1|Page Term paperIntroduction:-EstablishmentIncepta Pharmaceuticals Ltd. is a leading pharmaceutical company in Bangladesh established in theyear 1999. The company has a very big manufacturing facility located at Savar, 35 kilometer awayfrom the center of the capital city Dhaka.What types of Company?Incepta Pharmaceuticals Ltd. is a leading pharmaceutical company in BangladeshOrganization structure Organogram Of Incepta Pharmaceuticals Ltd.
2|PageContribution to the economyIn Bangladesh the pharmaceutical sector is one of the most developed hi-tech sectors which iscontributing in the country‟s economy.After the promulgation of Drug Control Ordinance – 1982, the development of this sector wasaccelerated. The professional knowledge, thoughts and innovative ideas of the pharmacists working inthis sector are the key factors for this developments.Due to recent development of this sector it is exporting medicines to global market includingEuropean market. This sector is also providing 97% of the total medicine requirement of the localmarket.For bio equivalency tests alone in Singapore, Malaysia or in European countries Bangladeshpharmaceutical industry has to spend a lot of money now. These sub-sectors would need moreinvestment in future. The industry created opportunities for foreign direct investment.Bangladesh‟s pharmaceutical industry has potential to grow and compete in the international market.Its ability to comply otherwise with the guidelines of quality assurance provides it the competitiveadvantage.Most companies follow the good manufacturing practice (GMP) standards, set by the UN WorldHealth Organization (WHO).Bangladesh can compete with countries like India, China, Brazil and Turkey in the internationalexport market due to its quality compliance. If enjoys the exemption limit until 2016 under theprovisions of the World Trade Organization with regard to generic, patients and other related matters.The ability of the Bangladesh industry is otherwise undisputed about achieving excellence.Over $250 million invested in the sector, has helped modernize and create new facilities.The investment has helped the companies get certification from the international regulatory bodies.Now, Bangladeshi companies are in a situation to export pharmaceutical products to any part of theworld.Brief HistoryIncepta began its operation with a handful of highly skilled and dedicated professionals guided by anable leadership. Proper strategic planning, technical excellence, swift and timely decisions helped usachieve our objectives leading to much faster growth. Incepta was able to anticipate the need of themarket and provide the right product at the right time. High focus on R&D investment from the verybeginning made possible the introduction of quality products ahead of its competitors in most cases. Incepta Pharmaceuticals Ltd. is now the 2nd largest company of the country and recognized as thefastest 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 stateof the art technology. Dedicated cephalosporin manufacturing building, a specialized manufacturingbuilding for the production of lyophilized products, insulin and amino acids and newly built liquidand semisolid manufacturing building and large warehouse is also in operation.
3|Page Another multipurpose building for housing the Research & Development operation along with thecanteen facility is also there. Currently all the products are coming from the plant at Zirabo. Thecompany now produces almost all types of dosage forms covering nearly all therapeutic area. Incepta now has one of the largest and competent sales force and large distribution network of itsown, operated from 18 different locations throughout the country. A most dynamic skilled anddedicated marketing team comprising of pharmacists and doctors are at the core of the marketingoperation. These highly skilled professionals play a crucial role in providing the necessary strategicguideline for the promotion of its product.Competitors 1. SQUARE PHARMACEUTICALS LTD. 2. BEXIMCO PHARMACEUTICALS 3. OPSONIN PHARMA LTD. 4. ESKAYEF 5. RENATA PHARMACEUTICALS 6. ACME PHARMACEUTICALS 7. ACI PHARMACEUTICALS 8. ARISTOPHARMA 9. DRUG INTERNATIONAL 10. SANOFI AVENTIS 11. GLAXOSMITHKLINE 12. ORION PHARMA LTD. 13. NOVO NORDISK 14. HEALTHCARE PHARMACY 15. GENERAL PHARMACEUTICALS 16. SANDOZ 17. POPULAR PHARMACY 18. NOVARTIS 19. IBN SINAMarket share
