Difference Between Cipla And Ranbaxy

Going by history, a greater percentage of Ciba-Geigy 's sales came from the pharmaceutical divisions. The previous year in 1982 pharma division contributed to a whole 30% of the entire group’s sales with a revenue base of 4.1 billion Swiss francs making it the second-largest pharmaceutical firm in the whole globe. Pharma operated majorly in four areas namely analgesics and antirheumatics (23% of sales) not excluding Voltaren, cardiovascular products (30%) with the inclusion of beta blockers, drugs for treating epilepsy and antidepressants (15%) and antibiotics together with other drugs. Pharma also included OTC drugs, a contact lens business, and a servipharm division specifically operating to meet the demands of the developing countries.

On September 4, 2001, Steve Papa, CEO and founder of Endeca Technologies, could hear a construction worker nailing a “Commercial Real Estate Available” sign to a building across the street from his Cambridge, MA office. This had become routine, as hundreds of early stage technology companies failed to raise additional growth capital. The words of his Vice President of Marketing, Steve Sayre, warred with the sound of the construction. “I know the board is actively working on the C round,” Sayre said. “We’d better get this funding closed; I don’t think the NASDAQ is going to hold up.” Papa knew that his CFO shared Sayre’s concerns. To an even

Eli Lilly’s decision to create a joint venture was not surprising (figure 1). The India government limited foreign direct investment to 51%, importing was subject to manufacturing at high costs outside the country and then paying high importation tariffs, and licensing was not prudent due to an absolute lack of product patents laws that were needed to protect Eli Lilly’s intellectual property.

Students should see that the risks of the biotech business are driving all of MoGen’s financial decisions: debt policy, dividend policy, and share repurchase program. Debt is relatively low because higher debt levels would result in debt rating decreases and therefore higher interest rates. Similarly, the company chooses to pay no dividends because of the risk of being forced to cut the dividend during the difficult times that invariably arise in a biotech business. Students should realize that a share repurchase program is a very good match for a biotech company like MoGen. The company can distribute cash to its shareholders when profits allow, but without making an explicit (debt) or implicit (dividends) promise to the market.

Eli Lilly was approached by a leading pharmaceutical firm in India to consider building a joint venture together. Ranbaxy Laboratories began as a family business in the 1960’s, but with strong entrepreneurial skills the company grew to become one of the largest manufacturers for bulk drugs and generic drugs. The two companies considered pursuing a joint venture that would support on another’s products by supplying one other with ingredients to complete company products without having to trade with other companies internationally. The JV would potentially lead both companies, together to become a dominant force in the Indian market.

There were two pharmaceutical companies that were looking for ways to expand globally to position themselves in a competitive advantage from their competitors. One was located in the United States, which was Eli Lilly and

The Pfizer case provides an introduction to external analysis. The case highlights the pharmaceutical industry, which has enjoyed extraordinary long-run profitability. The case also demonstrates how broad changes in broad environmental factors (i.e. demographics, technology, culture, etc.) have an impact on industry competition. The case is not especially complex, so it is not overwhelming as a first case.

2. What do the results say about how firms in this industry can deliver strong financial returns in different ways?

Successful IPO offerings by Quintiles and PPD and their subsequent growth to top 5 CROs in the industry (refer appendix 1), Kendle can follow the same strategy and obtain required capital through IPO. Threats: Kendle is losing contracts to larger CRO’s with international presence, industry consolidation, presence of numerous fragmented CRO’s worldwide, growth of many start-ups through financial roll-up strategy, many CRO’s are on an acquisition spree and Kendle is losing bids to companies such as Collaborative due to shortage of capital, ClinTrials negative performance is affecting other CRO stocks. Competitors: The fragmented CRO industry has hundreds of players ranging from small, limited-service providers to full-service CRO’s, and global drug development corporations which possess significantly greater capital, and other resources than Kendle. CROs compete on the basis of experience, medical and scientific expertise in particular therapeutic areas, quality of work, the capability to handle extensive trials worldwide, medical database management capabilities, and relevant technology to advance research. International presence with strategically located facilities, proximity to clients, and financial capability and cost efficiency are also necessary. In order to build these capabilities for competing effectively, the CRO industry is consolidating as

Pfizer is the largest American pharmaceutical company and one of the largest pharmaceutical companies in the world. It competes with Merck and Glaxo, and markets such well-known medications as Celebrex and Viagra. However, the pharmaceutical industry as a whole has undergone changes in recent years with significant consolidation taking place and with increased scrutiny regarding the ways in which drugs are developed, tested and marketed. In addition, recent controversies have erupted regarding Merck's drug Vioxx, and Pfizer has been the target of unwanted publicity regarding its painkiller Celebrex. This research considers the strategic position of Pfizer, including its strengths and weaknesses as well

Economic: Globalization of the pharmaceutical industry is an exciting opportunity to have research and development done at cheaper prices in other countries. However, this could be a double edged sword for companies because it is easy for other countries, such as India, to produce generic versions of the drug in bulk.

The author has chosen to analyse and evaluate the business and financial performance of AstraZeneca.

We analyzed the Indian Pharmaceutical industry on these five forces and the findings of industry competitiveness and profitability are written under the relevant competitive forces.

Ranbaxy Laboratories Ltd. (RLL) is the largest pharmaceutical company incorporated in India. It is also amongst the top league globally and is ranked 9th largest generic company worldwide. Ranbaxy is also credited with the tag of true Indian multinational. The company traces its roots to a chemist shop in Delhi. It is one of the first Indian pharmaceutical company to start a joint venture abroad. Rapid growth of Ranbaxy is attributed mainly to its focused research and joint ventures in India and abroad. It is also innovation and market driven, with a strong distribution network. The company was able to grow successfully in highly competitive markets. In the current business scenario, Ranbaxy is focusing on innovation, alliances, mergers

Cipla has faced challenges in India and abroad from multinational pharmaceutical companies looking to protect their patents on particular medications, including antiretroviral drugs used to combat HIV infections in countries like South Africa, where access is severely limited by the annual per-person cost of US$10,000 to US$15,000. Most recently, the Delhi high court awarded Cipla the right to continue selling a low-cost generic equivalent of the lung cancer drug Tarceva following a patent-infringement suit by the drug's manufacturer.