INTRODUCTION:

Management is a process of conducting and coordinating various human activities. It is a method of optimizing results with minimum efforts so as to secure maximum efficiency and growth for both, the employer and the employee . Management is a subject which comes under the preview of both science and art. It can be called a science because it proves, defines, measures and uses knowledge. It is an art because it communicates, expresses, describes and practices. Peter Drucker defined that “Management is a multipurpose organ that manage a business, manages managers and manages workers and work’’.

Also George Terry define “Management is a process of planning, organizing, actuating and controlling performance to determine and accomplish the objectives by the use of people and resource”. While marketing of pharmaceuticals or fine chemicals and raw materials related to the production of medicines is known as Pharmaceutical Marketing. It is the sum of all the business activities that are related to the flow of pharmaceutical goods and services from the pharmaceutical manufacturer to the ultimate consumer or the patient.

Pharmaceutical Management:^[1,2,5]

Management is utilization of all available resources to the maximum in attaining all the objectives of the organization and the individual goals as well.

Objectives of Pharmaceutical Management:

1) Achieve product realization

2) Effective control over variables

3) Continuous improvement

Importance of Pharmaceutical Management:

1) It determines the objectives of a firm

2) It helps in achieving the stated objectives

3) It helps in organizational development

4) It helps in optimum utilization of resources

5) Progress and development of an organization or country depends on careful planning and management of various issues .

Levels of Pharmaceutical Management:

1) Top Level Pharmaceutical Management

2) Middle Level Pharmaceutical Management

3) Lower Level Pharmaceutical Management

Theories of Pharmaceutical Management

Fig. 1 Theories of Pharmaceutical Management

Functions of Pharmaceutical Management

Fig. 2 Functions of Pharmaceutical Management

Types of Pharmaceutical Management:

Fig. 3 Types of Pharmaceutical Management

Pharmaceutical Marketing^[1,3,4,6,7]

Marketing of pharmaceuticals or fine chemicals and raw materials related to the production of medicines is known as Pharmaceutical Marketing . It is the sum of all the business activities that are related to the flow of pharmaceutical goods and services from the pharmaceutical manufacturer to the ultimate consumer , the patient .

Objectives of Pharmaceutical Marketing:

1) To provide guiding policies for marketing of drugs and pharmaceuticals .

2) To study the problems associated with the marketing of drug and pharmaceuticals and to suggest solutions .

3) To enable successful distribution of drugs , pharmaceuticals and medicinal products .

4) To analyze the shortcomings in the existing pattern of pharmaceutical marketing.

Importance of Pharmaceutical Marketing

1) Drugs and pharmaceuticals are required by rich and poor alike for removing diseases and disabilities .

2) Drugs are should be available at a cheaper rate and accessible to everyone .

3) Pharmaceutical marketing is a potential force that commands high significance for the country as a whole .

Global Pharma Industry – An Overlook^[1,2,4,6]

The global Pharma industry is currently undergoing significant transformation . The Pharmaceutical manufacturing is dominated by around 12 majors who have multinational presence and multi billion dollar turnover . Traditionally , manufacturing was concentrated in US and Europe .however over the last 15 years or so , with the surge of globalization and dilution of cross country trade barriers , the manufacturing activity is spreading to developing countries which offer many economic advantages .

Fig. 6 Classification of Pharmaceutical Industry

Fig. 7 Global Pharmaceutical Sales by Region, 2009

Fig. 8 Global Pharmaceutical Sales by Region, 2012

Fig. 9 Global Pharmaceutical Sales by Region, 2015

Table. 2 Top 50 Global Pharmaceutical Companies

Rank	Company Name In 2009	Company Name In 2014
1	Pfizer	Novartis
2	GlaxoSmithkline	Pfizer
3	Sanofi-Aventis	Roche
4	Novartis	Sanofi-Aventis
5	AstraZeneca	Merck
6	Johnson & Johnson	Johnson & Johnson
7	Merck	GlaxoSmithkline
8	Roche	AstraZeneca
9	Eli Lilly	Gilead Sciences
10	AbbVie	AbbVie
11	Bristol-Myers Squibb	Amgen
12	Abbott	Teva
13	Bayer	Bayer
14	Amgen	Eli Lilly
15	Meda	Novo Nordisk
16	Boehringer Ingelheim	Boehringer Ingelheim
17	Takeda	Takeda
18	Teva	Bristol-Myers Squibb
19	Kyowa Hakko Kirin	Actavis
20	Astellas	Astellas Pharma
21	Daiichi Sankyo	Baxter International
22	Novo Nordisk	Biogen Idec
23	Merck KGaA	Merck KGaA
24	Eisai	Mylan
25	Otsuka	Daiichi Sankyo
26	Baxter International	Celgene
27	Servier	Otsuka Holdings
28	Gilead Sciences	Allergan
29	Mylan	Les Laboratoires Servier
30	UCB	Shire
31	Genzyme	Abbott Laboratories
32	Shionogi	Sun Pharmaceutical Industries
33	Ratiopharm Ulm	Valeant Pharmaceuticals International
34	Mitsubishi Tanbe	CSL
35	Chugai	Eisai
36	Allergan	UCB
37	Forest	Fresenius
38	CSL	Chugai
39	Apotex	Menarini
40	Nycomed	Grifols
41	Menarini	Aspen Pharmacare
42	Biogen Idec	Hospira
43	Shire	Sumitomo Dainippon Pharma
44	Alcon	Mitsubishi Tanabe Pharma
45	Lundbeck	STADA Arzneimittel
46	Celgene	Mallinckrodt
47	Cephalon	Endo International
48	Hospira	Alexion Pharmaceuticals
49	Watson	Lundbeck
50	Actavis	Kyowa Hakko Kirin

