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1 To Study the Market Potential of Multi-Vitamin (both OTC & Prescription Driven) & Antibiotic (Cefexime). SIP project report submitted in partial fulfillment of the requirements for the PGDM program. By: Kishan Kumar 2010096 Supervisors: 1. Company Guide: Mr. Pradeep Sachdeva 2. Faculty Guide: Prof. Rajkumar Phatate Institute of Management Technology, Nagpur. 2010-12
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Page 1: Summer Internship Project Report_Ranabxy_Kishan Kumar_2010096

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To Study the Market Potential of Multi-Vitamin (both OTC

& Prescription Driven)

&

Antibiotic (Cefexime).

SIP project report submitted in partial fulfillment of the requirements for the PGDM

program.

By: Kishan Kumar

2010096

Supervisors: 1. Company Guide: Mr. Pradeep Sachdeva

2. Faculty Guide: Prof. Rajkumar Phatate

Institute of Management Technology, Nagpur.

2010-12

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Acknowledgements

I take this opportunity to acknowledge and express my gratitude towards some of the most

eminent people whose presence is noteworthy & seminal in giving me a grand opportunity to

associate myself with an esteemed organization like Ranbaxy Laboratories Limited.

I am grateful to Mr. Pradeep Sachdeva, Sales Manager-Pharma at Ranbaxy Laboratories

Limited for entrusting upon me confidence and providing me a chance to get an on-the-job

experience in the various fields of Marketing.

I am thankful to him for his endeavour towards providing continuous guidance to help build

an understanding of the practical aspects of the work, gain knowledge & valuable

experiences. I am grateful to him for his outreaching support and helping to build a

motivating work environment and inculcating a feeling of constantly striving to achieve

higher goals.

His enterprising, dynamic, forward-looking, radical approach provides an opportunity to

work under an accomplished mentor like him to inculcate and instil valuable talent.

I consider my nearly two months Summer Internship at Ranbaxy Lab. Ltd. to be a crucial

learning period. I am deeply indebted to all the supervisors for providing all the support when

necessary.

I am also thankful to Faculty Mentors Prof. Rajkumar Phatate for their helpful nature and

valuable guidance provided time and again. Their suggestions have been instrumental in

building the foundation for the draft report.

Finally, I would like to extend my sincere gratitude to all the involved persons in this project

namely, Mr Rajeev Verma (Regional Manager), Mr. Kulmeet Singh (District Manger)

and Mr. Bambam Kumar Jha. Without your willingness, suggestions and insights, this

project would not have been completed.

KISHAN KUMAR

2010096

PGDM-Marketing & Operations

Institute of Management Technology, Nagpur

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TABLE OF CONTENTS

SL No. Topic Page No. 1 Acknowledgement 2

2 Certificate 3

3 Executive Summary 5

4 Introduction to Pharmaceutical Industry 6

5 Major Pharmaceutical Companies in India 10

6 Government Initiatives and Investments 11

7 The Changing Perception 13

8 Emerging Trend 14

9 Challenges and Future Growth 16

10 Introduction to Projects 18

11 Objective of Study 19

12 Description of the concepts introduced in the

study

20

13 About Ranbaxy 21

14 Task 1 : Doctors perception while prescribing

Multi-Vitamin and Anti-Biotic- Cefexime.

29

15 Task 2: Market Potential of Multi-Vitamin and

Antibiotics – Cefexim (OTC and Prescription

driven)

34

16 Bibliography 45

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Executive Summary

The summer training that we do is to get an experience of how the corporate world functions

and how the theory is different from the practical aspects of the industry. For the same

purpose I got an opportunity for my training at Ranbaxy Lab Ltd in Pharma Division in

Marketing Department.

There were two projects that were completed by me :-

1.) Doctors perception while prescribing Multi-Vitamin and Anti-Biotic- Cefexime.

In this project was to find out what doctors think in a patient and in a

medicine, before they prescribe it to a patient. First I was to select the appropriate

research method, which was taken up as survey method through filling up of

questionnaires by doctors. To start with I visited a few doctors in advance to collect all

the factors upon which I have to search upon and to learn about all the constraints I can

face up at the time of research.

2.) Market Potential of Multi-Vitamin and Anti-Biotics – Cefexim (OTC and

Prescription driven)

In this project I was to look into sales pattern of products of Ranbaxy and other

competing firms like, FDC, Glaxo SmithKlin, Nicholas, Intas, Mankind to name a few.

This time I was to make questionnaire for retailers to get their support for my study. But

here the main consideration I was to look in was the mood swings of a sample.

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Introduction to Pharmaceuticals Industry

Introduction The Indian pharmaceutical industry currently tops the chart amongst 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 amongst all the third world countries, in terms of technology, quality and the vast range of medicines that are manufactured. It ranges from simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made in the Indian pharmaceutical industry. The Indian pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expanded drastically in the last two decades. The Pharmaceutical and Chemical industry in India 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 approximately 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). The Government has also played a vital role in the development of the India Software Industry. In 1986, the Indian government announced a new software policy which was designed to serve as a catalyst for the software industry. This was followed in 1988 with the World Market Policy and the establishment of the Software Technology Parks of India (STP) scheme. In addition, to attract foreign direct investment, the Indian Government permitted foreign equity of up to 100 percent and duty free import on all inputs and products. Current Scenario The industry has enormous growth potential. Factors listed below determine the rising

demand for pharmaceuticals.

