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Project 115

This document discusses the pharmaceutical industry in India. It notes that while India has a large population and disease burden, its per capita drug consumption and healthcare spending is very low compared to other countries. The government policies around the pharmaceutical industry aim to regulate patents, prices, and product quality. Recent policy changes have deregulated many drugs, reduced the number of price-controlled drugs, allowed higher returns on controlled drugs, and brought foreign equity rules in line with domestic companies. The goal is to boost the industry while still ensuring quality and access. A national drug authority and pricing authority will monitor quality and set prices respectively.

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Rushikesh Patil
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0% found this document useful (0 votes)
873 views30 pages

Project 115

This document discusses the pharmaceutical industry in India. It notes that while India has a large population and disease burden, its per capita drug consumption and healthcare spending is very low compared to other countries. The government policies around the pharmaceutical industry aim to regulate patents, prices, and product quality. Recent policy changes have deregulated many drugs, reduced the number of price-controlled drugs, allowed higher returns on controlled drugs, and brought foreign equity rules in line with domestic companies. The goal is to boost the industry while still ensuring quality and access. A national drug authority and pricing authority will monitor quality and set prices respectively.

Uploaded by

Rushikesh Patil
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Rajarambapu College of Pharmacy, Kasegaon

Dist. Sangli -415 414

A practice school report on

Pre-marketing analysis of orthopedic medicine


Submitted to,

Shivaji university, Kolhapur

In partial fulfillment of the requirement of the award

of the degree of,

BACHELOR OF PHARMACY
Submitted by,

PRADUMNA MADAN KADAM

UNDER GUIDANCE OF,

Shri.P.S. KORE

2022-23

0
DECLERATION

We, the under designed, hereby declare that the A practice school report

on entitled

‘Pre-marketing analysis of orthopedic medicine


written and submitted by us to

Rajarambapu college of pharmacy, Kasegaon

as a partial fulfillment for under the guidance of

Shri.P.S. KORE

is our original work the empirical result in this the A practice school report is based
on data collected by us. We understand that any such copying label to be punished as
the authorities.

SUBMITTED BY,

PRADUMNA MADAN KADAM

Date: - / / 2022

Place: - Kasegaon

1
ACKNOWLEDGEMENT

We are thankful to Principal, Dr. S.K. MOHITE, Rajarambapu College of Pharmacy,


Kasegaon. kind-heartedness for having given us this opportunity to work at college.
We are thankful to entire staff of college, for sparing their time and patients for their
continuous involvement.

We would like to express our deep gratitude to our guide Mr.P.S. KORE whose
valuable guidance and suggestions provided an experienced indulgence in making
this product more than acceptable to management at Rajarambapu College of
Pharmacy, Kasegaon.

We are also thankful to her for constant, valuable guidance & suggestions from Dr.
Vaibhav Raje (M.D.in orthopedic), which helped us a lot while preparing the project.
We are also thankful to the lab assistant’s and all office staff and library staff for their
valuable suggestion and support during project work.

It’s our duty to be thankful to all of them who had helped directly or indirectly for
completion of project work successfully. We are also thankful to our parents who had
supported each and every time during the project period. We are indeed very
appreciative of the timely assistance extended to us our group members.

2
Kasegaon Education Society’s

Rajarambapu College Of Pharmacy, Kasegaon Tal- Walwa, Dist.- Sangli

CERTIFICATE
This is to certify that; A practice school report the entitled

Pre-marketing analysis of orthopedic medicine

submitted by

PRADUMNA MADAN KADAM

during the academic year 2022-2023 in practical fulfillment for the award of the
B.Pharm.- I prescribed by the Shivaji University Kolhapur. The A practice school
report is submitted through the principal college of Rajarambapu college of
pharmacy, kasegaon.

Shri.P. S KORE Dr.G.H. Wadkar Dr.S.K. MOHITE

Guide Academic in –charge Principal

Date: - / /2022

Place: - Kasegaon

3
Kasegaon Education Society’s

Rajarambapu College Of Pharmacy, Kasegaon Tal- Walwa, Dist.- Sangli

CERTIFICATE
This is to certify that, A practice school report entitled

Pre-marketing analysis of orthopedic medicine

Submitted

PRADUMNA MADAN KADAM

during the academic year 2021-2022 in practical fulfillment of or the award of the
B.pharm.- I prescribed by the Shivaji University Kolhapur. The project is submitted
through the principal college of Rajarambapu college of pharmacy, kasegaon.

