...Patents Act in 1970.[5] However, economic liberalization in 90s by the former Prime Minister P.V. Narasimha Rao and the thenFinance Minister, Dr. Manmohan Singh enabled the industry to become what it is today. The lack of patent protection made the Indian market undesirable to the multinational companies that had dominated the market, and while they streamed out. Indian companies carved a niche in both the Indian and world markets with their expertise in reverse-engineering new processes for manufacturing drugs at low costs. Although some of the larger companies have taken baby steps towards drug innovation, the industry as a whole has been following this business model until the present. The number of purely Indian pharma companies is fairly low. Indian pharma industry is mainly operated as well as controlled by dominant foreign companies having subsidiaries in India due to availability of cheap labour in India at lowest cost. In 2002, over 20,000 registered drug manufacturers in India sold $9 billion worth of formulations and bulk drugs. 85% of these formulations were sold in India while over 60% of the bulk drugs were exported, mostly to the United States and Russia[25]. Most of the players in the market are small-to-medium enterprises; 250 of the largest companies control 70% of the Indian market.[8]Thanks to the 1970 Patent Act, multinationals represent only 35% of the market, down from 70% thirty years ago In terms of the global...
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...Key Issues & Economic Pressures Impacting the Pharmaceutical Industry in 2015 Presented to: Dr. Siamack Shojai Economic Analysis 6090, William Paterson University December 15th, 2015 The pharmaceutical industry has experienced tremendous growth over the past few decades, with a substantial change in the market dynamic from a provider, healthcare plan & patient perspective. Medical advancements coupled with research & development efforts have expanded the product base in terms of a variety of new treatments across numerous therapeutic classes. As depicted in the illustration below, the total global pharmaceutical sales reached $1,057,000,000 in 2014; based on the past 10 years we can expect the forecast to show a similar increase over the next few years. IMS Health Market Prognosis, May 2015 Of all the changes visible within the pharmaceutical market, there are a few that are truly revolutionizing the market: US healthcare reform, emergence of specialty product markets, price strategy & mergers & acquisitions. The healthcare market has changed under Obama, opening healthcare coverage to more patients & bringing forth treatment & medication to a larger population. The emergence of specialty products pose an entirely new challenge to the market in terms of the doctor’s prescribing habits, healthcare plan coverage & out-of-pocket cost to the patient. This along with other economic pressures brings an entirely new perspective to pharmaceutical...
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...Objective of the study: To begin to understand how Globalization has shaped the world population and how the so called third world countries can benefit from the ever growing interconnectedness and interdependence of the trade and commerce which is inseparable from just about every aspect of our lives – what we eat, what we wear, what kind of houses we live in, how we treat our sick & ill or how we show off. To be more precise, we aim to understand the problems facing us in the International Trade & commerce by looking at WTO principles and framework and what we need to do to address these issues so as to deliver more benefit to us. Introduction: WTO (World Trade Organisation) is an organisation that supervises the international trade. The organisation replaced the GATT in 1995. Broadly speaking, WTO deals with issues related to regulation of trade between participating member counties by providing the members with a framework for negotiations, trade agreements and dispute / conflict resolution process. These frameworks are evolved from earlier negotiations under the GATT and are ratified by the governments of the member countries. The member countries are 159 in number, so it can be safely said that WTO is at the forefront of the global trade and commerce and is spearheading a campaign for the global economic development. The organisation has its headquarters in Geneva, Switzerland and the Director General is Mr. Pascal Lemy. Research Methodology: This research...
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...Suppliers Power of Customers Threat to substitute products Lets discuss each of these points in detail: Competition in the Industry: This describes the competition between the existing firms in an industry. Greater the competitive riverly (companies providing equally good products or services) lesser are the profit margin. The price of the product/services is the single most defining factor that influences the customer's buy decision. Hence to maintain low cost, companies consistently has to make manufacturing improvements to keep the business competitive. This requires additional capital expenditure which tends to eat up company's earning. On the other hand if no one else can provide products/ services the way you do you have a monopoly. Lets try to explore these points in more detail. Look at the current senario, the small car market in India is very competitive with players like Maruti Suzuki, Tata Motors, Huyndai etc. which was preety much dominated by Maruti. But with launch of Nano the 1 lakh car the whole momentum of the market has shifted. Now to be competitive in market other companies have to either slash rates of their existing model or have to go back to the drawing board and build again. Now look it from Tata Motor's perspective what price they had to pay to gain such advantage. Building new production plant, raw material & equiptments, labor etc. which accounts to huge capital...