• The growing population of over of a billion

• Increasing income

• Demand for quality healthcare service

• Changing lifestyle has led to change in disease patterns, and increased demand for new

medicines to combat lifestyle related diseases

More than 85 per cent of the formulations produced in the country are sold in the domestic

market. India is largely self-sufficient in case of formulations. Some life saving, new

generation under-patent formulations continue to be imported, especially by MNCs, which

then market them in India. Overall, the size of the domestic formulations market is around

Rs160 billion and it is growing at 10 per cent per annum.

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Demand for drugs for treatment of lifestyle-related diseases such as diabetes, cardiovascular

diseases, and central nervous system are on the increase. There are around 700,000 new cases

of cancer each year and total of around 2.5 million cases. It is estimated that there are around

40 million people in India with diabetes and the number is rising, 5.1 million.

HIV/AIDS patients, and 14 million tuberculosis cases. According to industry reports, while

the Indian pharmaceutical industry witnessed a growth of 7 percent, the cardio-vascular

segment recorded 15 to 17 percent growth and anti-diabetes segment of over 10-12 percent

growth.

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Diagnostic Outsourcing/ Clinical Trails

The Indian diagnostic services are projected to grow at a CAGR of more than 20 per cent during 2010-2012. Some of the major Indian pharmaceutical firms, including Sun Pharma, Cadilla Healthcare

and Piramal Life Sciences, had applied for conducting clinical trials on at least 12 new drugs

in 2010, indicating a growing interest in new drug discovery research.

Generics

India tops the world in exporting generic medicines worth US$ 11 billion and currently, the Indian pharmaceutical industry is one of the world's largest and most developed. Moreover, the Indian generic drug market to grow at a CAGR of around 17 per cent between

2010-11 and 2012-13. Union Minister of Commerce and Industry and Minister for Trade and

Industry, Singapore, have signed a 'Special Scheme for Registration of Generic Medicinal

Products from India' in May 2010, which seeks to fast-track the registration process for

Indian generic medicines in Singapore.

Advantage India The Indian Pharmaceutical Industry, particularly, has been the front runner in a wide range of specialties involving complex drugs' manufacture, development and technology. With the advantage of being a highly organised sector, the pharmaceutical companies in India are growing at the rate of $ 4.5 billion, registering further growth of 8 - 9 % annually. More than 20,000 registered units are fragmented across the country and reports say that 250

leading Indian pharmaceutical companies control 70% of the market share with stark price

competition and government price regulations.

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 53 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.

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.

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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.

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MAJOR PHARMACEUTICAL

COMPANIES IN INDIA

Some of the leading Indian players by sales (Rs. cr.)

Company Name Sales in Rs. Cr. Year End

Cipla 6172.55 31st March 2011

Ranbaxy Lab 5266.71 31st December 2010

Dr Reddy's Labs 5253.68 31st March 2011

Sun Pharma 5721.43 31st March 2011

LupinLtd 4767.84 31st March 2010

Aurobindo Pharma 3319.60 31st March 2010

Piramal Health 2509.86 31st March 2011

Cadila Health 2468.40 31st March 2010

Matrix Labs 2776.82 31st March 2010

Wockhardt 3751.2 31st March 2011

Cipla 15%

Sun Pharma

14%

Ranbaxy Lab 12%

Dr Reddy's Labs 12%

LupinLtd 11%

Wockhardt9%

Aurobindo Pharma

8%

Matrix Labs7%

Piramal Health 6%

Cadila Health 6%

Company Wise Sales Chart

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GOVERNMENT INITIATIVES AND

INVESTMENT

Government Initiative 100 per cent foreign direct investment (FDI) is allowed under the automatic route in the drugs and pharmaceuticals sector including those involving use of recombinant technology. (DIPP) The Government plans to set up a US$ 639.56 million venture capital (VC) fund to give a boost to drug discovery and strengthen the pharma infrastructure in the country. The Government had issued an expression of interest (EoI) for technical and financial bids for the selection of a global level consultant (GLC) for the preparation of a detailed project report (DPR) in order to develop India as a drug discovery and pharma innovation hub by 2020. The Drugs and Pharmaceuticals Manufacturers Association has received an in-principle approval for its proposed special economic zone (SEZ) for pharmaceuticals, bulk drugs, active pharmaceutical ingredients (APIs) and formulations to be located at Nakkapalli mandal in Visakhapatnam district. The Department of Pharmaceuticals has prepared a "Pharma Vision 2020" for making India one of the leading destinations for end-to-end drug discovery and innovation and for that purpose provides requisite support by way of world class infrastructure, internationally competitive scientific manpower for pharma research and development (R&D), venture fund for research in the public and private domain and such other measures. The government plans to open 3,000 Jan Aushadhi stores, which sell unbranded generic drugs

at heavy discounts to branded drugs, in the next two years.

Investment The healthcare sector has attracted growing investor support in 2010 with nearly a tenth of the total private equity funding going to this sector. In the third quarter the calendar year 2010, a total of US$ 2,047 million was invested across 88 deals, of which 9 per cent were healthcare deals. The pharma, healthcare and biotech sector witnessed five merger and acquisition transactions (M&A) worth US$ 250 million. The drugs and pharmaceuticals sector has attracted FDI worth US$ 1,825.43 million between April 2000 and September 2010.

