Term Paper on SQUARE & BEXIMCO

Executive summary

The overall performances of these two public limited companies are satisfactory. Again financial reports are properly maintained and transparent. Their activity is doing a lot of benefits for the country. Based on our survey it has been seen that both of this company is improving in a glorious way and they are expanding their business globally. Both SQUARE and BEXIMCO is forwarding to a better corporate world and prosperous Bangladesh.

Term Paper on SQUARE & BEXIMCO

Report Body:
Introduction:
This report is basically based on the activities of two most important and lucrative Pharmaceuticals Industry in Bangladesh. To know about the unique characteristics and the latent reason behind their success is our main vision. Along with that we have the goal to get acquainted with todays world of corporate business. To get involved in todays fast paced planet of trade and commerce we went through the whole tricks and actions of this two huge corporate giant.

These two corporate giants are the very well known names in our business arena. They have paved the way of pharmaceuticals business in our country. They are:

Square Pharmaceuticals Ltd. Beximco Pharmaceuticals Ltd.

Picture: Head office of BEXIMCO & SQUARE PHARMACEUTICALS

Term Paper on SQUARE & BEXIMCO

Methodology and sources of data:

Methodology:
Today is the world of agile, spirited and smart people, so we decided not to waste our time in useless researching. We, all the group members decided to do team work, personal experience and idea sharing, sorting out the best options, along with that we decided to chose the best possible way to conduct the research and paper work as early as possible. During our work we faced few problems but with the help of the other group member we easily diverted that problem barrier towards the path of success.

Basically we distributed our work equally among the members, we performed our duty willfully and finally we shared our feelings, learnings and experiences in a structured way. All the members came to know about these two corporate giants elaborately. After collecting and sorting out the datas and informations we seat together and made our outline and own methodology about the term paper. Later on we set our own goal and strategy for our group assignment. Thus we finished our job perfectly. Finally, what we can say is, it is only the strong desire towards achieving the success and well built team work has paved us to make this term paper in a success story.

Sources of data:
Primary Source: For our research few of our group members went to Square Pharmaceuticals. Their taxation officer discussed their company profiles and other views with us. We came to know lots of important data and information from him. Mr. Amal Halder Taxation Officer, SQUARE PHARMACEUTICALS LIMITED.

Secondary Source: Basically as students of BRAC Business School we already gained a lot of information about the corporate world. So, almost a huge amount of necessary information was known by us. Again, to get acquainted with latest data and to become updated we go through few websites. These websites helped us a lot to prepare this research based term paper.

Term Paper on SQUARE & BEXIMCO

These are the web addresses:

http://www.squarepharma.com.bd/ http://www.beximco-pharma.com/

Again we have taken assistance from the Wikipedia. It helped us a lot to prepare this paper. For further enquiry Wikipedias particular web addresses are given below.
http://en.wikipedia.org/wiki/Square_Pharmaceuticals_Ltd._Ba ngladesh http://en.wikipedia.org/wiki/Beximco_Pharmaceuticals_Ltd

Along with all these resources we have taken necessary datas from daily news papers. As news papers are regarded as the powerhouse of knowledge, so we took out the best of it. Few links are given below:
http://www.thedailystar.net/story.php?nid=24120 http://www.thedailystar.net/story.php?nid=13891 http://www.thedailystar.net/story.php?nid=31120 http://thedailystar.net/2004/01/18/d40118050347.html

Along with these resources, we took help from few other sources, we went through few books and annual reports or the two respective corporate giants, which helped us a lot to implement this term paper. The yearly publication of Beximco Pharmaceuticals Ltd and Square Pharmaceuticals Ltd which is known as their Annual Report has helped us a lot to prepare and implement this research based term paper report in due time. We are also thankful to the BRAC Business School for providing us free of charge newspaper namely- FINANCIAL EXPRESS. This daily helped us a lot to get data about the current scenario of the pharmaceuticals business in Bangladesh, as well as about these two corporate giant.

Company profile:
4

Term Paper on SQUARE & BEXIMCO

Profile of Square Pharmaceuticals Ltd:

Name of the company: SQUARE PHARMACEUTICALS LIMITED. Year of establishment: Initially established as a partnership business by Samson Chowdhury along with his three friends in the year of 1958. It was incorporated as a Private Limited Company in the year of 1964. It was converted into a public limited company in the year of 1991. Type of the Company: Currently listed as a Public Limited Company. Area\scope of the Company: Square is the largest pharmaceuticals business operating company in Bangladesh. Basically its area of business is the medicine. It covers a huge demand of the local people as well as it exports in many foreign country. Branches: 1. Formulation Unit: a. Dhaka Unit b. Pabna Unit c. Animal Health Unit d. Pesticide Unit
e. Cephalosporin Unit.

