PESTLE analysis of the pharmaceutical industry

PESTLE analysis of the pharmaceutical industry The pharmaceutical industry not only develops but also produces and markets drugs licensed for use as medications. Pharmaceutical companies deals in generic and brand medications. They are subject to a variety of laws and regulations regarding the patenting, testing and marketing of drugs. Initially, The Indian pharmaceutical industry grew at a very slowly from 1947 to 1970, all due to the lack of incentives and the failure of the government which was unable to set-up a concrete regulatory framework. Now, the Industry is characterized by numerous governmental regulations and policy changes, stiff price controls, rigorous controls on formulations, and absence of international patent protection. During 1970, the Indian Patents Act (IPA) and the Drug Price Control Order (DPCO) were passed. Though DPCO acted as buffer against pharmaceutical companies making free pricing illegal, it fulfilled the goal of providing quality drugs to the public at reasonable rates. The Introduction of the IPA, which did not recognize product patents but only process patents provided a major thrust to the industry and companies which through the process of reverse-engineering, began to produce bulk drugs and formulations at lower costs. This led to high fragmentation in the industry, due to the emergence of a number of small firms. India Manufactures over 400 bulk drugs and around 60,000 formulations, which are distributed by 5,000,000 chemists all over the country. Indian pharmaceutical Industry is passing through a wave of consolidation, with the objective to strengthen their brand equity and distribution in what is essentially a branded-generics market. In the present, the growth of a domestic pharmaceutical company is critically dependent on its therapeutic presence. The old and mature categories like anti-infective, vitamins, and analgesics are de-growing while; new lifestyle categories like Cardiovascular, Central Nervous System (CNS), Anti-AIDS, Anti-Cancer and Anti Diabetic are expanding at double-digit growth rates. Various Pharmaceutical companies in India Ranbaxy Laboratories It is Indias largest pharmaceutical firm with the returns of Rs 4,198.96 Crore (Rs 41.989 billion) in 2007 Dr. Reddys Laboratories With a turnover of Rs 4,162.25 Crore (Rs 41.622 billion) in 2007, it is second largest drug firm in India by sales. Cipla it generated an annual revenue of Rs 3,763.72 Crore (Rs 37.637 billion) in 2007 and made it the third among largest pharmaceutical firms. Sun Pharmaceuticals Sun pharmaceutical Industries had an overall earnings of Rs 2,463.59 Crore (Rs 24.635 billion) in 2007. Lupin Labs Its total profit of Rs 2,215.52 Crore (Rs 22.155 billion) was in 2007. Aurobindo pharmaceutical Indias sixth largest pharmaceutical company by sales, Aurobindo posted Rs 2,080.19 Crore (Rs 20.801 billion) annual returns in 2007. GlaxoSmithKlineg With 2007 turnover touching Rs 1,773.41 Crore (Rs 17.734 billion, GSK is Indias seventh largest pharmaceutical firm. Cadila Healthcare Cadilas earnings was Rs 1,613.00 Crore (Rs 16.13 billion) in the fiscal year 2007, establishing itself as Indias eight largest drug company. Aventis pharmaceutical With an annual revenue of Rs 983.80 Crore (Rs 9.838 billion) in 2007, Aventis pharmaceutical has made a place for itself in the top ten pharmaceutical companies in India Ipca Laboratories Ipca is Indias 10th largest pharmaceutical company by sales and in 2007 it had a turnover of Rs 980.44 Crore (Rs 9.804 billion PEST ANALYSIS Political Factors There is political uncertainty, Combination of diverse political thoughts have got together to cobble together a rag-tag coalition. Hence any consistent political or economic policy cannot be expected. This muddies the investment field. The Minister in charge of the industry had been threatening to impose even more stringent Price Control on the industry than before. Thus it is throwing many investment plans into the doldrums. DPCO, which is the bible for the industry has in effect worked contrary to the stated objectives. DPCO nullifies the market forces from encouraging competitive pricing of goods dictated by the market. Now the pricing is done by the Government, based on the approved costs irrespective of the real costs. The country goes in for the IPR (Intellectual Property Rights) regime which is popularly known as the Patent Act. This Act impacts the Pharmaceutical Industry the most. Thus an Indian company could not escape paying a patent fee to the inventor of a drug by manufacturing it using a different chemical route. Indian companies went against this law and used the reverse-engineering route to invent alternate manufacturing methods. A lot of money was saved this way. This also encouraged competing company to market their versions of the same drug. This means that the impurities and trace elements that were found in different brands of the same substance were different both in qualification as well as in quantum. Therefore many brands of the same medicine were truly different. Here Branding actually meant quality and purer brand actually had pure active ingredients and lesser or less toxic impurities. Product patent regime will now eliminate all this. Patented drug would be manufactured using the same chemical routes and would be manufactured by the inventors or