4|PageBeginning in 2000, Incepta has been launching new and innovative products at a faster pace than itscompetitors. Up to May 2012, it has already launched 334 generics with a total of 639 presentations. The companyproduces a wide variety of dosage forms covering nearly all the major therapeutic classes. During the last 12 years of operation Incepta launched as many as 124 new generics for the first timeever in Bangladesh. High focus on quality and timely introduction of much needed essentialmedications previously unavailable in the country has enabled Incepta to become the second largestpharmaceutical company of the country.Year No. of Products First Ever Product IMS Rank*2012 639 0 2nd2011 632 9 2nd2010 594 10 2nd2009 585 4 2nd2008 532 10 2nd2007 451 17 3rd2006 368 9 3rd2005 288 12 3rd2004 198 6 5th2003 154 18 8th2002 119 14 10th2001 78 11 12th2000 35 4 31st* Intercontinental Marketing Services (IMS)Nature of marketUnder pure competition:- Also sometimes referred to as perfect competition, pure competition is asituation in which the market for a product is populated with so many consumers and producers thatno one entity has the ability to influence the price of the product sufficiently to cause a fluctuation.Within this type of market setting, sellers are considered to be price takers, indicating that they are notin a position to set the price for their products outside a certain range, given the fact that so manyother producers are active within the market. At the same time, consumers have little influence overthe prices offered by the producers, since there is no singular group of consumers that dominates thedemand.In reality, pure competition is more theory than actual fact. While there are rare situations in which amarketplace functions with pure competition for a short period of time, the situation normally shifts asvarious factors change the stalemate created by a multiplicity of sellers and buyers. This is often dueto the somewhat stringent set of factors that must be present in order for the competition to beconsidered perfect or pure.
5|PageProduct:-Product mix Therapeutic Group Products Amino Acids Prosol IV Analgesic, Anti Inflammatory Actidex Celenta Cortan Edopain Etorac Intafenac Intaflam Intasone Nalbun Neforex Injection Opifen Opifen Injection Oricox Progesic Purifen Reservix Reset Reset Plus Salinix Ticoflex Topicacin Winpain Anesthetic / Critical Care Anestho Hypnofast Ketaride Nor Q Nordrine Spino Anti Bacterial Adora Amikin Beuflox Cefotime Cispenam Clindacin Efdinir Emixef Exephin Firmac Gatiflox I-Penam Inclox Intamycin Ipadox Kilbac Levoxin Linzolid Nebazin Nintoin Oticlor Pedilid Procef Sidobac Tenafet Tinobac Tridosil Ultrapime Vanmycin Ximeprox Injection Anti Diabetic Compimet Consucon Losucon Maxsulin Nobesit Nomopil Piodar Sitagil Vibrenta Anti Emetic Emenil Emenil Plus Omidon Onaseron Paloxiron Anti Gout Alurol Febustat Kolchin Pyrazone Anti Histamine Alervil Encilor Fenofex Ketomar Mebastin Neocilor Seasonix Sudolor Anti Obesity Adiponil Anti Protozoal Artemet Flamyd Nitazox Secnizol DS Anti Spasmodic Cyclopan Drotapan Timozin Anti Viral Barcavir Celbarin Flutavir Infovir Lamivir Simplovir Valovir Xynovir Bio Tech Epoetin Filastin Maxsulin Optipeg-A Parinox Vibrenta Bone and Joint Disorder
7|Page Mastguard Metadaxan Metalone Mirolast Eye Moxquin Eye Eye/Nasal Eye/Ear Drops Drops Drops Drops Nispore Eye Timopress Eye Travast Travast Plus Xibrofen Eye Drops Drops Drops Others Amidol Renophos Otic Preparation Clarizol Ear Drops Cliomet Ear Drops Respiratory Ambolyt Aquaphen Arofil Azelast Budicort Nebuliser Budicort Nasal Cenolon Ipratop Lopadine Nasal Lutisone Nasal Spray Spray Spray Momeson Nasal Montair Mucolyt Purisal Purisal Spray Nebuliser Solution Rynex Sudocof Sudorin Tomephen Windel Windel Plus Xylo Plus Skeletal Muscle Relaxant Flexifen Flexor Myolax Myolax Plus Skin Apalene Betaderm N Betaderm Betamesal Clarizol Ointment Ointment Lotion Clindacin Clindacin lotion Clindacin Plus Dancel Doxiderm Cream Gel Shampoo Econate Econate Plus Elimate Cream Elimate Plus Eudrate Fortison Kerasol Cream Lafrost Lutisone Momeson Cream Napguard Nispore Nyclobate Nyclobate NN Oroconazol Spotclen Spotclen Plus Tacrolim Tazoskin Topicazole Topicazole Plus Trego Ulticort Xenogrow Urological Alfasin XR Prostacin Terazon Toltrex Urilax Vitamins and Minerals Alneed Alneed Gold Alneed plus Aritone Z Aritone ZI Calcicar Calvimax Cardivit Cavic C Cavic C Plus Codcap Colitrol Evagren Folneed Inj. K MM Inovit E Ocarnix Osteo D Precare Preneed CI Proviten A-Z Proviten JR Proviten Silver Vitabion Vitagrow Ziflu