Some of the major investment developments in the sector include:

• Hyderabad-based Natco Pharma plans to raise US$ 22.22 million to fund its expansion

plans and research activities.

• Private equity major Sequoia Capital has made its first investment in the pharmaceutical

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sector in the country by investing US$ 15.86 million into Celon Labs, which will use the

funds to double its manufacturing facility.

Belgium based Helvoet Pharma, part of the Daetwyler Group is setting up its first greenfield

production facility in Khandala Industrial Area, phase I (SEZ), on Pune- Bangalore Highway, near Pune. The company has invested US$ 26.56 million for the plant.

• Swiss Pharma major Lonza AG, would invest around US$ 55.33 million through its

Indian

subsidiary in a phased manner in Genome Valley project, Hyderabad, said Stefan Borgas, CEO, Lonza.

• Chennai-based Bafna Pharmaceuticals plans to raise around US$ 4.43 million for its

future

expansion by issuance of warrants and shares.

• Hyderabad Menzies Air Cargo Private Limited, a joint venture between GMR

Hyderabad

International Airport Limited (GHIAL) and Menzies Aviation, has launched India's first

airport-based pharma zone, dedicated pharmaceutical cargo storage and handling facility, at

Hyderabad. The project involved an investment of US$ 1.22 million.

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The Changing Prescription

As per WTO, from the year 2005, India granted product patent recognition to all new

chemical entities (NCEs) i.e., bulk drugs developed then onwards. This introduction of

product patent regime from January 2005 is leading into long-term growth for the future

which mandated patent protection on both products and processes for a period of 20 years.

Under this new law, India will be forced to recognize not only new patents but also any

patents filed after January 1, 1995. Under changed environment, the industry is being forced

to adapt its business model to recent changes in the operating environment.

Indian pharmaceutical industry is mounting up the value chain. From being a pure reverse

engineering industry focused on the domestic market, the industry is moving towards basic

research driven, export oriented global presence, providing wide range of value added quality

products and services, innovation, product life cycle management and enlarging their market

reach. The old and mature categories like anti-infectives, vitamins, analgesics are de-growing

while, new lifestyle categories like Cardiovascular, Central Nervous System (CNS), Anti

Diabetic are expanding at double-digit growth rates.

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Emerging Trend

The Indian pharmaceutical industry is now discovering new opportunities of growth in

clinical research, contract research, manufacturing and innovation opportunities. This path

can lead the Indian pharmaceutical industry to huge success endeavors.

Research & Development

Research & Development is the key to the future of pharmaceutical industry. The

pharmaceutical advances for considerable improvement in life expectancy and health all over

the world are the result of a steadily increasing investment in research. There is considerable

scope for collaborative R & D in India. India can offer several strengths to the international R

& D community. These strengths relate to availability of excellent scientific talents who can

develop combinatorial chemistry, new synthetic molecules and plant derived candidate drugs.

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The R & D expenditure by the Indian pharmaceutical industry is around 1.9 per cent of the

industry‟s turnover, which is a little low as compared to foreign research based

pharmaceutical companies. However, now that India is entering into the Patent protection

area, many companies are spending relatively more on R & D. When it comes to clinical

evaluation at the time of multi-center trials, India is providing a strong base considering the

real availability of clinical materials in diverse therapeutic areas. According to a survey by

the Pharmaceutical Outsourcing Management Association and Bio/Pharmaceutical

Outsourcing Report, pharmaceutical companies are utilizing substantially the services of

Contract Research Organizations (CROs). Indian Pharmaceutical Industry, with its rich

scientific talents, provides cost-effective clinical trial research. It has an excellent record of

development of improved, cost-beneficial chemical syntheses for various drug molecules.

Some MNCs are already sourcing these services from their Indian affiliates.

Product development For years, firms have made their ways into the global market by researching generic

competitors to patented drugs and following up with litigation to challenge the patent. This

approach remains untouched by the new patent regime and looks to increase in the future.

However, those that can afford it have set their sights on an even higher goal: new molecule

discovery. Although the initial investment is huge, companies are lured by the promise of

hefty profit margins and the recognition as a legitimate competitor in the global industry.

Small and medium enterprises The excise structure changed so that companies now have to pay a 16 per cent tax on the

maximum retail price of their products, as opposed to on the ex-factory price. Consequently,

larger companies are cutting back on outsourcing and what business is left is shifting to

companies with facilities in the four tax-free states - Himachal Pradesh, Jammu & Kashmir,

Uttaranchal and Jharkhand. SMEs have been finding it difficult to find the funds to upgrade

their manufacturing plants, resulting in the closure of many facilities. In terms of the global

market, India currently holds a modest 1-2 per cent share, but it has been growing at

approximately 10 per cent per year. India gained its foothold on the global scene with its

innovatively-engineered generic drugs and active pharmaceutical ingredients (API), and it is

now seeking to become a major player in outsourced clinical research as well as contract

manufacturing and research.