licentiates using the chemicals with same specifications. Hence all the brands with the same active ingredient will not have any difference in purity and impurities. The different brands will have to compete on the basis of non input-related innovations such as packaging, colour, flavours etc. Economic Factors Indians spends a very small proportion of their income on healthcare. This has stunted the demand and therefore the growth of the industry. Per capita income of avg. Indian as low as Rs. 12,890, therefore, spending on the healthcare takes a low priority. An Indian visits a doctor only when there is an emergency. This has led to a flourishing of unqualified doctors and spread of non-standardized medication. The Incidences of Taxes are high. Excise Duty (State Central), Custom Duty, Service Tax, Profession Tax, License Fees, Royalty, Pollution Clearance Tax, Hazardous substance (Storage Handling) license, income tax, Stamp Duty and a host of other levies and charges have to be paid. On an average it amounts to no less than 40-45% of the costs. The number of Registered Medical practitioners is low because of this. Due to which the reach of Pharmaceuticals is affected adversely. There are nearly 5million Medical shops. Also this affects adversely the distribution of medicines and also adds to the distribution costs. India is a high interest rate regime. Therefore the cost of funds is double that in America which adds to the cost of goods. Adequate storage and transportation facilities for special drugs are lacking. Studies had indicated that nearly 60% of the Retail Chemists do not have adequate refrigeration facilities and stored drugs under sub-optimal conditions. Thus affecting the quality of the drugs administered and of course adds to the costs. India has poor roads and railway network. Therefore, the time of transportation is higher. This calls for higher inventory carrying costs and longer delivery time. All this adds to the uncalculated costs. Its only during the last couple of years that good quality highways have been constructed. Socio-cultural Factors Poverty and associated malnutrition dramatically affected the incidence of Malaria and TB, preventable diseases continued to play havoc in India for decades even after they were eradicated in other countries. Poor Sanitation and polluted water sources ended the life of about 1 million children who were under the age of five. In India people preferred using household treatments which handed down for generations for common ailments. The use of magic/ tantrics/ hakims is still prevalent in India. Increasing pollution has added to the healthcare problem. Smoking, drinking and poor oral hygiene is still adding to the healthcare problem. Large joint families transmit communicable disease among the members. Cattle-rearing encourage diseases that are communicated by animals. Early child bearing affects the health standards of women and children. Ignorance of inoculation and vaccination has prevented the eradication of diseases like polio, chicken-pox, small-pox, mumps and measles. Technological Factors Advanced machines have dramatically increased the output and reduced the cost. Computerization has boosted the efficiency of the Pharma Industry. Newer medication, active ingredients are being discovered. In January 2005, the Government of India had more than 10,000 substances for patenting. Ayurveda is now a well recognized science and hence is providing the industry with a cutting edge. Advances in Bio-technology, Stem-cell research have given India a step forward. Humano-Insulin, Hepatitis B vaccines, AIDS drugs and many such molecules have given the industry a pioneering status. Newer drug delivery systems are the innovations of the day. The huge unemployment in India prevents industries from going fully automatic as the Government as well as the Labour Unions voice complains against such establishments. Legal Environment The pharmaceutical industry is now a highly regulated and compliance enforcing industry. As a result of which there are immense legal, regulatory and compliance overheads for the industry to absorb. This tends to restrict its dynamism but in recent years, government has begun to request industry proposals on regulatory overheads to encourage innovation in the face of mounting global challenges from external markets. In Pharmaceutical industry, there is huge PSU segment which is highly inefficient. The Government puts the surpluses generated by efficient units into the price equalization account of inefficient units thus unduly subsidizing them. On a long term basis this has made practically everybody inefficient. Effective the January, 2005 the Government has shifted from charging the Excise Duty on the cost of manufacturing to the MRP thereby making the finished products more costly. Just for a few extra bucks the current government has made many a life saving drugs unaffordable to the poor. The Government provides extra drawbacks to some units located in specified area, providing them with subsidies that are unfair to the rest of the industry, bringing in a skewed development of the industry. As a result , Pharmaceutical units have come up at place unsuitable for a best cost manufacturing activity. S.W.O.T. Analysis of Pharmaceutical Industry Strengths Cost of production is low. Large pool of installed capacities Efficient technologies are