Shri. P. S KORE Dr.G.H. Wadkar Dr.S.K. MOHITE

Guide Academic in –charge Principal

Date: - / /2022

Place: - Kasegaon

4
INDEX
Sr. No Title Page
No.
1 Student Declaration 1
2 Acknowledgement 2
3 Certificate 3
4 Introduction 6
5 Government Policies 8
6 Objectives and Scope 10
7 Literature Review 11
8 Research Methodology 19
9 Research Design 19
10 Data Sources 20
11 Data Analysis 22
12 Conclusion 28
13 References 30

5
INTRODUCTION

PHARMACEUTICAL MARKETING IN INDIA

Drug & pharmaceutical industry plays a vital role in the health care of the any

country. Rapid growth of this industry requires further attention because even after

50 years of independence, India, with around 15 percent of the World population,

accounts for less than 2 percent of the drug production in the world. Annual per

capita consumption of medicine in India is less than 2% of that in Japan. Health

care expense in India is a dismal 0.8 percent of GDP compared with 12.4 percent in

U.S.A. 6.5% in Japan and 6.2 percent in the U.K, despite higher incidence of disease

and malnutrition. The poverty and disease in India on one hand call for higher

standard of healthcare and pharmaceuticals production and on the other, stultifies

the growth of industry due to poor affordability of an average Indian. Drug &

Pharmaceutical industry has therefore, encountered a tough situation which most

industry have always found difficult, to provide abundant quantity of quality

products at low prices

The Indian Pharmaceutical industry, valued at $46.2 billion has been witnessing

attractive growth rate of 15% to 20% consistently over the past decade. This growth

was built by India's large population, increasing allocation of income to healthcare

spending and exports. Exports which currently accounts for 20% of the production

6
value has grown by a compound annual growth rate of 34% in the past few years

due to competitive price advantages from India's low labor and other input cost

The Indian market for pharmaceutical products stands at an enormous $58.8 billion.

The big 10 companies account for over 30% of that, take away 45 marketer and

average sales don't even come anywhere near the $2.5 million marks, that's how

fragmented it is some 50,000 brands from over 20,00 companies growing fast

enough to embarrass rainy day mushrooms and enough diseases to savage Indian

population all several times over and turn Dr. Dolittle into Dr. Don't care

The Indian pharmaceutical industry is highly regulated, essentially on three

aspects:

 Patents

 Price

 Product quality

7
Government Policies
In a country lacking the assurance of free health care for all (not to talk of an
effective e justification for the policy. But it killed any incentive to invest in R&D
(Research and Development), which makes global drug manufacturers what they are:
leader of mankind's war on disease. India's per capital consumption of drugs is said
to be just $3. In the US its over $100 and in Japan, over $400. India has about 20%
of the world's disease burden (with just 16% of its population). Western spending is
high because in a system where the government pays the bills, the patients get
themselves prescribed all sorts of pills for ailments that aren't terribly serious. But
why is Indian spending so low? Only 35% of the population has access to modern
(read allopathic) medicines. India has alternative system of medicines, Ayurveda, e.g.,
are not quacks, neither are homeopaths who make their own medicines.
India also exports sizable quantities of drugs & pharmaceuticals. More companies are
now venturing into traditional health care systems beside modern medicine. With the
launching of new drugs policy, all bulk drug formulation and intermediaries except
five bulk drugs have been de-licensed. Many drugs that were hither to underprice
control have been taken out of such control. Actually, the list of controlled drugs has
been halved and is limited to 73 items.
Higher rate of return has been allowed for those drugs that are still under price
control. Companies with 51 percent foreign equity have been brought on par with
wholly Indian companies, automatic clearance would be given for 51 percent foreign
equity automatic approval would be given for foreign technology agreement as well.
Earlier such companies had restriction on the product they could manufacture or
import. A National Drug Authority is to be set up to monitor quality control and
rational use of medicine. A national pharmaceutical pricing authority is also to be set
up to fix prices in respect of drug, which would continue to be under price control
(Ramaswamy & Meera Kumari, 1988).
8
The various legislations that govern the Indian
Pharmaceutical Industry are:

 The Indian Patents Act 1970 (and the amendments


thereafter)
 Drug Price Control Order (soon to be replaced by
Pharmaceutical Policy 2002)
 The Drugs and Cosmetics Act 1940

9
OBJECTIVE AND SCOPE
The present study of the pharmaceutical industry of India revolves
around the following basic objectives:

 To understand how pharmaceutical companies launch their


product.