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CHALLENGES & FUTURE GROWTH

Challenges

Over the past decade, pharmaceutical companies have entered a difficult period where shareholders, the market and regulators have created significant pressures for change within the industry. The core issues for most of drug companies are declining productivity of in-house R & D, patent expiration of number of block buster drugs, increasing legal and regulatory concern, and pricing issue. As a result larger pharmaceutical companies are shifting to new business model with greater outsourcing of discovery services, clinical research and manufacturing. Current global financial conditions and the threat of a broad recession accelerated the timetable for implementing transformational changes in global organizations, as the industry confronts lower corporate stock prices and an increasingly cost-averse customer. Leaders of the largest global pharmaceutical companies recognize the need for transformational change in their organizations, but will need to move swiftly to ensure sustained growth. Transformations in the business model of larger pharmaceutical industry spell more opportunities for Indian pharmaceutical companies. Pharmaceutical production costs are almost 50 percent lower in India than in western nations, while overall R&D costs are about one-eighth and clinical trial expenses around one-tenth of western levels. The Indian stock market may be dreading a possible recession but Indian pharma companies seem unfazed by slowdown fears. Riding on better sales in the domestic and export markets, Indian pharmaceutical industry is expected to continue with its good performance. Today Indian pharmaceutical Industry can look forward to the years to come, with great expectations. There are opportunities in expanding the range of generic products as more molecule come off patent, outsourcing, and above all, in focusing into drug discovery as more profits come from traditional plays. At the same time, the Indian Pharma Industry would have to contend with several challenges particularly the :-

• Effects of new product patent

• Drug price control

• Regulatory reforms

• Infrastructure development

• Quality management and

• Conformance to global standards.

Growth The Indian pharmaceutical market reached US$ 10.04 billion in size, with a value-wise growth rate of 20.4 per cent over the previous year's corresponding period on a Moving Annual Total (MAT) basis for the 12 months ended July 2010.

Cipla maintained its leadership position in the domestic market with 5.27 per cent share,

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followed by Ranbaxy. The highest growth in the domestic market was for Mankind Pharma

which grew 37.2 per cent. Leading companies in the domestic market such as Sun Pharma

(25.7

per cent), Abbott (25 per cent), Zydus Cadila (24.1 per cent), Alkem Laboratories (23.3 per cent), Pfizer (23.6 per cent), GSK India (19 per cent), Piramal Healthcare (18.6 per cent) and Lupin (18.8 per cent) had impressive growth during July 2010, shows the data. The pharmaceuticals industry in India will grow by over 100 per cent over the next two years. The pharmaceutical industry is currently growing at the rate of 12 per cent, but this will accelerate soon. The sale of all types of medicines in the country stands at US$ 9.61 billion, which is expected to reach around US$ 19.22 billion by 2012. India's domestic pharmaceutical market is valued approximately at US$ 12 billion in 2010, and has shown a strong growth of 21.3 per cent for the 12 months ending September 2010. It estimates that over the next 10 years, the domestic market will grow to US$ 49 billion, at a compounded annual growth rate (CAGR) of 15 per cent. The formulations industry is expected to prosper parallel to the pharmaceutical industry. It is expected that the domestic formulations market in India will grow at an annual rate of around 17 per cent in 2009-10, owing to increasing middle class population and rapid urbanization.

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Introduction To Projects

During my summer internship, I was assigned the project on the new product launched by

Ranbaxy Laboratories Ltd., SKIFI, doing its doctor perception analysis, assisting retailers,

and promoting the product to get and upper hand over the competitor‟s product with the same

formula/composition. For these I need to study the Anti-biotic (Cefexime) market of South-

Delhi for this formula, specifically marketing and sales strategy of Ranbaxy Lab Ltd as well

as of its competitors like Sun Pharma, Cipla, FDC, Mankind, Intas and find out the regions

where Ranbaxy is leading or lacking its competitors.

My project was to study all the major supported products of cefexime formula and comparing

on how Ranbaxy stands against its competitors. Ranbaxy has launched this product which

has got its own USP, i.e. it is Mouth Dissolving and is in Mango flavor and has lowest

price, which today no other product has, and this has a great advantage for Ranbaxy in

capturing the market of anti-biotic with cefexime formula.

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Objectives of the Study

After the completion of this project, we will have a deeper insight into the anti-biotic

(Cefexime) market and multi-vitamin market in Delhi and would make us understand where

Ranbaxy actually lacks and where it has a competitive edge. We will get to know whether it

is customer service or the product itself responsible for its kind of market share or is there

any problem with the brand awareness? After this study we will be able to know what the

Doctors think about Ranbaxy Lab Limited.

The main objective of this project is to conduct a Business Research to know Doctors

perception about the past products. This study will also assist Ranbaxy to know where they

have to improve to treat Doctors and patients better.

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Description of the concepts introduced in

the study.

An Exploratory Research method i.e. Field Survey was used in this study to collect the data

from various Doctors in South-Delhi and the chemist‟s shops near around.

Exploratory research helps us to determine the best research design and data collection

method. There are various data limitations; we need to take decision in short period of time

for which exploratory research is suitable.

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About RANBAXY

Profile

Ranbaxy Laboratories Limited (Ranbaxy), India's largest pharmaceutical company, is an

integrated, research based, international pharmaceutical company, producing a wide range of

quality, affordable generic medicines, trusted by healthcare professionals and patients across

geographies. Ranbaxy today has a presence in 23 of the top 25 pharmaceutical markets of the

world. The Company has a global footprint in 46 countries, world-class manufacturing

facilities in 7 countries and serves customers in over 125 countries.