present for large number of Generics. Huge amount of skilled technical manpower. Increase in liberalization of government policies. Opportunities Aging of the world population. Increasing incomes. Growing attention towards health. New diagnoses and new social diseases. Spreading prophylactic approaches. Saturation point of market is far away. Better therapy approaches. Better delivery systems. Spreading attitude for soft medication (OTC drugs). Spreading use of Generic Drugs. Globalization Easier international trading. New markets are opening. Weakness Fragmentation of installed capacities. Low technology level of Capital Goods of this section. Non-availability of major intermediaries for bulk drugs. Lack of experience to exploit efficiently the new patent regime. Very low key RD. Low share of India in World Pharmaceutical Production (1.2% of world production but having 16.1% of worlds population). Very low level of Biotechnology in India and also for New Drug Discovery Systems. Lack of experience in International Trade. Low level of strategic planning for future and also for technology forecasting. Threats Containment of rising health-care cost. High Cost of discovering new products and fewer discoveries. Stricter registration procedures. High entry cost in newer markets. High cost of sales and marketing. Competition, particularly from generic products. More potential new drugs and more efficient therapies. Switching over form process patent to product patent. To make India a potentially strong pharmaceutical hub following weakness has to be overcome with: Low investments in innovative RD and lack of resources in order to compete with MNCs for New Drug Discovery and to commercialize molecules on a worldwide basis. Lack of strong linkages between industry and academia. Low medical expenditure and healthcare spend in the country Production of spurious and low quality drugs tarnishes the image of industry at home and abroad. RD efforts of Indian pharmaceutical companies hampered by lack of enabling regulatory requirement. Despite of unique strengths like expertise in process chemistry, availability of abundant and high quality talent, and growing hospital infrastructure, the country still accounts for less than 1 percent of the US$ 130 billion in worldwide spending in pharmaceutical research and development. Remedies: CRAMS: Inherent competitive advantages and cost-effective manufacturing capabilities has now become one of the most preferred destinations for Contract Research and Manufacturing Services (CRAMS). India has huge potential to tap the $20 billion CRAMS business that is expected to reach $31 billion by 2010. India has opportunity to grab this business. Pharma multinationals are also exploiting Indias competencies in the field of information technology and its strong and low cost IT skill sets by setting up centres for their global clinical data management functions in India. CRO: Contract able researches also offer significant opportunity to the Indian pharmaceutical industry that is becoming a global RD hot-spot for innovative pharmaceutical companies. The global contract research opportunity was $14 billion in 2006 and was expected to reach $24 billion by 2010. Identifying opportunities enablers. To Map Indian pharmaceutical industry to realize its full potential and to become globally competitive. Addressing global challenges that impact India pharma industry. Global alliances, Mergers and Acquisitions. Government should provide infrastructures for talent research. Providing regulatory protection. Giving financial incentives to encourage innovations research. Encouraging public -private partnership in infrastructure development. Example of overcoming threats and grabbing new opportunities 1. The lack of research and development (RD) productivity, expiring patents, generic competition and high profile product recalls are driving the mergers and acquisition (MA) activity in the sector. The Lots of mergers and acquisitions in the past shows that the Indian pharma industry is all set to take on the global markets. Nicholas Piramal has acquired 17 per cent in Biosyntech, a Canadian pharma packaging company in July 2005. While in June 2005, Torrent acquired Heumann Pharma, a generic drug company that was earlier a part of Pfizer. Matrixs acquisition of the Belgian firm Docpharma was the largest acquisition deal. Sun Pharmaceutical Industries has announced its plan for acquisitions in the US. Indian generic companies are increasingly fighting patent cases on these secondary patents and Resulting in earlier generic entry hence contributing to affordability of drugs in developed countries Indian companies still continues to market and export generic drugs which are off patent. US is the ideal destination for Indian companies. In US alone, major blockbuster drugs are going off patent in next few years. Further it is estimated that generic market can reach US $ 80 billion in coming few years in value terms and Indian companies stand a good chance of tapping a major chunk of this pie. 2. Lupin being among the top three Indian pharmaceutical companies by 2007 and aimed at achieving the US$ 1 billion mark. In order to compete with the foreign players, Indian pharma companies have started strengthening RD activities, entering the global generics market, venturing into contract research and started exploring segments