia, can be subsequently converted into equity by way of
issue of bonus shares. Dividends are freely repatriable once the investment approval is
granted.
Imposition Of Taxes
Currently, domestic companies are taxable at the rate of 35.875% (inclusive of surcharge of
2.5%) on its taxable income. Foreign companies are taxed at a marginally higher rate of 41%
(including surcharge of 2.5%). However, in case where the income tax liability of the
company under the provisions of the domestic tax laws works out to less than 7.5% of the
book profits (derived after making the necessary adjustments), a Minimum Alternate Tax of
7.6875% (including a surcharge of 2.5%) on the book profits, would be payable. Domestic
companies are required to pay a dividend distribution tax of 12.8125% (including surcharge
of 2.5%) on the dividends distributed during the year.
42
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Companies are required to withhold tax under the domestic law from certain payments
including salaries paid to employees, interest, professional fee, payments to contractors,
commission, winnings from games / lottery / horse races etc. Moreover, taxes have to be
withheld from all payments made to non-residents at the lower of rates specified under the
domestic law or under the applicable tax treaty, if any.
2.7 Form no 17 :- Declaration of compliance with the requirements of the Companies Act, 1956 on application for registration of a company
FORM NO. 17
Registration No. of Company .......... Nominal Capital : Rs. ................
THE COMPANIES ACT, 1956
Declaration of compliance with the requirements of the Companies Act, 1956 on application for registration of a company
[Pursuant to section 33(2)]
Name of Company Limited/Private Limited
43
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Presented by ..
I, ., of do solemnly and sincerely
Declare that I am [1] who is engaged in the formation of the company, or a person
Named in the articles as a director/manager/secretary of the Limited/Private
Limited.
And that all the requirements of the Companies Act, 1956, and the rules thereunder in respect of matters precedent to the registration of the said company and incidental thereto have been complied with.
And make this solemn declaration conscientiously believing the same to be true.
Date
Place Signature
Witness
Designation
1. An advocate of the Supreme Court of the ...................... High Court, an attorney or a pleader entitled to appear before the ........................... High Court or a chartered accountant practising in India.
2. State whether director, manager / secretary /advocate/ chartered account.
44
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Notice of the situation / change of situation of registered office
2.8 FORM NO. 187
Registration No. of the Company Nominal Capital: Rs
THE COMPANIES ACT, 1956
Notice of the situation/change of situation of registered office
[pursuant to section 146]
Name of the company
Notice is hereby given that ----
1. (a) the registered office of the company is situated .with effect from
[date]
(b) the situation of the registered office of the company of was changed from to with effect form .
[date]
2. Situation of registered office falls under the jurisdiction of (name of the police station).* Dated this Day of 19
45
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Signature
Name
(In Block Capitals)
Designation
*State address of nearest police station with district and tehsil.
Consent to act as director of a company and/or undertaking to take and pay for qualification shares [pursuant to section 264(2)/266(I)(a) & 266(1) (b) (iii)]
46
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
2.9 FORM NO 297
Registration No. of Company ........................ Nominal Capital Rs. ...................................
THE COMPANIES ACT, 1956
Consent to act as director of a company and/or undertaking to take and pay for qualification shares
[pursuant to section 264(2)/266(I)(a) and 266(1)(b)(iii)]
Name of company .............................................. Limited ..........................................
Presented by ..................................................................................................................
To the Registrar of Companies .......................................................................
I, the undersigned, hereby testify my consent to act as director of the .......................... limited, ................................ pursuant to section 264(2)/266(1)(a) of the Companies Act, 1956 and certify that I have not been disqualified to act as a director under sections 267 and/or 274 of the Companies Act, 1956.
I, the undersigned having consented to act as director of the .............................. Limited, also hereby undertake to take from the said company and pay for .................... shares of Rs. ................. each, being the number/value of the shares prescribed as the qualification shares for the office of director of the said company.
47
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Name and surname in full and father’s names
Address
Occupation
Date of birth
Nationality
Signature
1
2
3
Signature ..............................
Designation ...........................
Dated the ........................... day of .................... 19
Notes: (1) Delete the portion not applicable.
(2) If a director signs through his agent authorised in writing, the authority must be produced before the Registrar.
(3) In case of undertaking to take and pay for qualification shares, the from should be accompanied by the necessary stamp duty.
48
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Particulars of appointment of directors and manager and changes among them [Pursuant to section 303(2)]
2.10 FORM NO. 327
Registration No. of Company .......................... Nominal Capital Rs. ...................................
THE COMPANIES ACT, 1956
Particulars of appointment of directors and manager and changes among them
[Pursuant to section 303(2)]
Name of Company ......................................... Presented by ...............................................
Note : --- If a company has no particulars to be included in one or two of the headings ‘A’ ‘B’ and ‘C’ the parts containing those headings (in respect of which the company has no particulars to be included) need not be filed.
A. Appointment of and changes among directors.
Name or names and surname in full
Father’s/ husband’s name
49
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Usual residential address
Nationality
Date of appointment or change
Brief particulars of changes
Notes: (1) A note of changes should be made in column 6 e.g. by inserting against the name of new director, etc. the words “in place of ........................ and by indicating against the name of the former director, the cause for the change, e.g. by death, resignation, retirement by rotation, disqualification etc.
(2) In case of managing director, his designation should be stated with his name in columan1.
B. [***]
C. Appointment of and changes in managership and secretaryship.
Name or names and surname in full
Father’s/ husband’s name
Usual residential address
Nationality
Date of appointment or change
Brief particulars of changes
Dated the .......................................... day of ..............19
Signature ............................................
50
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Designation............................................
Notes: (1) For the purposes of this form, particulars of a person appointed as manager within the meaning of section 2(24) of the Companies Act, 1956 need be given.
(2) A note of change as also the cause of change e,g, by death, resignation, removal, disqualification, etc. should be stated in column 6.
3. METHODOLOGY
3.1 SOURCES OF DATA
The method of the study includes acquiring the knowledge about the local market of Gujarat.
Some of the skills can be generalized to work in specific market. The data of my study has
been acquired totally by observation in the field. I went to various operating cities included in
the profile of the company and studied the nature and technique required to work in that
particular area for a new company.
I have worked with territory managers, area sales manager, Regional sales manager, and
business development manager to know the various aspects of pharma world. The data has
been collected by observation while meeting the doctors, chemists, stockiest and other
concerned people.
Some of the information has been collected during discussion with the senior people and
employs from other companies. The files and the documents of the company also provides
51
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
some information about the working of the firm. Observation of the day to day work makes it
possible to know the activities carried out in the office and which concerns and precautions
are need to be taken.
Managing the office is also very important for the company as it provides the necessary
backup for the field workers. The activities which are undertaken by the company was
observed, the academic activities were noticed and studied. Review of the literatures also
provided the information about the past and present of the company. the medical information
about the drugs was obtained from the medical books such as goodmengilmen, moris and
Harrison medical book, barar pharmacology.
