PM

Redifining product management
Pharma companies overlook the advantages of product management and continue to harp on heavy sampling, doling out expensive gifts and incentives for the sales-force as tools to achieving success, says Suresh Sukheja IT is really strange that thousands of pharmaceutical companies have failed to understand the importance of product management in achieving the marketing objectives of the company. The industry, more often than not, treats a product manager as a junior manager, who is expected to churn out financial statements, oversee the profit margins and oversee the job of printing of promotional materials and their distribution as well. In other instances, the senior management takes decisions regarding positioning, branding, pricing and promotion by-passing product manager. This attitude towards product management is reminder of an era when the prescribers and physicians were not exposed to high-profile advertisement campaigns, and, therefore, prescribed whatever was promoted. However, with the post-GATT (General Agreement on Trade and Tarriff) era booming large on the horizon, pharma marketing is certain to witness a lot of evolution and companies used to treating product manager as ‘‘junior managers’’ would have to face the music in the marketplace. Contemporary marketing compulsions demand that product manager be treated as an integral part of the core marketing team, just as his counterpart in the western countries is, and involving him in vital activities such as marketing research, strategic planning, segmentation, positioning, promotion and advertising strategy formulation. However, unfortunately, pharma companies continue to overlook the advantages of product management and continue to harp on heavy sampling, doling out expensive gifts and incentives for the sales-force as tools to achieving success. In future, market compulsions such as mega-mergers and alliances would ensure that the techniques of marketing pharmaceuticals see a lot of evolution. It is only then, that importance of inputs such as strategic planning, positioning and research would be fully appreciated by the players, in their proper perspective, ensuring a stronger role for product manager. Therefore, it is in the interest of pharma companies to start gearing up for this challenge in the right earnest, by trying to redefine their perspective of product management and its role, if they want to achieve success in the marketplace. These companies should, for starters, review the position of product management teams in their respective systems and decide accordingly.
Suresh Sukheja is a Pune based writer

Reaching out desired destinations
Destination is not targets but a progressive demand growth. Target is not what the market needs but the company’s wants, states K V Narayan CREATIVE Strategy is what helps build brands in pharma marketing. It is relevant to both exclusive and me too products. Strategy is a process to chalk out a relevant pathway to reach the desired destination. The destination in pharma marketing is the registration of the brand name in the pen of the potential prescriber. The destination is not targets but a progressive demand growth. Target is not what the market needs. It is the company’s ‘wants.’ Strategy is defined as ‘‘A plan, method or series of measures or stratagems for obtaining a specific goal or result.’’ The specific goal in pharma marketing is Prescription Generation. Product strategy in pharma marketing is a comprehensive approach that: • • • Builds brand value through creative message development Plans and achieves adequacy of field force deployment to reach the message to relevant customers Plans needed tactics to facilitate reach of message to the relevant customers.

Indifferent implementation Creative strategies have failed to achieve necessary impact because of indifferent implementation. How can any strategy work if the medical representative (MR) fails to cover even 50 per cent of the listed doctors? How can any strategy work if the field manager spends 60 per cent of his working time in non-field working activities? This shortcoming is the cause of unsatisfactory growth. Though we talk of customer delight and bench-marking, there is hardly any system in place, for the audit of doctor selection and once approved, the complete coverage, even today. Complete strategy approach For the strategy to be complete both the promotional plan and implementation plan should be simultaneously made. Such an approach works even today despite competition. One should remember that competition is in numbers, not in quality. Here are recent experiences of two products in me-too situations becoming successful with the support of creative strategies. There was a need to launch yet another brand of a molecule where there were already twenty brands existing in the market. Developed a brand name that would help the physician to recall it easily. Having studied the leading brands’ progress, both of big and small companies we decided to launch the product on a scientific plank. A programme of CME lasting for one year was planned around the exclusive attributes of the product and needs of the indications. Identified the target audience, frequency of visits and made the field management accountable for the implementation, with an audit every promotional cycle. Tactical elements, such as physician samples, desktop reminders etc were planned to facilitate strategy implementation.

At the end of year one, the product achieved a progressive prescription support and started making rapid strides from year two onwards. In yet another task, the brand name of a nutritional product had to be changed. One third of the company’s bottomline was contributed by the product. It took around one year to study and add additional values to the product. Besides the packaging was also improved to add to the personality of the product. The new brand name, around the product attributes was chosen. A carefully tailored pre-launch, launch and post-launch action plan to register the new brand name with the targeted customers was closely monitored for implementation through the field-management. Even then the strategy was implemented completely only in 60 per cent of the markets. In spite of this the new brand not only replaced the old one unit to unit, the sales grew by 10 per cent every month at the end of six months on the previous MAT average. Simultaneous planning of promotional and deployment strategies and accountability to implement gives results even today. If this can happen to a new brand in a me-too situation and to a changed brand name, the established brands which have relevance in current medical practice, have immense opportunities to grow. It involves looking at these brands afresh and developing new personality, new context of usage based on current clinical opinion and thereby adding new value to the old brand. Renewing relationship with ‘My’ product is of question. One should not forget that principles are important in Brand Management as is the case with any organisational endeavour. In the absence of principles even the successful brand becomes a commodity in the discounts war and gets into oblivion. Strategy that works It is the ability to develop a deliberate context in the action plan relevant to the current situation both internal and external in order to be capable of being counted. The starting point to develop relevant context is situational analysis. It comprises: External Situation: • • • Study of the market and top brands’ progress Study of message strategy of top brands Study of unique reasons for the success of top brands.

The objective is to appreciate market, market potential and the creative approaches of the competitive brands, to benchmark. Internal Situation: • • • • Progress of company’s product overtime and progress of marketshare at constant prices. Study of previous two years progress Sales change from one promotional cycle to another MAT sales progress territory, area, region wise to understand growth in territories/ area/ regions/ (MAT sales to be without hospital sales) Study of promotional plans both message and material over two years and its impact in growth territories and reasons for lack of it in others.

• •

Effort analysis of field managers in the markets during these promotional cycles, to understand the extent of their involvement in strategy implementation The study helps to understand the quality of message and the extent of message reach and the consequent impact.

Desk Research: Besides quantitative analysis, the product manager under the guidance of the marketing chief and directions of the medical adviser should spend adequate time to study the product in the areas of: • • • Pharmacology of ingredients Latest understanding and treatment approaches to the product indications Current clinical opinion on product.

from these studies the value-adding message can be developed. From the study of the above three chapters one can develop a deliberate context in the message strategy as well as coverage strategy. In addition planning aptly supportive elements in the form of physician samples. CME material, mailings, doctor meetings, conference participation, desktop reminders would support the reach of product message meaningfully to the potential prescribers. It does not help for the top management to spend lot of time in planning supportive elements without spending meaningful time in assessing the message and implementation strategy. Maintaining fact files All these data and information that are periodically collected and analysed should be kept in the ‘Fact file’ for the product under different chapters. Subsequently only updating the information needs to be done. The ‘Fact file’ would provide the product manager an overview of his product and the ability to look at the market meaningfully and relevantly for his product growth. In addition the ‘Fact file’ would help any new incumbent to pick up the threads from the past and maintain continuity. This continuous diagnostic approach would help the product manager to be in the ‘‘I know’’ mode. This mode gives added impetus to the creativity of the product manager. Such research-oriented approach enables marketing team to develop and implement growth oriented marketing strategies for the product. There is intense competition for every product. Therefore the market approach should be one of being competitive. There are many brands of a molecule recording progressive growth in many therapy areas. Being competitive is a conscious approach to the market. It does not mean price discounts and bonus schemes. Being competitive is to strive to make ‘‘My performance’’ better than in the previous situation in a way the next strategy becomes more impactful. It is being competent contextually in the marketplace. In fact the extent of success of a strategy is directly proportionate to the intensity of Creative Relationship of the Marketing Management with the product and the fieldforce. It comes from the ownership one takes of his assignment.
K V Narayan is a Chennai based writer

Role of a manager in territory management
Hari Krishna Maram gives a low-down on the make up of a successful manager A manager is one who uses his discretionary capabilities while making use of the resources available to him. While exercising this discretion, he can materially improve or influence results of the project. Main objectives of a manager The main objectives of the manager include: • • To support and ensure the achievement of organizational objective in terms of area revenue generation and customer services. To improve the competence of team members in their present job by providing on the job training.

The three dimensional approaches of a manager include: • • • Revenue generation Customer service Developing competence of team members

Primary responsibilities Among the various responsibilities of a manager, he has to constantly aim: • • • • To ensure the achievement of rupee-wise product-wise objective of the assigned area To constantly improve the customer service in the assigned area To constantly improve the competence of team members in the present job To development information intelligence and feed-back system.