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...R&D. * The whole industry has a bad reputation because of former issues so it is difficult to have a positive image. * Also, you need numerous sales representatives to have a real impact on the market and to get a global commercial reach. * Threat of rivalry : important * Even niches areas in this industry are more and more crowded. * The top 10 pharmaceutical firms stand for 50% of the global sales. * There is he generic competition from which branded drugs producers are suffering. Indeed when the lifetime of a patent is over , generic companies rush to the market and offer drugs with the same active components but in a very low cost. There is also a real competition between generic companies. * Medium-sized pharmas have to consider M&A as a survival strategy. 2- Which factors explain the wave of mergers and acquisitions in the pharmaceutical industry? The pharmaceutical industry is a really special one, on the contrary of the most part of industries there is very few new products coming to market. Indeed, a lot of money and a really long time are necessary to come up with a new drug (about £500 million and 10years). Therefore, to fight against those expensive costs, mergers and acquisitions are really common in this market. Indeed by centralizing R&D, production, direction etc. they could impressively cut their costs while increasing their capital. Moreover, firms merging share their strengths and weaknesses thus...
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...‘ Health Care Delivery Systems Issue Report: Cost of Prescription Medications Jill Stanley Seattle Pacific University Health Care Delivery Models NUR 4944 July 19, 2014 Most everyone knows that the United States has the leading role when it comes to health care spending and pays out almost one thousand dollars per person per year on pharmaceuticals (Paris, 2014). Sadly, while the financial burden is high for the average family, many Americans are not taking their recommended medications because of the high costs. One in five Americans skip doses because of the cost (Paris, 2014). While there are many things nurses can do to enhance prescription medication compliance, understanding costs and helping implement ways in which patients can control costs, while promoting better outcomes, is critical. The United States spends almost 800 dollars a unit per population on prescription drugs, more than any other country and almost twice the average of 401 dollars per capita (OECD), (Ginsburg et al., 2009, p. 28). Prescriptions account for 17% of all privately insured health care costs and 25.4% of out of pocket spending according to Health Care Cost and Utilization Report (HCCI): 2011. Brand name or patented drugs have increased in price by 17.7% from 2010 to 2011 and generic drugs have actually decreased in cost by -7.2% for the same years from the same HCCI report. Generic drugs have had an increase in utilization from consumers’ while brand name has decreased and this...
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...Week 1: The economic foundations of theories in strategy Corporate strategy; where to compete, portfolio, parent level Competitive strategy; how to compete, SBU, competitive advantage Three layers of theory: management – strategic management – economies Paradox: how is it possible to have a general statement about uniqueness? We try to have general statements about uniqueness. Theory=general statement about cause and effect Stoelhorst, J.W. (2008), Thinking about Strategy Stoelhorst: 5 Schools of thought about strategy • Prescriptive schools: ○ 1960s: Design school (strategy formulation) ○ 1970s: Planning school (strategy formulation) ○ 1980s: Positioning school (strategic analysis) ○ 1990s: Resource-based school (strategic analysis) • Descriptive school: ○ 1980s onwards: Process school Design school: Strategy formulation is a process of conception The CEO formulates a clear, simple, and unique strategy (business policy) through a deliberate process of conscious thought. There should be a fit between a firm’s strengths and weaknesses and external opportunities and threats (SWOT analysis). Strategy formulation and implementation are clearly separate activities. Planning school: Strategy formulation is a formal process ...
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...mentioned). The note covers the overall industry environment with in-depth discussion of the driving forces in the industry such as globalisation (in particular global regulatory issues, changing world demographics and worldwide pricing disparities); development of new technology; the importance of time to market; and amalgamations. The case also examines issues around corporate social responsibility. 2. Position of the Case The pharmaceutical industry case study lends itself to: • assessing an organisation’s competitive environment, using the following analysis frameworks: – PESTEL, – Porter’s five forces, – Scenario planning; • • • discussing issues around co-operation and alliance; establishing the role of critical (winner) products for big drug companies; assessing the role of ethics in corporate strategy; and 187 © Pearson Education...