3.2 CITY WISE SOURCES OF DATA COLLECTION8
DOCTORS
Table 1 – Doctors of Baroda
DOCTORS NAME DEGREE
RAKESH SHAH MD
DILITA BHAGADE GYNEC
SANDHYA HARPADE MDDGO
JYOTI MUKRJEE MDDGO
MILAN DOSHI ORTHO
MAHESH PATEL ORTHO
RAVINDRA PRADHAN MDDGO
CHETAN VISPUTE MDDVD
GUPTA VIJAY MD
NILPA PATEL MDDGO
PRITI NIRANJAN MDDGO
52
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
MODI BHADRESH MD
ASIT SHAH MD
CHAUHAN BIRENROY MBBS
J.J.DESAI MS
KIRAN SHAH MD
RAMESH PANCHAL MS ORTHO
HIMANSHU CHAUHAN PHY
PARAG SHAH MDDVD
VARSA GODBOLE MD
AREA: - JAMNAGAR
Table 2 :- Doctors of Jamnagar
DOCTORS NAME DEGREE
SUBHASH PATEL MD PHY
K. N. PANSARA M.S.E.N.T
NILESH CHANDARIYA M.S.E.N.T
GAURAV NAKUM M.B.PEDIA
SURESH THAKAR PEDIA
D.M.POPAT PEDIA
R.S.VIRANI M.S. SURG
SANJAY PATEL M.S. SURG.
JAYESH ZALA M.D. GYN
S.M.RATHI M.D. GYN
C.H.TANNA M.D. GYN
ILA PUNATAR M.D. GYN
DIPAL BHALODIYA M.D. GYN
53
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
DIPTI VYAS M.D. GYN
L.S. VORA M.D. PHY
R.H. SAVALIYA G.P.
MANOJ JOSHI G.P.
K. D. MANDAVIYA G.P.
V. L. VYAS M.D. DVD
SHOAIB SOLANKI DENT.
AREA: - NAVSARI
Table 3 – Doctors of Navsari
DOCTORS DEGREE
VINAY KASABWALA MD
SURANGIBEN MDDGO
MUKESH PARMAR MS ORTHO
BHARAT BODALIYA MS ORTHO
PARESH DESAI M.S. SURG
SUBHAS MEHTA MD PHY
VIJAY PATEL MS ORTHO
BHADRESH NAIK MS SURG
JANAK PAREKH MS SURG
PAYAL GAMIT MD DGO
GAUTAM VYAS MBBS DGO
ATUL PURNDERA MBBS
UPENDRA VYAS MD
54
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
PIYUSH PATEL MD PHY
PRADEEP PATEL MD PHY
RAJESH PATEL MS SURG
AREA: - NADIAD
Table 4 – Doctors of Nadiad
DOCTORS DEGREE
JAINA SHAH DGO
RANJAN PARASHAR DGO
DHARMISTA PATEL DGO
ALKESH SHAH ORTHO
M.H. PAREKH MD
HIREN CONTRACTOR MD
UTTKARSH KSHRATIA ORTHO
AREA: - ANAND
Table 5 – Doctors of anand
DOCTORS DEGREE
J. M. SHSH DGO
NIMESH PATEL DGO
NAINA PATEL DGO
S.D. PATEL DGO
MINESH TRIVEDI DGO
H.B. PUROHIT ORTHO
PRITI PATEL DGO
55
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
AREA: - GODHRA
Table 6 – Doctors of Godhra
DOCTOR DEGREE
SUKHVANT SINH PARMAR MBBS
SANTOSH JAMANI BAMS
NIMESH SHAH BAMS
SAMIR MENAN MD
DINESH R JUVA MS ORTHO
ALPESH S PATEL MBDGO
A.S. MANKE MD PHY
MAZAHIR MITHIBORWALA MD
DHIMANT K BHAVSAR MS
SANJIV KAMADIA MS
I.I. TASIA MD PEDIA
L.J. SHAH MD PEDIA
TARUN M SHAH MBD PEDIA
JAYESH MANKADI MD PHY
K H SAJI MD PHY
RAVINDRA SONI BHMS
JIGAR S DALAL BHMS
VIJAY PATEL MS
DIPAK CHAUDHRI MBBS
KAMLESH CHAUHAN MBBS
AREA: - PATAN
Table 7- Doctors of Patan
56
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
DOCTORS DEGREE
KALPESH TALATI MD
BALWANT PANCHAL MD
MEHUL MODH ORTHO
BHARAT MAHWANI MD
BHARAT KACHWA MD
ALOK SINGHAL MD
RAJEN MEHTA ENT
AJAY JOSHI MS
HAYMIIN SHROFF MS
LALJI PATEL MD
SANJAY GANDHI GYN
AMIT CHAUHAN GYN
PARESH SOLANKI GYN
SANJAY MODI GASTRO
GIRISH PATEL MD
R. K. AGRAWAL MD
S.K. MEWADA ORTHO
AREA: - VALSAD
Table 8 – Doctors of Valsad
DOCTORS DEGREE
PRABHA M DESAI MD GYN
HETAL M DESAI MD GYN
HIRAK DESAI MBBS
SHRISH DAVE MS
SANDEEP DESAI MS ORTHO
57
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
VIJAY KHATRI ORTHO
USHA MAHESHWARI GYN
KISHOR PATEL MS
UDAY DESAI ENT
ASHOK NATHWANI ENT
KAVITA TANDAL GYN
SUBHOAD KAPADIYA GP
NILESH TALEKAR ORTHO
JAYESH SAHA GP
ANJANA TANDAL MBBS
JAYNENDRA TANDAL GP
JAYANT PATEL MS UROLOGY
C. D. SARANG MD
KIRAN VASAWRA MD
RAJESH BHAI LAD GP
AREA: - RAJKOT
Table 9- Doctors of Rajkot
DOCTORS DEGREE
AMIT HAPANI MD PHY
KIRIT DEVANI MD PHY
REKHA PATEL MD GYNEC
CHANDRIKA PANDYA MD GYNEC
DEVSHA PANDYA GYN
HETAL MODH GYN
DEVYANI HINDOCHA MD GYN
MANISHA MOTHARIYA MD GYN
AMBRISH PARMAR MBBS
58
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
B.R. BAMBHOLIYA MS
RAJESH VAGASIYA MD DPM
CHETAN HASALIYA MD DPM
VIJAY NAGECHA MD DPM
J. R. SAPARIA MS
SUNIL SHAH MD
K.P. TARAVIYA MS ORTHO
D.P. DHODAKIYA MS ORTHO
NISHIT SANGHVI MS ORTHO
M.V. VEKARIYA PROCOTOLOGIST
M. K. KORVADIA MBBS
AREA: - SURAT
Table 10 – Doctors of Surat
DOCTORS DEGREE
S. H. MUNGRA MD PHY
M.P PANDAV MD PHY
VANDANA DESAI GYN
DARSHAN DESAI GYN
GANSHYAM PATEL GYN
DEEPA PATEL GYN
ANIL ITALIYA M D PHY
N DEVMURARI MD PHY
REHANA KAWAWALA PEDIA
ALKA DESAI GYN
DIGNESH KANDARIYA MD PHY
NEELAM PATEL GYN
59
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
HARESH PATEL ENT
ARVIND SHARMA ORTHO
TRUPTI RUDLAL MD PHY
ANKUR DALAL MD PHY
ASHOK PATEL SURG
DAXA JHAVIYA GYN
NIMESH MODI SUR
RAJENDRA PATEL MD PHY
RAMESH KAMAVAT MD PHY
SANJAY DHUMELIA BDS
AREA: - DAHOD
Table 11 – Doctors of Dahod
DOCTORS NAME DEGREE
VINOD VAHONIA PHYSICIAN
R. M. PATEL GYNE
VIKRAM THAKUR DENT
MANOJ SOLANKI M. D. PHY
UMED THAKUR GYNEC
BHRHAN DALROTI GYN
BHAIRAV GOHIL GYNE
MUSTUFA LENWALA ENT
B.S. AGRAWAL ORTHO
KAMLESH BHMS
60
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
B.K.PATEL GYNE
Y.M.BHARPODA M S SURG
M.R. AGRAWAL PEDIA
N.N.NAGAR ORTO
KAVASAR ORTHO
DEEPA BHURIA GYNE
SHEETAL SHAH GYN
AREA: - BHARUCH
Table 12- Doctors of Bharuch
DOCTORS DEGREE
DUSHYANT VARIA MD
A R NANAVATI MS ORTHO
H. H. GADHAVI MS
PRATIKSHA MAHIDA MDDGO
S R GOHIL MDDGO
KETA VAISHNAV MD OB GYN
ANUPAM SAXENA MS SUR
GAURANG JOSHI DSOMS
DISTRIBUTORS
Table 13- Distributors
NAME PLACE
BARODA DIST BARODA
MANISH PHARMA NAVSARI
BINAL PHARMA ANAND
61
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
BINAL PHARMA NADIAD
GODHRA
DEESA
PHARMA DIST VALSAD
KRISHNA DIST RAJKOT
ROYAL DIST SURAT
DAHOD
BHARUCH
3.3 METHODS OF DATA COLLECTION
Several methods were used to collect data they are as under:
1. Discussion with the CMD
2. Discussion with the Director
3. Discussion with the Territory Managers
4. Field work with Business Development manager, ASM, RSM
5. Doctors call
6. Discussion with the stockiest
7. Discussion with the chemist
8. Office Management
62
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
9. Document Review
4. COMPANY PROFILE
4.1 BACKGROUND OF THE COMPANY
Medistream Biotech Pvt. Ltd. Is a developing company which was established in 2007 with a
portfolio of ten products. Medistream biotech brought to its portfolio such products which
were moving very fast in pharma world and were not risky. Hence this was observed as one
of the plus points of the company that it started with such products which were very
profitable and were not at all costly to promote.