Picture: Formulation Pabna Unit

Term Paper on SQUARE & BEXIMCO

2. Pet Bottle Unit.

Picture: pet bottle unit

3. API Unit

Picture: API unit

6

Term Paper on SQUARE & BEXIMCO

Number of Employees: Three Thousand and One. (3,001).

Organization Structure:

Organogram from the top level to least:

Managing Director, who is currently the CEO as well. Board of Directors Sub committees Ad hoc committee Standing committee

Term Paper on SQUARE & BEXIMCO

Picture: Samson Chowdhury, Chairman Square Pharmaceuticals. Profile of Beximco Pharmaceuticals Limited:

Name of the company: BEXIMCO PHARMACEUTICALS LIMITED. Year of establishment: Established in the year of 1976 but it started its commercial production in the year of 1980. Type of the company: Public Limited Company. Area\Scope of the operations: Their scope of operation belongs to mainly in Bangladesh. Along with this they have already expanded their business in Philippine. Branches: 1. Manufacturing and marketing of pharmaceutical Finished Formulation Products 2. Large Volume Parenterals 3. Active Pharmaceutical Ingredients (APIs)

Number of employees: Two Thousand and Forty Three (2,043).

Term Paper on SQUARE & BEXIMCO

Picture: Chairman, Ahmed Sohail Fasiur Rahman and vice-chairman Ahmed Salman Fazlur
Rahman.

Organizational structure: Organogram from the top level to least: Chairman Vice chairman Board of directors. Department wise executive officers Representatives Least level workers

Comparison between Square Pharmaceuticals Ltd and Beximco Pharmaceuticals Ltd:

A. Products:

Beximco Pharmaceuticals Ltd:

Term Paper on SQUARE & BEXIMCO

1. ALLERGIC DISORDERS

Beximco Pharma has a strong focus to offer treatment solutions for both seasonal and perennial allergic rhinitis. The journey of Beximco Pharma in this arena began with the licensing arrangement with Bayer AG of Germany for the manufacture and marketing of Incidal in Bangladesh . Products in this category also include a proprietary drug, developed by the R & D team at Beximco Pharma and provides 24-hour relief of allergic rhinitis with congestion (marketed under the brand name - Pretin D) Beximco Pharma will continue to build on its tradition of launching the generic versions of all the research molecules in this category.
2. ANALGESICS

Beximco Pharma is the largest provider of analgesic medicines in Bangladesh, led by the strong performance of Napa , a preparation of paracetamol. Paracetamol is the safest analgesic in the world for more than 50 years. Napa is the number one brand in terms of unit sales in Bangladesh and is available in 13 forms and strengths.

3. ANTI-INFECTIVES

Beximco Pharma is one of the leading companies in the field of antibacterial and antiviral treatments offering a wide range of products. The anti-infective products of Beximco Pharma are offered in different dosage forms: Tablet, Capsule, Large volume and Small volume parenterals for systemic administration and Cream and Ointment for topical administration. Beximco Pharma is the only company is Bangladesh to manufacture antiviral products to treat most serious infections of HIV (AIDS).
4. CARDIOVASCULAR

Beximco Pharma has always been the leader in Bangladesh cardiovascular market with innovative product offerings to treat almost all type of cardiovascular diseases like Hypertension, Coronary Artery Diseases, Hyperlipidemia, Heart Failure, Arrhythmia etc. Beximco Pharma's amlodipine brand Amdocal is the number 1 cardiovascular brand since 1996.
5. CENTRAL NERVOUS SYSTEM

Beximco Pharma has a wide range of CNS medication provide effective treatment of different diseases involving CNS including anxiety, depression, migraine, epilepsy, insomnia, schizophrenia, dementia etc.
6. COUGH & COLD PRODUCTS

10

Term Paper on SQUARE & BEXIMCO

Wide product range of Beximco Pharma offers the doctors freedom to choose the right medication for different types of cough: dry cough, chesty productive cough and other cough associated with common cold.
7. DIABETES

Beximco Pharma offers wide range of products ensuring effective treatment of type II diabetes. It has the generic versions of all the leading research molecules including Glipizide, Gliclazide, Metformin, Glimepiride, Pioglitazone Repaglinide etc.
8. GASTRO INTESTINAL