8|PageProduct lineThe following product forms are manufactured on site:A. Sterile Products: Liquid dosage forms (LVP & SVP, Terminally sterilized and aseptically filled ampoule) Eye Drops Solid dosage forms (Solid fill, Dry vials and Freeze-Dried Products)B. Non Sterile Products: Liquid dosage forms (Oral Liquid, Nasal Solution, Nasal Spray) Semisolid dosage forms (Creams, Ointments, Gels) Solid dosage forms (Tablets, Capsules, Powders, Granules)C. Biological Products: Aseptically prepared injectables: Erythropoetin, Enoxaparin, Insulin, Insulin Glargine (rDNA), FilgrastimD. Cephalosporins (Dedicated manufacturing facility): Solid dosage forms (Tablets, Capsules, Powder) Sterile Powders (Aseptically filled vials) Import 90%Raw materials (main) 99.%%%≥ %%%%15 Domestic 10% %55555 %%%≥% %%%15Major raw materials required for production %55555To produce different kinds of finished products, the local companies need more than 750 differenttypes of raw materials, 90% of which is imported. 40 different types of raw materials produced locallyat smaller quantity and the rest of Active Ingredients are imported. Main sources of raw materialsinclude Germany, Switzerland, Belgium, France, Italy, Denmark, Netherlands, UK, USA, UAE,China, Taiwan, South Korea, Japan, Spain, and India. Recently, 4-5 API projects are underimplementation and once they are in commercial production, a significant percentage of raw materialrequirements will be mitigated from local sources.
9|PageMarketing management conceptHolistic marketing conceptHolistic marketing concept is based on development, design, and implementation of marketingprograms, processes, and activities that recognize their breadth and interdependencies. Holistic marketing recognizes that "everything matters" with marketing and that a broad, integratedperspective is necessary to attain the best solution.Four main components of holistic marketing are: 1. Relationship marketing 2. Integrated marketing 3. Internal marketing 4. Socially responsible marketing.In other words it is brining everything together.Product design and styleAlthough product design varies from company to company, but the leading local and foreigncompanies have certain standard on product designing that is acceptable to world market. They usequality design of packs, strips, bottle cover etc.Features:- Perish ability, Durable and Semi durable.Brand name20 July 2011Incepta receives UK Medicines and Healthcare products Regulatory Agency (MHRA) GMPcertificationUK MHRA, the regulatory authority of England inspected the Zirabo plant of InceptaPharmaceuticals Ltd in February 2011. Incepta received the GMP approval certificate for its soliddosage form facility on 20th July 2011 for its own formulated products allowing marketing in UK andother European countries.Incepta hold a very powerful brand name in our country. In present pharmaceutical industry incepta isin number two:-Top 5 pharmaceutical company: 1. SQUARE PHARMACEUTICALS LTD. 2. INCEPTA PHARMACEUTICALS LTD. 3. BEXIMCO PHARMACEUTICALS 4. OPSONIN PHARMA LTD. 5. ESKAYEF
10 | P a g eServiceServices are there at retailers‟ level. Expired unsold products are refunded at a certain percentage.Loss and damages are also compensated depending on the quantity of medicine.Sales 5 yearsYear 2009 2008 2007 2006 2005Domestic sales ( Thousand USD) 48.32 52.14 41.14 36.76 30Export sales ( Thousand USD) 3020 3350 2428 450 -Production utilizationStrength and capability of Incepta Pharmaceuticals Limited is now well established with strongquality image in Bangladesh pharmaceutical market. It has its own manufacturing plant which isWHO-GMP compliant and certified with approval from international organizations. Recently thefacility has got European “Certificate of GMP Compliance”. The pharmaceutical plant is located atZirabo, Savar about 35 kilometers from the capital city and is spread over the land of about 151,000square feet area (approx.14,000 square meter) with a build-up total floor area of about 231,400 squarefeet (approx.21,500 square meters) with state of the art manufacturing facilities. The plantmanufactures tablets, capsules, oral liquids and Injectables, nasal sprays, creams, ointments,ophthalmic products, sachets, powder for oral suspensions, spray dried specialized dosage forms etc.Cephalosporin group of products are manufactured in a completely separate building.