Ensuring achievement: In order to enable the manager to carry out the first responsibility he needs: • • • • To study historical sales data and analyze the overall trend To set challenging but attainable objective for the area in consonance with the company and regional objective To decide/finalise the contribution expected from trade and institutions To allocate month-wise rupee-wise and product-wise objective for the area To set rupee-wise, product-wise objective for each territory. This should be in conformity with the territory potential and area objective To decide strategies for the achievement of these objectives

•

• • • • •

To communicate these objectives to the team members to get their commitment To ensure implementation of strategies and plans - To measure the performance of each individual against the set objective on the month to month basis To identify/find out the causes for negative/positive variances and take corrective steps in time to time To monitor the responses of the corrective actions and modify actions wherever necessary without delay Proper implementation of marketing plan developed by product management team

Customer services: This is one of the major factor of a manager’s functioning. Customer service consists of regular visits along with product promotion including providing up-to-date scientific information. To achieve this following things are critical: • • • • • • • • To ensure preparation of list of doctors under coverage To finalise standard tour plan To finalize monthly tour plan To scrutinize daily report to ensure customer coverage as per plan Call average and frequency of visit to important core customers Proper product promotion to various categories of doctor after complete chemist survey Proper resource utilisation Personal order booking from each customer

Improving competence of team Improving competence of team is the third responsibility of a manager. To achieve this, he needs: • • • • • • • • • To develop the competence of team member by providing on the job training To carry out field work with team members on the regular basis with objective Providing on the job training through demonstration Improving their effectiveness in the clinic (in clinic performance). Improving their selling skills and product knowledge Supplementing their efforts at the market place Supporting their selling efforts wherever required Resolving the problems beyond their control Motivating team to get the required result

Development of information system Development of information system has assumed greater importance in the current business scenario. In order to understand this it is necessary to understand the meaning of the terms.

Information: Any statement or processed data which indicates the happenings at the market place/environment and that has or will have an impact on our performance and which calls for an immediate action is termed as information. Intelligence: It is an advanced or anticipated information on competition or environment which will have an impact on our performance, dictionary meaning of intelligence is ‘collection of information on enemy activities secretly.’ It is futuristic in nature it is cent per cent external. It requires preparation to offset the threats or capitalize on the opportunities provided by competitors. Feedback Feedback is a process which indicates the impact of the actions initiated or taken by managers. The actions may include new strategies, promotional plans, policies and procedures amongst others. The proposes of information, intelligence and feedback are: • • • • • • • • To ensure achievement of planned performance goals To identify deviations/variances and develop alternatives to consolidate the situation To identify and capitalise on the opportunities provided by the competition To foresee the problems and develop a suitable action plan To review the progress and modify action to bring performance in line with plan To train and develop team members in the areas of product knowledge and selling skills To identify the areas where he/she is doing well and areas which need improvement develop a specific action plan for improvement To monitor his/her performance in the identified areas and modify the plan wherever required To impart training at every possible opportunity during field work To impart training on finalization of call objectives To conduct detailing session regularly To ensure effective use of promotions aids To show him/her how to handle objections in doctors clinics.

• • • •

The writer is with Novartis India Ltd, Bangalore and can be contacted at [email protected]

Ranbaxy to launch Daiichi's antihypertensive product in India
Our News Bureau - Mumbai

Ranbaxy Laboratories and Daiichi Sankyo (Daiichi Sankyo) recently announced that Ranbaxy will launch Olvance (Olmesartan Medoxomil, antihypertensive), discovered by Daiichi Sankyo. This follows a licensing agreement between the two companies authorising Ranbaxy to promote and market the drug in India. Olvance is an effective, fast acting and well tolerated antihypertensive agent that can be administered, once daily. According to a company note, clinical trials of Olmesartan have shown it to be significantly more effective at reducing blood pressure than several other agents. Olmesartan Medoxomil belongs to the family of Angiotensin II receptor blocker (ARB) class of anti-hypertensives and is a selective AT1 subtype angiotensin II receptor antagonist. It is available worldwide in more than 50 countries. Malvinder Mohan Singh, Chairman, CEO and Managing Director, Ranbaxy, said, "The launch of Olvance is a historic moment in the collaboration between Ranbaxy and Daiichi Sankyo. This marks the beginning of a productive engagement that will harness the respective strengths of Daiichi Sankyo and Ranbaxy to establish a much stronger platform for Ranbaxy in India." Remarking on the development, Takashi Shoda, President and CEO Daiichi Sankyo, said, "We are delighted with the introduction of Olvance in the Indian market by Ranbaxy, signifying our serious commitment to India. Olmesartan Medoxomil is a superior antihypertensive medicine that will offer an excellent therapy option to the doctors and patients in India. This marks our intent to scale up our innovative product introductions, in India, through Ranbaxy."

Printer Friendly Version
WEB LINK - http://www.expresspharmaonline.com/20090131/anniversaryspecial01.shtml

Good to Great: The Road Ahead in Indian Pharma

Ranbaxy Laboratories: A challenging choice
2008 will go down as the year that Ranbaxy made its break from the past and started re-shaping for new challenges. How does Malvinder Mohan Singh plan to take forward the company which has been in his family for the past three generations? In 1937, two cousins, Ranjit Singh and Gurbax Singh, set up a company in Delhi, to distribute medicines for a Japanese company Shionogi. The company came to be called 'Ranbaxy Laboratories'. By 1952, the company had a new owner in Bhai Mohan Singh, who had lent his cousins money but bought over the company when they defaulted on their loans. Bhai Mohan Singh had left a prosperous construction in Rawalpindi and post-Partition settled in Delhi, on the Indian side of the border. The fact that he was venturing into uncharted territory when he took over the pharmaceutical distribution business from his cousins never stopped him. As grandson Malvinder Mohan Singh, the third generation at the helm, points out, "He was an entrepreneur and an astute businessman with strong networking skills. However, he was clear that the basic fundamentals of operating any business were the same." The challenges were daunting. The pharma industry in India in the 60s was dominated by multinational companies (MNCs), no thanks to favourable laws and a complex economic regime. Feeling the pulse of the industry, Bhai Mohan Singh argued that instead of importing finished formulations, the company should start manufacturing locally. The move was a success, more so, when the government soon issued new directives, stopping the import of drugs. This turned out to be a blessing in disguise, says Malvinder, as it enabled his grandfather to set up Ranbaxy's first (though small) manufacturing plant in Delhi. The next inflexion point came in the mid-60s, when Malvinder's father, Dr Parvinder Singh, fresh from his PhD from the University of Michigan, Ann Arbor, USA, started getting actively involved with the company. Dr Parvinder Singh started exploring off-shore ventures but the going was tough as Ranbaxy had still to prove itself in international markets.

Analysing his father's strategy at the time, Malvinder says, "It was essential to first prove skill sets and competitive advantages on the home turf. To provide costeffective drugs, Ranbaxy started to follow a vertically integrated model. The company set up its own R&D centres, manufacturing plants in India for bulk and dosage production and also established a strong distribution and marketing network. After learning to compete and lead the Indian market, the company began to utilise and transfer these experiences to the developing and later developed markets. This learning allowed Ranbaxy to develop distinctive capabilities and utilise its resources efficiently and effectively." Over the next two decades, Dr Parvinder Singh kept pushing the company beyond the nation's borders, because he clearly saw that if 99 percent of the pharma market lay outside India, then internationalising the business was an imperative for success. His educational background also made him see that the core of the business was the science and one could not do without it. As Malvinder points out, "Because of his strong science background, he also realised much ahead of time, that a sharp focus on R&D (generic and pure innovation) was equally critical to emerge as a strong player in the global market. To give shape to his vision, he built a strong professional management team. In the mid 90's, Dr Parvinder Singh restructured the company's international operations into four regions and set up its first state-of-the-art R&D centre in Gurgaon, thereby announcing the company's ambition to make the big leap in the international pharma space. Thus, began the transformation of Ranbaxy from an India centric organisation to an MNC giant." Educated in the West, Dr Parvinder Singh adopted the Western management style of putting in place a team of professionals. As differences mounted between him and his father, Bhai Mohan Singh took a back seat. As time would prove, Dr Parvinder Singh's strategy of building up a professional management team proved crucial. On his untimely death from cancer in 1999, D S Brar, an electrical engineer and an MBA from FMS, Delhi who had joined the company in 1977 as a Business Development Manager and then rose to become the President (Pharmaceuticals) in 1993, had been groomed to succeed him as CEO and Managing Director. There was a smooth transition and Ranbaxy's expansion plans went ahead as scheduled. Another 'outsider' who became a key 'insider' of the Ranbaxy story was Dr Brian Tempest. At one time regional director Far East for Glaxo, Tempest was with Ranbaxy for 14 years, spanning 1995 to 2008. He held various roles (President, Managing Director, Chief Executive Officer, Chief Mentor & Executive Vice Chairman and Non Executive Director). Malvinder joined Ranbaxy in 1994 as a Management Trainee, after receiving his MBA from Duke University's Fuqua School of Business. Dr Parvinder ensured that he went through the grind and earned his position only after demonstrating his ability. Recalling his early days in the company, Malvinder says, "Believing that learning is a steady and painstaking effort, I worked my way up and over the years imbibed the business nuances in diverse areas of operations like general management, sales and marketing, finance and business development. I successfully drove the company's global business operations and also played a significant role in strengthening and expanding the company's international presence."

12 years after he joined Ranbaxy, Malvinder took as CEO and Managing Director in 2006, at a time when the company was facing severe sales and margin pressures. Malvinder had to re-jig the company's business model to adapt to the changing business dynamics of the changed patent regime and saturated markets like the US. Looking back, Malvinder says, "Our business model was skewed towards the developed markets and needed restructuring. We applied a fresh approach and took strategic decisions that were out-of-the-box and unconventional at the time. We reorganised the company, and changed the business model by balancing the company's geographic portfolio. We focused on penetrating emerging markets which had, and continue to have, great potential."