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...Monday, April 21, 2008 Roche vs CIPLA: The Rhetoric of Patent Busting Roche, a multinational pharma company and CIPLA, a generic manufacturer from India. CIPLA brazenly defied Roche's patent over an anticancer drug, Tarceva and went ahead and introduced a generic version at 1/3rd the price. It claimed that the patent ought not have been granted in the first place. CIPLA's counsel, Arun Jaitley argued very persuasively in court that Roche's drug did not meet the requirements of section 3(d), a unique section introduced into India's patent regime in 2005 to prevent a phenomenon widely known as "evergreening". Under section 3(d), derivatives of existing pharmaceutical substances would not merit patent protection, unless such derivative was more "efficacious" than the earlier existing pharma substance. The section was challenged by Novartis as being violative of TRIPS and of the Indian constitution CIPLA also stressed that since the price differential between the patented drug and the generic version sold by CIPLA was extremely high, "public interest" demanded that no injunction be granted in favour of Roche. In a remarkably sophisticated and well researched judgment, Justice S Ravindra Bhat of the Delhi High Court ruled in favour of CIPLA. The matter is now under appeal. Unless Roche is able to demonstrate empirically that CIPLA's lower prices for Tarceva (the lung cancer drug in issue) does not really translate to increased access to poor patients, it is difficult...
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...The Global Pharmaceutical Industry Case Analysis This case by Sarah Holland and Bernardo Bátiz-Lazostudies studies the evolution of the ethical pharmaceutical industry and analyses the various forces affecting the discovery, development, production, distribution and marketing of prescription drugs. The authors further analyses the critical issues of corporate social responsibility in the industry and the strategies being followed by major pharmaceutical companies and the challenges and opportunities for the future. This case bases its research to find evidence to support or disprove findings of a report published in the Gardiner by analysts at the investment bank of Dresdner Kleinwort Wasserstein which claimed that the world's major drugs companies are operating a business model that is unsustainable and rapidly running out of steam. On the surface however, the pharmaceuticals business seems like the epitome of a modern, mature industry that has found a comfortable way to make profits by the billion. According to the case large pharmaceuticals companies are currently facing the most challenging times since a decade. Even though the industry has made tremendous contributions to human well-being, its roles and actions are still criticized by the media and under constant scrutiny by national governments in their efforts to reduce expenditure in healthcare. Stringent laws and regulations have come in action which has made product approval, pricing and promotions costlier...
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...MNC's Effect on Local Businesses in Retailing Sector (India) Contents Abstract 1 Introduction 2 Literature Review 2 Effect of MNC’s into Indian Retail Market 5 Advantages 5 Disadvantages 7 Hypothesis 8 Conceptual Model 8 Conclusion 10 References 10 Abstract Globalization paved the way for entrepreneurs to expand their wings beyond their respective counties. MNCs exploit the business opportunities in other countries based on the FDI policies in those countries. This has both advantages and disadvantages to the target country. The MNCs have their impact on the economy and people of countries in which they operate business. This paper focuses on the impact of MNCs on local businesses in retail sector in India. The report review existing literature which provides insights into FDI policies in India, the level of FDI allowed by Indian government with respect to single –brand and multi-brand foreign companies, the advantages, opportunities, risks, threats and disadvantages of allowing MNCs into retailing sector in India. Introduction Retailing is the business taking up by individuals or families in India. Generally mom and pop kind of businesses operate in retail sector. The retail sector has tremendous growth in India. Moreover retailing is a profitable business in India. Since India is the country with huge population, naturally it is the correct destination to foreign investors to get profits from the market. India has been traditionally depending...
