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The Business Development team of Bharat pharmaceuticals has identified a lucrative business opportunity due to imminent expiry of patent

filed by its competitor firm Pharma Zeneca Inc for its blockbuster drug PYRIDIZONE used in orthopaedic segment. Sales for this drug worldwide have been the greatest revenue earner for Pharma Zeneca Inc for the last 10 years and the patent for this drug is due to expire in next month. The Bharat Pharmaceuticals marketing team is already in talks with the distributors and stockists of this drug to encash this real opportunity that could end Pharma Zeneca Incs monopoly over ortho segment. Also, the R&D team successfully piloted the production of equivalent drug named Gladricone after phase 2 and phase 3 trials were successfully completed recently for Gladricone. Recently, Bharat pharmaceuticals got ANDA approval filed for Gladricone production and API plant in Ankleshwar is very well equipped to produce an equivalent drug Gladricone once the patent expires at dirt cheap prices. Pyridizone sales accounted for 40% of total revenues generated in last fiscal year from selling drugs in ortho segment in India. Ortho segment generates revenues to the tune of 500 crores in India which further accentuates the significance of Pyridizone as a cash cow for Pharma Zeneca Inc. All major pharma companies in India are eyeing the expiry of patent as a big opportunity to make inroads into the ortho segment in India which has thus far been completely dominated by Pharma Zeneca Inc courtesy Pyridizone. It is expected that the sales for drugs in ortho segment are going to increase by 5% in next month vis--vis the current month sales of 15 crores in India and Pharma Zeneca Inc is anticipating eroding of its market share in ortho segment by 10% owing to patent expiry and wants to minimize it as far as possible. However, the Business development team expects to eat into 30% of the pie of Pharma Zeneca Inc generated owing to Pyridizone sales. For this to happen, the production team in Nagpur plant has to run a batch continuously for 15 days in the HPLC reactor for producing 30000 boxes of the drug Gladricone which can supplant Pyridizone from the market due to its lower cost and same efficacy levels. However, the production Head of Nagpur API plant when contacted by the Business Development team outrightly refused the request of running the batch for producing Gladricone continuously in HPLC reactor due to prior commitments of producing the oncology drug for clients in India as well as abroad. As per the production Head in Nagpur API plant, HPLC reactor needs to be cleaned after running the batch of Gladricone which would additionally require another 2-3 days of time. Also, there is immense pressure on the production Head to meet the production targets for the forthcoming quarter which will be unmet if the production Head gives a go-ahead for the Gladricone production. The Business Development team made a strong pitch to production team in Nagpur trying to convince them to produce Gladricone that will earn big bucks for Bharat pharmaceuticals and consolidate its position as one of the most agile pharmaceutical company in India. However, all the efforts of the Business Development team to persuade production team were to no avail and there was no conclusive agreement reached between the two parties. The production of Gladricone cannot commence without getting the consent of Quality Control team in Nagpur plant even after both the parties mutually agreed for the production of Gladricone drug. Quality Control team has expressed apprehensions and concerns about the production of Gladricone in HPLC reactor as it will corrode the inner lining of the reactor and will dilute the quality of drugs produced henceforth. Business Development team cannot let go of this opportunity as the production of Gladricone will be game changer for the overall strategy and positioning of Bharat pharmaceuticals in pharmaceutical industry vis--vis its competitors.

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