 To know what promotional strategies are used by


pharmaceutical companies to sell their products in the market.

 To understand what is the role played by sales representatives in


this regard.

10
LITERATURE REVIEW
Historical Prospective
The production of bulk drug was virtually nonexistent in India at the time of
independence in 1947. It increased from a meager $715 million in 1962 to $2.4
billion in 1980 and further about $8.4 billion in 1990. Production of formulation is
increased from $90 million in 1947 to $14.4 billion in 1980 to $36.3 billion in 1990.
The demand for pharmaceuticals increased due to increase in population, increase in
affordability of a section of population and government emphasis on health program.
The industry grew despite claims of price & production control. By the year 2000 the
demand for pharmaceuticals is expected to reach up to $6.72 billion per annum.
There has been 1000% growth in the number of drug manufacturers in India
since 1970. That was the year when the Indian Patent Acts and Drug Price Control
Order (DPCO) came into force (The Eastern pharmacist 1988). While the first
accorded intellectual property protection to manufacturing processes (not product
formulas), the second began regulating prices to ensure that drug manufacturer who
were being allowed to copy foreign drugs would make them cheaply available to the
common man.

Indian Drug and Pharmaceutical (D & P) industry presents a picture of fast


development. Today, India manufactures most of its requirement of bulk drugs and
formulation. In fact, more than 30,000 different pharmaceutical formulation
worth$210 million are manufactured and sold in India. There are 45 major
pharmaceutical firms, each with a sizable investment and sales turnover.
Investment ranges between $1.47 million to $4.2 million the sales ranges between
$2.10 million to $54.6 millionper annum. Growth in this industry was to the tune of
23.4 per cent in 1997-98. This was phenomenal in comparison with the other

11
industries most of which have run into losses or very nominal profits leading to a
slowing down of the growth.

The pharmaceutical industry in India is going through a major shift in its business
model in the last few years in order to get ready for a product patent regime from
2009 onwards. This shift in the model has become necessary due to the earlier
process patent regime put in place since 1972 by the Government of India. This was
done deliberately to promote and encourage the domestic health care industry in
producing cheap and affordable drugs. As prior to this the Indian pharmaceutical
sector was completely dominated by multinational companies (MNCs). These firms
imported most of the bulk drugs (the active pharmaceutical ingredients) from their
parent companies abroad and sold the formulations (the end products in the form
of tablets and capsules, syrups etc.) at prices unaffordable for a majority of the
Indian population. This led to a revision of Government of India’s (GOI) policy
towards this industry in 1972 allowing Indian firms to reverse engineer the patented
drugs and produce them using a different process that was not under patent. The
entry of MNC’s was also discouraged by restricting foreign equity to 40%. The
licensing policy was also biased towards indigenous firms and firms with lesser
foreign equity. All these measures by GOI laid foundations to a strong manufacturing
base for bulk drugs and formulations and accelerated the growth in the Indian
Pharmaceutical Industry (IPI), which today consists of more than 20,000 players. As a
result, the Indian pharmaceutical industry today not only meets the domestic
requirement but has started exporting bulk drugs as well as formulations to the
international market.

12
LARGE MARKET SHARE FOR GENERIC DRUGS

As there was no efficient patent protection between 1970 and 2005, many Indian
drug producers copied expensive original preparations by foreign firms and produced
these generics by means of alternative production procedures. This proved more
cost- efficient than the expensive development of original preparations as no funds
were required for research, which contained the financial risks. This spending block
may come to as much as EUR 600 m for only one drug. This kind of money could
previously only be raised by large corporations in the industrial countries. The
competitiveness of generics producers is based on cost-efficient production. In this
field, Indian companies are currently in top position. At one-fifth, India’s share in the
global market for generic drugs is considerably higher than its share in the overall
pharmaceuticals market (approx. 2%). At the same time, India’s pharmaceutical
companies gained know-how in the manufacture of generic drugs. Hence the name
“pharmacy of the poor” which is frequently applied to India. This is of significance
not least for the domestic market as disposable income is as little as EUR 1,900 per
year for roughly 140 million of the total of 192 million Indian households1, which
means the majority of Indians cannot afford expensive western preparations.