In 2009 Medistream crossed its breakeven point and was at no profit no loss stage which is
considered to be very nice for a pharma company. It takes at least 1000 days for a pharma
company to reach the breakeven point but this company made it possible to reach in just 700
days.
63
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Later it kept on adding products to its portfolio and currently it is having 36 products. The
major concentration is on calcium and nutritional supplements which are easy to promote and
yield a good business.
4.2 PRODUCT LIST OF MEDISTREAM BIOTECH9
Table 13- PRODUCT LINE OF MEDISTREAM BIOTECH 9
PRODUCT NAME CONTAIN
Tronac- sp Paracetamol 500mg + Serratiopeptidase 15mg + Diclofenac Potassium 50mg
Medidol-s Serratiopeptidase 10mg + Diclofenac Potassium 50 mg
Acemute-p Aceclofenac 100 mg + Paracetamol 500 mg tablets
Rabistream Rabeprazole-20 Rabistream-DSR Rabeprazole 20 mg + domperidone 30
mg Medidol-p Diclofenac Potassium 50 Mg &
Paracetamol 500 Mg
64
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Addcal Calcium citrate 1000mg + Ele. Magnesium 100 mg + Ele. Zinc 4 mg + Vit. D3 200 I.U.
Addcal Susp Ele. Calcium 100mg + magnesium hydroxide I.P. 75mg + Lysine Monohydrate USP 20mg + Vit. D3 I.P. 200 I.U.
Medidub Norethisterone 5 mg tablets c-Bonyl Carbonyl iron eq. to Ele. Iron 100mg +
folic acid 1.5 mg + Vita. B12 15mcg + Ele. Zinc 22.2 mg.
C- Bonyl susp Carbonyl iron eq. to Ele. Iron 100mg + folic acid 1.5 mg + Vita. B12 15mcg + Ele. Zinc 22.2 mg.
Doxamed doxylamine succinate 10mg + pyridoxine HCL 10 mg
Doxamed-od doxylamine succinate 20mg + pyridoxine HCL 20 mg
Doxamed Plus Doxylamine succinate 20mg + Pyridoxine HCL 20mg + Folic acid 5mg
Azistream Azithromycin 250/500 mg tabLivostream Livofloxacin 250/500 mg tabCefistream cefixime 100/200 mg tablet Sparstream Sparfloxacin-200 mg tablet Sucracain Sucralfate 1 mg suspSucracain- o Sucralfate 1 mg + Oxetacaine 20 mg
Susp.B-Copin Lycopene with B-complex and
minerals Setstream Ondensetron 4mg & 8mg Cofstream Citrizine hydrochloride,
dextromethorphan hydrobromide, ambroxol hydrochloride syrup
Turbromex Each 5ml contains: bromhexin hydrochloride IP 2mg, Terbutaline sulphate IP 1.25mg, guaiphenesin IP 50 mg
65
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Betastream Betahistine dihydrochloride 8mg & 16mg
Anxistream Flupentixol 0.5 mg + Melitracen 10mg
4.3 FEATURES OF THE PRODUCTs 10
TRONAC- SP
Paracetamol 500mg + Serratiopeptidase 15mg + Diclofenac Potassium 50mg
Tronac-SP contains paracetamol & Diclofenac which are two potent NSAIDs which have
analgesic, antipyretic, and anti-inflammatory action. It is used for acute and chronic
management of pain. The basic action behind this is the inhibition of the pain mediators such
as cox I and cox II. These are the mediators which send the pain sensation to the mind. The
nsaids inhibit the transition of the impulse and thereby inhibit the feeling of pain.
Serratiopeptidase is a photolytic enzyme which is obtained from the cocoon of the silkworm
and is used to inhibit inflammation. It breaks down the protein deposited in the cells and
helps to subside the inflammation reaction.
More over the raised body temperature of the body due to pathogens in the body when injury
is there leads to uneasiness. Tronac-SP cures the uneasiness and calms down the body
temperature. Hence the medicine is said to do the three way action antipyretic, analgesic and
anti-inflammatory.
MEDIDOL-S
66
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Serratiopeptidase 10mg + Diclofenac Potassium 50 mg
Diclofenac is a NSAID which has three way actions antipyretic, analgesic and anti-
inflammatory. Its mode of action is similar to other NSAIDs i.e. inhibition of cox. Along
with it the additional benefit is it is available in potassium form which is better than sodium.
The sodium form of Diclofenac has less absorption than potassium hence this form of
Diclofenac is fast and better absorbed and has greater effect.
ACEMUTE-P
Aceclofenac 100 mg + Paracetamol 500 mg tablets
Aceclofenac is used for management of chronic pain. It is used to treat the pain of migraine,
arthritis and other chronic pain related diseases. It has a combination two potent pain killer.
RABISTREAM
Rabeprazole-20
Rabistream is used in treatment of GERD. Rabeprazole molecule is better than other PPI. Ppi
means proton pump inhibitor. When it comes to comparison with the antacids the PPI have
better action then the antacids. The simple mechanism of the drug is it does not allow acid to
be secreted inside the stomach.
67
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
The secretion of acid in the stomach requires the H+/K+ pump to be activated and hence it is
very important for the secretion of acid. By inhibition of this pump the secretion of acid can
be controlled the Rabeprazole does this action and hence it is called PPI.
RABISTREAM-DSR
Rabeprazole 20 mg + Domperidone 30 mg
In addition to above stated benefits of Rabeprazole DSR has addition advantage of
Domperidone. Domperidone is an antiemetic, and increases the motion of intestine; this
action of domperidone inhibits the acid relapse. The acid does not come in mouth again and
again. The emptying of the stomach gives space for the additional acid to be neutralized.
Both Rabeprazole and domperidone has a synergistic effect in curing the symptoms of
GERD. Hence it is very useful in Gastric problems.
ADDCAL
Calcium citrate 1000mg + Ele. Magnesium 100 mg + Ele. Zinc 4 mg + Vit. D3 200 I.U.