11 | P a g ePiece:-Pricing approachThe prices of products under controlled category are determined by the government. Themanufacturing companies are allowed to propose the prices of the products that are underdecontrolled category and the approvals of these proposed prices are given by the government. Sincethe local government strictly controls price of pharmaceutical products, there is a very negligible pricedifference. The maximum retail-selling price of a product shall be just double the price of API plusvalue added tax at 15% VAT. But, the price of raw materials is competitive which is fixed based oninternational market situation. As Pharmaceutical manufacturers have to depend on imported rawmaterials, increase in prices of raw materials internationally impact directly to the cost of production.Pricing adjustment strategyProduct mix pricing strategyPricing strategy for new productSince the government strictly controls price of pharmaceutical products, a new company should adopt„shadow or indirect‟ pricing method.
12 | P a g ePlace:-Channel designIncepta has its own large distribution network having 18 depots all over the country. They make theproducts available in every single drug store of the country. The depots are located in Dhaka,Chittagong, Rajshahi, Khulna, Sylhet, Barisal, Comilla, Noakhali, Mymensingh, Magura, Bogra,Narayangonj, Rangpur, Dinajpur, Tangail, Jessor, Moulovibazar and Coxs Bazar.Incepta market their p roducts in 37 countries of the world thourgh our distribution partners.Channel strategyIncepta has a large distribution network that covers the whole country and make products available inevery single drug store. The Distribution centers are located in 18 major cities across Bangladesh.Products are supplied on a daily basis to all the major cities and towns of the country. Remote areasare also supplied rhythmically to ensure timely availability of products to all customers.There is a large fleet of transport including refrigerator trucks for supplying temperature sensitiveproducts to retail shops around the country. Cold chain system is employed to products which needstrict temperature control. Storage of these products are also maintained using refrigerators with backup power supply to ensure maintenance of standardized environment.
13 | P a g eInventory systemKeeping track of inventory is vitally important for any successful retail enterprise. Inventory systemslet you know when it is time to stock up on items that are running low and can also prevent you fromoverselling products and then having to inform customers that their items are either unavailable ormust be backordered. Inventory systems can provide insight into which products are selling well andwhich products are selling poorly.Every drug manufacturing company has their own inventory system. Inventory mainly incurred inthree situations:- 1. Raw material inventory. 2. Work in process inventory. 3. Finish goods inventory.TransportationEvery drug manufacturing company has their own transportation vehicles as like trucks, cargo trucksetc.Ware housingThe warehouse of Incepta is an enclosed building and protects the stored goods from environmentalinfluences. They are secured against fire by the design of the buildings and technical facilities. Theyare secured against fire by the design of the buildings and technical facilities. The fire brigade facilityhas access to enable appropriate fire fighting. The locking system of the stored goods ensures that theaccess to the building is controlled.There warehouse is equipped with four different storage conditions; a) 2oC – 8oC, b) 8oC – 15oC, c)15oC -25oC, and d) ambient condition. There is specific quarantine and sampling areas withdedicated separate storage location for cephalosporin, and steroids. Temperature sensing is equippedwith remote sensor technology.There are controlled rooms with HVAC for specific materials and the conditions are monitored toconfirm compliance with the requirements. Also there is retention sample room.The materials are stored in the warehouse by pallet racking. The status of materials and products iscontrolled by colored status sticker.The transaction of materials is done according to "first in first out" system. Accounting and storage ismaintained through SAP.Select, motivate and evaluate the channel members