Printer Friendly Version
WEB LINK - http://www.expresspharmaonline.com/20090131/anniversaryspecial02.shtml

Good to Great - The Road Ahead in Indian Pharma

Dr Reddy's Laboratories—Pioneer of ‘Pharmabad’
If Hyderabad is today known by the sobriquet of 'Pharmabad', the city owes it to the founder of Dr Reddy Laboratories. The company’s management promise to script further successes in the years to come Dr K Anji Reddy could have continued to 'play safe' and remain with the public sector unit, Indian Drugs and Pharmaceuticals Limited (IDPL) but he was restless. Bitten by the entrepreneur bug, he founded Uniloids (1976-80) and Standard Organics Limited (1980-84), before founding Dr Reddy's Laboratories (DRL) in 1984. The company went on to clock many firsts. It was the first Indian company to obtain exclusivity for marketing a generic product consequent to a patent challenge in the US. In 2006 DRL became the first Indian company to market an authorised generic in the US. In 2006-07, 80 percent of DRL's revenues came from exports. Being the change But by 1993, Reddy sensed that it was time to Satish Reddy evolve to the next level. At a time when the industry was focused on reverse engineering, he infused his passion for research into the company and DRL soon began to make a mark in drug discovery research, becoming in 1997, the first Indian company to license a new chemical entity (NCE), anti-diabetic molecule, DRF 2593 (balaglitazone), to an MNC, Novo Nordisk for development. Though Novo Nordisk terminated trials on the molecule in 2004, DRL got a collaborator in Danish Rheosciences. In 2007, an NCE discovered by DRL entered the final phase of clinical trials and is in the most advanced stage of development of a new molecule for any Indian company. Reddy also conceived the setting up of the Institute of Life Sciences at
G V Prasad

Dr K Anji Reddy

Hyderabad, which is a public-private partnership with the Government of Andhra Pradesh for cutting edge research in life sciences. The institute has become operational in 2007. The other potential winner in the DRL stable is polypill for cardiovascular disease which commenced clinical trials in India in 2007. But the road to drug discovery is a bumpy one. In 2005, DRL spun off its research division, with four molecules, into a separate entity, Perlecan Pharma. However, this venture has faced setbacks in terms of not meeting private equity (PE) investors' expectation on timelines and lackluster results. When the PE investors backed off in July 2008, DRL bought out their stakes and decided to go it alone. Perlecan has had to abandon one molecule, a new diabetes and obesity drug, codenamed DRL 11605. Perlecan is now left with three molecules--DRF 10945, which is targeted at metabolic disorders and is in phase II clinical trials, RUS 3108, a cardiovascular drug in phase I, and DRL 16536, an anti-diabetic drug in late pre-clinical studies. Taking forward the legacy Being an astute manager, Reddy was aware that he could not do it alone and ensured that he had a second rung in place. His son, Satish, joined DRL in 1993 as Executive Director, after graduating in Chemical Engineering from Osmania University, India, and completing an MS in Medicinal Chemistry from Purdue University, USA. He was responsible for manufacturing and new product development. In 1997, he was appointed Managing Director. Today, holding dual charge as Chief Operating Officer, he steers the Pharmaceutical Services and Active Ingredients (PSAI) and Global Generics businesses, two of the company's core revenue generating streams. He has played an instrumental role in the company's transition from a bulk drugs manufacturer to a global player in the branded space by spearheading its entry into emerging markets internationally. Reddy did not have to look far for the other pillar of DRL. G V Prasad, who was heading Cheminor Drugs when it was bought over by DRL, came to DRL in 2001. He took over the merged entity as Vice-Chairman and CEO. He brought to DRL the same focus on professionalism, good governance and transparency which transformed Cheminor into a world class API and generics manufacturer. With a Masters in Chemical Engineering, started at AC College of Technology, Guindy, Chennai and completed at the Illinois Institute of Technology in Chicago, he rounded off his qualifications with a Masters in Industrial Administration from Purdue University a year later, in 1983. Today he is Vice Chairman and CEO, DRL. Twin strategy On the generics side, the company continues to do well. Its purchase of German betapharm AG, after initially being a drag on the company's balance sheets, is today staring to show an upside. Betapharm AG is angling for tenders from Germany's largest health insurer, Allgemeine Ortskrankenkassen (AOK) and if it company goes on to win the eight tenders it has got tentative approval on, it will allow DRL to ramp up scale. But this scale will be at lower margins. With these three stalwarts at the helm, DRL looks all set to continue to lead Pharmabad.
[email protected]

Printer Friendly Version

WEB LINK - http://www.expresspharmaonline.com/20090131/anniversaryspecial03.shtml

Good to Great - The Road Ahead in Indian Pharma

Glenmark Pharma—Innovate to succeed
Glenmark Pharmaceuticals is one company which has gone against the tide and etched it’s name on a global platform. What gets it going and sets it apart from its peers? Some success mantras of the maverick Glenmark Pharmaceuticals was founded by Gracias Saldanha in 1977. He started his career as a medical representative and worked his way up through the ranks in MNC pharma companies like Abbott Laboratories, Aristo, E Merck from 1964 to 1977. So even before starting Glenmark, he had 20-25 years of experience in the industry. He retired in 2000-01 and his son, Glenn Saldanha, MD and CEO Glenmark Pharmaceuticals took charge of the company as an Executive Director. Before joining Glenmark, Glenn had stints with Eli Lilly and PriceWaterhouseCoopers after completing his bachelors in pharmacy from Mumbai University and MBA from Leonard Stern School of Business, New York University. Glenmark was started as a small bulk drugs firm with 99 percent domestic focus, and when Glenn came on board, it was decided to revamp its business strategy and build it into complete research driven organisation. Stepping stones to success During this phase, India was going through a change because it had signed GATT and TRIPS. Given that, the question mark ahead of the industry was--how would the domestic pharma industry evolve? "So we had to re-look the entire business and change the strategic direction looking at various new opportunities to survive this hurdle," highlights Glenn. He decided that the key factor for the company at that point of time was to grow the generics business and to get as much cash as possible from branded generics and generics and reinvest that into building intellectual property and R&D primarily to survive in the longer term perspective. Though they were tight on resources, gradually that eased out and started investing almost all of the company's profits directly into research every year. The early years were a struggle. Naturally, stepping into his father shoes meant a lot to him, though it had to be strictly professional. It wasn't smooth sailing for Glenn in the company. Senior managers and shareholders resisted the change to a research-focused company. "There was also a lot of scepticism among the management team. Senior fund managers came down to our office to hammer me, saying that we were driving the company to the wall," he remarked in an interaction at that time. But Glenn was firm on his decision. Spreading wings by expanding and outlicensing deals etc kept him high. The company got listed on the stock exchange and this

helped them attract talent. The company then started with various Employee Stock Ownership Plans (ESOPs) also which gave a boost to the talent mix that they have now. Strategies Glenmark is one company which has been successful both in innovation as well as in generics. In a very short time span, they were able to build a very sizeable and strong US generics business. "So because of that we thought we could create a global innovative platform out of India. And we still come from that belief that one can truly create an innovative company out of India." Hence, Glenn's adopted the Novartis-Sandoz model of spinning off the generics business, so that the generics company (Glenmark Generics) focuses on generic and the parent company on innovation. In support of his decision, Glenn strongly avers, "I don't understand how a R&D company can operate as an independent standalone unit. The Western world has tried it for years and has failed in it." The challenge is that because R&D has a long gestation period, the failure to garner enough cash will lead you through peaks and troughs. Glenn adds, "A lot of my peer groups have done R&D spin offs and it will be interesting to watch them." He feels that the key to survive in R&D in the long term perspective is to have a front end in key markets to be able to sell your own innovative products. "You cannot have one piece as a stand alone. You have to be vertically integrated into R&D right upto front end marketing and sales of the drugs," explains Glenn. So the fad of spinning of the R&D will not work as he firmly believes that the strategic intent of the company cannot be driven by financial incentives like a few tax sops. It has to be at least driven by ability to succeed in the long run. Family but professional Though the company has family members at key positions, the people involved have always taken their responsibilities very professionally. "My father was a self driven entrepreneur who came up from the ranks. So it was never a family business, with four five siblings operating the company. As an organisation and as a promoter group we have been extremely professional about everything that we have done," highlights Glenn. Besides this, the other reason for being professional managers is that pharma is a technical and knowledge driven business and not everybody and anybody can run the business. So when you are investing money, you have to know the science behind the molecules. "That's the fundamental of the business. We are thorough professionals, in terms of the people we employ and the manner in which we operate. The company has hired the best talent from IIMs. Also there is a broad mix of talent from the industry as well as outside the industry. Our approach seems to be very broad, and we have been able to look at things very differently. And that's been a part of our success," feels Saldanha. Collaborate or confront?