In June 2008, Ranbaxy entered into an alliance with one of the largest Japanese innovator

companies, Daiichi Sankyo Company Ltd., to create an innovator and generic pharmaceutical

powerhouse. The combined entity now ranks among the top 20 pharmaceutical companies,

globally. The transformational deal will place Ranbaxy in a higher growth trajectory and it

will emerge stronger in terms of its global reach and in its capabilities in drug development

and manufacturing.

Mission

Ranbaxy's mission is „Enriching lives globally, with quality and affordable pharmaceuticals.

Vision­2012

Achieve significant business in proprietary prescription products by 2012 with a strong

presence in developed markets.

Products

Using the finest R&D and Manufacturing facilities, Ranbaxy Laboratories Limited

manufacture and markets generic pharmaceuticals, value added generic pharmaceuticals,

branded generics, active Pharmaceuticals (API) and intermediates.

The Company remains focused on ascending the value chain in the marketing of

pharmaceutical substances and is determined to bring in increased revenues from dosage

forms sales.

Ranbaxy's diverse product basket of over 5,000 SKUs available in over 125 countries

worldwide encompasses a wide therapeutic mix covering a majority of the chronic and acute

segments. Healthcare trends project that the chronic treatment segments will outpace the

acute treatment segments, primarily driven by a growing aging population and dominance of

lifestyle diseases. Our robust performance in Cardiovasculars, Central Nervous System,

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Respiratory, Dermatology, Orthopedics, Nutritionals and Urology segments, clearly indicates

that the Company has strengthened its presence in the fast-growing chronic and lifestyle

disease segments.

Top 10 Molecules (2010)

•Valacyclovir

•Simvastatin

•Donepezil

•Atorvastatin & Combinations

•Co-amoxyclav & Combinations

•Ciprofloxacin & Combinations

•Ketorolac Tromethamine

•Imipenem+Cilastatin

•Ginseng+Vitamins

•Loratadine & Combinations

Trading

In 1998, Ranbaxy entered the United States, the world's largest pharmaceuticals market and

now the biggest market for Ranbaxy, accounting for 28% of Ranbaxy's sales in 2005.

For the twelve months ending on 31 December 2005, the company's global sales were at US

$1,178 million with overseas markets accounting for 75% of global sales (USA:

28%, Europe: 17%, Brazil, Russia, and China: 29%). For the twelve months ending on

December 31, 2006, the company's global sales were at US $1,300 million.

On 23 June 2006, Ranbaxy received from the United States a 180-day exclusivity period to

sell simvastatin (Zocor) in the U.S. as a generic drug at 80 mg strength. Ranbaxy competes

with the maker of brand-name Zocor, Merck & Co.; IVAX Corporation (which was acquired

by and merged into Teva Pharmaceutical Industries Ltd.), which has 180-day exclusivity at

strengths other than 80 mg; and Dr. Reddy's Laboratories, also from India, whose authorized

generic version (licensed by Merck) is exempt from exclusivity.

On 10 June 2008, Japan's Daiichi Sankyo Co. agreed to take a majority (50.1%) stake in

Ranbaxy, with a deal valued at about $4.6 billion. Ranbaxy's Malvinder Singh remained as

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CEO after the transaction. Malvinder Singh also said that this was a strategical deal and not a

sell out.

R&D

Ranbaxy views its R&D capabilities as a vital component of its business strategy that will

provide a sustainable, long-term competitive advantage. The Company has a pool of over

1,200 R&D personnel engaged in path-breaking research.

Ranbaxy is among the few Indian pharmaceutical companies in India to have started its

research program in the late 70's, in support of its global ambitions. A first-of-its-kind world

class R&D centre was commissioned in 1994. Today, the Company has multi-disciplinary

R&D centers at Gurgaon, in India, with dedicated facilities for generics research and

innovative research. The R&D environment reflects its commitment to be a leader in the

generics space offering value added formulations and development of NDA/ANDAs, based

on its Novel Drug Delivery System (NDDS) research capability. Ranbaxy‟s first significant

international success using the NDDS technology platform came in September 1999, when

the Company out-licensed its first once-a-day formulation to a multinational company.

In July 2010, Ranbaxy‟s New Drug Discovery Research (NDDR) was transferred to Daiichi

Sankyo India Pharma Private Limited as part of the strategy to strengthen the global Research

and Development structure of the Daiichi Sankyo Group. While NDDR will now become an

integral part of Daiichi Sankyo Life Science Research Center in India, based in Gurgaon,

Ranbaxy will continue to independently develop and later commercialise the anti-malarial

new drug, Arterolane + PQP, which is currently in Phase III trials. Ranbaxy will also explore

the further development of late stage programs developed by NDDR in the last few years,

including the development programs in the GSK collaboration. Within Ranbaxy, R&D of

Generics will now get a sharper focus, as the Company is increasingly working on more

complex and specialist areas.

Acquisition

On June 11, 2008, Daiichi-Sankyo acquired a 34.8% stake in Ranbaxy, for a value $2.4

billion. In November 2008, Daiichi-Sankyo completed the takeover of the company from the

founding Singh family in a deal worth $4.6 billion by acquiring a 63.92% stake in Ranbaxy.

The addition of Ranbaxy Laboratories extends Daiichi-Sankyo's operations - already

comprising businesses in 22 countries. The combined company is worth about $30 billion.

