Case Study On Aurobindo Pharma

Case Study On Aurobindo PharmaGlobal strategy for Indian drug companioncy companies and the opportunity in emerging foodstuffs A display case probe on Aurobindo PharmaFocusAimTo take care the trends in Indian pharmacy companies which fill been recently going global by put abroad with an intention for merchandise expansion?ObjectivesTo find out the strengths of the Indian Pharmaceutical Industry and analyse the pattern of Mergers and Acquisitions by variant companies across the globe.To throw light on the strategies followed by Aurobindo Pharma in getting other pharma companies.ContextThe search includes strategy of the emerging pharmaceutical companies in India and understands the trends and process of the companies that do been going global to expand their market in the world-wide.Literature re go steadyIn pharmaceutical sector well-nigh the world, India ranks 4th in toll of volume and 13th in terms of value. In the year 2006 the value was USD 7.42 billion, the gr owth has been increased by 12.9% ein truthplace the previous year. In this total gross sales 90% of the sales be grievanceed as generic wines and the remaining be patented drugs. Now a sidereal days governments of various countries, patients and industries are pulling attention towards generic drugs, cod to lower in cost and less RD investment than compares to that of the patented drugs. In the year 2005 the generic market has been increased by 20% in the world which is quaternary times that of the patented drugs and three times that of the pharmaceuticals market. US market alone had acquired 44% of the generic drugs (Pharmabiz, 2009). The Compound Annual egression Rate (CAGR) of generic drugs in Indian pharmaceuticals has been increased by 16.6% during the time period of 2001-05. The expected CAGR during the period of 2009-14 would be 13.2% and approximately the total value may reach $15,490m in 2014 ( research and Markets, 2009). In the year 2009 in India at that plac e were more(prenominal) than 80 FDA approved plants, Italy (55) and China (27). The Indian pharmaceuticals companies like Cipla, Dr. Reddys seek laboratory Wockhardt, Lupin and Nicholas Piramal are doing well in developed market such(prenominal) as US and Europe. These companies have exciting values in formulation, people drugs, generics, novel drug delivery system, reinvigorated chemical entities, biotechnology etc (Research and Markets, 2007).4.1 Indian pharmaceutical market structureSource Cygnus, 2007According to Dr. Richard Gerster, The Indianpharmaceutical industry is a success story providing employment for millions and ensuring that essential drugs at affordable prices are available to the vast population of this sub-continent.? The Indian pharmaceuticals ranks very high in terms of quality, technology and the range of medicines manufactured. Indian pharmaceuticals market will grow 10-14%, to touch $40 billion by 2015 (Mckinsey, 2009).India has a powerful biotechnology t hat can overthrow by the revolution of agriculture, healthcare, industrial processing and environmental sustainability. In India there are 100 look for laboratories and more than 400 educational and training institutes across the country (Pharma India, 2005).major(ip) companies in India 2006Source company annual depict FY 2006-07, *annual report 2006 December ending.In the above figure y-axis indicates to turnover (Rs.bn)Indian pharmaceuticals is carve up into two benefits, one is strong domestic consumption growth and productive export opportunities (Indus view, 2009).4.2 Mergers and encyclopedisms of Indian pharmaceutical companiesThe major reason for acquisitions is to attaining access to new technologies, clinical research, catapulting the market share and platform for improving custom deduction and working with new guests. The major companies acquiring acquisitions in India are Ranbaxy, Dr. Reddys, Dishman and Wockhardt.In genericsAcquirerTargetValue USD millionDateDr. Re ddys beta pharm (Germany)574Feb-06RanbaxyTerapia (Romania)324Mar-06RanbaxyEthimed NV (Spain)Mar-06RanbaxyAllen spa (Italy )Mar-06AurobindoMilpharma (UK)13Feb-06Jubilant organosysTarget research association (US)34Oct-05In branded formulationSun pharmaAble laboratories (US)24Dec-05Valeant pharma (2 facilities) (Hungary, US)10Aug05Active pharmaceuticals ingredients (API)Dr. ReddysRoches API problem (Mexico)59Nov-05MatrixDocpharma (Belgium)263Jun-05Over the last decade the outsourcing has become the important naval division for the pharmaceutical companies. The main reason for the outsourcing is rising pressure to reduce costs, and time-to-market, this leads to the change magnitude the technical demanding areas such as drug discovery and biotech RD. Outsourcing opportunities has been rapidly ripening in the market like Eastern Europe, China, India. Indian pharmaceutical industries are putting effort on the development of the product for global generic market and this will be visible with the DMF filing at the US FDA (DMFs are generic dossiers filed with the FDA in range to on the wholeow the API to appear in marketed drugs). 30% of the DMF filings at US FDA are filed by Indian companies. Dr. Reddys, aurobindo, cipla, Ranbaxy, intercellular substance and lupin are the leading Indian companies of DMFs filed in US.From the sources of US and European countries they make research on Indian found pharmaceuticals companies regarding merging and acquisitions and they were dexterous to announce some name to the Indian companies and decided to name as Indian Pharmaceutical MNC?.Mainly US and European countries have centre on Indian due to the vast change in research work done and the main plus points for them were the laws of Indian government have changed drastic wholey like providing new opportunities to launch patented molecules this point made them interest in investing Indian pharmaceuticals, and likewise India pharma is fit strong manufacturing stand and wit h low-cost development, manufacturing destination.Source Shivani Shukla, 2006.The global has been rapidly changing into the generic market here are some companies that have been invested, acquired and deals in 2008-09. Green cross Pharma in Singapore was acquired by heave Pfizer plant in Ireland was acquired by Hovione, PharmaPro manufacturing facility was acquired by URL Pharma, ECR pharmaceuticals was acquired by HI-Tech pharmacal.Source Research and Markets, 2009.Indian pharmaceutical market in U.S., has been continuously increasing, a $440 billion market appoints 47% of the global pharmaceutical market. In February 2009, Indian pharmaceutical companies including large and mid-sized all together have assured approvals for 15 Abbreviated New Drug Applications (ANDAs) (Indus view, 2009).StrategiesIn order to expand their market some companies have entered into foreign markets in generic drugs segment. Some companies have entered directly by setting their own sales and marketing o rganisation, either in organic manner or through acquisitions and others have entered these market through partnership or merging with well established companies. Ranbaxy acquired Ohm Laboratories in US in 1995, Jubilant Organosys acquired Cadista pharmaceuticals (formerly Trigen Laboratories) an US generic company in 2005. Aurobindo Pharma scoreed an FDA-compliment formulations manufacturing plant in Dayton, New jersey in 2006, in the same year the company acquired Milpharm LTD in UK. Dr. Reddys approved as a MHRA manufacturing facilities in UK. Wockhardt has a manufacturing facility in UK, Ireland and France (espicom, 2009).Aurobindo PharmaAurobindo was founded in the year 1986, by Mr P.V. Ramaprasad reddy, Mr. K. Nithyananda reddy and some highly act group professionals. Aurobindo pharma launches Asias largest formulation facility in India in 2009. Vision of the company is To become Asias leading and one among the top 15 generic Pharma companies in the world, by 2015 (aurobin do, 2009). RD of the company lies in exploitation intellectual property in non-infringing processes and resolving complex chemistry challenges. Aurobindo pharma expects to reach $2 billion by the end of the year 2013, the company licensing deal with Pfizer to sell generics drugs in more than 70 emerging companies and developing market in India (Fierce pharma, 2009).Aurobindo pharma is the first company that makes acquisition in Europe acquires Milpharm in UK in 2006, on agreement with the U.K. Whyte group LTD and Iracot LTD. This acquisition makes the company to gain immediate access to European markets. This company is good making company in generic it takes ownership over ampere-second Marketing Authorizations (MAs) Medicines, and Health care products Regulatory Agency, UK (UK MHRA). Milpharm records 7.7 million in 12 months of period ended 30th September 2005 (Aurobindo, 2006).Source THE HINDU, journal, 2006Source PR Domain News Release, 2006The above pie chart indicates that Aurobindo pharma exports break-up in the year 2006Research methodologyResearch the term fundamentally means voyage for discipline or information collection. It certainly means to accumulate the information regarding certain queries and to build up a convinced scheme for that question. If there is no such a word like research all the scientific and social projects could be resulted in guess work and rough entropy.The descriptive or relative, qualitative research work is typically probing, in concern it can either contain some or all the criterion mentioned below. (Miles, 1994)Extremely intensified and drawn out contact in the field.Designed to attain a holistic or complete picture. circumstantial consistent instrumentation is used.Most analysis is done with words.Take into account the experiences, opinions and feelings of the participants.The research strategies generally used are the chosen case charter and the grounded theory.5.1 Research paradigmA research paradigm is expa nded to the censorious thinking of the students that may economic aid the students to gain a clear view about the research with the different examples.Positivist paradigm is based on the philosophical idea which explores the social reality. Positivism paradigm has been influencing the educational research for a long time, later half twentieth it is criticized due to the insufficiency in subjective states of individual.5.2 Research approachThere are four different types of research approaches, they are specification of a theory, design based on the theory, implementation, and evaluation. This research includes deductive and inductive quantitative comes under deductive and qualitative comes under inductive. Quantitative method mainly includes objectively, caution and types of questions in this are pre-specified and outcome oriented. Qualitative mainly includes subjectively, meaning of the report. Types of questions are open-ended and process oriented.5.3 Research methodThe research view is basically to understand the impact of pharmaceutical industries that have been going global to increase their market. Thus, disposed the research aim and objectives of the study, methodology that is employed for this study is basically to desk study rather going for primary survey method. The Aurobindo Pharma chosen for the case study is taken into account with a view point and to follow-up how the company acquired and merged with other companies.5.4 Sampling procedureA try is a finite part of statistical population, whose properties are studied to gain the information of the whole (Webster, 1985). When it comes in case of dealing with people, it can be defined as a set of respondents picked out from a larger group for the reason of survey. So as a part of take technique the questionnaire is to be conducted between a selected group of actual client and non client households during the course of the survey.5.5 Method of data AnalysisThe published data collected on the pharmaceutical industry will be analysed with the help of diagrams, graphs and pie charts and draw conclusions based on the results obtained. Saunders et al (2003) claims that there is no step models to analyzing qualitative data but discuss one technique where the data are disaggregated into meaningful categories that are subsequently rearranged and analyzed for related data and key themes.Data collectionSecondary data collectionThe data is mostly collected from the secondary form of publications like articles, Indus view, InPharma publishers, Cygnus business consulting and research, Pharmaceutical journal newspapers, Pharmabiz, market and research. master(a) data collectionPrimary data is the collection of ideas all the way through the chain of various semi-structured consultations conducted by the researcher. This data can be collected by conducting interviews and by daily written record of experiences and observations. The research includes questionnaire, caseEthical statusTi me planActivityJulyAugustSeptemberWeek name12345678910111.Holiday2. Read Literature3.Finalise Objectives4. tipple Literature Review5. Read Methodology Literature6. Devise Research Approach7. Draft Research Strategy and Method8. Develop Questionnaire9. indicator lamp Test and Revise Questionnaire10. Administer Questionnaire11. Enter Data into Computer12. take apart Data13. Update literature read14. Complete remaining chapters15. hand over to tutor and await feedback16.Print, bind17. Submit