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


THE PROJECT IS DEDICATED TO ALL THE

STUDENTS OF PHARMA MBA

Who desire to be an entrepreneur someday…

3


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


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


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


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


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


Fig 1 :- Location of pharma industries in India1

9


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


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


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


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


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


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

http://forums.about.com/ab-management/messages/?msg=684.1&lgnf=y

15


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


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


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


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


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


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


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


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


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


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


• 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


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


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


• 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


# 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


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


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


# 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


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


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


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


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


# 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


# 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


# 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


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


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


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


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


Notice of the situation / change of situation of registered office

2.8 FORM NO. 187

Registration No. of the Company Nominal Capital: Rs


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


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


2.9 FORM NO 297

Registration No. of Company ........................ Nominal Capital Rs. ...................................


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


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


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. ...................................


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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

http://en.wikipedia.org/wiki/Asthma

http://en.wikipedia.org/wiki/Cervicitis

http://en.wikipedia.org/wiki/Gonorrhea

http://en.wikipedia.org/wiki/Chlamydia_infection

http://en.wikipedia.org/wiki/Non-gonococcal_urethritis

http://en.wikipedia.org/wiki/Non-gonococcal_urethritis

http://en.wikipedia.org/wiki/Immune_systems

http://en.wikipedia.org/wiki/Immune_systems

http://en.wikipedia.org/wiki/Sinusitis

http://en.wikipedia.org/wiki/Typhoid

http://en.wikipedia.org/wiki/Pneumonia

http://en.wikipedia.org/wiki/Strep_throat

http://en.wikipedia.org/wiki/Otitis_media

http://en.wikipedia.org/wiki/Bacterial_infections

http://en.wikipedia.org/wiki/Antibiotics

http://en.wikipedia.org/wiki/Macrolide

http://en.wikipedia.org/wiki/Azalide

71


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

http://en.wikipedia.org/wiki/Black_box_warning

http://en.wikipedia.org/wiki/Hepatoxicity

http://en.wikipedia.org/wiki/Peripheral_neuropathy

http://en.wikipedia.org/wiki/Anticoagulation

http://en.wikipedia.org/wiki/Arrhythmia

http://en.wikipedia.org/wiki/Cardiotoxicity

http://en.wikipedia.org/wiki/Enantiomer

http://en.wikipedia.org/wiki/Racemic

http://en.wikipedia.org/wiki/Ofloxacin

http://en.wikipedia.org/wiki/Chirality_(chemistry)

http://en.wikipedia.org/wiki/Fluoroquinolone

http://en.wikipedia.org/wiki/Chemotherapeutic

http://en.wikipedia.org/wiki/MRNA

http://en.wikipedia.org/wiki/Translation_(biology)

http://en.wikipedia.org/wiki/Ribosome

http://en.wikipedia.org/wiki/Protein_synthesis

http://en.wikipedia.org/wiki/Bacterium

72


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

http://en.wikipedia.org/wiki/Beta-lactamase

http://en.wikipedia.org/wiki/Penicillin

http://en.wikipedia.org/wiki/Beta-lactam_antibiotic


http://en.wikipedia.org/wiki/Bactericidal

http://en.wikipedia.org/wiki/Tonsilitis

http://en.wikipedia.org/wiki/Gonorrhea

http://en.wikipedia.org/wiki/Antibiotic

http://en.wikipedia.org/wiki/Cephalosporin

http://en.wikipedia.org/wiki/Cephalosporin

http://en.wikipedia.org/wiki/Penicillin

http://en.wikipedia.org/wiki/Ribosomal

http://en.wikipedia.org/wiki/Eukaryotic

http://en.wikipedia.org/wiki/Antibiotic

http://en.wikipedia.org/wiki/DNA_replication

http://en.wikipedia.org/wiki/Topoisomerase_IV

http://en.wikipedia.org/wiki/Gyrase

http://en.wikipedia.org/wiki/Topoisomerase_IV

http://en.wikipedia.org/wiki/Gyrase

http://en.wikipedia.org/wiki/Fluoroquinolones

http://en.wikipedia.org/wiki/Quinolones

73


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.

http://en.wikipedia.org/wiki/Gastric_juice

http://en.wikipedia.org/wiki/BFGF

http://en.wikipedia.org/wiki/Epidermal_growth_factor

http://en.wikipedia.org/wiki/Prostaglandin

http://en.wikipedia.org/wiki/Bile_acid

http://en.wikipedia.org/wiki/Ions

http://en.wikipedia.org/wiki/Hydrogen

http://en.wikipedia.org/wiki/Diffusion

http://en.wikipedia.org/wiki/Bile

http://en.wikipedia.org/wiki/Pepsin

http://en.wikipedia.org/wiki/Acid

http://en.wikipedia.org/wiki/Insoluble

http://en.wikipedia.org/wiki/Fibrinogen

http://en.wikipedia.org/wiki/Albumins

http://en.wikipedia.org/wiki/Proteins

http://en.wikipedia.org/wiki/Dose_(biochemistry)

