term paper on beximco pharma

Submitted To:

Ms. Asheka MahboobLecturer IBRAC Business SchoolBRAC University

Submitted By:

Name ID

Golam Ishtiaque Khondokar 13104129Sharif Tausif Mustafa 12204115Md. Mehedi Hasan 13104004Taposh Roy 12304054Syeda Tanzina Hossain 12304083

Date: April 04 , 2015

Term Paper on

“Beximco Pharmaceutical Ltd.”

Course: Business Environment (BUS 203)

Section: 04

TERM PAPER ON “BEXIMCO PHARMACEUTICAL LTD.”

Letter of Transmittal

Date: April 04, 2015

Mrs. Asheka MahboobLecturer IBRAC Business SchoolBRAC University66 Mohakhali, Dhaka.

Subject: Submission of term paper on “Beximco Pharmaceutical Ltd.”

Dear Madam:

Here is the term paper on Beximco Pharmaceutical Ltd. that you asked us to submit within the 4 th

of April, 2015.Our study in this term paper is about the PESTLE and SWOT analysis of Beximco Pharmaceutical Ltd

Therefore we would like to place this term paper for your kind judgment and valuable suggestions.

Thanking you.

Sincerely Yours,

Sharif Tausif MustafaID: 12204115BUS 203, Section:04On behalf of the group members.

1 | P a g e


Table of Contents

Letter of Transmittal........................................................................................................................1

Executive Summary.........................................................................................................................3

Introduction......................................................................................................................................4

PESTLE Analysis............................................................................................................................6

Political........................................................................................................................................6

Economic.....................................................................................................................................6

Social...........................................................................................................................................6

Technological..............................................................................................................................8

Legal............................................................................................................................................8

Environmental..............................................................................................................................9

SWOT Analysis.............................................................................................................................10

Strength......................................................................................................................................10

Opportunities.............................................................................................................................11

Weaknesses................................................................................................................................11

Threats.......................................................................................................................................11

Recommendation...........................................................................................................................13

References......................................................................................................................................15

2 | P a g e


Executive Summary

BEXIMCO pharmaceuticals Ltd is one of the leading health care companies in

Bangladesh and has been making every effort to ensure the effectiveness and safety of the

medicines that it produces. Physicians and patients of the company reply on the efficacy

of the medicines of BEXIMCO Pharmaceuticals Ltd. the time of critical needs

demonstrating their confidence and trust on BPL products. BPL has a remarkable mission

statement, which is being seriously pursued in its thoughts and actions. An increasing

amount of contribution is ploughed back into social causes demonstrating BPL’s

commitment to the nation. As BPL continues to grow, it should not only benefit itself but

it should also positively contribute to the nation and society where it operates.

3 | P a g e


Introduction

Beximco Pharmaceuticals Ltd (BPL) is a leading manufacturer of pharmaceutical

formulations and Active Pharmaceutical Ingredients (APIs) in Bangladesh. The company is one

of the largest exporter of pharmaceuticals in the country and its state-of-the-art manufacturing

facilities are certified by global regulatory bodies of Australia, European Union, Gulf nations,

Brazil, among others. The company is consistently building upon its portfolio and currently

producing more than 500 products in different dosage forms covering broader therapeutic

categories which include antibiotics, antihypertensive, antidiuretics, antiretroviral, anti-asthma

inhalers etc., among many others. With decades of contract manufacturing experience with

global MNCs, skilled manpower and proven formulation capabilities, the company has been

building a visible and growing presence across the continents offering high quality generics at

the most affordable cost. Ensuring access to quality medicines is the powerful aspiration that

motivates more than 3,000 employees of the organization, and each of them is guided by the

same moral and social responsibilities the company values most. Over the years since starting its

journey it had gained a position through an effective management, efficient fund generation, and

timely diversification. Today it is an established business concern in the country’s business

arena.