Fig no. 01 Market share of corporates over time

13
Globalization has not caused traditional medicine to be abandoned but with higher
education, rising income and a change in lifestyle, western medical treatment is
gaining in importance. At present the population especially in rural areas still sees
western medicine as a stop-gap cure which is unlikely, though, to provide a lasting
solution to health problems. Today, about 70% of the population on the Indian
subcontinent depends entirely or at least in part on traditional Indian medicine
which is cheaper and more easily available than western drugs.
 Indian companies have recognized the opportunity presented by western
pharma in search of lower costs and higher profits, and are exploiting the
low- c o s t base and pool of highly skilled labour in their market to develop a
thriving outsourcing industry, positioning India as a key provider of contract
research and manufacturing services.
 India is increasing its R&D and biotechnology focus and taking advantage of the
low R&D productivity of developed markets to gain partnerships with western
players. These alliances enable the companies to gain expertise in discovery
and development as well as maximizing revenues if and when products reach
the market.
 Pharma’s and biotech’s in the US, Europe and Japan have realized the
increasing role of India at a global level. Many players are outsourcing non-
core activities of the research and manufacturing process. Outsourcing is a
popular option, while off-shoring via direct investment, joint venture or
acquisition is also proving successful.

14
DRUG PROMOTION METHOD
“The commercial needs of countless, fiercely competing pharmaceutical companies
has led them to depend on the tried and tested 3Cs: convince, if possible, confuse if
necessary, and corrupt if nothing else works.”
Health professionals in developing countries work in overstretched and under
resourced sectors on low pay and in difficult conditions. In such conditions the
promotions from the drug companies are inviting. Disparities in health spending
between the world’s richest countries and the world’s poorest countries are such
that a relatively cheap promotion in a developing country will generate much more
interest there than it would in a developed country.

The aim of drug promotion is to persuade people to buy more drugs and/or to pay
higher prices. This is done by increasing the perceived value of the drug via one or
more of several approaches including:

 Increasing the perceived frequency and/or severity of the indications.

 Widening the indications to include more people.

 Increasing the perceived likelihood and magnitude of benefits

 Decreasing the perceived likelihood and magnitude of harms.

 Increasing the use of the drug for longer durations.

The World Health Organization defines drug promotion as including: “all

informational and persuasive activities by manufacturers and distributors, the effect

of which is to induce the prescription, supply, purchase and/or use of medicinal

drugs.” The main aim of promotion is not to inform but to persuade. Consumer

goods.

15
Each move requires motivation and decision making so drug companies study how to

understand human motivations and decision-making. Public relations techniques

bypass people’s defenses by giving the impression that the message is coming from a

trustworthy source.

Table no .01 Doctor- directed promotion method

16
STRENGTHS AND WEAKNESSES OF INDIA’S
PHARMACEUTICAL INDUSTRY
India’s comparative advantages lie in its cost competitiveness, its reverse engineering
experience, its large pool of less expensive English-speaking scientific and
engineering workers, and its well-developed chemical industry infrastructure. India’s
pharmaceutical companies can also operate at much lower profit margins that their
Western counterparts. Today, India produces some of the cheapest drugs in the
world, especially because labor costs are 50 to 55 percent cheaper than in the West.
Industry experts indicate that infrastructure costs are 40 percent lower and fixed cost
are estimated to be 12 percent to 20 percent less that in the United States and
Western Europe. Consequently, India can produce bulk drugs that cost 60 percent
less that in the West and can open a production plant in India 40 percent cheaper
than in developed countries. Because of this, India has become a hub for
pharmaceutical research and development and clinical trials for many leading foreign
pharmaceutical companies.

Table no .02 Strength and weaknesses of marketing

17
METHODOLOGY & PROCEDURE OF WORK

A Research Methodology defines the purpose of the research, how it proceeds, how

to measure progress and what constitute success with respect to the objectives

determined for carrying out the research study. The appropriate research design

formulated is detailed below. Exploratory research: this kind of research has the

primary objective of development of insights into the problem. It studies the main

area where the problem lies and also tries to evaluate some appropriate courses of

action. The research methodology for the present study has been adopted to reflect

these realties and help reach the logical conclusion in an objective and scientific

manner. The present study contemplated exploratory research.

Research Design

The research design is the basic framework, which provides guidelines for the rest of

the research process. The present research can be said to be exploratory. The

research design determines the direction of the study throughout and the

procedures to be followed. It determines the data collection method, sampling

method, the fieldwork and so on.