Addcal is prescribed to the patients requiring the additional calcium and the patients of
osteoporosis, during pregnancy, and for many other uses. The calcium present in addcal is in
the form of calcium citrate which is superior to other calcium supplements which contains
calcium carbonate. As calcium carbonate has less absorption than calcium citrate. The citrate
salt of calcium has both paracellular and intracellular absorption hence it is better absorbed
than calcium carbonate.
68
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Moreover Addcal has added advantage of elemental magnesium and zinc this minerals help
in DNA repair and formation of new ones. The D3 vitamin is helpful in the calcium
deposition; the calcium is taken up from the blood and is deposited in the bones by D3.
Hence all the ingredients of the drug have synergistic effect.
ADDCAL SUSP.
Ele. Calcium 100mg + magnesium hydroxide I.P. 75mg + Lysine Monohydrate USP 20mg +
Vit. D3 I.P. 200 I.U.
Medistream also provides calcium supplement in the form of suspension which is for the
better patient compliance. As in the pediatric and geriatric patients there is a need of easy and
reliable dosage form. All the ingredients are same except the lysine advantage.
Addcal susp. Has lysine advantage. Lysine is a chemical which is necessary for the formation
of collagen. Collagen is the tissue which helps in the soft and flexible movement of the
joints. It is a soft cartilage form of tissue.
MEDIDUB
Norethisterone 5 mg tablets
Medidub is a very catchy name because it includes company name and the disease name it
goes this way Medi for Medistream and DUB for dysfunctional uterine bleeding. The
hormonal synchronization in women leads to proper menstrual cycle but the disturbance in
69
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
this leads to painful menstrual cycle moreover altering the level of the hormones can help
women to propone or postpone their menstrual cycle.
Norethisterone is a progestogen which helps in regulation of the menstrual cycle. It also
helps in regulating the menstrual cycle by maintaining the level of hormones.
C-BONYL
Carbonyl iron eq. to Ele. Iron 100mg + folic acid 1.5 mg + Vita. B12 15mcg + Ele. Zinc 22.2
mg.
Cbonyl is used for correcting the deficiency of blood; it is also used in correction of anemia.
Anemia is a disease related to the deficiency of the red blood cells called RBC, when the
supplement is taken full of iron it helps in building of RBC, because iron is required for the
growth and maturation of RBC.
Cbonyl contains carbonyl iron which helps in maturation of RBC and increases the
hemoglobin and corrects anemic condition. Moreover it is in the form of carbonyl iron which
is better than ferrous molecule because it has less toxicity.
DOXAMED
doxylamine succinate 10mg + pyridoxine HCL 10 mg
Doxamed is special product for treating the morning sickness symptoms in pregnant women
it inhibits the CTZ (chemoreceptor trigger zone in the brain) and hence inhibit the sensation
of vomiting and nausea sent to mind. This calms down the morning sickness symptoms.
70
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Pyridoxine has effect on the lumen of the stomach and it promotes the peristalsis effect in the
stomach which results in the emptying of the stomach. More over morning sickness leads to
the depression in the women. Pyridoxine helps in calming down the anxiety associated with
it.
DOXAMED PLUS
Doxylamine succinate 20mg + Pyridoxine HCL 20mg + Folic acid 5mg
Doxamed plus has additional advantage of folic acid. Along with the above mentioned
effects of the APIs here in folic acid perform the role of maturation of RBC and encourages
the DNA maturation in the fallopian tube.
AZISTREAM
Azithromycin is an azalide, a subclass of macrolide antibiotics. Azithromycin is one of the
world's best-selling antibiotics.
Azithromycin is used to treat or prevent certain bacterial infections, most often those causing
middle ear infections, strep throat, pneumonia, typhoid, and sinusitis. In recent years, it has
been used primarily to prevent bacterial infections in infants and those with weaker immune
systems. It is effective also against certain sexually transmitted infections, such as non-
gonococcal urethritis, chlamydia, gonorrhea, and cervicitis. Recent studies have indicated it
also to be effective against late-onset asthma, but these findings are controversial and not
widely accepted.
MECHANISM OF ACTION
71
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Azithromycin prevents bacteria from growing by interfering with their protein synthesis.
Azithromycin binds to the 50S subunit of the bacterial ribosome, and thus inhibits translation
of mRNA. Nucleic acid synthesis is not affected.
LIVOSTREAM
Levofloxacin is a synthetic chemotherapeutic antibiotic of the fluoroquinolone drug class and
is used to treat severe or life-threatening bacterial infections or bacterial infections that have
failed to respond to other antibiotic classes. It is sold under various brand names.
Levofloxacin is a chiral fluorinated carboxyquinolone. Investigation of ofloxacin, an older
drug that is the racemic mixture, found that the l form [the (–)-(S) enantiomer] is more active.
This specific component is levofloxacin.
Levofloxacin interacts with a number of other drugs, as well as a number of herbal and
natural supplements. Such interactions increase the risk of cardiotoxicity and arrhythmias,
anticoagulation, the formation of non-absorbable complexes, as well as increasing the risk of
toxicity.
Levofloxacin is associated with a number of serious and life-threatening adverse reactions as
well as spontaneous tendon ruptures and irreversible peripheral neuropathy. Such reactions
may manifest long after therapy had been completed and in severe cases may result in life-
long disabilities. Hepatoxicity has also been reported with the use of levofloxacin.
As of 2011 the FDA has added two Black box warnings for this drug in reference to
spontaneous tendon ruptures and the fact that levofloxacin may cause worsening of
myasthenia gravis symptoms, including muscle weakness and breathing problems. Such an
adverse reaction is a potentially life-threatening event and may require ventilatory support.
SPARSTREAM
72
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Sparfloxacin is about 37- 45% bound to proteins in the blood.
Sparfloxacin, like other quinolones and fluoroquinolones, are bactericidal drugs, actively
killing bacteria. Quinolones inhibit the bacterial DNA gyrase or the topoisomerase IV
enzyme, thereby inhibiting DNA replication and transcription. Quinolones can enter cells
easily and therefore are often used to treat intracellular pathogens such as Legionella
pneumophila and Mycoplasma pneumoniae. For many gram-negative bacteria DNA gyrase is
the target, whereas topoisomerase IV is the target for many gram-positive bacteria.
Eukaryotic cells do not contain DNA gyrase or topoisomerase IV.
MODE OF ACTION OF FLUOROQUINOLONES
Quinolones and fluoroquinolones are chemotherapeutic bactericidal drugs, eradicating
bacteria by interfering with DNA replication. The other antibiotics used today, (e.g.,
tetracyclines, lincomycin, erythromycin, and chloramphenicol) do not interact with
components of eukaryotic ribosomal particles and, thus, have not been shown to be toxic to
eukaryotes, as opposed to the fluoroquinolone class of drugs. (Selective toxicity) Other drugs
used to treat bacterial infections, such as penicillins and cephalosporins, inhibit cell wall
biosynthesis, thereby causing bacterial cell death, as opposed to the interference with DNA
replication as seen within the fluoroquinolone class of drugs.
CEFISTREAM
Cefixime is an oral third generation cephalosporin antibiotic. It is used to treat gonorrhea,
tonsilitis, and pharyngitis.
The usual dose is 400 mg daily for up to 5-7 days.
MECHANISM OF ACTION
Cephalosporins are bactericidal and have the same mode of action as other beta-lactam
antibiotics (such as penicillins) but are less susceptible to penicillinases. Cephalosporins
73
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
disrupt the synthesis of the peptidoglycan layer of bacterial cell walls. The peptidoglycan
layer is important for cell wall structural integrity.