14 | P a g ePromotion:-ToolIn Bangladesh, promotion of pharmaceutical products in the mass media is strictly prohibited. Marketand sales promotional activities are carried out by field level sales force. Every company has its ownsales at local and international level. Required transport facilities are given to the sales force in thefield to visit doctors, health care centers, hospitals and private practitioners.Manufacturing companies can only promote their brands to the health professionals by personalselling, clinical meetings, seminars, symposia etc. For promotion with printed promotional materialslike literatures, pads, posters, stickers etc, the manufacturing companies have to submit the same tothe drugs administration for approval and upon their clearance the companies can promote theirproducts using those promotional tools. According to the government regulation, the pharmacies /chemists are entitled to get 16% retail margins on top of the trade prices of the products. Adequatepromotional materials are distributed to the practicing Doctors for their regular use. According to thelocal laws, advertisement on products or brands is not allowed through any media. Productadvertisement can be published in the medical journals provided there is prior permission from theconcerned authority.Trade promotion activitiesRecently, as mentioned earlier, the Ministry of Commerce and Export Promotion Bureau incollaboration with the sector association of pharmaceutical companies i.e. BAPI have taken specialinitiative or program for export promotion of pharmaceutical sector. Activities like organizing trademissions and group visits to international trade fairs, displaying pharmaceutical products inBangladesh pavilion abroad and organizing buyers/sellers meet are the now regularly organized by theMinistry of Commerce and Export Promotion Bureau and the trade bodies including Federation ofBangladesh Chambers and Commerce and Industry (FBCCI). Asia Pharma expo, and some otherevents, studies, seminars, training are helping promoting trade. The Dhaka Chamber of Commerce &Industry as one of the leading Chamber is organizing seminars, trainings and collaborating with otherpharmaceuticals associations.
15 | P a g e ConclusionsBangladesh is one of the poorest countries in the world where about 80%4 of the populationare living below poverty level. So, „Malnutrition and Poor Health Conditions‟ exits. On thecontrary, the country is also developing day by day, per capita income is growing and thepurchasing power of the common people is increasing slowly but steadily. In 2007, the percapita income is US$ 482, which was US$ 470 in 2005, GDP growth was 6.5%. The target ofGDP growth in 2007-08 is 7%. Since the population growth is still there and gradual increasein health consciousness among mass people. All these factors have positive impact on thedemand of the pharmaceutical products. As a result, the demand for imported raw materialswill also be increased.The pharmaceuticals sector is the second largest sector after agriculture that contributes to therevenue generation of the Bangladesh Government. The sector has growth potentials both inlocal and export market. There is an increasing trend in the export of pharmaceuticals thatindicates very good future prospects for the country.
16 | P a g eAnnex XIII - Bangladesh Healthcare and Pharmaceutical Sector: At A Glance
17 | P a g eREFERENCES 1. Bangladesh Economic Survey 2. Revised National Drug Policy 3. National Drug Policy 1982 4. Souvenir Publication on „Asia Pharma Expo 5. Annual Reports of Bangladesh Export Promotion Bureau 6. Annual Report of Bangladesh Association of Pharmaceutical Industries (BAPI) 7. Annual Reports of leading pharmaceuticals companies 8. Foreign Trade Statistics of Bangladesh: Bangladesh Bureau of Statistics. 9. Statistical Bulletin, Bangladesh Bureau of Statistics 10. Statistical Year Book of Bangladesh Bureau of Statistics 11. Annual Publication of Hamdard Laboratories (WAQF) Bangladesh. 12. Web site of ITC and other international trade promotion organizations 13. Publications of Quality and ISO Experts 14. Study reports on Pharmaceutical and herbal sector 15. News paper articles on Pharmaceutical sector 16. Publications of professionals in Pharmaceutical sector 17. Publications of Researchers in Pharmaceutical sector 18. 2006 Published by Directorate of Drug Administration in association with Banagldesh Medical Association and Bangladesh Pharmaceutical Society27report of BAPI 19.Medicinal Plant Marketing in Bangladesh prepared by IFC, World Bank , SDC and SEDFSource of collecting data: ( using internet)http://www.pharma-info.com/sites/en/home.htmlhttp://www.inceptapharma.com/our-growth.phphttp://www.scribd.com/doc/39640083/Company-Profile-Incepta-Pharmawww.dhakachamber.com