http://en.wikipedia.org/wiki/Buffering_agent

http://en.wikipedia.org/wiki/Viscosity

http://en.wikipedia.org/wiki/Stomach

http://en.wikipedia.org/wiki/Hydrochloric_acid

http://en.wikipedia.org/wiki/Chemical_substance

http://en.wikipedia.org/wiki/1981_in_science

http://en.wikipedia.org/wiki/Food_and_Drug_Administration_(United_States)

http://en.wikipedia.org/wiki/Cytoprotectant

http://en.wikipedia.org/wiki/Buffering_agent

http://en.wikipedia.org/wiki/Gastrointestinal_tract

http://en.wikipedia.org/wiki/Hydrochloric_acid

http://en.wikipedia.org/wiki/Complex_(chemistry)

http://en.wikipedia.org/wiki/Aluminium

http://en.wikipedia.org/wiki/Sulfate

http://en.wikipedia.org/wiki/Sucrose

http://en.wikipedia.org/wiki/Peptic_ulcers

http://en.wikipedia.org/wiki/Medications

http://en.wikipedia.org/wiki/Peptic_ulcer

http://en.wikipedia.org/wiki/Stress_(medicine)

http://en.wikipedia.org/wiki/Gastroesophageal_reflux_disease

http://en.wikipedia.org/wiki/Duodenal

http://en.wikipedia.org/wiki/Medication

http://en.wikipedia.org/wiki/Gastrointestinal



http://en.wikipedia.org/wiki/Penicillin-binding_protein

http://en.wikipedia.org/wiki/Transpeptidase

http://en.wikipedia.org/wiki/Cell_wall

http://en.wikipedia.org/wiki/Peptidoglycan

74


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.

http://en.wikipedia.org/wiki/Lipoproteins

http://en.wikipedia.org/wiki/Essential_nutrient

http://en.wikipedia.org/wiki/Food_coloring

http://en.wikipedia.org/wiki/Antioxidant

http://en.wikipedia.org/wiki/Conjugated_system

http://en.wikipedia.org/wiki/Isoprene

http://en.wikipedia.org/wiki/Terpene

http://en.wikipedia.org/wiki/Alkene

http://en.wikipedia.org/wiki/Beta_carotene

http://en.wikipedia.org/wiki/Photosynthesis

http://en.wikipedia.org/wiki/Algae

http://en.wikipedia.org/wiki/Plant

http://en.wikipedia.org/wiki/Vitamin_A

http://en.wikipedia.org/wiki/Papaya

http://en.wikipedia.org/wiki/Watermelon

http://en.wikipedia.org/wiki/Carrot

http://en.wikipedia.org/wiki/Tomato

http://en.wikipedia.org/wiki/Phytochemical

http://en.wikipedia.org/wiki/Carotenoid

http://en.wikipedia.org/wiki/Carotene

http://en.wikipedia.org/wiki/Lycopersicum

http://en.wikipedia.org/wiki/New_Latin

http://en.wikipedia.org/wiki/Acid

http://en.wikipedia.org/wiki/United_Kingdom

http://en.wikipedia.org/wiki/Brazil

http://en.wikipedia.org/wiki/Japan

http://en.wikipedia.org/wiki/South_Africa

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Hemorrhoid

http://en.wikipedia.org/wiki/Esophagitis

http://en.wikipedia.org/wiki/Peptic_ulcer_disease

http://en.wikipedia.org/wiki/Peptic_ulcer_disease

http://en.wikipedia.org/wiki/Antacid

http://en.wikipedia.org/wiki/Local_anesthetic

http://en.wikipedia.org/wiki/International_Nonproprietary_Name

75


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.

http://en.wikipedia.org/wiki/Blood-brain_barrier

http://en.wikipedia.org/wiki/Bloodstream

http://en.wikipedia.org/wiki/Gastrointestinal_tract

http://en.wikipedia.org/wiki/Cough

http://en.wikipedia.org/wiki/Common_cold

http://en.wikipedia.org/wiki/Over-the-counter_drug

http://en.wikipedia.org/wiki/Drug

http://en.wikipedia.org/wiki/Cough_suppressant

http://en.wikipedia.org/wiki/Antitussive

http://en.wikipedia.org/wiki/Blood-brain_barrier

http://en.wikipedia.org/wiki/Urticaria

http://en.wikipedia.org/wiki/Angioedema

http://en.wikipedia.org/wiki/Hay_fever

http://en.wikipedia.org/wiki/Allergies

http://en.wikipedia.org/wiki/Inverse_agonist

http://en.wikipedia.org/wiki/Histamine_H1_receptor

http://en.wikipedia.org/wiki/Racemic

http://en.wikipedia.org/wiki/Hydroxyzine

http://en.wikipedia.org/wiki/Metabolite

http://en.wikipedia.org/wiki/Antihistamine

http://en.wikipedia.org/wiki/Muscarinic_acetylcholine_receptor

http://en.wikipedia.org/wiki/Dopamine

http://en.wikipedia.org/wiki/Chemoreceptor_trigger_zone

http://en.wikipedia.org/wiki/Medulla_oblongata

http://en.wikipedia.org/wiki/Vagus_nerve

http://en.wikipedia.org/wiki/Chemotherapy

http://en.wikipedia.org/wiki/Vomiting

http://en.wikipedia.org/wiki/Nausea

http://en.wikipedia.org/wiki/Antiemetic

http://en.wikipedia.org/wiki/5-HT3_antagonist

http://en.wikipedia.org/wiki/Serotonin

http://en.wikipedia.org/wiki/GlaxoSmithKline


76


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.