Having worked with MNCs, Glenn's strategies seem to have been mirroring their moves. Instead of confronting MNCs, Glenmark seems to be collaborating with them. Glenn explains, “We operate within the law. The law defines and governs what is right and what is wrong. We collaborate with MNCs on one front in terms of licensing and on the other front in generics, we have patent litigations with them. And as more and more MNCs enter the generics industry there is a very fine line between an innovator and a generic company and that line is blurring. So at the end of the day you are litigating on some aspect and you are collaborating on some aspect.” That's just a way of life, he feels. "Over the last ten years we have been able to completely transform Glenmark from an Indian company to a purely MNC, in terms of global reach and presence," says Glenn. He adds that what they have done on the innovation side makes them completely unique. "I think we have been able to expand Glenmark multiple sides, whether it is on revenues, profits, pipelines, geographic breadth and various other factors. Glenmark was started as a marketing and formulations company, but today it is at the helm of innovation. The major milestones that have got the company here are plenty. And this seems to be yielding results on a global platform," he adds. The company has been awarded the SCRIP award for the 'best pharma company in the World—SME', as a company with $5 billion market. Glenn feels this will add a world of good not only to their profile, but also for India. This will hopefully be a big lead for the Western world to recognise India as a pharma destination, because Indian pharma industry is still not that well established in the Big Pharma world. At a time when it has done a world of good, it has also raised expectations from the company. So the quest to beat or meet those expectations will keep the company going ahead. Advising next generation CEOs The challenges for the next generation entrepreneurs may be different. Glenn feels, "I think the key is to innovate. It is a must whether generics or true novel innovation." According to him a major part of the Indian industry is boxed into the services business. The services end is very important to generate revenues for the short term, but one does not always have to lose sight of the imperatives. Very often the India CEOs get so hung up with the short term in terms of making money and other imperatives that they lose sight of the long term imperatives to where the industry is going? What the vision of the organisation should be and what the organisation should be in the longer term? "So, in the longer run only innovation will stick as there are increasing number of players coming out on a regular basis and increase, so I think it is important to keep that as a guiding principle, whether it is on the generics side or on the proprietary side," Glenn signs off.
[email protected]

Printer Friendly Version
WEB LINK - http://www.expresspharmaonline.com/20090131/anniversaryspecial04.shtml

Good to Great - The Road Ahead in Indian Pharma

Indoco Remedies-Passing on the legacy
Indoco Remedies is among the fastest growing pharma companies in India. Credit goes to three generations of the Kare family who toiled hard to make Indoco what it is today It's all in the genes. One of India's most acclaimed pharma business houses, Indoco Remedies, is successfully marching ahead with the third generation at the helm. It was the good work of Govind Kare, the founder of the company that made Indoco Remedies pass through the initial years of struggle. By turning a 'sick' company into profit making unit, his son and today the Chairman and Managing Director of the Govind Kare company, Suresh Kare, showed that he is also up to the task. And under the guidance of Suresh Kare, his daughter, Aditi KarePanandikar, Executive Director, is all set to make Indoco Remedies a Rs 500 crore company. It's indeed a journey from good to great. Father of all Sons would follow their father's example, rather than his advice. Govind Kare's journey from being supplier of medicines to village doctors in Goa on his bicycle at the age of 18 to his own chemist shop in Margao, Goa, by name Drogaria Salcete, was full of scratches and wounds. In 1945, the French company, Laboratorie Fournier offered its agency to Drogaria Salcete for the whole of Western India, provided it had an office in Mumbai. Govind Kare jumped at the opportunity and opened an agency by the name of Indo-Continental Trading Company in Mumbai in 1945. When India became independent, the government imposed restrictions on imports to encourage manufacture of pharmaceuticals indigenously. Govind Kare, a person with a never to say die attitude, converted Indo-Continental Trading Company into a manufacturing company by name of 'Indoco Remedies' and got registered on 23rd August 1947. 'Son' rise Govind Kare's second son, Suresh Kare, was keenly interested in the business even at the tender age of 15 and used to help his father at his shop. Suresh Kare says, "When all the children went to play after school, I went to the shop, which I found much more interesting." After his graduation in 1959, Suresh Kare joined his father's business in Goa which was then a thriving business of import and distribution of pharmaceuticals. After deep study of excellent marketing literature available from their clients, Suresh Kare became a skilled medical representative with great understanding of marketing of pharmaceuticals in the process. Indoco satisfactorily progressed till 1954 and made inroads into the Western and Southern

states of the country. However, the Goa liberation movement restricted the transport of people and goods across the border. Indoco was totally cut off from its promoters. Govind Kare remained in Goa and the company in Mumbai. It suffered a serious setback and became sick. Every father knows his own child, and so Govind Kare confidently assigned the job of reviving sick company to his son Suresh Kare. "It was indeed a tough task, however, within two years the company turned around and started making profits," informs, Suresh Kare. He adds, "Amongst the various measures I took, some were--increasing the geographical coverage, introduction of modern products, changing the packing of the products to give them a new look etc. The sale was Rs 2.5 lakh in the year 1963, which crossed to Rs 10 lakh in 1969, Rs 1 crore in 1979, Rs 10 crore in 1989, Rs 100 crore in 1999. The total turnover this year is likely to be in the region of Rs 500 crore." Together we can It seems Aditi has also inherited all the characteristics of her father. After completing her post graduation in the US Aditi came back to India and the company began to focus on the international markets and on R&D. "It was Aditi's aspiration that Indoco should be known as a research based technically savvy pharmaceutical company," says, Kare, a proud father. Are the expectations from her higher? While answering this question Aditi gets candid. She says, "Certainly. My father has successfully nurtured our company from a sick unit to what it is today. Naturally, a benchmark for performance does get created, and personally, I am not complaining. When you have had a head start like mine it is only logical that expectations should be higher." Though Kare's job today is to motivate and monitor at a macro level, he is well aware of the challenges lying ahead for Aditi. "For Aditi, the challenge will be to take the company forward and achieve the objectives that we have set for ourselves. I expect that within a few years the size of the international business itself will be about Rs 500 crore. Over the last decade, I have strategically de-centralised a lot of decision making within the organisation."

Aditi KarePanandikar

Suresh Kare

Aditi has her own take on the challenges lying ahead for her generation. She feels that when an organisation is small, there are ample opportunities for growth. In the period 1969-1999, Indoco Remedies grew 10 times every 10 years. However, maintaining the same momentum does pose a challenge as the company grows and the base increases. As the organisation becomes large erstwhile strategies for growth will not be enough. Newer opportunities will need to be tapped. "Every generation has their own principles," asserts Aditi. 'Constantly evolving, consistently excelling' is Indoco's mantra. How genuine is this claim? Aditi says, "Until 2003, Indoco had a comparatively simpler business model--ethical prescription sales in the Indian market. In the last six years, we have ramped up big time to set up infrastructure of international standards, get international

approvals, initiate sales in international market, set up R&D infrastructure needed to back our international strategies, venture into development and manufacturing of API in other words we are constantly changing." For a large part of existence, Indoco has depended on 'home grown managers' to succeed, and has done it wonderfully. It has given them stability which has played a major role in Indoco's success. Over the last eight years the company has recruited extensively and brought in capable people at the highest level of its management. "We have recruited to add value," informs Aditi. Fighting spirit There is no security on this earth, only opportunity. Aditi knows very well that creativity requires the courage to let go off certainties. She confidently says, "Opportunities and threats exist in every business environment." Moreover, Aditi has a mentor like her father who coached her to meet the challenges head on. He never sugar coated the bitter pill of the mistakes. She remembers him telling her, "When I took over, things were so bad, nothing worse could have happened. I learnt by making mistakes. Aditi, you will not have that luxury. By the time you come into the business, the mistakes will be far more costly." According to Aditi, as a company, they are today far more derisked than they were earlier. Indoco has a well established branded sales business in India as well as some of the ROW markets and a focused strategy for the regulated markets. Family bonds Aditi has been working with her father for the last 15 years. Though she calls him a 'control freak', she is equally aware of the hardships that her father has gone through. Aditi says, "The rich experience he has, will be an invaluable guiding force for me going forward." On the home front, Kare is a father, teacher, mentor, idol and above all a friend to her. "We share a beautiful relationship. He has a very high work ethics. I have not seen him carrying his work profile home. At home he is always the doting husband, father or grandfather as the case may be," says, a visibly emotional Aditi. "At one moment we might be arguing as boss and subordinate and in a few minutes we would be father-daughter having lunch together!" says Aditi, summing perhaps Indoco's recipe for a stable management philosophy.
[email protected]

Printer Friendly Version
WEB LINK - http://www.expresspharmaonline.com/20090131/anniversaryspecial05.shtml

Good to Great - The Road Ahead in Indian Pharma

Elder Pharma: Fortune favours the strong
The founder of Elder Pharmaceuticals never imagined that he would one day set up his own pharma company. But when destiny played its hand, he proved more than

a match A stint in the Indian Air Force, followed by a successful corporate career spanning more than two decades, crowned by an appointment as a Special Executive Magistrate (SEM) from the Government of Maharashtra— Jagdish Saxena thought he had it all. His impressive assignments included Managing Director, Walter Bushnell, and later, Director, Martin and Harris. But this promising career came to an abrupt halt in 1988, when he found Jagdish Saxena himself as a silent spectator, as the company closed down. Overnight, he saw fellow employees lose their jobs. Setting up shop This was to be a turning point in his life. He decided to embrace risks and turn into an entrepreneur. He chose the pharmaceuticals business as he was a science graduate and had some familiarity with the domain. Sinking in his entire personal savings and borrowing from banks to the maximum, Saxena started commercial activities on a loan license basis. Speaking about those days, his eldest son, Alok , says, "Not only did he employ co-workers but 500 people joined him to set up Elder Pharmaceuticals." The naming of the company has a curious tale behind it. During the registration process, all suggested names were rejected, but on a trip to Australia, Saxena came across a passing truck with 'Elder Food Production' on it and liked the name. On his return, he proposed the name 'Elder Pharmaceuticals' which got accepted by the registrar office. In 1989, he set up the Elder corporate office in Mumbai, with him heading operations as Chairman and Managing Director, backed by an existing skilled pool of pharma sales and marketing professionals. A decade later, in 1998, the company became a public limited company and subsequently started production at its factory in Navi Mumbai. The first break Recalling his first assignment from Russia, Saxena says, "The initial phase was hard and trying with every passing month, the future of the company seemed unpredictable and daunting. The real breakthrough came within the first year, when a large order from Russia set the ball rolling." Giving his perspective about those teething problems, Alok says about his father, "He has always believed that you have to be able to tide through tough times and you will emerge a winner. Initially, we faced a lot of issues but Alok Saxena eventually we emerged as winners and I do believe that this has been one of the strong philosophies for the management's success in facing any challenges that it came across." Elder started its business activity with two or three products in antibiotics and other therapeutic areas. Saxena says, "I always played an integral role in enriching the

product portfolio through prudent selection. With the realisation that India itself remains considerably under penetrated, a growing population in a strengthening economy is catalysing the demand for pharma products as purchasing power rises." An appetite for risk Saxena's entrepreneurial mindset and position as a promoter allowed him to take risks that perhaps a more conservative management might have vetoed. In the face of opposition, he chose to launch a naturally sourced calcium supplement in a then small but growing market and not just as a mere over-to-counter (OTC) supplement, but as a prescriptive treatment for postmenopausal osteoporosis. In addition, the product was priced aggressively as compared to the available calcium supplements in the market. Everyone expected it to be a sure failure and a grave Anuj Saxena error on his part. But in a year's time, given the product's therapeutic potential and in conjunction with strategic marketing efforts, Shelcal made a turnover of Rs six crore. It was his visionary ingenuity that made Shelcal the brand it is today. Generation next Saxena's two sons, Alok and Anuj, who have been associated with the company from its inception, today play various roles. Alok did his MBA from National Institute of Management and then joined the company. "When I started working in Elder I was not reporting to him (his father) at all. In fact my interaction with him in the office was very limited and it was only after many years did I have direct reporting to him. I learnt a lot not only from my other mentors but from him as well who taught me a lot and helped me achieve what I am today," says Alok. Having consolidated their presence in the domestic markets, it was time to increase focus on the global market. In response to this, Alok was made Director (International) in charge of certain initiatives to meet both captive and merchant needs through its Active Pharmaceuticals Ingredients (API) division. "Currently, Elder's formulation business accounts for as much as 90 percent of the company's total turnover of Rs 580 crore while API contributes less than five percent. The share of API would more than double to 10-12 percent in the next three years with an investment of Rs 20-25 crore," says Alok, reiterating the company's thrust on its global API business. The family that works together As far as corporate working environment is concerned, Alok believes that one of the main reasons for their success was that they believe in a family environment. "All of us work together in a very different manner and there is a spirit of togetherness that exists in our organisation," he points out. There are many Elder employees who are day one employees and for them the Chairman is like a father figure, says Alok. "The respect they have for him is tremendous. In fact he knows most of his people by their names and quite a bit

about their families as well," he reveals. Operating in the shadow of his father must have been a tough task. When quizzed about how much of his father's management style has rubbed off on him, Alok says, "Everyone has his own unique management style and though a lot of it has been influenced by my father, I have tried to work in my own way in such a manner that I have my own management philosophies and ways of working. Taking tough decisions in business occurs all the time and if you have clear philosophies and well laid down policies the processes become much simpler. I have always liked to discuss with my father and heed his advice on all major matters before we take any major decisions." It has been observed that with two generations working together, there are generation gap issues which may arise while making decisions or future plans. Explaining the process at Elder Pharma, Alok says, "The decision making process and planning in our organisation (involves) committees and processes so there is no question of having any generation gap issues. It is a collection of well thought out processes when policy decisions are taken in the organisation." Speaking about his younger sibling, Anuj, Alok says, "Anuj is doing well in the entertainment business and he also has a critical role to play in our healthcare business but it (his other career) has not increased my task as we have a very good team of people who are taking the company forward." Good to great Today the company boasts of 2,600 Elderites. The family tradition fostered in the company is a great strength that puts the organisation in a very different league. Elder boasts of seven factories and is continuously expanding the manufacturing capacity through brown-field and green-field expansions. Through its strategic international alliances it is looking at launching many more brands in the chronic and niche segments. Saxena perceives Elder's future plans that; it is to grow organically as well as inorganically. and to continue to dominate the market in niche segments with brands like Shelcal, Eldervit, and Chymoral and solidify Elder's status in the widely growing lifestyle disorders and anti-infective segments through deeper market penetration and extensive strategies. Alok is focusing on strengthening the company's revenues by commercialising the existing pipeline of API generic products for merchant sale and not just captive consumption. When quizzed about the fact that generally family businesses start being divided in the second or third generation, leaving them open to hostile bids, creeping acquisitions, etc from outside parties, Alok opines, "While many promoter companies have faced conflicts, there are many companies who are being run by second and third generation promoters and doing quite well." Going by these words, it seems that Elder Pharma seems to have found the right mix of personal bonding and corporate procedures to build a company strong enough to last at lest

for the next few generations.
[email protected]

Printer Friendly Version

WEB LINK - http://www.expresspharmaonline.com/20090131/anniversaryspecial06.shtml

Good to Great - The Road Ahead in Indian Pharma

Cadila Pharma—Through a veteran's eyes
The inception of Cadila Pharmaceuticals was a milestone for the pharmaceutical industry in India. The founder recalls the days of the company's struggles and triumphs Post independence, at a time when industries like steel, jute and cotton textiles, cement, paper, and sugar were on their way to conquer the Indian market and were rapidly crowded with Indian businesses, there were two men amongst some who

dared to step into an industry which was at a very nascent stage. The pharmaceutical industry being very underdeveloped could not provide the sort of security other established/establishing businesses could promise, but Indravadan Ambalal Modi, along with his partner and friend, Ramanbhai Patel, was undeterred. Together, they founded Cadila Laboratories in 1951 and proved wrong the popular misconception at that time about the incapability of Indian companies to make medicines. Of course there were start-up troubles with finances and technology access issues, clash of interests—the usual ups and downs that a company has to undergo in its journey to success. What prompted the Chairman of the now Cadila Pharmaceuticals, Modi, into taking such a risk? "Neither the doctors nor the users were prepared to believe in 1951 that India could produce medicines. We had no funds to start even a so-called industry. The inspiration was the scenario of healthcare as a national need. As a pharmacy graduate, I had my vision for pharma manufacturing in India, which was almost non-existent then. The vision was to be a global leader in time to come, though in 1951 when we started one would not have dared to think of it," recalls Modi. Having stayed near a forest-area, in the vicinity of his village Hansot, in Bharuch district in South Gujarat, and seeing Ayurvedic practices, Modi had a vision during his college days that India must produce medicines, both allopathic and herbal. "After my graduation in B Sc Tech (Pharmaceuticals and Fine Chemicals) from UDCT, Bombay University in 1949, I worked with Khandelwal Laboratories for 10 months, after which I started Cadila Laboratories in partnership with my school friend Ramanbhai Patel." Cadila was started in a rented three-room bungalow at a residential area in Ahmedabad with a capital of Rs 25,000. "Having studied in the allopathic discipline, naturally, I started with allopathic production only. But now we have done enough research and development in bringing out herbal products combining traditional wisdom and modern technology," he adds. Growth in the fast lane What is most interesting is the manner in which the company's, and consequently, the pharma industry's growth catapulted to catch up with the rest of the industries. According to Modi, the regulatory authorities had a major role to play in intensifying industry growth. "To be very frank, had there been a compulsion of `Schedule M' in the early 50s and even in the 60s; Indian pharma industry, as seen today, would have never come up. The Indian pharma industry is technocrat driven and not finance driven," says Modi. "It is the foresight of the then regulatory authorities who appreciated the handicap of the pioneers then, and allowed them to function by soft-pedalling as far as the regulatory requirements were concerned. Of course, as the industry developed, they tightened the norms for ensuring GMP," he adds. Although regulatory authorities helped push the industry to match up to MNCs, they also created temporary setbacks in the Indian industry's growth. "In the initial phase of gradual growth, for about a decade, product patent was a great barrier for the national pharma industry. Thanks to our successful efforts that materialised into the Indian Process Patent Act in 1970, a great change was brought in the growth of Indian pharmaceutical industry," says Modi.

