Company Profile Ranbaxy, India:

Ranbaxy Laboratories Limited (Ranbaxy), India's largest pharmaceutical company, is an integrated, research based, international pharmaceutical company, producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranbaxy today has a presence in 23 of the top 25 pharmaceutical markets of the world. The Company has a global footprint in 46 countries, world-class manufacturing facilities in 7 countries and serves customers in er 125 countries. In June 2008, Ranbaxy entered into an alliance with one of the largest Japanese innovator companies, Daiichi Sankyo Company Ltd., to create an innovator and generic pharmaceutical powerhouse. The combined entity now ranks among the top 20 pharmaceutical companies, globally. The transformational deal will place Ranbaxy in a higher growth trajectory and it will emerge stronger in terms of its global reach and in its capabilities in drug development and manufacturing.

Company growing faster than the market.- example of Ranbaxys success rate Formation
Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1937 as a distributor for a Japanese company Shionogi. The name Ranbaxy is a combination of the names of its first owners Ranbir and Gurbax. Bhai Mohan Singh bought the company in 1952 from his cousins Ranbir and Gurbax. After Bhai Mohan Singh's son Parvinder Singh joined the company in 1967, the company saw an increase in scale.

Product Portfolio: Ranbaxy

Using the finest R&D and Manufacturing facilities, Ranbaxy Laboratories Limited manufactures and markets generic pharmaceuticals, value added generic pharmaceuticals, branded generics, active Pharmaceuticals (API) and intermediates.The Company remains focused on ascending the value chain in the marketing of pharmaceutical substances and is determined to bring in increased revenues from dosage forms sales. Ranbaxy's diverse product basket of over 5,000 SKUs available in over 125 countries worldwide encompasses a wide therapeutic mix covering a majority of the chronic and acute segments. Healthcare trends project that the chronic treatment segments will outpace the acute treatment segments, primarily driven by a growing aging population and dominance of lifestyle diseases. Our robust performance in Cardiovascular, Central Nervous System, Respiratory, Dermatology, Orthopedics, Nutritionals and Urology segments, clearly indicates that the Company has strengthened its presence in the fast-growing chronic and lifestyle disease segments.

1. Prescription Medicines:
Cephalexin (Sporidex), Ciprofloxacin (Cifran), Amoxycillin (Mox), Ofloxacin (Zanocin), Atorvastatin (Storvas), Ceftriaxone (Oframax),

Cefpodoxime (Cepodem), Co-amoxyclav (Moxclav), Cilanem (Imipenem+Cilastatin), Volini (Diclofenac combination), Silverex (Silver Sulphadizine), Cepodem (Cefpodoxime), Verorab (Rabies vaccine)

2. Over the Counter Products:

volini spray,ointment,volitra gel, relaxyl gel, diprovate creat,halox lotion,medsop,medsop acne etc

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Company Profile: GlaxoSmithKline (GSK)

GlaxoSmithKline (GSK) is a
British multinational pharmaceutical, biologics, vaccines and consumer healthcare company headquartered in London, United Kingdom. It is the world's third-largest pharmaceutical company measured by revenues (after Johnson & Johnson and Pfizer GSK has a portfolio of products for major disease areas including asthma, cancer, virus control, infections, mental health, diabetes and digestive conditions.[4] It also has a large consumer healthcare division which produces and markets oral healthcare and nutritional products and over-the-counter medicines including Sensodyne, Boost, Horlicks and Gaviscon. GSK has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. As of December 2011, it had a market capitalization of 73.8 billion, the fifthlargest of any company listed on the London Stock Exchange. It has a secondary listing on the New York Stock Exchange

Product Portfolio:

Gsks prescription medicines include treatments for a wide range of conditions such as infections, depression, skin conditions, asthma, heart and circulatory disease and cancer. Products are in various stages of approval around the world and may not be available in every country.