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Mr. David Briskman Mr. Ashwani Malhotra – Mr. Hiroyuki Okuzawa

Vice-President and CIO Senior Vice President- Head- Global Hybrid Business

Global Pharma Manufacturing

and Supply Chain

Dr. Sudarshan Arora Mr. Dale Adkisson Mr. Bhagwat Yagnik

President – R & D Senior Vice President President & Head – Global HR

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MILESTONES

1961 –

Company Incorporated.

1973 –

Ranbaxy goes Public.

A multipurpose chemical plant is setup for the manufacture of API‟s at Mohali in

India.

1977 –

Ranbaxy‟s first joint venture in Lagos (Nigeria) is setup.

1983 –

A modern dosage forms facility at Dewas (MP) in India goes on stream.

1985 –

Ranbaxy Research Foundation is established.

Stancare, Ranbaxy‟s second pharmaceuticals marketing division starts functioning.

1987 –

Production start-up at the modern APIs plant at Toansa (Punjab), makes Ranbaxy the

country‟s largest manufacturer of Antibiotics/Antibacterial.

1988 –

Ranbaxy‟s Toansa‟s plant gets US FDA approval.

1990 –

Ranbaxy is granted its first US patent, for Doxycyline.

1991 –

New state-of-the-art facility for Cephalossporins set up at Mohali.

1992 –

Company enters into an agreement with Eli Lilly & Co of USA for setting up a joint

venture in India to market select Lilly products.

1993 –

Company enters into an agreement to setup a joint venture in China Ranbaxy

(Guangzhou China) Limited.

Ranbaxy enunciates its corporate mission, „To become a Reasearch based

international Pharmaceuticals Company‟.

1994 –

The new Research centre in gurgaon becomes fully operational.

Established regional headquater in UK and USA.

Ranbaxy‟s GDR listed in Luxemburg‟s Stock Exchange.

The fermentation pilot plant at Paonta Sahib is commissioned.

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1995 –

Acquisition of Ohm Laboratories.

1997 –

Ranbaxy Lab Ltd. Crosses a sales turnover figure of Rs. 10,000 million, with its

export reaching an all time high of the Rs. 5,000 million.

1998 –

Ranbaxy enters USA, World‟s largest Pharmaceutical market, with product under its

own name.

Ranbaxy filed its first Investigational New Drug (IND) application with the Drugs

Controller of India for approval to conduct Phase I Clinical Trials.

1999 –

Clinical trials for its NCE commence.

Bayer AG, Germany and Ranbaxy sign an agreement where Bayer obtains exclusive

development and worldwide marketing rights to an oral once daily formulation of

Ciprofloxacin, originally developed by Ranbaxy.

2000 –

Ranbaxy files second IND application in India.

Ranbaxy acquires Bayer‟s Generic business in Germany.

Ranbaxy forays into Brazil, the largest pharmaceutical market in South America.

2001 –

Ranbaxy took a significant step forward in Vietnam by initiating the setting up of a

new manufacturing facility.

Ranbaxy USA crosses sales of US $ 100million, fastest growing company in US.

2002 –

Ranbaxy files third IND application in India.

Ranbaxy launched Cefuroxime Axetil post approval from USFDA for 125mgmg,

250mg, 500mg Tablets, first approval granted to any generic company for this

product.

2003 –

Ranbaxy receives The Economic Times Award for Corporate Excellence for the “The

Company of the Year, 2002-2003”.

Ranbaxy and Glaxo Smithkline Plc (GSK) enter into a global alliance for drug

discovery and development.

Ranbaxy‟s first NCE in the respiratory segment successfully completes Phase I

clinical trials and step into Phase II.

Ranbaxy files fourth IND application in India.

Ranbaxy launched the first branded product Soltret (Isotretinoin) for 10mg, 20mg and

40mg capsules in USA.

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2004 –

Ranbaxy began operations in France as a Top 10 generic company, after acquiring a

wholly-owned subsidiary RPG (Aventis) SA.

The company joined the elite club of Billion Dollar Companies achieving global

sales of US $ 1bn (on MAT basis) in February 2004.

Ranbaxy made its Anti-retroviral (ARV) filling with the US FDA under US

President‟s Emergency Plan AIDS Relief (PEPFAR).

RBx11160, an Anti-malarial molecule being developed in collaboration with

Medicines for Malaria Venture (MMV) successfully completed Phase I studies.

Subsequent to filling of an Investigational New Drug (IND) application in UK and

India.

2005 –

Ranbaxy‟s Antimalarial molecule successfully completed Proof of Concept Phase IIa

studies

Ranbaxy launches operations in Canada

Ranbaxy‟s joint venture with Nippon Chemiphar in Japan (Nihon Pharmaceutical

Industry Limited) launches – Vogaseal for diabetes the first product of the joint

venture.

Ranbaxy acquires generic product portfolio from EFARMES of Spain.

Ranbaxy receives India‟s first approval from USFDA for an Anti Retroviral (ARV)

drug under US Presidents Emergency Plan for AIDS Relief (PEPFAR)

Ranbaxy opens its third state of the art R&D facility in Gurgaon campus to focus on

NCE discovery research. H.E. Dr. A.P.J. Abdul Kalam, the President of India,

inaugurated the facility in Aug 05

2006 –

Ranbaxy acquires Be Tabs pharmaceuticals, the 5th

largest generic company in South

Africa for US $ 70mn.

Ranbaxy successfully invalidates Pfizer‟s „995 Lipitor US patent.