Indian Pharmaceutical Industry – An Overlook^[1,2,4,6]

The Indian Pharmaceutical Sector makes a valuable contribution to the economic and social life of our country . Globally, the Indian Pharma Industry ranks 4^th in volume and 13^th in value terms . It is currently on a high growth trajectory and rapidly integrating with the global industry . This integration is opening up tremendous new opportunities for Indian Pharma across all segments including generics , research and development of New Chemical Entities (NCE) & New Biological Entities (NBE) and Contract Research and Manufacturing Services (CRAMS) . Indian companies are now well positioned to explore these opportunities as they adopt effective and efficient business models that are spread across one or more of each of these segments .

SWOT Analysis:

Key Strength Areas:

1) Cost competitiveness .

2) Well developed industry with strong manufacturing base .

3) Well established R and D infrastructure .

4) Third largest English speaking scientific and technical manpower in the world .

5) Strong marketing and distribution network .

6) Rich biodiversity .

7) Competencies in chemistry and process development.

8) No. Of DMFs filed with U.S. FDA : higher than Spain , Italy < China and Israel .

9) OTC market : Approx. Rs. 35 billion , Growth 18 – 20 % .

10) Manufacturing Facilities : Largest number of U.S. FDA approved manufacturing facilities outside U.S.A.

11) Alternative Medicine : Herbal ,Ayurvedic , etc. – about Rs. 38 billion .

12) India will now have a TRIPS compliant patent regime . This will help in attracting more foreign investment .

13) Move towards a liberal price control regime : scope for profit and growth .

Major Weaknesses:

1) Low investments in innovative R and D .

2) Volume driven but low priced markets – limits value realization .

3) Low healthcare spends .

4) Highly fragmented industry .

5) Inadequate regulatory standards .

6) Spurious drug sales .

Key Opportunities:

1) Significant export potential .

2) Licensing deals with MNCs (Multinational Companies) for NCEs (New Chemical Entities ) and NDDS (Novel Drug Delivery Systems) .

3) Marketing alliances with MNCs to sell their products in domestic market .

4) Contract Manufacturing for MNCs .

5) Opening up of the health insurance sector .

6) Potential for developing India as a centre for international clinical trials .

Threats:

1) 2005 IPR regime implies drying up of product pipeline for Indian Companies .

2) Lack of R and D enabling regulatory environment .

3) Pricing pressure imposed by DPCO .

4) China threat .

5) Loopholes in the patent Bill .

Over The Counter ( OTC ):^[1]

These are non – prescription medicines and sold directly to the end – users . OTC include following therapeutic segments ;

Antibiotics:

It is single biggest therapeutic category in the domestic market and covers vast range of drugs . The popular drugs from the earlier generation antibiotics such as Penicillins ( eg. Benzyl penicillin , amoxicillin ) and Macrolides ( eg. Erythromycin ) are off patent . Whereas the molecules from the newer generation groups like Quinolones ( eg. Ciprofloxacin )and Cephalosporins ( eg. Ceftriaxone ) are still under patent protection .

Cardiovascular:

This is a high growth segment globally wherein new drugs are continually introduced by leading Pharmacos . In India too , this segment has become extremely competitive due to new launches at fast pace by Indian companies . The DPCO coverage is relatively less .

Analgesic and Antipyretic:

These medicines are used to relieve pain/ fever . Most of the drugs in this category are under DPCO coverage hence , the operating profits are less compared to other therapeutic segments . The popular drugs are Aspirin , Analgin and Paracetamol , which are off patent products .

Antacids and Anti – ulcer ants:

This is a high growth segment experiencing maximum new launches . This segments has large number of new under – patent molecules , due to ongoing R and D on developing more effective ways to combat acidity / ulcers . Popular drugs are ranitidine , omeprazole , pentaprazole , etc .