The final transpeptidation step in the synthesis of the peptidoglycan is facilitated by
transpeptidases known as penicillin-binding proteins (PBPs). PBPs bind to the D-Ala-D-Ala
at the end of muropeptides (peptidoglycan precursors) to crosslink the peptidoglycan. Beta-
lactam antibiotics mimic this site and competitively inhibit PBP crosslinking of
peptidoglycan.
SUCRACAIN
Sucralfate is a cytoprotective agent, an oral gastrointestinal medication primarily indicated
for the treatment of active duodenal ulcers. Sucralfate is also used for the treatment of
gastroesophageal reflux disease (GERD) and stress ulcers. Unlike the other classes of
medications used for treatment of peptic ulcers, sucralfate is a sucrose sulfate-aluminium
complex that binds to the mucosa, thus creating a physical barrier that impairs diffusion of
hydrochloric acid in the gastrointestinal tract and prevents degradation of mucus by acid. It
also stimulates bicarbonate output and acts like an acid buffer with cytoprotective properties.
Sucralfate was approved by the U.S. Food and Drug Administration (FDA) in 1981.
MECHANISM OF ACTION
Sucralfate is a locally acting substance that in an acidic environment (pH < 4) reacts with
hydrochloric acid in the stomach to form a cross-linking, viscous, paste-like material capable
of acting as an acid buffer for as long as 6 to 8 hours after a single dose. It also attaches to
proteins on the surface of ulcers, such as albumin and fibrinogen, to form stable insoluble
complexes. These complexes serve as protective barriers at the ulcer surface, preventing
further damage from acid, pepsin, and bile. In addition, it prevents back diffusion of
hydrogen ions, and adsorbs both pepsin and bile acids. Recently, it has been indicated that
sucralfate also stimulates the increase of prostaglandin E2, epidermal growth factors (EGF),
bFGF, and gastric mucus.
74
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
SUCRACAIN-O
Oxetacaine (INN, also known as oxethazaine) is a potent local anesthetic. It is administered
orally (usually in combination with an antacid) for the relief of pain associated with peptic
ulcer disease or esophagitis. It is also used topically in the management of hemorrhoid pain.
Oral oxetacaine preparations are available in several countries, including India, South Africa,
Japan and Brazil, but not the United States; oxetacaine was withdrawn from the UK market
in 2002.
Unlike most local anesthetics, oxetacaine is active even in strongly acidic conditions.
B-COPIN
Lycopene (from the New Latin word lycopersicum for the tomato species name) is a bright
red carotene and carotenoid pigment and phytochemical found in tomatoes and other red
fruits and vegetables, such as red carrots, watermelons and papayas (but not strawberries or
cherries). Although lycopene is chemically a carotene, it has no vitamin A activity.
In plants, algae, and other photosynthetic organisms, lycopene is an important intermediate in
the biosynthesis of many carotenoids, including beta carotene, responsible for yellow, orange
or red pigmentation, photosynthesis, and photo-protection. Like all carotenoids, lycopene is a
polyunsaturated hydrocarbon (an unsubstituted alkene). Structurally, it is a tetraterpene
assembled from eight isoprene units, composed entirely of carbon and hydrogen, and is
insoluble in water. Lycopene's eleven conjugated double bonds give it its deep red color and
are responsible for its antioxidant activity. Due to its strong color and non-toxicity, lycopene
is a useful food coloring (registered as E160d).
Lycopene is not an essential nutrient for humans, but is commonly found in the diet, mainly
from dishes prepared with tomato sauce. When absorbed from the stomach, lycopene is
transported in the blood by various lipoproteins and accumulates in the liver, adrenal glands,
and testes.
75
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
SETSTREAM
Ondansetron (INN) (developed and first marketed by GlaxoSmithKline as Zofran) is a
serotonin 5-HT3 receptor antagonist used mainly as an antiemetic (to treat nausea and
vomiting), often following chemotherapy. Its effects are thought to be on both peripheral and
central nerves. Ondansetron reduces the activity of the vagus nerve, which deactivates the
vomiting center in the medulla oblongata, and also blocks serotonin receptors in the
chemoreceptor trigger zone. It has little effect on vomiting caused by motion sickness, and
does not have any effect on dopamine receptors or muscarinic receptors.
COFSTREAM
Cetirizine, a second-generation antihistamine, is a major metabolite of hydroxyzine, and a
racemic selective H1 receptor inverse agonist used in the treatment of allergies, hay fever,
angioedema, and urticaria.
Cetirizine crosses the blood-brain barrier only slightly, reducing the sedative side-effect
common with older antihistamines.
Cetirizine is an antihistamine that reduces the natural chemical histamine in the body.
Histamine can produce symptoms of sneezing, itching, watery eyes, and runny nose. It is
used to treat cold or allergy symptoms such as sneezing, itching, watery eyes, or runny nose.
Cetirizine is also used to treat itching and swelling caused by hives.
Dextromethorphan (DXM or DM) is an antitussive (cough suppressant) drug. It is one of the
active ingredients in many over-the-counter cold and cough medicines.
Following oral administration, dextromethorphan is rapidly absorbed from the
gastrointestinal tract, where it enters the bloodstream and crosses the blood-brain barrier.
76
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Ambroxol is a secretolytic agent used in the treatment of respiratory diseases associated with
viscid or excessive mucus. The substance is a mucoactive drug with several properties
including secretolytic and secretomotoric actions that restore the physiological clearance
mechanisms of the respiratory tract, which play an important role in the body’s natural
defence mechanisms. It stimulates synthesis and release of surfactant by type II
pneumocytes. Surfactants act as an anti-glue factor by reducing the adhesion of mucus to the
bronchial wall, in improving its transport and in providing protection against infection and
irritating agents.
TURBROMEX
Bromhexine is a mucolytic agent used in the treatment of respiratory disorders associated
with viscid or excessive mucus. In addition, bromhexine has antioxidant properties.
FUNCTION
Bromhexine supports the body's own natural mechanisms for clearing mucus from the
respiratory tract.
It is secretolytic: that is, it increases the production of serous mucus in the respiratory tract
and makes the phlegm thinner and less sticky. This contributes to a secretomotoric effect: it
helps the cilia - tiny hairs that line the respiratory tract - to transport the phlegm out of the
lungs. For this reason it is often added to some antitussive (cough) syrups.
Terbutaline is used as a fast-acting bronchodilator (often used as a short-term asthma
treatment) and as a tocolytic to delay premature labor. The inhaled form of terbutaline starts
working within 15 minutes and can last up to 6 hours.
Terbutaline as a treatment for premature labor is an off-label use not approved by the FDA. It
is a pregnancy category 'B' medication and is routinely prescribed to stop contractions. After
successful intravenous tocolysis, little evidence exists that oral terbutaline is effective.
77
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Guaifenesin (INN) or guaiphenesin (former BAN), also glyceryl guaiacolate, is an
expectorant drug sold over the counter and usually taken by mouth to assist the bringing up
(expectoration) of phlegm from the airways in acute respiratory tract infections.
BETASTREAM
Betahistine hydrochloride (brand names Serc, Betaserc) is an antivertigo drug. It was first
registered in Europe in 1970 for the treatment of Ménière's disease. It is commonly
prescribed to patients with balance disorders or to alleviate vertigo symptoms associated with
Ménière's disease.
MODE OF ACTION
Betahistine has a very strong affinity as an antagonist for histamine H3 receptors and a weak
affinity as an agonist for histamine H1 receptors. Betahistine seems to dilate the blood vessels
within the middle ear which can relieve pressure from excess fluid and act on the smooth
muscle.