It all began in 1980 when BPL's first product made under license of Bayer AG, Germany

rolled out of a small manufacturing plant in Tongi, Dhaka. Products made under license of

Upjohn Incorporated, USA followed. After its initial years of struggle it broke ground with the

launching of its own products in 1983. Today, BPL holds almost 15% share in the domestic

market.

4 | P a g e


Existing Leading Pharmaceuticals Companies

Name of The Company Tk (Crore) Share %

Growth %

1 SQUARE 1,378 19.18 23.54

2 INCEPTA PHARMA 650 9.05 32.17

3 BEXIMCO 620 8.62 40.33

4 OPSONIN PHARMA 355 4.94 26.09

5 ESKAYEF 348 4.84 24.82

6 RENATA 340 4.73 29.63

7 ACME 319 4.44 17.34

8 A.C.I. 293 4.08 18.81

9 ARISTOPHARMA 286 3.99 21.63

10 DRUG INTERNATIONAL 270 3.75 18.18

(Top Pharmaceutical Company of Bangladesh: 2014, 2013)

5 | P a g e


PESTLE Analysis

It never ceases to amaze me why so many businesses fail to take the time to look at the

macro and the micro environments when completing their business plans and strategies. These

external forces will play a big part in shaping the final outcome of the ultimate corporate

achievement. The macro environment tends to have a long term impact and requires extensive

research.

PoliticalIf we consider the status of occurrence of political unrest, than we can see that it’s a low

potential factor. Political unrest can greatly affect the decision making process of Beximco

Pharmaceuticals Limited. Political disturbance has a potential impact on the actions of an

organization. Recently Beximco Pharma may disturbed by many political problems. Their export

and import may shut off due to strike. There is now growing political focus and pressure on

healthcare authorities across the world. This means that governments will be looking for savings

across the board.

EconomicThe global economic crisis still exists yet government reports still show that the spending on

healthcare per capital continues to grow. Will the current healthcare models exist tomorrow? The

growth in homecare (as seen in the Nutrition sector) demonstrates how nursing services have

moved to the private sector and have become a key business offering.

The reduction in consumer disposable income will have an impact on those countries using

health insurance models particularly where part payment is required. These economic pressures

are seeing an increased growth in strategic buying groups who are forcing down prices.

Increased pressure from shareholders has caused a consolidation of the industry: more mergers

and acquisitions will take place over the coming years.

6 | P a g e


SocialThese environments basically include the values, beliefs, traditions, customs, language and forms

of a society. It is very important for any business, because customers are actually emerged from

these sections. As these values, customs and testes change, managers must also change. Socio-

cultural trends may pose a potential construction to manager decision and actions. For example

Beximco Pharma has to make new products as their existing product demand has fallen or for

newly made diseases. Because a customer tastes or preference has been change a lot. Beximco

Pharma also contributes a lot of the social programs needy groups of society.

CSR Initiatives:

Official sponsor of the FIFA friendly match between Argentina and Nigeria held in

September, 2011.

Official sponsor of the Bangladesh National Cricket team for the ICC Cricket World Cup

2011.

Sponsoring events and national sport stars and teams.

Proyash - A specialized institute that works for the holistic development of children with

special educational needs through different programs.

Proyash - Include early childhood development programs (ECD), special schooling,

therapeutic interventions, medical and neuro-developmental assessment, leisure time and

co-curricular activities, training for the teachers, parents and integrated services.

Charity contributions through the Gono Sahajjo Songstha (GSS) for the educational

sector for the unprivileged.

Free drugs during natural calamities and distribution of clothing during winter.

Awareness Campaigns: Awareness is needed to be fit and healthy. Prevention is the best cure

and the first step is to create awareness. Every year, Beximco Pharma campaigns touching on

different forms of health impediments ranging from Asthma, Diabetes, Hypertension and many

more. This campaign activity includes rallies in addition to organizing and sponsoring scientific

7 | P a g e


seminars and conferences for various associations and societies in medical disciplines.