Beximco Pharma has a robust product line to treat diseases in the areas of gastroenterology. Beximco Pharma's Neoceptin., which is a H2 blocker used in the treatment of ulcer, GERD, and other hyperacidity disorders, is the number one brand in Bangladesh Pharmaceutical Market. Beximco Pharma will continue to build on its strengths in gastrointestinal category.
9. INTRAVENOUS FLUIDS

Beximco Pharma has a strong product pipeline in the large volume intravenous fluids (IV) category for the treatment of critically ill patients who are hospitalized or in any emergency management for the replenishment of body fluids, electrolytes and energy. Beximco Pharma is also the largest manufacturer of IV fluids in Bangladesh. The products are being manufactured in its state-of-the-art plant using latest blow form and seal technology which ensures completely sterile and safe products for the patients.
10. MUSCULOSKELETAL

Osteoarthritis, Rheumatoid arthritis, Muscle spasm, pain of musculoskeletal origin is some of the diseases that limit the activities of daily life of millions of patients. Beximco Pharma with its wide range of products in the musculoskeletal category offers effective treatment solution forr those patients.
11. ONCOLOGY

Beximco Pharma manufactures a generic version of Tamoxifen Tamona which is being used successfully world wide for the treatment of breast cancer disease. The company also has a proven drug for the treatment of nausea and vomiting associated with cancer therapy.

OTHER PRODUCTS 1. RESPIRATORY

11

Term Paper on SQUARE & BEXIMCO

Beximco Pharma is the leading manufacturer of pressurized Metered Dose Inhalers (MDI) in Bangladesh and are among the few companies in the world manufacturing CFC (Chlorofluorocarbon) free MDIs. It has a wide range of inhalers 'Reliever', 'Preventer' and 'Controller' for the treatment of asthma and COPD. The company also undertakes contract manufacturing for GlaxoSmithKline for its 'reliever' brand. In collaboration with Europe's one of the leading manufacturers of specialty medical devices and respiratory drug development companies, Beximco Pharma successfully developed and introduced country's fist CFC-free HFA based MDIs in September 2006.
2. SKIN CARE

Beximco Pharma's robust product line in the skin care category offers easy and convenient solution to wide range of skin diseases like fungal and bacterial infections, eczema, atopic dermatitis, other inflammatory skin diseases requiring corticosteroid therapy, acne, psoriasis, and various other dry skin problems.
3. VITAMINS AND MINERALS SUPPLEMENT

Beximco Pharma's many brands in the vitamins and nutritional supplement category has gained trust of the physicians in treating various vitamins and nutritional deficiency symptoms.

Square Pharmaceuticals Limited:

1. Capsules: Granulated Material filled Pellets Filled. 2. Suppositories: Suppocire based 3. Injections: Dry Powder for Injections. Small Volume Liquid Parenterals. 4. Liquid: Oral Syrups (Sugar based, Non-Sugar based) ,

Oral Suspensions, Topical Liquids.

5. Spray: Small Volume Nasal Drops & Sprays 6. Drop: Small Volume Sterile Eye & Ear Drops 7. Ointment: Topical Ointments 8. Cream : Topical Creams 9. Powder: Topical Antibiotic Powder

12

Term Paper on SQUARE & BEXIMCO

10. Oral dry powder: Dry Suspensions (Antibiotic & Anti Infectives)

Dry Syrups (Antibiotics)

11. Dry powder inhaler: Partial Filled (Premix) Capsules for Respiratory Tract

Application with a Device

12. Metered Dose inhaler :

Pressurized Canisters for Oral use with an Actuator

13. Tablets : Non-Coated (plain, chewable, dispersible, vaginal)

Coated (sugar coated, film coated, enteric coated) Sustained/Extended Released (coated, non coated)

B. Marketing Strategy:
Based on our research we have seen that both beximco and square have almost the same type of marketing strategy. May be the reason behind this is that they are pharmaceuticals business company. Most of the pharmaceuticals in Bangladesh have the same strategy towards marketing and branding.

As a matter of fact the brands of their companies are not so prominent, in comparison with the other type of multinational business companies. The marketing strategy of Beximco and square are as follows: Key opinion leaders Key opinion leaders (KOL), or "thought leaders", are respected individuals, such as prominent medical school faculty, who influence physicians through their professional status. Beximco and square generally engage key opinion leaders early in the drug development process to provide advocacy and key marketing feedback. They identify key opinion leaders through direct inquiry of physicians.