1. Prescription Medicines:

Advair, Altabax, Amerge, Argatroban , Arixtra, Arranon, Arzerra, Avandamet, Avandaryl, Avandia, Avodart, BactrobanBeconase, Benlysta, Bexxar,Ceftin, Coreg, Coreg CR, Dyazide, DynaCirc CR, Entereg, Flonase, Flovent, HycamtinImitrex, Jalyn, Lamictal / Lamictal ODT, Lamictal XR, Levitra, Lovaza, Malarone, Mepron, Promacta, Relenza, Serevent, Staxyn, Tabloid, Timentin, Valtrex, Wellbutrin, Wellbutrin SR, Zantac, Zofran, Zovirax, Zyban

2. Vaccines:
As infants and young children we visited the doctor to get our vaccinations and booster shots. As adults, we hardly remember the sting from those shotsbut those vaccines have worked to help us avoid some diseases altogether throughout our lives. Researchers are looking for easier ways to deliver vaccines. Instead of getting a shot, someday you may be able to: Take a vaccine orally Inhale a vaccine Place a patch on your skin Boostrix, Cervarix, Engerix-B , Fluarix, FluLaval, Havrix, Hiberix, Infanrix, Kinrix, Pediarix, Rotarix, Twinrix

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3. Over the Counter Products:

Abreva, Alli , Aqua Fresh, Bc Powder, Beotene , Breath Right , Chap-et ,Citrucel, Commit Legunge ,Debrox, Ecotrin,Fiber Choice , Gly-oxide , Nicorette, TagametHB , Targon, Tums.

GSK : the companies global expansion

Early 1880s-Gsk formalized partnership in 1880 and Burroughs Wellcome & Company was established. Its prosperity owed much to Wellcome's marketing flair, involving bold advertising, using medical and scientific conferences, and the creation in 1884 of the Tabloid trademark. The business expanded and spread to many countries, but the partnership was ended after just 15 years with the death of Burroughs Early 1890sThe original company that John K Smith founded went through numerous mergers and acquisitions.Probably the most important and far-reaching was the company's absorption in 1891 of French, Richards and Company, another respected drug wholesaler. This combination gave the new company an inventory of hundreds of varied products, including fine perfumes, liniments, tonics, hair oil, cough medicine, and a comprehensive range of home remedies. It marked the company's first venture into consumer brands. In the mid 1950s food products represented over 30 % or more of turnover only in argentian and Australia. Growth for Smith, Kline and French in the early 1900s came mainly because of a discovery by Joseph England that led to Eskay's Neurophosphates, used chiefly in the treatment of nervous disorders. From 1893 everything made at Smith, Kline and French was assayed for standards of quality and purity. By 1957 GSK represented in nearly 70 countries and had nine overseas subsidiary headquarters with manufacturing facilities at Verona , wadeville ( south Africa ).Neuro carried the Smith, Kline and French name beyond the boundaries of the US into Latin America at a time when trade there was in its infancy. The Neuro remained on the company list until 1971.

1.Karachi-( Pakistan) 2.Bombay-(India) 3.Melbourne-(Australia) 4.Palmerston north-(New Zealand)

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5.Niterori( Brazil)

VACCINE is a reason for GSK overseas expansion :

The expansion of GSK was mainly possible because of the effort they had taken to R&D the effective VACCINES . Vaccines for the prevention of hepatitis A, hepatitis B, invasive disease caused by H, influenzae, chickenpox, diphtheria, pertussis, tetanus and others. boostrix , cervarix , fluarix , priorix ,twinrix and etc are some of the brands that emerged under the GSK The biggest break it had got was in the 1980s when it had this ZANTAC product launched world wide resulting in 34 % of the companies profit share.

Gsk followed international strategy

Standardized foreign production for exports was the main objective. The entry strategy into global market for GSK was through licensing

contract manufacturing enthusiastic internationalizers because each molecule cost millions , they incur huge R&d expenses ethnocentric orientation : home country is superior, sees similarities In foreign countries.