like herbals and ayurveda; while have already established foreign pharma companies established RD centres and clinical trial centres in India to cut drug delivery costs. Lupin too made significant investments in RD, infrastructure, exports, herbal markets and other therapeutic segments to compete effectively with domestic and global pharma majors. According to Lupins top management, As the country switches on to the product regime, radical changes are expected to affect the pharmaceutical sector. A deep-rooted shift in business policy has taken place within the company by placing a strong emphasis on RD to create proprietary intellectual property. The bud get for this activity was stepped up substantially during the year to ensure that the company has a complete portfolio of products to take on the patent regime. 3. The downfall of many companies is due to not changing with the style of marketing. The analysis of Indian companies revealed that their progress is basically from the new products. Cipla has shown a tremendous growth in the market only due to focus on the new product hence they became No. 1 in 2004. Similarly, the Sun Pharmaceuticals have shown a phenomenal growth by adopting same strategy. This has resulted in their occupying 5th position in 2004. The new product success rate is going down because the companies are more interested in introducing new products and generating volume sales and not brand building. There are very few products which could have registered more than 1 Crore sales. The current scenario in the pharmaceutical industry is to launch new product then get some market share and if the response is good, pick up the brand and build the same in subsequent years.This has given dividend to companies like Ranbaxy, Cadila, Cipla, Sun Pharmaceuticals.

In the “Clearances” collection, what is revealed about Seamus Heaney and his relationship with his mother, and his thoughts and feelings about other

One of the most moving and emotional of Heaney's works is his collection of sonnets called ‘Clearances'. These sonnets were written in dedication and memoriam to his mother Margaret Kathleen Heaney, who died in 1984. The eight sonnets are filled with lively, detailed and vivid memories, but the strong and loving relationship between Heaney and his mother is constantly referred to also. Heaney has no difficulty in expressing openly the love felt for his mother, both by him and his family, as we see in the invocation at the beginning of the collection; ‘She taught me what her uncle once taught her'. Here we immediately see how his mother has taught him simple but great life wisdom, how to live and deal with problems in everyday life. This immediately identifies a clear picture of love and devotion towards her son, illuminating right from the beginning their strong mother/son relationship. This life wisdom is reflected again in sonnet 2, whereby she commands him on various rules before entering the house she grew up in; ‘And don't be dropping crumbs. Don't tilt your chair'. This yet again shows the close bond Heaney and his mother share, as she warns him in order to avoid him getting into trouble, showing that she is concerned over his welfare and wants to avoid upsetting him in any way possible. The fact that Heaney remembers this visit to his grandparents so vividly is also an indication of how important his mother and her family background was to him, as he shows a keep interest in all aspects of the visit. Despite this, the true reveal of the close bond shared by both mother and son is seen most apparent in sonnet 3, whereby Heaney describes the activities shared between them on times where it was just the two of them alone. In sonnet 3, he mentions himself and his mother preparing Sunday dinner; ‘I was all hers as we peeled potatoes. They broke the silence, let fall one by one'. The close bond between them is easily spotted here, as peeling potatoes is seen as a feminine image, yet Heaney is eager to help and share quality time with his mother, emphasising the importance she has in his life. The fact that there is silence is also an indication of their loving relationship, as neither feels the need to speak as they are enjoying just being in each other's company. ‘From each other's work would bring us to our senses', this yet again shows the unifying element between the both of them, almost as if they are part of one another, showing how alike they are. The change in mood in the second stanza emphasises Heaney's great pain at the loss of his mother. Yet despite this, they are still united as they were in the first stanza, ‘her breath in mine', once again highlighting the closeness shared between them. The final line in the third sonnet is a clear confirmation of the strength in the bond placed between Heaney and his mother as he feels the closest he has ever felt to her at a time when he should feel most distanced; her death, ‘never closer the whole rest of our lives'. A similar pattern of silence is shown in sonnet 4, where Heaney writes about his mother and how she dealt with her son being very intellectual despite only coming from a loving farming background. In the sonnet, Heaney mentions the silent fear felt by his mother at the thought of people thinking of her as a snob, the fear of thinking that her family will think she's above herself, ‘Fear of affectation made her affect. Inadequacy