Colleagues Physicians acquire information through informal contacts with their colleagues, including social events, professional affiliations, common hospital affiliations, and common medical school affiliations. Both Beximco and Square identify influential colleagues through commercially available prescription writing and patient level data. Doctor dinner meetings are an effective way

13

Term Paper on SQUARE & BEXIMCO

for physicians to acquire educational information from respected peers. Along with the other business companies in Bangladesh both Beximco and Square sponsors a lot of dinner party or other program to attract the doctors or physician.

Physician targeting Marketers of Beximco and Square attempt to identify the physicians to prescribe a given drug. This information is collected by commercial vendors. The physicians are then "deciled" into ten groups based on their writing patterns. Higher deciles are more aggressively targeted. Some pharmaceutical companies use additional information such as:

profitability of a prescription (script), accessibility of the physician, tendency of the physician to use the pharmaceutical company's drugs, effect of managed care formularies on the ability of the physician to prescribe a drug, the adoption strategy of the physician (that is, how readily the physician adopts new drugs in place of older, established treatments), and the tendency of the physician to use a wide palette of drugs Influence that physicians have on their colleagues.

Data for drugs prescribed in a hospital are not usually available at the physician level. Advanced analytic techniques are used to value physicians in a hospital setting Media advertisement: Basically square and beximco telecast little number of advertisements. They only telecast those ads in T.V; those are not prescribed by the doctors. Such as, in a country like Bangladesh people often goes to doctors for getting suggestion about the family planning equipment. They prefer their own experience and satisfaction, in the case of what to use or not. Direct advocacy: Sometime the company representatives directly go to the consumers for getting their support and to attract them. Sometime they go home to home for selling their goods. But this policy is only fruitful in the case of regular medicine. Costly medicine will never be sold by this method.

14

Term Paper on SQUARE & BEXIMCO

Financial Performance:
Corporate operational Result ( Square):

Figure in thousand : BDT

2006-07 Turnover (Gross) Value Added Tax Turnover (Net) Gross Profit Net Profit before Tax Net Profit after Tax Shareholders Equity Total Assets Total Bank Borrowings Total Current Assets Total Current Liabilities Current Ratio 8,711,035 1,210,223 7,500,811 3,232,364 1,722,906 1,303,243 7,333,258 10,486,940 2,536,524 3,682,511 2,555,566 1.44 2005-06 2004-05 2003-04

2002-03
5,482,088 663,892 4,065,851 1,466,282 929,604 764,885 3,851,098 5,164,320 1,070,163 1,441,552 1,247,967 1.16

7,085,553 995,648 6,089,905 2,564,503 1,533,043 1,165,865 6,402,015 9,298,987 2,334,925 4,031,685 2,260,755 1.78

6,199,135 5,482,088 760,536 867,088 5,332,047 4,721,552 2,172,593 1,906,592 1,513,019 1,151,636 970,044 1,255,848 4,590,142 5,568,790 7,907,933 6,021,497 988,611 1,902,331 3,242,502 2,016,056 1,949,949 1,250,676 1.62 1.66

For the year 2004-2005 Ratios ROE ROA EPS Square 9.84% 9.84% 252.79tk Beximco 14% 8.35% 6.36tk

15

Term Paper on SQUARE & BEXIMCO

TETAR

1.00

0.59

For the year 2005-2006: Ratios ROE ROA EPS TETAR Square 19.48% 13.55% 234.6tk 0.69 Beximco 12.99% 8.40% 4.67tk 0.65

For the year 2006-2007: Ratios ROE ROA EPS TETAR Square 18.98% 13.18 244.60 069 Beximco N/A N/A N/A N/A

Sources : Annual report of both of the companies, collected by books and internet.

16

Term Paper on SQUARE & BEXIMCO

SWOT Analysis of PHARMACEUTICALS:

SQUARE

PHARMACEUTICALS

&

BEXIMCO

SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

Strengths: attributes of the organization those are helpful to achieving the objective.

17

Term Paper on SQUARE & BEXIMCO

Weaknesses: attributes of the organization those are harmful to achieving the objective. Opportunities: external conditions those are helpful to achieving the objective. Threats: external conditions which could do damage to the business's performance.

SWOT analysis of SQUARE: Strength One of the strength elements of Square pharmaceuticals is their high-quality product, which gives them comparative advantages in the market place. Weakness Like other pharmaceuticals, Square pharmaceuticals also have some weakness that is they have Less Variation. In terms of advertisements Square pharmaceuticals do not have much variety. Their marketing policies are much related to each other since they use in-house ad agencies. Their ideas have got a boundary within which they operate. Opportunity Opportunity could be the favorable growing market of the pharmaceutical which may allow them to represent internationally. Threat We all know threats are the environmental factor, which may badly affect the firm in achieving its goal. As the pharmaceutical are growing, so number of competitor will also grow. In such case, Square pharmaceuticals may face difficulty to operate its business.