Gsk and Ranbaxy differed in entry strategy

As GSK started expanding early after the 2nd world war it had a complete different scenario it was more of providing the best healthcare medication at affordable price keeping in mind the environmental condition which proved to be a important factor in the companies long term growth aspect. It came into reckoning and had by then created value of its own and from then there was no stepping backward . The company started its global expansion in the field of consumer goods later with its advanced R&D technology and formulation of molecules it had developed a market in the pharmaceutical sector Ownership strategy : GSK followed the more traditional approach of MERGERS and ACQUISITIONS. Conducted a sophisticated approach to pricing for

1. Developed world

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2. Middle income countries 3. Least developed countries

top 10 pharmaceutical companies worldwide, IMS MIDAS MAT JUNE -2011

Challenges faced by GSK in global expansion:

Growth:
Broadening and balancing the portfolio, and movingaway from a reliance on 'white pills/western markets'. GSK are diversifying business to create a more balanced product portfolio and move away from a reliance on traditional white pill, western markets. Sales generated from these markets and products have decreased from 40% in 2007, to 25% in 2010. Over time this should help to reduce the adverse impact of patent expirations on the Group.GSK expect to generate future sales growth by strengthening our core pharmaceuticals business and supplementing it with increased investment in growth areas such as emerging markets, vaccines, Japan, dermatology and Consumer Healthcare.Sales in Emerging Markets were up 22%, vaccines up 15%, Japan up 14%, dermatology up 6% (on a pro-forma basis excluding 2010 acquisitions) and Consumer Healthcare up 5% for 2010. Plans executed :

1.Drive growth in the pharmaceutical business in the core markets 2.Fulfil the potential of Emerging Markets 3.Expand the business in Japan 4.Build our leadership in dermatology 5.Grow the Vaccines and Consumer Healthcare business

Deliver more
products of value Transforming R&D to ensure GSK not only deliver the current pipeline but are also able to sustain the flow of products for years to come .With the aim of sustaining an industry-leading pipeline of products that deliver value for healthcare providers, we have been focusing on improving rates of return and delivering the best science in our R&D organization. This has required a multi-faceted approach. For example GSK have increased the level of externalization of research, taken difficult decisions around pipeline progressions and focused on disease areas where GSK believe the prospects for successful registration and launch of differentiated medicines are greater. We have one of the largest development pipelines in the industry with approximately 30 late-stage assets. The vast majority of these programmes address unmet medical need and importantly nearly two-thirds are new chemical entities or new vaccines. Plans executed :

1.Focus on the best science

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2.Diversify through externalization 3.Re-personalise R&D 4.focus on return on investment

Simplifying :
Simplifying GSK operating model to ensure that it is fit for purpose and able to support our business in the most cost efficient way. As business continues to change shape, it is essential that GSK transform the operating model to reduce complexities, improve efficiencies and reduce cost. Through our global restructuring programme, we have removed 1.7 billion of cost since 2008 and are on track to deliver our target of 2.2 billion of annual savings by 2012.These savings have been extracted from developed country sales and marketing, support functions, R&D and manufacturing infrastructure and reinvested in higher returning activities such as emerging markets, vaccines and consumer healthcare. plan executed :

1.Evolve the commercial model 2.Re-shape manufacturing 3.Streamline the processes. 4.Reduce working capital

Gsk is now a renowned brand in the field of pharmaceutical sector:

GSK AND RANBAXY position in Indian market :

It is now into the top 10 pharmaceutical company in the world in terms of trade, having a 14 % share of the total pharmaceutical industry . GSK has contributed immensely towards the vaccines segment product category in 4th .Ranbaxy in d 3rd place GSK

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Gsk has a wide range of coverage with 150 countries operating under it.
44 countries 3 countries 14 countries 3 countries 13 countries 8 countries 6 countries 4 countries Europe North America Central and South America Caribbean Asia and Austrasia south Asia Africa Middle east

Reason for success:

1.It has contributed the pharma industry with-Biopharmaceuticals, Steriles, Cephalosporins and Penicillins, Solid Dose, Liquids, Creams, and Ointments. 2.Supply to over 150 countries worldwide 3.Facilities approved by US, EU, Japan, and International regulatory agencies 4.Technical expertise and resources 5.Development and new product introduction in conjunction with GSK R&D resource 6.Highly developed and proven methods for technology transfer 7.Commitment to quality, safety, and sustainability 8.Specializing in complex, difficult to produce products 9.Cost-effective supply solutions 10.Expertise in Lean manufacturing processes 11.Corporate global support network 12.Large company strength and small company flexibility 13.Scalable process capability 14.Proven record in contract manufacturing and packaging

15.Commitment to quality-Quality is a mindset that underpins the whole ethos of how we work. It means
doing what is right, first time, every time. GSK is at the forefront of process optimization with the application of methodologies that include Process Analytical Technology (PAT) and Quality by Design (QbD). A testament to this is our excellent quality, regulatory, compliance, and environmental facilities record.

