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Group G• Group MeMber ID• Kazi Tanvirul Islam B040006• S.M. Zayed Siraj B040016• Jannatul Ferdows B040017• Md. Tajmilur Rahman B040036• Umma Kulsum B020050
TopicsSWOT analysis of Incepta Pharmaceuticals Ltd.
Learning objectives• After this lecture participants will be able to identify internal and external factors that affect strengths, weaknesses, opportunities and threats to activities or operations
Introduction of Pharmaceuticals industry in Bangladesh:-• The pharmaceutical industry in Bangladesh is one of the most developed hi-tech sectors within the countrys economy. In 2000, there were 210 licensed allopathic drug-manufacturing units in the country, out of which only 173 were on active production; others were either closed down on their own or suspended by the licensing authority for drugs due to non compliance to GMP or drug laws. They manufactured about 5,600 brands of medicines in different dosage forms. There were, however, 1,495 wholesale drug license holders and about 37,700 retail drug license holders in Bangladesh. After the promulgation of Drug Control Ordinance - 1982, the development of this sector was accelerated. The professional knowledge, thoughts and innovative ideas of the pharmaceutical professionals working in this sector are the key factors for these developments. Due to recent development of this sector it is exporting medicines to global market including European market. This sector is also providing 97% of the total medicine requirement of the local market.
Introduction of Incepta Pharmaceuticals Ltd.• Incepta Pharmaceuticals Ltd. is a leading pharmaceutical company in Bangladesh established in the year 1999. The company has a very big manufacturing facility located at Savar, 35 kilometer away from the center of the capital city Dhaka.• Incepta Pharmaceuticals Ltd. is now the 2nd largest company of the country and recognized as the fastest growing of the top five manufacturing company in the country. Established in the year 1999, the company has come a long way. Currently the Zirabo plant consists of several buildings with state of the art technology. Dedicated cephalosporin manufacturing building, a specialized manufacturing building for the production of lyophilized products, insulin and amino acids and newly built liquid and semisolid manufacturing building and large warehouse is also in operation.
SWOT• Factors affecting an organization can usually be classified as:• Internal factors – Strengths (S) Strengths Weaknesses – Weaknesses (W)• External factors – Opportunities (O) Opportunities Threats – Threats (T)
Strengths, weaknesses, opportunities and threats Of Incepta Pharmaceutical company’s in BangladeshStrengths of Incepta Pharmaceutical Ltd.• Some leading companies are producing world-class products.• Products acceptable in the global market as ‘Quality Products’• Wide range of products.• Price is competitive both in local and foreign market.• Strong brand image created by the market leaders parallel to MNCs.• Large pool of efficient and qualified technical manpower at minimum cost.• Supportive government policy attracting foreign investors.• Do not have to comply IPR until 2016.• Backward linkage support is being created.• Large domestic market with reasonable growth rate.• Oldest and one of the largest sector in terms of capital investment.
Weaknesses of Incepta Pharmaceutical Ltd.• Patent law is not updated to accommodate benefits of LDCs. In Bangladesh patents are more prohibited under Patents and Drugs Act 1911 as amended for time to time and patents and Drugs Rules 1933. In order to make best use of compulsory licensing and parallel imports, recent patent law needs to be updated.• A Task Force was created comprising members from EPB, Drug Authority, Ministry of Health, Ministry of Commerce, NBR, Bangladesh Bank, Income Tax, Customs and so many but unfortunately this committee could not work up to level of the requirement.• Dependency on imported raw materials or absence of API plants.• Absence of international standard quality control and testing laboratory.• Absence of bio-equivalence testing and clinical facilities.• Inadequate knowledge on TRIPS and trade related matters.• Little research and development on new molecule development etc.
Opportunities for Incepta Pharmaceutical Ltd.• We can now produce API for patented products• Large potential for export market expansion from 2006 till 2016 and on wards.• Huge potential to set-up manufacturing plant for API or bulk drugs.• Liberal government policy for the foreign investors for joint venture pharmaceuticals unit.• Large pool of qualified technical personnel may set up manufacturing units in other LDCs• Positive points of Drug policy, if foreign companies can show 7.5% saving of foreign exchange mark up is flexible.• Local companies can offer technical know-how to LDCs for setting plants.• Domestic market is gradually increasing with the increase in GDP.• Scope for product diversification into herbal and animal healthcare.• Research and development activities may be initiated with external support.• Scope to take advantage of compulsory licensing, parallel import and bolar provisions.• Bangladesh can gain the markets, where India & Brazil used to sell until 2005, because the countries are now excluded from supplying medicines subject to patents, there by strengthening the competitive positions of Bangladeshi Producers of medicines.• Even India and China, being Champions of reverse engineering in producing the generic• versions of the patented API can now use Bangladesh as a platform to produce those APIs• which they cannot produce in their own country after 2005.
Threats for Incepta Pharmaceutical Ltd.• Cheaper medicine from China and India.• TRIPS may bring tough competition in the local and export market.• India has amended 1970 Patents Act as favorable as possible.• The sector is dependent on imported raw materials, any fluctuation in raw material prices or rate• of exchange will have negative affect on competitive prices.• Entry of multinationals with large-scale investment and strong backward linkage support.• Neighbouring countries supplying products to Bangladesh through unauthorized channel.• Imported drugs will be in the local market after enactment of revised drug policy.• Increase of price of raw materials.• WTO members with strong generic industries that supply Bangladesh must give full patent protection.• Availability and increase of the active ingredients to Bangladeshi Industry.• WHO GMP has changed to cGMP (Current Good Manufacture Practice) which is very much stringent to be complied by the new entrant specifically.
Challenges/problems• Lack of effective monitoring system• Inadequate management capacity for effective implementation of existing legislation and policies and guidelines.• Quality assurance of the pharmaceuticals coupled due to lack of independent lab for testing products.• Human Resources – inadequate trained staff.• Lack of affordability – GOB’s resource constraint to pay for medicine procurement and also for Individuals to pay for medicines.• Shortage of manpower in National Regulatory Authority.• Gaps and weaknesses in existing rules and regulations.• Inappropriate use of medicines – anybody can buy any medicine from medicine shops without prescription.• Lack of awareness & knowledge amongst users and availability of information.
Way Forward• Strengthen norms, standards and policy options; promote quality of medical products, vaccines and technologies.• Efficient procurement systems to combat counterfeit and substandard medical products, vaccines and technologies.• Promote good governance and transparency in procurement and medicines pricing.• Strengthening capacity of drug administration authority.• Ensure equitable access, rational use and adherence to quality medicine• Monitor quality and safety of products/vaccines/technologies.• Establish Active pharmaceutical Ingredients (API) park, which could enable• Local pharmaceutical companies to produce raw materials.
Conclusions A large majority of people living in rural Bangladesh are stilltraditional in their attitude. This segment of people demand naturalproducts for all kinds of diseases. So, there is large potential marketfor herbal products in Bangladesh. The demand of pharmaceuticalraw materials has increased in the recent years and will increasefurther in the coming years since the production volume of the localcompanies is increasing day by day due to increased localconsumption and export.