More than hard work, commitment and dedication, it was persistence, and innovation in various business strategies (marketing and management) that helped Cadila earn the position in the top three Indian Pharma majors that were giving solid competition to pharma MNCs. From a turnover of Rs 1,25,000 in the first year of operation, Cadila crossed the Rs 100 crore mark in sales in nearly three decades after its launch. However, in 1995, after a disagreement between Patel and Modi, Cadila Laboratories was restructured with the business being split two ways. Cadila Healthcare was set up to take the Patel's share of the business and Cadila Pharmaceutical took Modi's share. Among the early achievements of Cadila were the production of two liquid preparations—Livirubra and Cadila gripe-and two novel products—Isopar, a formulation of the anti-tuberculosis drugs isoniazid and para-amino salicylic acid in 1957, and Neuroxin-12, a single-vial mixture of vitamin B1, vitamin B6, and vitamin B12, in 1959. Also, as part of a marketing strategy, Modi made a policy to offer novel drugs every two years. And since there was a dearth of such drugs in the market, the demand for them grew along with Cadila's name. The big picture When one sees the industry through a veteran's eyes, one can actually get a wider view of the accomplishments that the industry has achieved as a whole, rather than the usual relatively short term targets. A veteran can tell you the past, present and give future insights into an industry, especially about what it needs. "Besides generics production, the time has come for the Indian pharma industry to go for new research products. I can say that Cadila has done commendable work and is slated to bring new products in the coming four to five years; these would be duly patented first-in-the-world introductions," says Modi. One of his earnest ambitions has been to see the Indian drug industry in the global market. When Cadila entered the export market in 1970, this ambition was realised. Through its first overseas subsidiary, Cadila Pharmaceuticals Limited Incorporated at St Louis, United States, the company developed pharma business for catering to market needs in North America and Latin America, besides Europe, and expanded to Moscow, Africa and Japan, propelling the company's global expansion plans. Its first overseas formulation manufacturing facility commenced its operations in Ethiopia a year ago. "The economic slowdown till date has not affected the company's plans to flourish globally. I am confident that our future plans for global expansion would be fulfilled," avers Modi. Modi has innumerable times taken an initiative to bring about changes for the better of the industry and the society. From playing a major role in shaping the 1986 Drug Policy of Government of India, he has been a member of many educational and social organisations, and government bodies (he headed the Indian Drug Manufacturers Association and was Vice-President of CHEMEXCIL), championed the cause of national sector of the pharma industry, and is revered in the Indian pharma industry as the champion of Indian Patents Act, 1970 which helped the industry in attaining its present global status. "I always consider social commitment as one of the obligations by the industry to the society. Cadila has to its credit many such activities, including a charitable hospital, `Kaka-Ba' located in a backward area of Hansot village in Bharuch district. But to bring corporate social

responsibility under government regulation, as is being mooted in some quarters, I am afraid will bring troubles to genuine initiatives and may lead to corruption," reveals Modi. With changing times, the leadership of the company is also expected to change. So, after 49 years of existence, Cadila had a new face—his son, Dr Rajiv Modi, Managing Director, Cadila. "The company is managed by Dr Rajiv Modi very successfully and innovatively. I am just attending my office as I am fit enough to do so. I have no role to play in the normal routine. I am happy that all the goals, even some beyond my expectations, have been achieved," concludes Modi.
[email protected]

Printer Friendly Version

WEB LINK - http://www.expresspharmaonline.com/20090131/anniversaryspecial06.shtml

Good to Great - The Road Ahead in Indian Pharma

Cadila Pharma—Through a veteran's eyes
The inception of Cadila Pharmaceuticals was a milestone for the pharmaceutical industry in India. The founder recalls the days of the company's struggles and triumphs Post independence, at a time when industries like steel, jute and cotton textiles,

cement, paper, and sugar were on their way to conquer the Indian market and were rapidly crowded with Indian businesses, there were two men amongst some who dared to step into an industry which was at a very nascent stage. The pharmaceutical industry being very underdeveloped could not provide the sort of security other established/establishing businesses could promise, but Indravadan Ambalal Modi, along with his partner and friend, Ramanbhai Patel, was undeterred. Together, they founded Cadila Laboratories in 1951 and proved wrong the popular misconception at that time about the incapability of Indian companies to make medicines. Of course there were start-up troubles with finances and technology access issues, clash of interests—the usual ups and downs that a company has to undergo in its journey to success. What prompted the Chairman of the now Cadila Pharmaceuticals, Modi, into taking such a risk? "Neither the doctors nor the users were prepared to believe in 1951 that India could produce medicines. We had no funds to start even a so-called industry. The inspiration was the scenario of healthcare as a national need. As a pharmacy graduate, I had my vision for pharma manufacturing in India, which was almost non-existent then. The vision was to be a global leader in time to come, though in 1951 when we started one would not have dared to think of it," recalls Modi. Having stayed near a forest-area, in the vicinity of his village Hansot, in Bharuch district in South Gujarat, and seeing Ayurvedic practices, Modi had a vision during his college days that India must produce medicines, both allopathic and herbal. "After my graduation in B Sc Tech (Pharmaceuticals and Fine Chemicals) from UDCT, Bombay University in 1949, I worked with Khandelwal Laboratories for 10 months, after which I started Cadila Laboratories in partnership with my school friend Ramanbhai Patel." Cadila was started in a rented three-room bungalow at a residential area in Ahmedabad with a capital of Rs 25,000. "Having studied in the allopathic discipline, naturally, I started with allopathic production only. But now we have done enough research and development in bringing out herbal products combining traditional wisdom and modern technology," he adds. Growth in the fast lane What is most interesting is the manner in which the company's, and consequently, the pharma industry's growth catapulted to catch up with the rest of the industries. According to Modi, the regulatory authorities had a major role to play in intensifying industry growth. "To be very frank, had there been a compulsion of `Schedule M' in the early 50s and even in the 60s; Indian pharma industry, as seen today, would have never come up. The Indian pharma industry is technocrat driven and not finance driven," says Modi. "It is the foresight of the then regulatory authorities who appreciated the handicap of the pioneers then, and allowed them to function by soft-pedalling as far as the regulatory requirements were concerned. Of course, as the industry developed, they tightened the norms for ensuring GMP," he adds. Although regulatory authorities helped push the industry to match up to MNCs, they also created temporary setbacks in the Indian industry's growth. "In the initial phase of gradual growth, for about a decade, product patent was a great barrier for the national pharma industry. Thanks to our successful efforts that materialised into the Indian Process Patent Act in 1970, a great change was brought in the growth of

Indian pharmaceutical industry," says Modi. More than hard work, commitment and dedication, it was persistence, and innovation in various business strategies (marketing and management) that helped Cadila earn the position in the top three Indian Pharma majors that were giving solid competition to pharma MNCs. From a turnover of Rs 1,25,000 in the first year of operation, Cadila crossed the Rs 100 crore mark in sales in nearly three decades after its launch. However, in 1995, after a disagreement between Patel and Modi, Cadila Laboratories was restructured with the business being split two ways. Cadila Healthcare was set up to take the Patel's share of the business and Cadila Pharmaceutical took Modi's share. Among the early achievements of Cadila were the production of two liquid preparations—Livirubra and Cadila gripe-and two novel products—Isopar, a formulation of the anti-tuberculosis drugs isoniazid and para-amino salicylic acid in 1957, and Neuroxin-12, a single-vial mixture of vitamin B1, vitamin B6, and vitamin B12, in 1959. Also, as part of a marketing strategy, Modi made a policy to offer novel drugs every two years. And since there was a dearth of such drugs in the market, the demand for them grew along with Cadila's name. The big picture When one sees the industry through a veteran's eyes, one can actually get a wider view of the accomplishments that the industry has achieved as a whole, rather than the usual relatively short term targets. A veteran can tell you the past, present and give future insights into an industry, especially about what it needs. "Besides generics production, the time has come for the Indian pharma industry to go for new research products. I can say that Cadila has done commendable work and is slated to bring new products in the coming four to five years; these would be duly patented first-in-the-world introductions," says Modi. One of his earnest ambitions has been to see the Indian drug industry in the global market. When Cadila entered the export market in 1970, this ambition was realised. Through its first overseas subsidiary, Cadila Pharmaceuticals Limited Incorporated at St Louis, United States, the company developed pharma business for catering to market needs in North America and Latin America, besides Europe, and expanded to Moscow, Africa and Japan, propelling the company's global expansion plans. Its first overseas formulation manufacturing facility commenced its operations in Ethiopia a year ago. "The economic slowdown till date has not affected the company's plans to flourish globally. I am confident that our future plans for global expansion would be fulfilled," avers Modi. Modi has innumerable times taken an initiative to bring about changes for the better of the industry and the society. From playing a major role in shaping the 1986 Drug Policy of Government of India, he has been a member of many educational and social organisations, and government bodies (he headed the Indian Drug Manufacturers Association and was Vice-President of CHEMEXCIL), championed the cause of national sector of the pharma industry, and is revered in the Indian pharma industry as the champion of Indian Patents Act, 1970 which helped the industry in attaining its present global status. "I always consider social commitment as one of the obligations by the industry to the society. Cadila has to

its credit many such activities, including a charitable hospital, `Kaka-Ba' located in a backward area of Hansot village in Bharuch district. But to bring corporate social responsibility under government regulation, as is being mooted in some quarters, I am afraid will bring troubles to genuine initiatives and may lead to corruption," reveals Modi. With changing times, the leadership of the company is also expected to change. So, after 49 years of existence, Cadila had a new face—his son, Dr Rajiv Modi, Managing Director, Cadila. "The company is managed by Dr Rajiv Modi very successfully and innovatively. I am just attending my office as I am fit enough to do so. I have no role to play in the normal routine. I am happy that all the goals, even some beyond my expectations, have been achieved," concludes Modi.
[email protected]