Ranbaxy acquires unbranded generic business of GSK in Italy and Spain.

Ranbaxy launches First To File (FTF) product, Smivastatin Tabalets 80mg with

180day market exclusivity in the US Healthcare System.

Ranbaxy enters strategic alliance with Zenotech.

2007 –

Ranbaxy enters new R&D agreement with GSK

Ranbaxy Launches First To File (FTF) product, Pravastatin Sodium Tabalets 80mg

with 180day market exclusivity in the US Healthcare System.

2008 –

Ranbaxy redefines its business model by bringing in Daiichi Sankyo Company

Limited as a majority partner to create strategic combination of an Innovator and

Generic powerhouse.

Ranbaxy reaches settlement with on world‟s top two selling drugs Lipitor (Pfizer)

and Nexium (Astra Zeneca)

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2009 –

Daiichi Sankyo and Ranbaxy announce reconstitution of Ranbaxy executive

leadership.

2010 –

Ranbaxy enters its Golden Jubilee Year.

Ranbaxy delivers quarterly sales of over US $500mn for the first time.

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Task 1 :- Doctors perception while prescribing Multi-Vitamin and Anti-

Biotic- Cefexime.

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1.1 Objective of the study:

To take a comprehensive view and analyze the parameters affecting Doctor‟s perception.

1.2 Rationale of study:

The purpose of this study is to assist Ranbaxy in promotion of SKIFI and know where they

have to improve in their service toward Doctors and patients.

1.3 Methodology:

Visiting Doctors in various regions of South-Delhi with different specializations.

Study Design:

The study was done to know the perception of the Doctor, their attitude towards

company‟s product.

Sample Design:

Collect primary data through exploratory research specifically field survey, by

Visiting Doctors of varied kind of specialization.

1.4 Tools of data collection:

Questionnaire:

A questionnaire is a research instrument which consists of series of questions and

other prompts for the purpose of gathering information from respondents. Although

they are often designed for statistical analysis of the responses, this is not always true.

Questionnaires have advantages over some other types of surveys in that they are

cheap, do not require as much effort from the questioner as verbal or telephone

surveys, and often have standardized answers that make it simple to compile data.

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1.5 Analysis of Survey:

i) Area visited.

(1) Safdarjung Enclave

(2) Hauz Khas

(3) Lajpat Nagar

(4) Moti Bagh

(5) Sarojini Nagar

(6) Satya Niketan

(7) R.K. Puram

(8) Defense Colony

(9) Kotla, South-Extension

(10) Nehru Nagar

(11) IIT-Delhi

ii) Specialization of a Doctor.

(1) BDS

(2) MBBS

(3) MD (med)

(4) MD (paed)

(5) MD (gynea)

(6) MS

(7) MS (ENT)

MD MBBS BDS MS

Series1 21 18 1 4

0

5

10

15

20

25

Nu

mb

er

of

Do

cto

rs

Chart Title

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iii) Perception before prescribing multi-vitamin.

1. Physical Verification

2. Dosage Routine of a Medicine

3. Tests Result

4. Kind of Deficiency

5. Cost of Medicine to a Patient

6. Company's Repute

7. Trust upon a Product

8. Past Experiences with a particular formula

9. Feed-back from customer

10. Nutritional Status of a Patient when he comes to clinic

11. Basic Nutrients in right quantity

12. Patients Past records

13. Cause of Deficiency

14. Patient‟s age factor

15. Daily activity of a patient

16. Health Trend of a Patient

17. Family's Health history of a patient

iv) Perception before prescribing Anti-biotic

1. Strength of a Medicine

2. Patients Immunity

3. Cause of an Infection

4. Substitutes available

5. Kind of Infection

6. Medicines Reaction

7. Evidence Based

8. Is that infection spreading through environment?

9. Past Health conditions of a Patient

10. Since how long the patient has been suffering the problem?

11. Cost of medicine?

12. Dosage of a medicine

13. Past results of a medicine

14. Possible type of bacteria

iv) Foresee the future trend in health conditions of people.

1. Multiple Health Problems

2. Nutrients Problem

3. General health Problem

4. Life Style Disease

5. Obesity

6. Health deteriorating

7. Lack of physical activity

8. Infectious disease in rural areas

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9. Modifiable disease in Urban areas

10. More health concerned

11. Heart Problems

12. Blood Pressure

13. Workload Issues

14. Aware about health problems

v.) Suggestions for Ranbaxy to improve.

1. Missing opportunity to grow.

2. Should help patients.

3. Support patients with medical facilities.

4. Start online support to patients.

5. Reduce Cost of the products.

6. Bringing more products for good stiff competition.

7. Good Professional staff is there.

8. Bring out combinations with previous products.

9. Doing well.

10. Loosing grip over the market.

1.6 Short Coming:

There were few short comings which I came through during the tenure of my summer

internship with Ranbaxy Lab Limited. A few to mention are:-

a. Time shortage.

b. Area Covered.

c. Number of Doctors visited.

1.7 Conclusion:

Business Research for Ranbaxy was conducted successfully and we found out various

feedbacks of customers which would be helpful for us to improve.

1.8 Learning:

I learned a lot; seen how to do marketing at ground level, communicated with new people,

improved my managerial skills. I was working in team, learned how a team work could

conduct a successful event.