Betahistine has two modes of action. Primarily, it has a direct stimulating (agonistic) effect
on H1 receptors located on blood vessels in the inner ear. This gives rise to local vasodilation
and increased permeability, which helps to reverse the underlying problem of endolymphatic
hydrops.
In addition, betahistine has powerful antagonistic effects at H3 receptors, and increases the
levels of neurotransmitters released from the nerve endings. This is thought to have two
consequences;
The increased amounts of histamine released from histaminergic nerve endings can
stimulate H1 receptors, thus augmenting the direct agonistic effects of betahistine on
these receptors. This explains the potent vasodilatory effects of betahistine in the
inner ear, which are well documented.
78
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
It is postulated that betahistine increases the levels of neurotransmitters such as
serotonin in the brainstem, which inhibits the activity of vestibular nuclei.
ANXISTREAM
Flupentixol acts as an antagonist at various dopamine (D1-D5), serotonin (5-HT2), adrenaline
(α1), and histamine (H1) receptors, without affecting the muscarinic acetylcholine receptors.
Its antipsychotic effects are likely caused by D2 and/or 5-HT2A antagonism, whereas its
antidepressant effects at lower doses may be mediated by preferential D2/D3 autoreceptor
blockade, resulting in increased postsynaptic activation.
ANTIPSYCHOTIC DRUG EFFECT
All antipsychotic drugs tend to block D2 receptors in the dopamine pathways of the brain.
This means that dopamine released in these pathways has less effect. Excess release of
dopamine in the mesolimbic pathway has been linked to psychotic experiences. It is the
blockade of dopamine receptors in this pathway that is thought to control psychotic
experiences.
Melitracen is a tricyclic antidepressant (TCA) marketed in Europe and Japan by Lundbeck
and Takeda, respectively, for the treatment of depression and anxiety. In addition to single
drug preparations, it is also available as a combination product containing both melitracen
and flupentixol.
The pharmacology of melitracen has not been properly investigated and is largely unknown,
but it is likely to act in a similar manner to other TCAs. Indeed, melitracen is reported to
have imipramine and amitriptyline-like effects and efficacy against depression and anxiety,
though with improved tolerability and a somewhat faster onset of action.
79
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
4.4 MARKET SEGMENTATION 11
Table 14 –market segmentation
DOCTORS SPECIALTY PROMOTABLE PRODUCTS
General Physician (MBBS, BAMS, BHMS) Tronac-Sp, Medidol-S, Acemute-P,
Rabistream, Rabistream-DSR, Addcal,
C-Bonyl, Cofstream, Turbromex, B-Copin,
Livostream, Sparstream, Cefistream,
Sucracain, Betastream, Setstream, Remaining
all products as per survey.
Orthopedics Tronac-SP, Medidol-S, Acemute-P, Medidol-
P Rabistream, Rabistream-DSR, Addcal,
B-Copin
BDS (Dental) Tronac-SP, Medidol-S, Acemute-P, Medidol-
P
MD-DGO (Gynecologist) Addcal , Medidub, Doxamed, Doxamed-OD,
Doxamed Plus, C-bonyl
ENT (Ears, Nose, Throat) Betastream, Azistream, Cefistream,
Livostream, Acemute-P, Meididol-S, Tronac-
SP, B-Copin
Gastroenterologist Sucracain, Sucracain-O, Rabistream,
Rabistream-DSR, B-Copin
Urologist Medidol-S, Acemute-P, Tronac-SP,
Livostream,
Nephrologists Medidol-S, Acemute-P, Tronac-SP
Psychiatrics Anxistream, B-Copin
MS (Master in Surgery) Rabistream, Acemute-P, Sucracain,
Sucracain-O, Medidol-S, Tronac-SP
Pediatricitian Turbromex, Cofstream, C-Bonyl, Addcal
Skin Specialist ` Azistream, B-Copin
80
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
4.5 MARKETING STRATEGIES
Strategies are the main thing which lets the company to survive in pharma world. There are
many companies in the pharma industry hence implementing the right kind of strategy is very
important. Medistream has applied each and every marketing tools of the pharma world in
making its business perfect. There are many small things which make a pharma company
perfect and these things are not over the top but are underground.
There are many plus points of Medistream which has lead to the success in short time of
Medistream. Some of them are elicited here under. There are many tools for marketing in the
pharma market this can be said as ethical and unethical. Not going in deep about the
unethical tools as they are never the concern and main factor of success of any company.
4.6 GLIMPSE OF PHARMA MARKET OF GUJARAT
Brief overview of the evolution of Gujarat’s Pharma Industry
Alembic Chemical Works Co. Ltd., one of the oldest pharma companies in India, was set up
in Vadodara in 1907 just six years after India’s first domestic, pharmaceutical unit- Bengal
Chemical and Pharmaceutical Works was set up in Calcutta. Sarabhai Chemicals was started
soon thereafter. The industry had received strong support from the academic field. In 1940,
the Drugs Laboratory in Vadodara was established, followed by LM College of Pharmacy.
Further in 1989, the B. V. Patel Education Trust, Ahmedabad and Gujarat Branch of Indian
Pharmaceutical Association (IPA)- established the B.V.
81
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Patel Pharmaceutical Education and Research Development (PERD) Centre in Ahmedabad.
In the last few decades, the invested capital to labour ratio has risen significantly. The
employment almost doubled between 1979-80 and 1997-98. Over the years, the industry has
developed strong linkages with related sectors and industries such as chemicals, pharma
machinery, information technology, etc. There are currently approximately 3,500 drug
manufacturing units in Gujarat. The state houses several established companies such as
Torrent Pharma, Zydus Cadila, Alembic, Sun Pharma, Claris, Intas Pharmaceuticals and
Dishman Pharmaceuticals, which have operations in the world’s major pharma markets. Over
the last few years, Gujarat’s contribution in the growth of India’s pharmaceutical industry has
been significant. The state commands 42 percent share of India’s pharmaceutical turnover
and 22 percent share of exports. Approximately 52,000 people are employed in Gujarat’s
pharmaceutical sector, which has witnessed 54 percent CAGR in capital investments over the
last three
State of Gujarat appeared as a self-governing status as of the than superior Bombay State on
1st May, 1960. during the pre-freedom period along with awaiting concerning materialization
of pharmaceutical business in Gujarat, India was not enough independent and India had to be
dependent on everything on others. Medical field was much harder. India was dependent on
medication plus was a net importer of the majority of mass drugs moreover lots of
formulations. In 1947 – the year of self-government India’s pharmaceutical manufacture was
to the tone of one hundred million rupees.
The honest efforts to get drugs from everywhere were done by government. The Central as
well as State Governments with Indian pharmaceutical business tried together to support the
industry and as an outcome, the production was increased and drugs came out in bulk.
Nowadays, India is self sufficient. Moreover, it is the leading exporter of pharmaceutical
82
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
items for consumption. India holds about ninety five percent of drugs and medical products
as well as formulations which is formed in the vicinity.
In India, Gujarat plays a leading role in this industry. As well as, it takes pleasure in the
contribution of around thirty five to forty six percent of the countrywide share in
pharmaceutical manufacturing business for the most recent two decades. The two cities –
Ahmedabad and Baroda are the most important cities in manufacturing the drugs for the
medication. Afterwards the cities like Ankleshar and Vapi are the cities that take secondary
position in manufacturing medicines in bulk.
It was the year of 1907; it was the time when Alembic Chemical Works Co. Ltd was
established. It was for the first time when the pharmaceutical industry used alcohol and tints
to make products.