Respiratory:

The ailments like cough and cold are common occurrences , especially among children . Asthma is often chronic , providing assured long – term demand for medication . Recently DPCO has excluded most popular anti – cough drugs , which led to high sales growth .

Anti – tuberculosis:

Most of the popular drugs , eg. Rifampicin are gone off patent and are covered under DPCO .Other important therapeutic segments are Anti – parasitic and Anti – fungal products , Corticosteroids , NSAID drugs , Vitamins , Anti – anemis , Anti – diabetes , Anti – emetic , Anti – histamine , Anti – malarial , CNS and Psychiatric products , Gynecological , Nutrients and Mineral Supplements .

Pharmaceutical Policy^[1]

Objectives:

The main objectives of this policy are :-

1) Ensuring abundant availability at reasonable prices within the country of good quality essential pharmaceuticals of mass consumption .

2) Strengthening the indigenous capability for cost effective quality production and exports of pharmaceuticals by reducing barriers to trade in the pharmaceutical sector .

3) Strengthening the system of quality control over drug and pharmaceutical production and distribution to make quality an essential attribute of the Indian pharmaceutical industry and promoting rational use of pharmaceuticals .

4) Encouraging R and D in the pharmaceutical sector in a manner compatible with the country’s needs and with particular focus on diseases endemic or relevant to India by creating an environment into R and D in pharmaceuticals in India .

5) Creating an incentive framework for the pharmaceutical industry which promotes new investment into pharmaceutical industry and encourages the introduction of new technologies and new drugs .

Approaches adopted in the review:

In order to strengthen the pharmaceutical industry’s research and development capabilities and identify the support required by Indian pharmaceutical companies to undertake domestic R and D , a Committee was set up in 1999 by this Department by the name of Pharmaceutical Research and Development Committee ( PRDC ) under the Chairmanship of Director General of CSIR .

Salient Features of The Pharmaceutical Policy:

1) Industrial licensing

2) Foreign investment

3) Foreign technology agreements

4) Imports

5) Encouragement to research and development

6) Pricing

a. Span of price control

b. Indian pharmaceutical guide ( IPG )

c. Maximum allowable post – manufacturing expenses ( MAPE )

d. Margin for imported formulations

e. Pricing of formulations

f. Ceiling prices

g. Exemptions

h. Pricing of Scheduled Bulk Drugs

i. Monitoring

j. Drug Price Equalization Account ( DPEA )

7) Quality aspects

8) Pharma Education and Training

REFERENCES:

1. Itkar SC , Pharmaceutical management for Pharmaceutical Industry Professionals and Students of Pharmaceutical Sciences , (4^th edn ) Nirali prakashan , Pune , 2010 : 1.1 – 2.8 , 3.1 – 4.3 , 12.1 – 12.31 , 21.1 – 21.11 .

2. Kesic D , Strategic Analysis of The World Pharmaceutical Industry , Management , 14(1) ; 2009 : 59 – 76 .

3. Buckley J , Pharmaceutical Marketing - Time for Change , Electronic Journal of Business Ethics and Organization Studies , 9(2) : 4 – 11 .

4. Growth Agenda for Indian Pharmaceutical Industry – 2015 by Interlink Marketing Consultancy Pvt. Ltd :1-22 .

5. Economics for Pharmaceutical Management : 10.1 – 10.14 .

6. Pharma Marketing Brochure Influences on Prescribing , July 2008 : 1 – 14 .

7. Vasiljev S and Pantelic D , Pharmaceutical Market(ing) : Theory and Reality , Club of Economics in Miskolc TMP , 6(2);2010:85-91 .

Received on 05.04.2016 Accepted on 25.04.2016

Asian J. Res. Pharm. Sci. 2016; 6(2): 95-100

DOI: 10.5958/2231-5659.2016.00013.8

General Marketing	Pharmaceutical Marketing
1. Consumer is the ultimate decision maker	1 . The doctor or physician is the decision maker .
2. No control of Government on quality of items .	2 . The quality of medicines is stringently controlled by the Government .
3. Audio visual media is used for advertising the products .	3 . Advertising of drugs and medicines is strictly prohibited by Law .
4. General Marketing strategies are used .	4 . It is usually done by personal approach .
5. General Marketing sales personnel do not require special and qualified people .	5 . Only science and pharmacy graduates are utilized as representatives .
6.No shelf-life and no expiry date for general goods .	6 . Shelf-life and expiry date is fixed and legal control over the issue .
7 . Obsolescence is very fast .	7 . No such obsolescence .
8 . Prescription is not required for purchasing consumer goods .	8 . A prescription from a qualified physician is mandatory for purchase of medicines .
9.Consumer has several options and choices .	9 . Consumer does not have a choice .
10. License are not mandatory except for sales license .	10 . Licenses are required for distribution and selling of drugs .

ABSTRACT: