Indus Pharma was founded in 1969 by Saeed Ismail with a vision of providing quality medicines at affordable prices. Porter's five forces analysis shows that rivalry among existing competitors in the Pakistani pharmaceutical industry is high due to companies creating substitutes for new drugs. While threats of entry by new competitors is medium due to high research and development costs and regulatory hurdles, bargaining power of buyers like hospitals is also medium as they can pressure companies on pricing. Bargaining power of suppliers is low as materials and equipment have multiple sources. Availability of substitutes like herbal products is high. In conclusion, Porter's model shows low to medium competitive forces in the industry.

1. PORTER’S FIVE FORCE ANALYSIS ON
PAKISTAN PHARMACEUTICAL
COMPANY

3. INDUS PHARMA
Indus Pharma Private Limited ISO 9001:2008
Certified Company was founded by the
visionary founder Mr. Saeed Ismail in 1969.
Since its establishment it as been striving
continuously to assure customer satisfaction
by providing the best possible quality
medicine for common man at an affordable
price.

4. PORTER’S FIVE FORCES
ANALYSIS ON INDUS
PHARMA

5. RIVALRY AMONG EXISTING COMPETITOR
(HIGH)
 Any potential new drug has its public
information for the possibility of creating a
similar drug to market as a substitute. E.g;
Voren and Voltral
 Companies usually go out of business if
they have no potential “blockbuster” in
future pipeline. As a result big and large
pharma companies will bring significant
research or valuable assets by merger
and acquisitions.

6. THREATS OF ENTRY POSEDBY NEWOR
POTENTIAL COMPETITOR(MEDIUM)
 High entry barriers due to costs associated
with research & development of new drugs
 Generic and patent ANTIBIOTICS requires
detail government regulation (i.e. FDA)
 Pharmaceutical companies benefit from
continuation of same medicines, which
customers buy for medication that was
prescribed by the doctors.
 Multinational Industry benefits from strong
demand from consumers

7. BARGAINING POWEROF
BUYERS
(MEDIUM)
 Hospitals & other health care organizations
buy in bulk quantities and exert pressure on
pharmaceutical companies to keep prices in
check.
 Large pharmaceutical companies generally
enjoy significant buying power. They can
dictate the price they want to buy or take their
business elsewhere.

8.  The raw materials for manufacturing drugs are
available from numerous sources.
 Most of the equipment used in manufacturing
and research is available from multiple
suppliers.
 Suppliers usually offer multiple products to
the manufacturer, which in return makes
pricing on rarer materials and unique
equipment.
BARGAINING POWEROF
SUPPLIERS
(LOW)

9. AVAILABILITY OF
SUBSTITUTES
(HIGH)
 Traditional medicines
 Herbal products
 Nutritional companies
 Acupuncture
 Yoga
 Personalized medicine

10. CONCLUSION
Porter’s model LOW to MEDIUM
forces are present among the
strong players in the
pharmaceutical industry. Thus, the
industry is attractive to investors
largely due to the high-barriers to
entry, purchasing and pricing
power, and strong credit profiles of

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