The pharmaceutical business of Gujarat is at present prepared for protractible development,
foremost competence development as well as a progressively more significant task in
worldwide consolidation procedure. In India, there is a rising amount that is being used up on
healthcare because the up-and-coming financial system generates advanced earnings,
enhanced healthiness indemnity infiltration along with daily life linked syndromes.
It is very complex to select a tool for pharma marketing for a developing company as it has to
survive against the giants of the pharma world. Clearly it is seen that the pharma market is
becoming much polluted compared to other markets. A company has to spend something to
earn something.
83
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
The core concept of the marketing attitude of Medistream biotech is based on the
customization of the way of doing business according to the area concerned. For this reason
it is necessary to understand the basic nature of the area in which it is dealing.
5. OBSERVATION
Here are some of the characters of the local areas in which Medistream is dealing in Gujarat
and the tactics applied to acquire a place in local market.
5.1 BARODA
The Baroda market is considered to be the most conservative market in Gujarat. It is said for
the Baroda market that “the company which is successful in this area is going to be
successful in all the areas of Gujarat”. The doctors present in the Baroda market are majority
aged above 40 and are very egoistic, a person has to think twice before speaking something
84
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
in front of the doctor, they immediately pick up the point and get aggressive. As it is known
that there are two major classes of doctor general doctors called the GPs and the consultants
which include all the specialty doctors. It is found that it is easy to penetrate and talk with the
GPs but it is difficult to deal with the consultants.
Initially when Medistream was introduced it started its business by directly taking in
consideration the 60:40 rations of GPs and consultant. As the consultant doctors are very
much conscious about the brand of the drugs they convince very hardly. Then too
Medistream started convincing the doctors by sending them lab testing reports of their
products and the name and address of the production houses where they were contracting the
production of their products. The source of APIs was informed to the doctors. Such a way
started convincing the doctors about the quality of the products which is the first step of
success.
The second main reason for the success was selection of the field force the ASM of Baroda
and the two TMs are very efficiently selected on the basis of the knowledge of the local
market and not on the basis of education. This lead to building of prescription in the already
established repo doctors of Baroda.
Free samples were distributed to the doctors for the trials on their patients Medistream
employee were confident about the quality and were boosting up the doctors to only
prescribe if they find the medicine effective, this confined the doctor to try the medicine and
then prescribe according to the results they get.
The academic gifts such as literatures, posters and other things also helped the employee to
gain the confidence of the doctor in the company.
85
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
5.2 BHARUCH
The market of Bharuch was not a kind of market which was easy to convince. The distributor
selection in Bharuch was a difficult task as all of them were having many companies and
hence the chance of service effectiveness was a question. Then they decided to give the
distributorship to a new distributor which was having few companies so that more
concentration can be acquired.
In Bharuch market it is said that the GPs are very potent in prescribing drugs, but they all
followed some of the consultants prescribing pattern so the main focus of the company
shifted to impressing the consultants which were having reputation in the market. If they
started prescribing the other GPs are going to follow them. So Medistream biotech decided to
impress them and insist them to prescribe the products of Medistream biotech.
It was difficult in Bharuch market to convince the chemists to make to product available. As
it is a rule in pharma that chemist will not purchase the product from the distributor until they
gain confidence in the company and they think that the company will gain them profit. So
Medistream biotech decided to give discount on the purchase of the products to the chemist
for initial penetration and that proved to be effective.
5.3 ANAND-NADIAD
It is a type of market where price of the product doesn’t matter. In short the doctors were not
price minded but they insisted on good packing and good ambience of the product. So
86
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Medistream started to show their packing of the products and insisted to check it. This
resulted in the good impression on the doctors as the packing of the products of Medistream
biotech were good.
The second thing about the Anand market was that many doctors were only insisting on
writing the molecules to the patients. Then the medical store’s pharmacist decided that which
brand to give in that molecule. This made it difficult for the company to penetrate the market.
The way they found out was great, they started building relations with the medical stores and
instead of giving some complementary reminders to the doctors they concentrated more on
the chemists. They started to give reminders to the chemists. They explained about the
quality of the product to them and initially gave some schemes to them so that they became
ready to dispense the products of Medistream.
Many of the chemists behaved very rudely with the new company employees, they didn’t
allow them to penetrate. But that was not going to stop Medistream; they started giving
chocolates to them on their rude behavior. Ultimate outcome was, they all agreed to build
relation with the company and started to suggest their products to the costumers.
5.4 SURAT
Surat is a type of market where there was main concentration on selection of employee. As in
this market the doctors were very much relation oriented. They preferred the people who
were friendly with them. So the basis of the selection was not education but the knowledge of
the local market. The local language of Surat was much effective in convincing the doctors.
They were not stuffed with the mindset which appealed them to prescribe only branded
products. They were all happy to give chance to new and hard working companies.
87
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
The basis of the prescription power was not on gifts and all that things, but it was on the
meeting which they gave to the doctors. It was preferred to give at least two visits to the
doctors once for personal call, and other for giving reminder. Follow up in Surat market was
very important. Without it there was no chance of continuation of the product. As the
meeting of with the doctors was so important for the Surat market the company recruited
three territory managers and one area sales managers exclusively for Surat.
Later on Surat became the profit century of Medistream biotech which gave majority of the
sales of Gujarat. The major thing in Surat market is the working hours, in Surat as many as
30 calls can be done in one single day if we desire so. Surat never sleeps and OPD continues
the whole day there is much working potential in that area.
5.5 VALSAD
Besides the sales in the proper valsad city it was identified that the interiors of Valsad were
very potential and were the main places were the profit can be acquired. The sales of Valsad
can be divided in 40:60 ratios. The 40 percent sale is from the city and 60 percent sale is
from the interiors. Dharampur, kehrgam, pardi, nana ponda, mota ponda, etc were some of
the very potential areas of valsad.
The doctors present there were GPs and were having huge number of OPDs which made
them the most important costumers. Moreover there were very few number of medical stores
in these villages and hence for convenience of the patients the doctors used to set own
dispensing areas in their clinic.
88
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
The main concentration of Medistream in valsad shifted from consultants to GPs and there
they started extracting sales. They concentrated on most interior doctors where other felt it
waste which became the success link of the company in the area. Moreover the distributor
selected in valsad is very efficient in delivering the right goods at the right time.
5.6 RAJKOT
Rajkot is a typical and different market of Gujarat if we compare it with the other markets of
Gujarat. As the ways of doing business in Rajkot is very different. Rajkot is a city which
believes in afternoon nap and no disturbance at that time hence the majority of the shops and
clinics are closed from 2pm to 4pm, disturbing them on this time can lead to the loss of
business. Hence the call and meeting with the chemist and distributors can only be effective
if they are approached in the morning and evening.
The unity of the association in Rajkot is very strong and there are many rules and regulations
to be followed by the members. There is a typical rule in Rajkot that there cannot be any
working schedule for MRs after 6pm. Moreover the managers cannot arrange joint working
schedule with the local MR except a ten day prior notice to the MR. there are almost 28
important doctors in Rajkot, they are the consultants and come under association
appointment system. Association Appointment System is a centralized appointment system
which is made for the convenience of the field workers. They get the centralized appointment
to meet these 28 consultants once in the month. Moreover the other calls can be done
according to the planning of the MR.
The doctors there are very much concerned about the side effects of the medicines that is
why they prefer existing and proven molecules more than new invented molecules. The
89
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
scope of antibiotic and calcium supplements is vast in the Rajkot market. This is perfect set
in the product portfolio of Medistream biotech.
5.7 PATAN
The main business of people in Patan is pharma business there is huge flow of patients from
the interiors. Patan can be said as the hub of medicine and that also unexplored market. The
doctors there are very much interested in the nutritional and mineral products and have a
huge prescription market.