Printer Friendly Version

WEB LINK - http://www.expresspharmaonline.com/20090131/anniversaryspecial08.shtml

Good to Great - The Road Ahead in Indian Pharma

Lupin —En route to success
Scores of people see dreams, but very few go forward to achieve them. The Founder-Chairman of Lupin is one among such leaders who dared to dream and win

the gamble One pharma company that stood the test of time and has emerged as one of the strong contenders to be the best in time and future is Lupin. In the last 40 years, Lupin has forced the world to stand up and take notice of the company's dream, a dream first seen by Dr Desh Bandhu Gupta. After completing his Master's in Chemistry, Gupta started his career as an Associate Professor at the Birla Institute of Science and Technology, Pilani, Rajasthan, later on to Desh Bandhu Gupta become a catalyst in setting up Lupin with just Rs 5,000, and captaining it to great heights under his leadership. "My dream of contributing to the process of Nation-building and vision to fight life-threatening infectious diseases by manufacturing drugs of highest national priority were the compelling reasons and guiding principles that led to the formation of Lupin in the year 1968," proudly admits Gupta, the Chairman of Lupin. Reaching the top Headquartered at Mumbai, Lupin has nine global manufacturing facilities spread across sites in India and the global R&D hub—Lupin Research Park (LRP)—in Pune near Mumbai, Maharashtra. Today Lupin has achieved the distinction of not only becoming India's fifth largest pharma major but also one of the fastest growing generic player in the world specifically in advanced markets such as the US and Japan. According to a recent study done by Business India—Lupin was ranked No 4 in terms of positive growth in market capitalisation amongst the Top 100 companies in the country—with a capitalisation of around $ 1.2 billion . Speaking about the strings of success that Lupin has experienced in the past years, Gupta avers, "It is my firm belief that the personality and the spirit of a business enterprise is shaped in its formative years. The values and the image that gets ingrained in this period and the direction and the vision outlined then—stays with the enterprise as a guiding philosophy in some form or the other. At Lupin, we have lived this belief and strived hard to convert every possibility into a reality." He adds, "Today, we have come a long way from being a manufacturer and supplier of APIs to becoming a fully integrated global pharma player—in keeping with our vision of being an innovation led, transnational pharma company." Looking ahead Keeping the legacy of Gupta intact by leading the company to scaling bigger heights are his son Nilesh Gupta, Group President and Executive Director of Lupin and his daughter Vinita Gupta Sharma, who is one of the Directors of Lupin and Group President and CEO of Lupin Pharmaceuticals Inc (LPI). Nilesh's portfolio of responsibilities includes advanced markets, strategy and management, research and development, manufacturing and supply chain management for the company in addition to heading the regulatory, quality and projects functions. Whereas Vinita heads the US and Europe businesses, the advanced market business of the company and has been instrumental in Lupin's successful foray into the US and Europe and in cementing alliances with global majors. Gupta says, "Vinita and Nilesh have excellent academic backgrounds—having done their Masters from JL Kellog School of Management and Wharton respectively post which they joined

Lupin where they have been working across key strategic business unit's (SBU) and divisions on key initiatives over the past decade. They have not only been a part of Lupin's growth—but have inked and executed most of our success stories." "Right from our upbringing, academic background and our training we learnt and realised that the expectations from us would be always higher than from any other professionals. Moreover the general expectation from the second generation would naturally be higher, and DBG's (as the Founder-Chairman is known) expectations from us has been no different," Vinita shares. In order to meet the challenges of the future, the company has been constantly augmenting its manufacturing capacities including green field specialised projects with the new plant in Indore as a testament to that effect. However with changing times the market dynamics have also changed drastically so how do the 'Generation Next' plan to direct their growth plans and tackle the testing situations. Nilesh expresses, "We believe that the biggest challenge for us is going to be the industry dynamics across the globe and our ability to gear ourselves to succeed and excel in the future. We are in a fast changing industry wherein the bar for success gets higher every day. Our ability to grow and differentiate ourselves will very much depend upon our capability to embrace new areas/opportunities in our industry. And our competition is global— very often, it is not what competition we would see from or in India, it is what we see in target markets like US, Europe or Japan." Agreeing on the same, Vinita informs that Lupin as a company is doing very well. "However in response to the global slowdown we are working proactively in assessing the impact on each part of our business so that we can prepare effectively. Given that the majority of our business is currently generic, the economic and financial crisis will likely benefit the generic component of our business. We are very fortunate to be in an industry that apart from serving the health needs of the community also partners with Nilesh Gupta governments and regulators to manage their healthcare expenditure budgets better." She adds that given the fact that most key markets—be it the US or Japan and other markets across the globe are looking at increasing generics adoption—at Lupin they see an increase in demand for the same, however the challenge would be to intuitively align strategy and resources to create and service opportunities globally. The power within

At the heart of every successful organisation, lies its people, likewise Lupin also has a efficient and committed multicultural workforce of close to 9000 people. A pool of close to 450 scientists based at Lupin Research Park (LRP) who are constantly engaged in focused research in the areas of new chemical entity (NCE) research, new biological entity (NBE) research, advanced drug delivery systems (ADDS) research and innovative generics Vinita Gupta Sharma research. Gupta feels, "Our constant yearning to deliver quality, innovative drugs and brilliance has compelled us to have by our side, the best-in-class talent, resources and infrastructure totally in line with our objectives and business opportunities. Our distinguished pool of intellectuals is impregnated with the right elements that enable and drive success—build and refine competence to achieve overall excellence." The growth metre "Right from our embryonic years in the sixties, I have firmly believed that there was nothing lacking and stopping us in India to make and take the great leap forward in Industrialisation. Our journey so far has proved that we as a country could innovate, implement big and novel ideas, could think independently and devise problem-solving methods, create global businesses second to none and that, while we were doing all of these things, we could be true to ourselves—to our people, to our great nation and to society at a larger level," proudly admits Gupta. Agreeing on the same, Nilesh, adds, "We have a great company, a solid team and significant technology strengths. As an organisation we have and we would need to continuously focus on increasing the innovative quotient within the company— raising the bar by building competitive advantage by leveraging or technology strength's in niche areas across markets. Five years down the line, we would like to see our company well on its way to commercialise its own molecules in addition to being a global generics powerhouse—very well on our way to becoming a part of the Global Top 50 Pharma majors." "As we move closer to our goal of $ 1 billion, we are challenging ourselves to set new milestones. We are accelerating our pace to strongly establish Lupin in five of the top 10 pharma markets of the world. We are aiming at generating two thirds of our revenues from the global markets," informs Vinita. She adds, "Our focus on technology and differentiation will enable us to charter into new areas of business. Today, we are well positioned to strengthen our formulations business in the advanced markets as we gear up to replicate the success of our US operations in Europe, Japan and Australia." Speaking about their future, Nilesh says, "We have a very successful generic business model and we very much expect to grow our generic business both in the key markets of our focus today, as well as expanding our geographical reach further." Further he adds that for building a long term sustainable business it is essential for them to also grow their brand/specialty business through their own discovery efforts and also through successful in-licensing. Inspite of the upheaval in the market, Lupin has not been affected by the current financial situation and crisis and this is because Lupin's growth has been based on very strong business fundamentals and strategy. "The bygone fiscal was a momentous landmark in our

journey. Impressive growth, profits and noteworthy profits and meaningful acquisitions—2007-08 has witnessed it all, to aptly qualify as an action-packed year. We have achieved the distinction of being rated as the third fastest growing company in the US for the year 2007 (IMS)," concludes Gupta.
[email protected]

Printer Friendly Version
WEB LINK - http://www.expresspharmaonline.com/20090131/anniversaryspecial08.shtml