16.State-of-the-art manufacturing-GSK has dedicated, state-of-the-art facilities for the manufacture

of products from actives through bulk and finished product supply. GSK can offer co-located R&D API Pilot Plants, where we can provide early phase clinical requirements as well as commercial scale-up.

17.Security of supply-GSK

is committed to security of supply. The combination of GSK in-house manufacturing capabilities and world-class logistics operations means GSK have a sound track record in ensuring patients and customers have the products they need, on time and in full.

18.Competitive prices- the most important to have survived in this intense field of business :GSK have a culture of continuous improvement coupled with operational excellence and lean sigma. We are committed to removing waste and complexity from our operations so that we can deliver competitively priced products of the highest quality.

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Ranbaxy India first overseas venture:

In 1998, Ranbaxy entered the United States, the world's largest pharmaceuticals market and now the biggest market for Ranbaxy, accounting for 28% of Ranbaxy's sales in 2005. For the twelve months ending on 31 December 2005, the company's global sales were at US $1,178 million with overseas markets accounting for 75% of global sales (USA: 28%, Europe: 17%, Brazil, Russia, and China: 29%). For the twelve months ending on December 31, 2006, the company's global sales were at US $1,300 millions. Most of Ranbaxy's products are manufactured by license from foreign pharmaceutical developers, though a significant percentage of their products are off-patent drugs that are manufactured and distributed without licensing from the original manufacturer because the patents on such drugs have expired.

Ranbaxy entry strategies:

Its geocentric orientation Ownership strategies: Joint venture was the kind of strategy followed by Ranbaxy .

Ranbaxy worldwide:
Global Pharma Companies are experiencing an ever changing landscape ripe with challenges and opportunities. In this challenging environment Ranbaxy is enhancing its reach leveraging its competitive advantages to become a top global player. Driven by innovation and speed to market we focus on delivering world-class generics at an affordable price. Our unwavering determination to achieve excellence leads us to new global benchmarks. Our people have consistently risen above all challenges maximized opportunities and positioned Ranbaxy as a leader in the global generics space. Ranbaxys global footprint extends to 46 countries embracing different locales and cultures to form a family of 50 nationalities with an intellectual pool of some of the best minds in the world.

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Ranbaxy stepping success in pharmaceutical sector:

RANBAXY in 1977 had joint ventured with LAGAS (Nigeria) In 1990 ranbaxy was 1st given a breakthrough in US market for doxyciline and gets a patent right. Ranbaxy enters into agreement with US company Eli lilly & co to venture into INDIAN MARKET 1993- Ranbaxy reaches china a market that was open. Global alliance with GSK for drug discovery and development. 2000-Ranbaxy us crosses US $100million , fastest growing company in US 2003- the economic times award for corporate excellence for the company of the year -2002 -2003 2006 acquires be tabs pharmaceuticals acquires unbranded generic business of GSK in Italy and spain acquiers terapla, largest independent generic pharma company in Romania for us $ 324 Mn invalidates pfizers 995 lipitor U.S.patent

2008- Ranbaxy reaches settlement on world top selling drugs Lipitor with Pfizer and astra Zeneca 2010- Ranbaxy delivers quarterly sales of US $ 500 Mn for the first time. 2011- celebrate golden jublie IN 1998 RANBAXY had a defining moment when it was credited by US to launch its own products under its name in the worlds biggest pharmaceutical sector.

The failure :
The US Food and Drug Administration (FDA) has banned the import of more than 30 drugs made by Ranbaxy, India's largest drugmaker. The ban - which includes generic copies of simvastatin (Zocor) and the antiviral drug acyclovir - covers the drugs made at two Ranbaxy plants which the FDA says failed to meet current Good Manufacturing Practice (cGMP) standards.

