Essay about Cipla 2011, Harvard Business Case, March 27, 2012

There were two pharmaceutical companies that were looking for ways to expand globally to position themselves in a competitive advantage from their competitors. One was located in the United States, which was Eli Lilly and

Those target markets who rely on Johnson & Johnson health and medical needs are mostly patients, doctors, nurses and civilians. Therefore, the company need to sustain their products and services over all these years to ensure that lower income people and underprivileged patients are able to access on their medicines. This however requires the company to balance patient’s access and competitive dynamics in line with their need as the company need to have enough resources to keep on being innovating, creating new and better medicines and at the same time making sure there will be a fair return to the shareholder as well. Johnson & Johnson also work closely with the governments, physicians, non-government organizations and the international donors all around the world to provide its products within an affordable prices to its

Expanding into Asia (including India) so as to implement lower cost clinical testing and share opinions with leaders in the medical industry appeared to be a viable option. Drug prices however were substantially lower in India, profits were capped at 6% and post manufacturing costs were limited at 100%.

2. Patent related and Generic Competition: The developed countries like US and Europe have strong patent protection laws which gives a lot of benefits for the pharmaceutical companies. But, the patent

U.S. based companies hold rights to most of the world’s rights on new medicines and holds thousands of new products currently being developed. As of 2012, the industry helps support almost 3.4 million jobs in the U.S. economy. It is also one of the most heavily R&D based industries in the world. In the United States, the environment for pharmaceuticals is much friendlier than other countries around the world in terms of pricing ability and regulations. Both the Pharmaceutical and Biotechnology industries have experienced significant growth in the past year with year-over-year increases of 13.02% and 34.69% respectively. It is an even more striking when looking at the past five years considering both have beat out the S&P 500 with pharmaceuticals increasing an additional 31.44% and the biotechnology sector besting an astonishing 269.3% more return than the

According to a report published in the February 1998 edition of “Nature”, scientists identified what they believe is the earliest case of AIDs in a man from the Congo in 1959. (Lerner and Hombs 39) By the end of the year 1980, 80 men would have been diagnosed with at least of the opportunistic infections that are a characteristic of AIDs. (Lerner and Hombs 40) AIDs cases in the 1980s increased dramatically not only around the world but in the United States, primarily in larger cities like Los Angeles, New York City and San Francisco. The numbers of AIDs diagnoses and deaths spiraled out of control throughout the 1980s and towards the end of 1989 there were 117,500 cases of AIDS reported and 89,000 related deaths.(Lerner and Hombs 54) In the

Going by history, a greater percentage of Ciba-Geigy 's sales came from the pharmaceutical divisions. The previous year in 1982 pharma division contributed to a whole 30% of the entire group’s sales with a revenue base of 4.1 billion Swiss francs making it the second-largest pharmaceutical firm in the whole globe. Pharma operated majorly in four areas namely analgesics and antirheumatics (23% of sales) not excluding Voltaren, cardiovascular products (30%) with the inclusion of beta blockers, drugs for treating epilepsy and antidepressants (15%) and antibiotics together with other drugs. Pharma also included OTC drugs, a contact lens business, and a servipharm division specifically operating to meet the demands of the developing countries.

Brigham and Lesson (2010) stated, “over the last three decades, the percentage of a company’s value attributable to tangible assets has dropped from 90% to just 25%.” However, intangible assets, reputation included, make up 40-60% of a business’s capitalization. An industry like Big Pharma relies heavily on its reputation. An organizations actions, choices, behaviors, and consequences will influence a stakeholder’s perception. This is a roundabout way for an organization to help determine its own reputation. Word of mouth, past experiences and media coverage will always influence reputation of corporations. In his article in Nature Biotechnology, Mark Kessel (2014) explains, “For companies in the pharmaceutical sector, how stakeholders view companies is influenced primarily by the lay professional media (through print, TV, radio and online) and the internet (blogs and social

There are advantages of starting a pharmaceutical firm in India. It has emerged from being an enzyme-producing firm to a biotech powerhouse under the guidance of Ms Kiran M. Shaw. They have a well-established pharmaceutical industry that has been growing since 1947. After the purchase of Hindustan Antibiotics Ltd. and India Drug and Pharmaceuticals Ltd. they were able to compete with the MNC’s (Multi National Corporaton) from overseas (Kalegaonkar, Locke, Lehrich, 2008, p. 2). In the beginning the pharmaceutical industry saw substantial growth. “By the beginning of the 21st century, over 20,000 pharmaceutical companies were operating in India” (Kalegaonkar, Locke, Lehrich, 2008, p. 2). “The pharmaceutical industry in India is ranked third

2. What is your assessment of the pharmaceutical industry at the time of the case? How is competition changing? What factors are driving

A company like Teva Pharmaceuticals is subject to all of the factors of the external environment given the nature of its business and global expansion. Pharmaceuticals is an industry where high profits can be achieved, but it is also an extremely challenging business when one considers all of the political/legal aspects involving government regulation and patents. Every country has strict regulation and testing requirements for drugs that affect companies differently depending on their position in the market. Originally, innovative pharmaceutical companies had to obtain patent protection and FDA approval but this would translate to years of protection from the generic competition. Once the

We analyzed the Indian Pharmaceutical industry on these five forces and the findings of industry competitiveness and profitability are written under the relevant competitive forces.

Introduction AstraZeneca PLC (AstraZeneca, AZN:NYSE, AZN:LSE) is one of the largest pharmaceutical companies in the world. It was formed in 1999 from the merger of Sweden’s Astra AB and UK’s Zeneca Group plc. Core Activities AstraZeneca is engaged in the discovery, development, manufacturing and marketing of prescription pharmaceuticals and biological products for important areas of healthcare: Cardiovascular, Gastrointestinal, Infection, Neuroscience, Oncology, and Respiratory and Inflammation. One of the key benefits of the merger between Astra and Zeneca is seen as their portfolio of new products in development: AstraZeneca call this their 'product pipeline'.

Spurred on by that fact, Yusuf Hamied, chairman and managing director of Cipla Pharmaceuticals, has steered his enterprise to the forefront of global pharmaceutical development by manufacturing low-cost drugs for diseases like AIDS, diabetes and arthritis, among others.

This report provides an analytical strategic review of the global pharmaceutical industry; its origin, evolution,