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TASK 2: Market Potential of Multi-Vitamin and Antibiotics – Cefexim

(OTC and Prescription driven)

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1.1 Objective of the study:

To take a competitive view of sales and sales strategy adopted by different companies in

market.

1.2 Rationale of study:

The purpose of this study is to assist Ranbaxy in promotion of SKIFI and know what is the

present market stand of different companies providing same medicine.

1.3 Methodology:

Visiting a few Retail shops in various regions of South-Delhi.

Study Design:

The study was done to know what is the present market stand of different companies

providing same medicine and what to do more with our new product SKIFI.

Sample Design:

Collect primary data through exploratory research specifically field survey, by visiting

Retail shops in various areas.

1.4 Tools of data collection:

Questionnaire:

A questionnaire is a research instrument which consists of series of questions and

other prompts for the purpose of gathering information from respondents. Although

they are often designed for statistical analysis of the responses, this is not always true.

Questionnaires have advantages over some other types of surveys in that they are

cheap, do not require as much effort from the questioner as verbal or telephone

surveys, and often have standardized answers that make it simple to compile data.

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1.5 Analysis of Survey:

a) Area Visited.

(1) Safdarjung Enclave

Revital (strip)17%

Revital (bt)10%

Riconia17%

Supradin15%

Zincovit25%

Superactive16%

Multi-Vitamin

Skifi4%

Taxim-O31%

Zifi24%

Ceftas21%

Mahacef20%

Anti-Biotic (Cefexime)

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(2) Hauz Khas

Revital (strip)32%

Revital (bt)12%

Riconia19%

Supradin12%

Zincovit13%

Superactive12%

Multi-Vitamin

Skifi3%

Taxim-O30%

Zifi37%

Ceftas18%

Mahacef12%

Anti-Biotic (Cefexime)

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(3) Lajpat Nagar

Revital (strip)22%

Revital (bt)11%

Riconia16%

Supradin19%

Zincovit19%

Superactive 13%

Multi-Vitamin

Skifi5%

Taxim-O26%

Zifi38%

Ceftas21%

Mahacef10%

Anti-Biotic (Cefexime)

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(4) Moti Bagh

Revital (strip)13%

Revital (bt)12%

Riconia14%

Supradin19%

Zincovit20%

Superactive22%

Multi-Vitamin

Skifi7%

Taxim-O23%

Zifi35%

Ceftas24%

Mahacef11%

Anti-Biotic (Cefexime)

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(5) Sarojini Nagar

Revital (strip)17%

Revital (bt)10%

Riconia17%

Supradin15%

Zincovit25%

Superactive16%

Multi-Vitamin

Skifi4%

Taxim-O31%

Zifi24%

Ceftas21%

Mahacef20%

Anti-Biotic (Cefexime)

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(6) Satya Niketan

Revital (strip)17%

Revital (bt)9%

Riconia17%

Supradin23%

Zincovit18%

Superactive16%

Multi-Vitamin

Skifi3%

Taxim-O21%

Zifi27%

Ceftas20%

Mahacef29%

Anti-Biotic (Cefexime)

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(7) R.K. Puram

(8) Defense Colony

(9) Kotla, South-Extension

(10) Nehru Nagar

(11) IIT-Delhi

b) Location of a store.

(1) Near Doctor‟s clinic

(2) Inside the hospital

(3) In residential area

Revital (strip)17%

Revital (bt)14%

Riconia14%Supradin

14%

Zincovit29%

Superactive12%Multi-Vitamin

Skifi1%

Taxim-O32%

Zifi25%

Ceftas18%

Mahacef24%

Anti-Biotic (Cefexime)

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c) Product wise sale.

1.4 Conclusion:

Today Cefexime formula is 17years old, but still its growing at a rate of 20%. This means that the

market is very huge. There are very few products for cefexime formula in market. Today Cipla is on

top in market but their staff and customer treatment is of below average quality, thus there is a

tremendous scope for Ranbaxy to capitalize on customer relation because today‟s competition is not

only on product but also on maintaining customer relation, it is not only selling product but how you

treat customers pre-sales and post-sales.

Skifi is a new comer in the market but has its own USP of being mouth dissolving and in mangor

flavor which is first in its kind and its price is also comparatively less than others. It cost Rs. 7.50 per

Revital (strip)20%

Revital (bt)11%

Riconia15%Supradin

18%

Zincovit22%

Superactive14%

South Delhi Company's sales in Multi-Vitamin

Skifi4%

Taxim-O27%

Zifi30%

Ceftas21%

Mahacef18%

South Delhi Company's sales in Anti-Biotic (cefexime)

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tablet to a retailor. So though being a new comer to a market we can see the scope of huge demand for

the product.

By overall analysis, we could company name in order of their performance as to satisfy customer

(best coming on top), it would be:

1. Ranbaxy

2. FDC

3. Torrent

4. Lupin

5. Cipla

6. Sun Pharma

7. Zydus Cadilla

1.5 Learning:

Patience is among the most important quality needed in a staff to be in field and to work with

growth.

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Bibliography 1) www.ranbaxy.com/

2) http://en.wikipedia.org/wiki/Ranbaxy_Laboratories

3) http://www.cci.in/pdf/surveys_reports/indias_pharmaceutical_industry.pdf

4) http://www.cci.in/pdf/surveys_reports/indian-pharmaceuticals-industry.pdf

5) http://bw.businessworld.in/PDF_upload/Indian_Pharma.pdf