Good to Great - The Road Ahead in Indian Pharma

Lupin —En route to success
Scores of people see dreams, but very few go forward to achieve them. The Founder-Chairman of Lupin is one among such leaders who dared to dream and win the gamble One pharma company that stood the test of time and has emerged as one of the strong contenders to be the best in time and future is Lupin. In the last 40 years, Lupin has forced the world to stand up and take notice of the company's dream, a dream first seen by Dr Desh Bandhu Gupta. After completing his Master's in Chemistry, Gupta started his career as an Associate Professor at the Birla Institute of Science and Technology, Pilani, Rajasthan, later on to Desh Bandhu Gupta become a catalyst in setting up Lupin with just Rs 5,000, and captaining it to great heights under his leadership. "My dream of contributing to the process of Nation-building and vision to fight life-threatening infectious diseases by manufacturing drugs of highest national priority were the compelling reasons and guiding principles that led to the formation of Lupin in the year 1968," proudly admits Gupta, the Chairman of Lupin. Reaching the top Headquartered at Mumbai, Lupin has nine global manufacturing facilities spread across sites in India and the global R&D hub—Lupin Research Park (LRP)—in Pune near Mumbai, Maharashtra. Today Lupin has achieved the distinction of not only becoming India's fifth largest pharma major but also one of the fastest growing generic player in the world specifically in advanced markets such as the US and Japan. According to a recent study done by Business India—Lupin was ranked No 4 in terms of positive growth in market capitalisation amongst the Top 100 companies in the country—with a capitalisation of around $ 1.2 billion . Speaking about the strings of success that Lupin has experienced in the past years, Gupta avers, "It is my firm belief that the personality and the spirit of a business enterprise is shaped in its formative years. The values and the image that gets ingrained in this period and the direction and the vision outlined then—stays with the enterprise as a guiding philosophy in some form or the other. At Lupin, we have lived this belief and strived hard to convert every possibility into a reality." He adds, "Today, we have come a long way from being a manufacturer and supplier of APIs to becoming a

fully integrated global pharma player—in keeping with our vision of being an innovation led, transnational pharma company." Looking ahead Keeping the legacy of Gupta intact by leading the company to scaling bigger heights are his son Nilesh Gupta, Group President and Executive Director of Lupin and his daughter Vinita Gupta Sharma, who is one of the Directors of Lupin and Group President and CEO of Lupin Pharmaceuticals Inc (LPI). Nilesh's portfolio of responsibilities includes advanced markets, strategy and management, research and development, manufacturing and supply chain management for the company in addition to heading the regulatory, quality and projects functions. Whereas Vinita heads the US and Europe businesses, the advanced market business of the company and has been instrumental in Lupin's successful foray into the US and Europe and in cementing alliances Nilesh Gupta with global majors. Gupta says, "Vinita and Nilesh have excellent academic backgrounds—having done their Masters from JL Kellog School of Management and Wharton respectively post which they joined Lupin where they have been working across key strategic business unit's (SBU) and divisions on key initiatives over the past decade. They have not only been a part of Lupin's growth— but have inked and executed most of our success stories." "Right from our upbringing, academic background and our training we learnt and realised that the expectations from us would be always higher than from any other professionals. Moreover the general expectation from the second generation would naturally be higher, and DBG's (as the Founder-Chairman is known) expectations from us has been no different," Vinita shares. In order to meet the challenges of the future, the company has been constantly augmenting its manufacturing capacities including green field specialised projects with the new plant in Indore as a testament to that effect. However with changing times the market dynamics have also changed drastically so how do the 'Generation Next' plan to direct their growth plans and tackle the testing situations. Nilesh expresses, "We believe that the biggest challenge for us is going to be the industry dynamics across the globe and our ability to gear ourselves to succeed and excel in the future. We are in a fast changing industry wherein the bar for success gets higher every day. Our ability to grow and differentiate ourselves will very much depend upon our capability to embrace new areas/opportunities in our industry. And our competition is global— very often, it is not what competition we would see from or in India, it is what we see in target markets like US, Europe or Japan." Agreeing on the same, Vinita informs that Lupin as a company is doing very well. "However in response to the global slowdown we are working proactively in assessing the impact on each part of our business so that we can prepare effectively. Given that the majority of our business is currently generic, the economic and financial crisis will likely benefit the generic component of our business. We are very fortunate to be in an industry that apart from serving the health needs of the community also partners with governments and regulators to manage their healthcare expenditure budgets better." She adds that given the fact that most key markets—be it the US or Japan and other markets across the globe

are looking at increasing generics adoption—at Lupin they see an increase in demand for the same, however the challenge would be to intuitively align strategy and resources to create and service opportunities globally. The power within At the heart of every successful organisation, lies its people, likewise Lupin also has a efficient and committed multicultural workforce of close to 9000 people. A pool of close to 450 scientists based at Lupin Research Park (LRP) who are constantly engaged in focused research in the areas of new chemical entity (NCE) research, new biological entity (NBE) research, advanced drug delivery systems (ADDS) research and innovative generics research. Gupta feels, "Our constant yearning to deliver quality, Vinita Gupta innovative drugs and brilliance has compelled us to have by our Sharma side, the best-in-class talent, resources and infrastructure totally in line with our objectives and business opportunities. Our distinguished pool of intellectuals is impregnated with the right elements that enable and drive success— build and refine competence to achieve overall excellence." The growth metre "Right from our embryonic years in the sixties, I have firmly believed that there was nothing lacking and stopping us in India to make and take the great leap forward in Industrialisation. Our journey so far has proved that we as a country could innovate, implement big and novel ideas, could think independently and devise problem-solving methods, create global businesses second to none and that, while we were doing all of these things, we could be true to ourselves—to our people, to our great nation and to society at a larger level," proudly admits Gupta. Agreeing on the same, Nilesh, adds, "We have a great company, a solid team and significant technology strengths. As an organisation we have and we would need to continuously focus on increasing the innovative quotient within the company— raising the bar by building competitive advantage by leveraging or technology strength's in niche areas across markets. Five years down the line, we would like to see our company well on its way to commercialise its own molecules in addition to being a global generics powerhouse—very well on our way to becoming a part of the Global Top 50 Pharma majors." "As we move closer to our goal of $ 1 billion, we are challenging ourselves to set new milestones. We are accelerating our pace to strongly establish Lupin in five of the top 10 pharma markets of the world. We are aiming at generating two thirds of our revenues from the global markets," informs Vinita. She adds, "Our focus on technology and differentiation will enable us to charter into new areas of business. Today, we are well positioned to strengthen our formulations business in the advanced markets as we gear up to replicate the success of our US operations in Europe, Japan and Australia." Speaking about their future, Nilesh says, "We have a very successful generic business model and we very much expect to grow our generic business both in the key markets of our focus today, as well as expanding our geographical reach

further." Further he adds that for building a long term sustainable business it is essential for them to also grow their brand/specialty business through their own discovery efforts and also through successful in-licensing. Inspite of the upheaval in the market, Lupin has not been affected by the current financial situation and crisis and this is because Lupin's growth has been based on very strong business fundamentals and strategy. "The bygone fiscal was a momentous landmark in our journey. Impressive growth, profits and noteworthy profits and meaningful acquisitions—2007-08 has witnessed it all, to aptly qualify as an action-packed year. We have achieved the distinction of being rated as the third fastest growing company in the US for the year 2007 (IMS)," concludes Gupta.
[email protected]

Printer Friendly Version
WEB LINK - http://www.expresspharmaonline.com/20081115/pharmalife02.shtml

Pharma Voice

Medical Reps: Look into yourself
Ajit Kumar Singh

In this era of cut throat competition Medical Representatives (MRs) are facing several problems when they are in the field for sales call. These problems are either associated with their customers (doctors) or themselves. Problems associated with customers are such variables (their busy schedule, own belief and their different personalities) which are beyond the control of MRs. But what they can sort out their own problems like their poor communication skills, inadequate product and market knowledge and other technical skills which makes a lot of difference inside the clinic of the doctor. All these skills require regular practice to be perfect. But it is important to adopt other steps which make an instant effect. When a fresher starts working in the field even after training she/he bears number of inhibitions which prevent them from making an effective sales call. Some of these inhibitions can be overcome by regular practice and consistent effort while others have an instant solution. I will discuss some of these instant requirements which may help MRs create their own niche inside the doctor's clinic and pave their way to be successful sales professional. First impression - We all know that the "First impression is last impression". But why it is called so? It is because our first impression reflects at least seven information about us: • • • What is our income level? What is our education level? What is our social position

• • • •

How sophisticated we are? How confident we are? What is our moral character? Whether we are trustworthy or not? All this information is scanned by the customer within few seconds as the MR enters his clinic. If all these information are positive, the MR will have an opportunity to win the loyalty of the customer. Everyday a top doctor attend calls from five-10 MRs approximately.

When all these MRs are waiting outside the clinic, unconsciously every MR looks at the attire of each other. If you are well dressed you develop a positive self image about yourself and vice versa. So you can imagine how your dressing sense influences your customer? It is a very common scenario in the field that an MR hardly bothers about his attire most of the time but becomes well groomed when it is the time to work with his senior. This practice should be restricted. Good attire is essential ingredient to create a good impression. It always pays off. Self confidence - Once you are well dressed, you have already taken a step towards a successful sales presentation. This will also help you to build self confidence. The best way to develop your self confidence is to "perceive that you are confident". When you meet people, look them in the eyes, smile a pleasant smile and listen to them carefully. Everyday remind yourself that you have done something well. Reward yourself for all your good deeds. Rehearse the sales presentation thoroughly before you have to make it inside the clinic. Have complete knowledge of your product and allied services. If you are not good at your product knowledge, your self confidence will break. Keep vigil on your competitors. It will help you out to highlight your product and services in much effective way. At the same time it will boost up self confidence. Reading inspiring books will add to it. Discard worry - In spite of having all the tools in their kit, most of the time MRs are worried about the response of the doctor. This makes them defensive even before the detailing started. Worry is a hidden psychological barrier which stops them from communicating confidently. These worries are not caused by the perceived response of the customer (doctor) but due to the problem of MRs themselves like poor knowledge about product, market and competitor, fear of rejection etc. The best way to cope with this problem is stop worrying, think of your success stories not the failure. You can use relaxation techniques to combat this unwanted worry. These are not the only tools for successful detailing but these are the factors which creates the right ambience for a productive sales call. An optimum utilisation of this ambience can be done when the MR works persistently at their basics like communication skills and knowledge about their product and services, market and competition and improve their selling and technical skills.
(The author is a freelance Pharma Sales Trainer and can be contacted at [email protected])