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The FDA investigated the two plants, in Dewas and Paonta Sahib, India, early in 2008. Investigators found 'significant cGMP deviations', which include inadequate crosscontamination control, inadequate sterile processing operations, and a lack of record keeping. No safety issues have been found with the drugs themselves - and the regulator recommends patients continue to take any Ranbaxy medications they have been prescribed. Ranbaxy had been known more for its advancement and achievements but then nothing is taken for granted because all are under JOINT VENTURE . it is in terms DICTATED under some CONDITIONS

Companies end up with the orgin :

The sale of promoter's stake by the Singh family in Ranbaxy has taken the industry by 'surprise'. Ranbaxy promoter, the Singh family, sold their 34 per cent stake in the company to Japanese company Daiichi Sankyo on Wednesday for Rs 9,576 crore (Rs 95.76 billion).

Conclusion:
Based on the analysis there are various challenges in global expansion . It is not easy to venture into new markets as a brand with its host country tributes. The opportunity should be tapped and worked upon to increase market share. To identify the potential market Competition in PHARMACEUTICAL SECTOR is very HIGH Different strategies should be adopted for different countries The external and internal environmental factor plays vital role in entering the potential market.

Recommendations to a DOMESTIC COMPANY :

We have taken an example of MICRO-LABS one of the leading

GENERIC pharmaceutical company in INDIA. MICRO-LABS being a INDIAN company by origin should follow the policies which RANBAXY followed and follows , they should create a healthy and effective environment within the country and then try to VENTURE into the GIANT GLOBAL PHARMA MARKETS. JOINT VENTURE would be the need of the MOMENT because the world has not yet fully recovered with the RECESSION which covered the advanced countries like a sheet of snow .

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MICRO-LABS can follow the MULTI DOMESTIC STRATEGY where in it can initially get into the COMPETITIVE MARKET and then create A MARKET OF ITS OWN. INTERNATIONAL STRATEGY can be a failure because it requires huge CAPITAL INVESTMENT ADVERTISING will be EXPENSIVE. MICRO-LABS for INITIAL advancement can TARGET the C & D group of COUNTRIES for EXPORTS .

By 2015 global position of MICRO LABS

Micro Labs will be on the threshold of achieving the prestigious status of a Big Generic Company in the global pharmaceutical space. Microlabs will be building critical mass in existing markets and developing business in new markets like USA, East Europe, North Africa and South America. The group has presence in over 30 countries with ground level operations in 15 countries, exporting all major dosages on every therapeutic segment.

The target growth expected Export of all major dosages in every therapeutic segment Corporate offices in 10 countries including UK, Thailand, Russia, Vietnam & Ukraine Manufacturing sites approved by USA FDA, UK MHRA, Indonesia DOH, TGA Australia, MEDSAFE New Zealand, HEALTH Canada and MCC South Africa Independent marketing and operations with experienced sales teams Focus on ethical promotion (brand building) sale of branded Generic drugs Strategic marketing alliances with local transnational marketing companies.

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TRARGET products -Therapeutic Range

Analgesics / Anti-pyretics Anti-allergics (Antihistamines) Anti-anginals Anti-arrhythmics Anti-asthmatics / Bronchodilators Anti-Bacterials Anti-depressants Anti-diarrhoeals Anti-epileptics Anti-Fungals (Topical and Systemic) Anti-helminthics Anti-hypertensives Anti-Hyperurecemil Anti-inflammatories (NSAIDs) Anti-malerials Anti-obesity Drugs Anti-parkinsons Anti-psychotics Anti-thrombotics / AntiPlatelets Anti-Virals Anxiolytics Cerebral Activators Cough and Cold preparations Dental Specialities Dermatologicals Disease modifying Anti-rheumatic drugs (DMARD) Diuretics Haematinics Hormones / Hormone analogues Hypnotics Lipid Lowering Agents Liver tonic / Hepatoprotectors Nephrologicals Nutraceuticals / Anti-oxidants Ophthalmologicals Oral Hypoglycemic Agents (Diabetologicals) Osmotic Derivatives

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Symptomatic slow acting drug against OA (SYSADOA)

source

1. http://www.ranbaxy.com/
2. http://www.gsk.com/ 3.ims health information and consulting services india pvt. Ltd 4. http://www.glassdoor.com/Interview/GlaxoSmithKline-InterviewQuestions-E3477.htm 5. http://economictimes.indiatimes.com/ranbaxy-laboratoriesltd/infocompanylisting/companyid-13218.cms

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