5.8 MEHSANA
In Mehsana market many of the rural patients are there and hence they cannot differentiate in
the products, if two or more medicines are given it has to be of different color otherwise they
will mix it up in taking the dosage form.
There the scope of pain killers is much as the people are majority related with the labor work.
Medistream has given different colors to its different products as for eg. Blue tablet for
TRONAC-SP and capsule for C-BONYL and different shapes, which proves to be helpful in
penetrating in the local market. Many of the people in mehsana cannot afford the medicines
90
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
hence Medistream arranges camp in this area for distribution of free medicines. This helps
the patients to get good medicines and also benefits the image of the company.
5.9 JAMNAGAR
In Jamnagar there are lots and lots of industry concerned with the mechanical work, hence
the cases of pain and inflammation is much. There is a huge scope of NSAIDs with
Serratiopeptidase in this area which is present in the product portfolio of Medistream biotech.
Moreover the doctors are very much price minded due to affordability concern of the
patients.
The price concern leads to the point of arguing, the price of the MNCs are high as compared
to the local companies. This is considered as USP for Medistream in this local market. The
MRs brings in focus this point and hence acquires the penetration.
6. FINDINGS
After the accurate technique of observation some of the facts were interpreted from the data.
Some of the factors which have affected Medistream in its success can be interpreted. These factors can be generalized as they are proven to be effective for development of a new pharmaceutical company these factors are as below.
1. The first and foremost thing which has been noticed is the experience of the CMD in
pharma world which has lead him to work his company through a success path with
consideration of pros and cons of each and every decision which he takes.
D. M. JOSHI (CMD) profile
91
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Education BSC (Chemistry)
Age 50
Work experience 28 years
Companies worked with Sarabhai chemicals, Obsurge biotech,
kee pharma
Entrepreneurship years 4 years
Company name Medistream Biotech
Starting year 2007
Current Status Company is in profit crossed BEP in two
years
Extra Activities
Member of Advisory Board of 1. Sailstar biotech (surat)
2. Quntamed Pharma (Bombay)
3. Obsurge biotech ( Noida, Delhi)
4. Vega Biotech (Baroda)
2. The product’s name should be very catchy in phama world. A doctor is a very busy
person meeting almost 10 MRs daily, during the meeting hours many MRs show him
products of the same combination hence it is necessary for the product to have a easy
name. The name of the products of Medistream Biotech Pvt Ltd is very simple and
very catchy
3. The choice of doctors initially is very important as it is explained by Pareto’s
principle, that it is not necessary to cover all the doctors of the city to earn profit. As
it is very difficult for a developing company to employ more than two territory
managers per area, they have to select such doctors which can contribute to their
success. The firm has selected such doctors which are according to their area
important and the employee taken in the local area has built relation with them. This
92
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
helped in the initial penetration of the company and then they started achieving the
success by building new ones.
4. Compared to other companies Medistream insists its products three times lab testing
once during production other during the receiving of goods from the production and
once before the dispatch to the distributors if the stock has lasted for more than three
months in store room. This helped Medistream to gain assurance in quality and insist
their costumers to first try using them in few prescriptions and then gain confidence.
5. The next finding for the success is the management of supply chain and the stock
allocation. The firm does not insist on unnecessary production which leads to the
dead stock. The management is such that the non moving products are picked up from
the area and is sent to the moving location where the demand of the product of more.
6. The strategy which is applied by firm is retaining the existing and building new
costumers. The working schedule is divided in to two parts the first part is retaining
the existing costumers which are already giving the business the calls are divided as
per this base. There is requirement of ten calls per day on and average which includes
nine calls for reminder and every day one new target doctor which is none
prescribing. This leads to increase in the business day by day and month by month.
7. The company insists on finding two distributors in a vast area for effective
distribution. This leads to less chances of prescription failure and offers more on the
spot delivery option.
93
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
8. The product portfolio selection is also very important. It is fact that for the marketing
of parental and life saving products it requires huge investment and big name in
pharma market. So for the developing company it is a matter of huge risk,
Medistream has selected its product portfolio in such a way that all the products are
good moving products in Gujarat market.
7. FUTURE PROSPECTS
The report has been made after analyzing and observing the working of the company in the
local markets of Gujarat. After the collection of data the characters and the method of
working of such type of company in pharma world was found out. This helped in
understanding that what are the requirements for a developing company in pharma world to
survive in the market.
The research can be further carried on to develop the profile of each and every state of India
and than in foreign countries also and prepare some basic guidelines which can help young
94
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
entrepreneurs to get some idea about the area which they are entering and the procedures to
be followed before entering the market. This can also help to avoid blunders that are made by
the people by following same attitude of business in different markets.
8. SUGGESTIONS
Referring the theory and practical it is hard to suggest because in marketing it is difficult to
predict that which idea will go successful and which will fail there may be go errors and
there may be drop errors too. Then too some of the suggestions were felt to be important to
inform.
1. The coordination of the company personnel is excellent but there is a slight
requirement of power relationship. As it was observed that the managers and the TMs
are very friendly and hence it helps them in retaining the employees and reduces the
turnover rates, but to some extent the power relationship is also expected.
95
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
2. It is time to expand in to new state, probably Rajasthan, because the market of
Gujarat and Rajasthan are quite similar and the language is also quite similar.
Moreover there are employees with the company which can help to launch in
Rajasthan because they have worked there. This will help the company to grow much
more than extending the profits in the same market.
3. Company believes in CMEs and other Academic gifts too much. Sometimes this may
prove to be a dead investment because some of the doctors are not at all interested in
such type of thins. So it is better to diver the spending towards giving some
impressive reminder gifts.
4. It may be true that giving such a target that cannot be achieved is not proper this may
lead to de-motivation. But giving somewhat higher targets to the employees more
than what they expect to get can motivate them to achieve more than that they are
achieving right now.
CONCLUSION
As it is said that theories can only tingle the mind to get ideas but the actual success can only
be obtained after it is implemented. Today young and dynamic students from various fields
are diverting themselves to start a business, but sometimes they forget to analyze the business
and think once more about what they are doing. Hence it is very important to understand the
market and take the examples of the already successful companies before entering the
business.
96
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
Specifically in pharma world it is said that every week one new company is born and the rate
of mortality is also the same. Where such tough competition exists it is not possible to jump
in the business without proper guidelines and if such an act is done the failure will be ready
to embrace.
Finally it is not too difficult to be a pharma entrepreneur some guidelines, proper knowledge,
and finance can make a person pharma entrepreneur, but it is very difficult to be a successful
pharma entrepreneur.
BIBLIOGRAPHY
1.
http://www.scribd.com/doc/20542686/Pharmaceutical-Industry-Profile2.
2.
http://management.about.com/cs/generalmanagement/a/Pareto081202.htm
3.
http://www.medscape.com/viewarticle
4.
97
GUIDELINES FOR DEVELOPING PHARMA ENTREPRENEURSHIP IN GUJARAT 2011
www.urenio.org/tools/en/Product_Life_Cycle_Management.pdf
5.
http://www.urenio.org/tools/en/Product_Life_Cycle_Management.pdf
6.
http://jurisonline.in/2011/06/forming-of-company-in-india-an-overview/
7.
http://www.legalserviceindia.com/company%20law/company_formation_procedure.htm
8.
Medical Representatives Doctors list (Medistream Biotech)
9.
Product List july-2011 (Medistream Biotech)
10
Drug Reference (Medistream Biotech)
11
Market Segmentation circular July 2011(Medistream Biotech)