SWOT analysis of Beximco: Strength:

1. Large potential market 2. Huge demand of mass people 18

Term Paper on SQUARE & BEXIMCO

3. Public trust 4. Availability of capital 5. Low labor cost

Weakness:
1. political instability 2. lack of technology 3. high illiteracy rate 4. uncertainty in the country situation 5. environmental hazards

Opportunities:
1. using ample resource 2. using best manpower 3. to develop a strong atmosphere in Asia 4. increasing public demand

Threats:
1. vulnerable political situation 2. instability in country situation 3. globalization threats

Corporate Social Responsibility:

SQUARE PHARMACEUTICALS LIMITED:

EDUCATION ANNADA GOBINDA PUBLIC LIBRARY RECONSTRUCTION of ANNADA GOBINDA PUBLIC LIBRARY

19

Term Paper on SQUARE & BEXIMCO

RECONSTRUCTION of ANNADA GOBINDA PUBLIC LIBRARY2 SQUARE KINDERGARTEN

SPORTS FOOTBALL TO RAISE FUND FOR BCCB MERIL INTL CUP CRICKET RAFIQUL ISLAM BAKUL SWIMMING POOL SOCIAL EVENTS CELEBRATING INTERNATIONAL WOMENS DAY ENHANCING CULTURAL HERITAGE HOUSING FACILITY FOR WOMEN WORKER OF SQUARE ROAD SAFETY CAMPAIGN ROAD SIDE SHADE AT PABNA SENORA ACID-BURN WELFARE FUND TRANSPORT FACILITY FOR WOMEN WORKER OF SQUARE YAQUB FILLING STATION

MEDICAL COMUNITY DONATION TO THE GOVT. ON THE OCCASION OF BIRD FLU AID TO ISLAMIC REPUBLIC OF IRAN AMBULANCE TO PABNA PURASHABHA DONATION TO PABNA MENTAL HOSPITAL SUPPORT TO ICDDRB FOR RESEARCH ON CHILDHOOD DIARRHOEA

BEXIMCO PHARMACEUTICALS LIMITED: Its a matter of deep sorrow that the Beximco pharma has not started any CSR activity yet. Now in the modern world CSR is regarded as one most important element of any business. So it is deserved that they will start their CSR activity soon and upholds their hand to do the betterment of the country.

20

Term Paper on SQUARE & BEXIMCO

Foreign Market:
SQUARE PHARMACEUTICALS: Currently Square is exporting medicine and some other equipments to other country. Those are as follows:

Present Markets Square pharmaceutical is already supplying products to the following markets:
Asia: Afghanistan, Bhutan, Cambodia, Macau, Malaysia, Myanmar, Nepal, Papua New Guinea, Sri Lanka, Tajikistan, Vietnam, Yemen Africa: Gambia, Ghana, Kenya, Libya, Mauritius, Niger, Somalia, Sudan, Tanzania South America: Belize, Costa Rica, Guatemala Square pharmaceuticals is also supplying to the UK further to the approval of its general plant by the MHRA.

Markets under Exploration

Asia: Hong Kong, Iran, Laos, Maldives, Philippines, Qatar, Saudi Arabia, Thailand, UAE Africa: Algeria, Chad, Comoros Island, Ethiopia, Malawi, Mozambique, Nigeria, Rwanda, Sierra Leone, South Africa Europe: Germany, Kosovo, Romania, Russia, Ukraine South America: Brazil, Colombia, El Salvador

BEXIMCO PHARMACEUTICALS LIMITED:

Products registered in / exported to: Iran, South Korea, Malaysia, Taiwan, Hong Kong, Russia, Ukraine, Georgia, Pakistan, Myanmar, Singapore, Nepal, Yemen, Vietnam, Sri Lanka, Cambodia, Kenya Philippines and Mozambique.

21

Term Paper on SQUARE & BEXIMCO

Conclusion:
Both SQUARE PHARMACEUTICALS and BEXIMCO PHARMACEUTICALS are running in a nice way in Bangladesh. They are developing our national growth through out increasing national income, reducing unemployment rate, enhancing the technological sectors through inspiration and demand, again they are helping the government by providing them with a huge tax. Growth rate of their business is very encouraging for the young entrepreneur to come forward. The nicest thing about their business is their total accountability. Still government should be more cautious about their flexibility and transparency.

22

Term Paper on SQUARE & BEXIMCO

23