http://en.wikipedia.org/wiki/Pregnancy_category

http://en.wikipedia.org/wiki/Food_and_Drug_Administration

http://en.wikipedia.org/wiki/Premature_labor

http://en.wikipedia.org/wiki/Tocolytic

http://en.wikipedia.org/wiki/Bronchodilator

http://en.wikipedia.org/wiki/Antitussive

http://en.wikipedia.org/wiki/Lungs

http://en.wikipedia.org/wiki/Phlegm

http://en.wikipedia.org/wiki/Cilia

http://en.wikipedia.org/wiki/Secretomotoric

http://en.wikipedia.org/wiki/Respiratory_tract

http://en.wikipedia.org/wiki/Mucus

http://en.wikipedia.org/wiki/Respiratory_system

http://en.wikipedia.org/wiki/Mucolytic

http://en.wikipedia.org/wiki/Infection

http://en.wikipedia.org/wiki/Bronchial

http://en.wikipedia.org/wiki/Pneumocytes

http://en.wikipedia.org/wiki/Surfactant

http://en.wikipedia.org/wiki/Biosynthesis

http://en.wikipedia.org/wiki/Respiratory_tract

http://en.wikipedia.org/wiki/Secretomotoric

http://en.wikipedia.org/wiki/Drug

http://en.wikipedia.org/wiki/Mucus

http://en.wikipedia.org/wiki/Respiratory

77


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.



http://en.wikipedia.org/wiki/M%C3%A9ni%C3%A8re's_disease

http://en.wikipedia.org/wiki/Balance_disorder

http://en.wikipedia.org/wiki/M%C3%A9ni%C3%A8re's_disease

http://en.wikipedia.org/wiki/Vertigo_(medical)

http://en.wikipedia.org/wiki/Respiratory_tract_infection

http://en.wikipedia.org/wiki/Airway

http://en.wikipedia.org/wiki/Phlegm

http://en.wikipedia.org/wiki/Expectoration

http://en.wikipedia.org/wiki/Over-the-counter_drug

http://en.wikipedia.org/wiki/Medication

http://en.wikipedia.org/wiki/Expectorant

http://en.wikipedia.org/wiki/British_Approved_Name


78


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.

http://en.wikipedia.org/wiki/Onset_of_action

http://en.wikipedia.org/wiki/Tolerability

http://en.wikipedia.org/wiki/Amitriptyline

http://en.wikipedia.org/wiki/Imipramine

http://en.wikipedia.org/wiki/Pharmacology

http://en.wikipedia.org/wiki/Flupentixol

http://en.wikipedia.org/wiki/Anxiety

http://en.wikipedia.org/wiki/Major_depressive_disorder

http://en.wikipedia.org/wiki/Takeda

http://en.wikipedia.org/wiki/Lundbeck

http://en.wikipedia.org/wiki/Japan

http://en.wikipedia.org/wiki/Europe

http://en.wikipedia.org/wiki/Tricyclic_antidepressant

http://en.wikipedia.org/wiki/Mesolimbic_pathway

http://en.wikipedia.org/wiki/Human_brain

http://en.wikipedia.org/wiki/Dopamine

http://en.wikipedia.org/wiki/Dopamine_receptor

http://en.wikipedia.org/wiki/Autoreceptor

http://en.wikipedia.org/wiki/Muscarinic_acetylcholine_receptor

http://en.wikipedia.org/wiki/Receptor_(biochemistry)

http://en.wikipedia.org/wiki/H1_receptor

http://en.wikipedia.org/wiki/Histamine_receptor

http://en.wikipedia.org/wiki/Alpha-1_adrenergic_receptor

http://en.wikipedia.org/wiki/Adrenergic_receptor

http://en.wikipedia.org/wiki/5-HT2_receptor

http://en.wikipedia.org/wiki/Serotonin_receptor

http://en.wikipedia.org/wiki/D5_receptor

http://en.wikipedia.org/wiki/D1_receptor

http://en.wikipedia.org/wiki/Dopamine_receptor

http://en.wikipedia.org/wiki/Receptor_antagonist

http://en.wikipedia.org/wiki/Vestibular_nuclei

http://en.wikipedia.org/wiki/Serotonin

79


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


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


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


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.

http://www.made-from-india.com/

83


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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)