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...“arbitrage” in a ra ce- to-the- bottom. U.S. re al median wages at ‘70s levels. Income inequality at Robb er-Baron-era levels. When manufa cturing, good jobs go tax bases shrink – and schools, public services, infrastructure cut, and construction sector unemployment soars. Floods of unsafe imported food, products. Financial deregulation, instability and repe ated financial crises. He alth, labor, land use, other public interest laws around world atta cked in foreign tribunals. Some dump ed. Initiatives chilled. Billions extra cted from taxpayers and paid to corporations for violations of new “rights.” Drug prices up. In poor nations, de adly cut in a cce ss to meds. Rich nation higher prices slam poor consumers, govt budg ets as Big PhRMA profits soar. U.S. loses 170,000 family farms. In ‘12, volume of U.S. food exports only 1% higher than ’95 (when NAFTA-WTO started). Imports of food now 97% above ‘95 level. Livelihoods of tens of millions of pe asant farmers destroyed, mass migrations, hunger incre ased. Growth rates decline in nations that follow NAFTA-WTO model. U.S. In c ome Ine q u ality a t Levels not See n Sin c e Ro bb er Baron Era Incre ased inequality is prediction of free trade theory, question is degree of effect Trade affects types of jobs available in U.S., wage levels DoL: average manufa cturing worker displa ce d went from e arning $40,154 to...
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...GCC Pharmaceutical Industry March 31, 2013 Alpen Capital was awarded the “Best Research House” at the Banker Middle East Industry Awards 2011 GCC Pharmaceutical Sector | March 31, 2013 Page | 2 Table of Contents 1. 1.1. 1.2. 1.3. 1.4. EXECUTIVE SUMMARY............................................................................ 6 Scope of the Report .................................................................................. 6 Key Growth Drivers .................................................................................. 6 Key Challenges ........................................................................................ 6 Trends .................................................................................................... 7 2. 2.1 2.2 2.3 2.4 2.5 2.6 2.7 GCC PHARMACEUTICAL INDUSTRY OVERVIEW ...................................... 8 GCC Pharmaceutical Market Overview ............................................................. 8 The UAE Pharmaceutical Market .................................................................... 11 The Saudi Arabian Pharmaceutical Market ...................................................... 13 The Kuwaiti Pharmaceutical Market ............................................................... 15 The Qatari Pharmaceutical Market ................................................................. 16 The Bahraini Pharmaceutical Market .............................................................. 17 The...
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...Case study notes This case has been updated to include the Apple iPad. Principally this is case explores the issue of licensing and how successful firms can become unsuccessful. It is not a case about Apple and why it has become successful. This case study explores the rise of the Apple Corporation. The Apple iPod is one of the most successful new product launches in recent years, transforming the way the public listens to music, with huge ramifications for major record labels. More than 50 million MP3 players are expected to be sold in 2005; over a third more than last year. Mobile phones have long been regarded as the most credible challengers to MP3 players and iPods. The launch of digital download services via mobile phones illustrates the dramatic speed of convergence between the telecom and media industries, which many observers expect to usher in a new era of growth for mobile phones. Users are willing to pay more for additional services and many analysts predict that mobile phone handsets will eventually emerge as the dominant technology of the age, combining personal organisers, digital music players and games consoles in a single device. Indeed, Microsoft founder Bill Gates has predicted that mobile phones will supersede the iPod as the favoured way of listening to digital music. The launch of the Apple ipad in 2010 makes this case even more topical. This should form the basis of supplementary questions at the end of the case: How will the iPhone succeed? What about...
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...Introduction Foreign Market Entry Modes The decision of how to enter a foreign market can have a significant impact on the results. Expansion into foreign markets can be achieved via the following modes: ▪ Exporting (Direct/ Indirect Exporting) ▪ Licensing/ Franchising ▪ Contract Manufacturing ▪ Management contract ▪ Assembly Operation ▪ Fully Owned Manufacturing Facility ▪ Joint Venture ▪ Mergers & Acquisitions ▪ Strategic Alliance ▪ Third Country Location ▪ Counter Trade ▪ Direct investments Heading : Mahindras Take a Giant Leap with Insurance Arm Deal By : Satish John, Mumbai. Date : 21st Septermber 2012 News Paper : Economic Times Us-based LeapFrog’s purchase of 15% in a key Mahindra & Mahindra Group subsidiary hasgiven the auto to tourism group several fold returns on its original investment and the third such high return investment for its investors in less than a decade. LeapFrog, the world’s largest insurance investor for low-income customers on Thursday said ti would buy a 15% stake in Mahindra Insurance Brokers for Rs. 80.41 Crore. This firm which is subsidiary of the much bigger and better know M&M Financial services was started in 2004 for a measly Rs. 50 Lakh.The LeapFrong purchase values the firm at Rs. 520 crore. LeapFrog specfialises in investing in companies that cater to rural markets.”We feel very proud that we invested Rs. 50 Lakh and today...
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