(www.beximcopharma.com)

Employee Volunteering Program: Beximco Pharma has organized a program where their

employees as volunteers devoted their time and energy in spreading smiles across the faces of

children battling the ultimate battle of survival against cancer. The children are currently being

treated at the ASHIC Foundation. They arranged an outing at an amusement park in the capital

city where the children were accompanied by their parents and representatives. Later Beximco

Pharma donated hospital equipment to the palliative care unit where the children at the terminal

stage of cancer are being treated.

Preserving Cultural Heritage: Beximco Pharma hopes to preserve and promote Bangladeshi

vibrant heritage in a way that would imprint its immortal beauty in the hearts of today’s modern

demography and the generations to come. In 2011, Beximco Pharma sponsored and organized

the grand cultural event, at the National Museum, marking the 150 th birth anniversary of

Rabindranath Tagore; the legend who had irrefutable contribution towards the heritage and

identity of Bengali culture.

TechnologicalTechnological advancements will create new business prospects both in terms of new therapy

systems and service provisions. The online opportunities will see the growth in:

New info and Communications technologies.

Social Media for Healthcare.

Customized Treatments.

Direct to Patient Advertising.

Direct to patient communications.

8 | P a g e


LegalThe pharmaceutical industry has many regulatory and legislative restrictions. There is also a

growing culture of litigation in many countries. The evolution of the internet is also stretching

the legislative boundaries with patient’s demanding more rights in their healthcare programmers.

EnvironmentalThere is a growing environmental agenda and the key stake holders are now becoming more

aware of the need for businesses to be more proactive in this field. Pharmaceutical companies

need to see how their business and marketing plans link in with the environmental issues. There

is also an opportunity to incorporate it within their Corporate Social Responsibility

programmers. Marketing and new product development should identify eco opportunities to

promote as well.

9 | P a g e


SWOT AnalysisA situation analysis is a technique for matching organizational strength and

weakness with environmental opportunities and threats to determine the organizations

right which is known as SWOT analysis (strength, weakness, opportunity, threat). Every

organization should be able to identify the purpose for which it is best suited. Strategies

are faced not with snapshot of the environment and the organization but with a movie of

rapidly changing event. Strategic planners whether top managers, key operating manager

or staff planning specialist, have many way to scan environment for opportunities,

threats, strength and weakness.

Strength

BPL is one of the leading companies in the pharmaceutical industry of the country and

could attain almost 15% of the local market. The strength of attaining such position in the

industry are:

Market Recognition

Beximco has secured market recognition in the market through innovative marketing strategies

and aggressive product promotion. The company’s strong support to the medical community has

gained its brand loyalty from the doctors.

Market growth

The market is expected to grow by 15 to 20% per annum for the next 5 years. The compounded

annual growth for the previous 6 years was 15%. The next stage of growth is expected to come

from backward integration to manufacture high volume raw materials, introduction of Hi-Tech

manufacturing process that are difficult to imitate products, and exports.

Aggressive diversification

BPL is keen to diversify its capacity of produce and market. Strong export demand and

international product registration have led BPL to embark on a massive capacity expansion as

10 | P a g e


evident in expansion of plant and establishment of new plant in compliance with FDA (Federal

Drug Association) quality mark. Recently BPL signed a new contract for loan of about 1100

million BDT for its FDA (Federal drug Administration) compliant plant that costs over BDT

3,000 million BDT.

Basic Chemicals and Multipurpose Chemical Plant

Currently bulk antibiotics amoxycillin, ampicillin, and cloxacillin are being produced with an

installed capacity of 35 tons per month. It is going to introduced Cephalexin and Cephradine

very soon; like-wise in its multi purpose unit, production of Amlodipine, Fluconazole,

Clotrimazole, Cetirizine Hcl, Tramadol, and Riboflavin 5-phosphate sodium.

Weaknesses

The company does not produce any kind of injectable. The company can increase its

market share by producing injectable. BPL has a narrower product line and number of products

than its principal competitors in the market. Unless the product line and number of product are

expanded the market share of BPL will be endangered in near future.