18
Nature of Data

Primary Data:

 Primary data is basically fresh data collected directly from the target respondents;

it could be collected through Questionnaire Surveys, Interviews, Focus Group

Discussions Etc.

Secondary Data:

 Secondary data that is already available and published. It could be internal and

external source of data. Internal source: which originates from the specific field or

area where research is carried out e.g. publish broachers official reports etc.

publish broachers, official reports etc.

External Source:

 This originates outside the field of study like books, periodicals, journals,

newspapers and the Internet.

Data Collection

Primary data

19
 Primary data was selected from the sample by a self-administrated questionnaire

in presence of the interviewer.

 https://forms.gle/R2pDuSK8C9hPGmXe8

SAMPLE SIZE:

 Sample size: 115

 Sample area: Mahadev orthopedic hospital, islampur, sangli

 Unit: patient suffer from ortho disease

Secondary Data:

 Secondary data was collected through Articles, Reports, Journals, Magazines,

Newspapers and Internet

Analytical Tools:

 Simple statistical tools have been used in the present study to analyze and

interpret the data collected from the field. The study has used percentiles method

and the data are presented in the form of tables and diagrams.

20
Data Analysis

Fig no .02 Response taken by

Fig no .03 Age group of patients

21
Table no. 03 Age group of patients
AGE GROUP OF PATIENTS NO. OF PATIENTS

1 To 30 YEARS 35
31 To 60 YEARS 65
61 To 90 YEARS 15

Fig no .04 Gender of patient

Fig no. 05 Pre-medication report of patients

22
Table no. 04 Response about pre-medication
RESPONSE ABOUT PRE-MEDICATION NO. OF PATIENT
YES 44

NO 63

Fig no. 06 Effect of pre-medication

Table no.05 Report about effect of pre-medication


EFFECTS OF PRE-MEDICATION COUNT OF PATIENTS
SLIGHTLY 39

NO 68

23
Fig no. 07 Types of treatment

Fig no. 08 Patient suffering any other disease

24
Fig no. 09 Bill amount of medicine

Fig no .10 Brand preferred by doctor

25
Fig no .11 Supportive taken by patient

Fig no.12 Report about medication

26
Conclusion
Indian Drug and Pharmaceutical (D & P) industry presents a picture of fast
development. Today, India manufactures most of its requirement of bulk drugs and
formulation. In fact, more than 30,000 different pharmaceutical formulation worth
210$ million are manufactured and sold in India. The Indian orthopedic industry has
tremendous potential for growth. Demographic and lifestyle factors have made this
one of the highest growth markets globally, attracting several multinational
companies to sell and in some cases, establish local knowledge and research centers
in India.
India is increasing its R&D and biotechnology focus and taking advantage of the low
R&D productivity of developed markets to gain partnerships with western players.
These alliances enable the companies to gain expertise in discovery and development
as well as maximizing revenues if and when products reach the market. India can
produce bulk drugs that cost 60 percent less that in the West and can open a
production plant in India 40 percent cheaper than in developed countries. Because of
this, India has become a hub for pharmaceutical research and development and
clinical trials for many leading foreign pharmaceutical companies.

Outcome from survey of orthopedic patients


 Age group of patient 1 to 30 years contain 35 patients
 Age group of patient 31 to 60 years contain 65 patients
 Age group of patient 61 to 90 years contain 15 patients
 There are 70.1% MALE and 29.9% FEMALE
 Pre-medication done by patient itself and its effect
 There was 44 patient done pre-medication by itself in those 39 patients got
slightly effect
 The method use in treatment of orthopedic patient were found traditional
medicine methodology up to 87.9%
 Maximum patient suffering from diabetics (up to 26.2%) and accidental case
(up to 30.8%)
 Maximum bill amount of medicine was under 1000 (up to 95.3%)
 Mostly physician preferred branded medicine (up to 58.9%) along with pcd
(up to 41.15%)

27
In this survey we found majorly patients in 30-to-60-year age group mostly male
candidate suffering from diabetics and accidental case. There were some patients in
the treatment mostly try pre-medication, found not effective or slightly effective
therefore they shift treatment towards orthopedic specialist.
Mostly orthopedic physician preferred traditional medicine system for the better
result physician should be shift on novel drug delivery system in this section there
was presence of generic drug can be modified into novel drug to reduce dosing
frequency and produce greater pharmacological effect specially targeted diabetic
patient in future.

28
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