Generic Medicine and its Future Prospects in India

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Its is one of the project assigned to us in Rural Marketing!!! Mine topic was Generic Medicine and its future prospects in India keeping in mind the High Expenditure an average Indian has capacity to bear.
Hope its liked and appreciated by people. I will be also sharing a slide with a small online survey I did in this context which will provide a bit more insight in this aspect to everyone.
Hope people will find this useful and informative..

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Generic Medicine and its Future Prospects in India

  1. 1. RM PRoject :GeneRic Medicines An Unexplored Healthcare Boon By: Ankita Bharti (05) Vishesh Kumar (07) Abhinav Kumar Aditya Anand
  2. 2. Generic Medicine: A Boon In Disguise & Unraveled? A generic drug (generic drugs, short: generics) is a drug which is produced and distributed without patent protection. . The generic drug may still have a patent on the formulation but not on the active ingredient. . A generic must contain the same active ingredients as the original formulation. As per FDA norms, Generics are considered (by the FDA) identical in dose, strength, route of administration, safety, efficacy, and intended use. In the rural areas, with no much substantial per capita income to afford expensive medicines, Generic medicines comes as boon. The availability of such drugs in the rural areas has now been initiated by the government of India as “Aushadhi Kendra” and at the Government hospitals.
  3. 3. Generic Medicines: What a SWOT!!!!
  4. 4. Generic Medicines: What a SWOT!!!!
  5. 5. Generic Medicines: What a SWOT!!!!
  6. 6. Generic Medicines: What a SWOT!!!!
  7. 7. Generic Medicines: As “Porter’s” View  Threats of entry posed by new or potential competitors:  Challenging regulatory conditions (approval by FDA)  Patent expirations may lead to an entry of new competitors (generic competitions)  Degree of rivalry among existing firms:     Strong credit profiles. Highly competitive industry. Strong demand from consumers. Weak, small companies usually go out of business.  Bargaining power of suppliers:  Room for negotiation.  Bargaining power of buyers :  Medication is prescribed by the doctors ,so less bargaining powers to customers.  Closeness of substitute products :  Over the few years generic drug manufacturers face excellent opportunities for utilization and volume trends, so high degree of closeness between the players.
  8. 8. Generic Medicines: and 4 P’s  Until relatively recently, pharmaceutical marketers “owned” the relationship with the Four P’s: product, place, price, and promotion.  It was straightforward: Develop a product, place it through a direct-to-physician distribution channel, set the price, and promote with physician events.  But the regulatory constraints have taken placement out of pharmaceutical marketer’s control.  Price is under pressure from managed care and comparison purchasers. . the
  9. 9. Generic Medicines: and 4 P’s  Pharmaceutical marketers have lost control as merely driving demand doesn’t work anymore  The key to success in this new marketing landscape is a shift from a pharmaceutical-driven, toward a pull-based model, where desire for information and education drives action on the part of consumers and medical professionals.  Like the regular pharmacy medicines(Branded ones), Generic Drugs also follow “Cold Distribution” channel or “Cold supply Management”.
  10. 10. Generic Medicines: Current scenario and future market prospective:  Current situation (In India):  Analyzing the all possible aspects of Generics, it can serve as a boon to Indian healthcare market, where 70% of the population still lives in rural areas with a low per capita income..  Switching the prescriptions from branded drugs to generic drugs will lead to the annual reduction of overall 11% in drug costs  Sale of generic drugs provides higher profit margins than the sale of branded drugs ,so it is profitable for the distribution network as well.  The “Jan Aushadhi” stores are currently run on the premises of public hospitals (state and central) and these stores are either run by the hospital’s (Government) administration or some NGO or welfare societies (like Red cross).
  11. 11. Generic Medicines: Some Examples Currently, there is no way for any private company or individual to open a generic drug store. Used as Generic drug Price Branded Drug Price Painkiller Paracetamol Rs 2.45 Crocin Rs 11 Paracetamol syrup Rs 9.00 Crocin (syrup) Rs 15 Folic acid B-complex Atenolol Rs 2.8 Rs 1.8 Rs 7.0 Folivite Becosul Aten Rs 11.8 Rs 11.0 Rs 23.8 Vitamins Cardiovascular (Blood Pressure) drug
  12. 12. Generic Medicines: Current scenario and future market prospective:  In the current situation the establishment of these “Generic“ stores are limited in the hands of Government hospitals , NGO’s and WHO associated organizations.  Recent order of MCI and Supreme Court focusing on prescribing more of the Generics as compared to the Branded medicines, it gives an ample opportunity to the companies like Cipla, Dr Reddy’s which are big players in Indian Private Pharmaceuticals sector to utilize this opportunity.  For the present situation, they can tie up with the NGO’s and welfare societies or under their CSR activities in which is mandated now by government .  and if we go in reference to Ansoff’s matrix it will come under the strategy of “New Product development in the existing markets
  13. 13. Generic Medicines: Tools to increase Utilization  Generic Substitution: Mandatory Generic substitution and Step Therapy by Personal Selling , no separate sales force and budget needed.  Plan Benefit Design:  The prescription structure is broken down into tiers associated with co payments , with differential copayments associated with the medicines increasing substantially from Generics to Branded more renowned drugs with higher co payments.  The major game will be in the hands of the company. They have their margins, discounts etc.  E-Prescribing: A system which allows physicians to generate prescriptions with use of computers or hand held device, something similar on the lines of ITC’s e-Chaupal
  14. 14. Generic Medicines: Tools to increase Utilization  Pharmacists/Prescribers’ incentives: Incentives to the pharmacists, retailers, distributors etc for increased sales of generic drugs or achieving some targets decided by the organization.  Awareness/Education Programs:  Direct communications like Direct mail to prescribers and customers.  Large scale education programs with the help of NGOs and other welfare organizations or even corporate houses by tying up under their CSR activities.  “Academic Detailing” emphasizing on more rational, scientific and cost effective benefits of the usage of Generics.  Nukkad nataks, Puppet shows, Nautankis etc specially during Melas or huge gatherings  Involve Panchayats and Panchs , Primary school teachers in “Rajkiya Vidyalayas” with them considering that being an Opinion leaders

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