Opportunities

There are some of the sectors where BPL has not entered but that possess ample

opportunities. One of such sector is SVP or small volume Parenteral that is known as injections

in the market. Due to having the quality attainment capability as evident in producing IV

products, expertise and resource BPL should immediately think of this product and decide upon

having the feasibility study.

International market is also another very lucrative sector for BPL. In the world market the low

cost of product is an important upper hand for BPL to market its product. The new FDA

compliant plant will assist BPL to confirm the world market about the quality of its products.

11 | P a g e


Threats

Competition from the local pharmaceutical companies and the very specifically in

context of price is a major threat for BPL. The poor economic status of Bangladesh requires a

low price of drugs to ensure public health. For the reasons like high cost of maintaining quality

of products and high distribution cost etc. the products of BPL cost higher than that of other

companies. As a result BPL is in fear of losing market in the rural areas of Bangladesh.

12 | P a g e


RecommendationBeximco Pharmaceuticals Limited should increase its product variety. Product variety

represents different types of items of medicines. At present, Beximco offers around 180 different

types of medicine. Some other companies are offering more than this. BPL can diversify itself

from others by operating in highly specialized segments such as anti-cancer segments.

Introduction of new products to doctors is vital because it can enhance the image of the

company. It is always a good idea to find a gap to introduce a new item. Beximco can locate the

products areas where there are less number of alternatives and also higher amounts of

requirements.

BPL’s promotion is quite weak. They should provide more product samples gifts to the doctors

to increase their image among them.

Doctors should be informed previously that new medicines are coming up and will be offered

within two or three months. Thus the doctors can perceive an insight about the new Beximco's

medicines as an alternative of competitor's existing items and Beximco pharma can gain good

rapport with the doctors.

BPL’s distribution is quite weak. Steps must be taken to strengthen the distribution network. This

will require more effort on the part of the medical representatives.

Pharmaceutical direct-to-physician marketing efforts have typically been isolated from other

customer-centric activities, including those conducted by field sales forces. A dis-jointed

relationship exists between pharmaceutical sales teams and direct-to-physician marketing. While

the pharmaceutical industry has made significant investments in direct-to-physician promotions,

the sales force is generally uninformed about their timing or end results. BPL should enhance

their ability to link home office conducted marketing campaigns with field force activities

through information, software, and service solutions to make these efforts more coordinated and

therefore more effective.

13 | P a g e


Direct to consumer (DTC) essentially means any campaign or communication programme

intended for and targeted to consumers - the primary end users of a product. In relation to

pharmaceutical products, the consumers may be patients, friends or family members, caregivers

or the general public.

The strict regulations that have governed the communication of information about prescription

medicines in Bangladesh meant that the primary marketing focus has been on the people who

actually make prescribing decisions; the doctors

These include the impact of communication to consumers via the internet, patient education,

word of mouth or use of editorial space or air time in print and broadcast media.

More than ever before patients are getting involved in making their own healthcare decisions.

The growth in over-the-counter drugs and the dissemination of information on the world wide

web and in consumer magazines have all contributed to a thirst for information. Beximco

Pharmaceutical Limited can make an advantage of this and bring about some changes to fulfill

these needs and as result it will enhance the image of the company.

Direct to consumer (DTC) advertising is thought to enhance competition between brands, which

can lead to improved quality and lower prices for consumers but, most importantly, it can

improve public health.

14 | P a g e


ReferencesTop Pharmaceutical Company of Bangladesh: 2014. (2013, May 12). Retrieved from

https://mydreamlan.wordpress.com/2013/05/12/list-of-pharmaceutical-companies-and-top-pharmaceutical-companies-of-bangladesh-2013/

www.Beximco-pharma.com

www.beximcolimited.com

www.slideshare.net

www.academia.edu

15 | P a g e

term paper on beximco pharma

Documents