whenever it came to pronouncing words ‘beyond her'. Bertold Brek'. This shows us the discomfort felt by Heaney's mother by being torn to stay at her family's intellectual level or progress in order to be the same as her son. Read also Intro to Public Relations Notes We gain knowledge from the sonnet that she is slightly more knowledgeable than she decides to show, ‘well-adjusted vocabulary'. The result of her choice here illuminates the close bond between her and Heaney, as Heaney shows respect towards her by ‘governed my tongue in front of her'. He speaks as she would in order to keep to his background and make her feel less uncomfortable, which shows that he thinks about her thoughts and feelings and puts them before his own. Despite this, Heaney's education is affecting them as the ‘grammar which kept us allied and at bay'. This illuminates the problems faced by Heaney and his mother, despite speaking less intellectually for the right reasons, at the same time neither are being true to themselves, and are lying about the real person inside in order to please each other. The devoted bond between Heaney and his mother is illuminated again in sonnet 5. In this sonnet, Heaney talks again about another female activity that he is helping his mother with, helping her to fold sheets that have newly come in off the line. The intimacy between them is revealed once more as their hands ‘end up hand to hand'. This shows yet again the closeness between him and his mother as they are together in such an emotional way by performing such a simple task. There is a slight flaw again in their relationship in this poem however, as we begin to see the differences faced by both Heaney and his mother with Heaney's education seems to overpower his mother, ‘and pulled against her; suggesting that as he grows and becomes more intelligent, it is slowly pushing them away from each other. Sonnet 6 shows a change in Heaney's age, and it becomes clear that he is in his teenage years. Despite the change however, his relationship with his mother seems unaffected. He compares his mother with the book Sons and Lovers. The title of the book immediately shows us the deep love felt for his mother during these years, and their closeness is still confirmed as they kneel ‘elbow to elbow' in the church at Easter time. Heaney sees this as important and shows us that mother and son are both entering a different phase, they are both now devoutly religious. At a time when their views should differ however, Heaney and his mother remain allied, a true indication of the emotionally powerful shared between them. The ultimate reveal of the unconditional love and strength between Heaney and his mother is show in sonnet 7, the sonnet describing the death of his mother. On her deathbed, Heaney, along with other members of his immediate family show his mother the affection she longed for and deserved, ‘he called her good and girl'. Here, Heaney shows the most affection he ever has to his mother, revealing true feelings he has towards her. The fact that Heaney feels a ‘space' after she dies is also a key suggestion to the closeness of their relationship, that the woman he has loved and adored has left him and he feels emptiness, as if nothing can replace her, showing how highly Heaney thought of his mother. ‘It penetrated Clearances that suddenly stood open. High cries were felled and a pure change happened', yet again here, the flawless relationship shared between Heaney and his mother is shown as despite her spirit leaving her body, her ways have been passed on to him, and the use of the word ‘kept' suggests that Heaney will never forget her. The end of this sonnet, with the use of the word ‘felled' links sonnet 7 with sonnet 8, the final in the collection. In it, Heaney talks about the tree that has been removed from the garden in which he lived by new owners. I thought of walking round and round a space', this shows the emptiness felt by Heaney after his mother's death, and the tree is symbolic of the loss of his mother also. The closeness of the relationship between them is reflected in the feelings felt by Heaney after his mother's death, he, like the tree, also feels like he has been cut, both physically and emotionally, ultimately illuminating the desperation he feels now that his mother is not around, emphasising the closeness between them. Despite the focus of Clearances being on the experiences of Heaney and his mother, we are also informed of Heaney's thoughts and feelings towards other members of his family. In the invocation, we are made aware of Heaney's ancestors, including his uncle and other, present day family members who are working on the farm. Heaney shares his fear of being different to his family ‘to face the music'. It is clear that he is different to them, an academic gem, and it is clear that he is of the opinion that his family are being who they are supposed to be, and he believes that he is putting himself in danger by going against family tradition. This shows the respect he feels towards his family, and he takes their feelings into consideration, as he does not want to hurt them emotionally or cause them any unnecessary pain. The next family member we are introduced to is his great-grandmother in the hard times when she married outside the tribe and changed her religion. Heaney doesn't see her actions as anything unacceptable and sees it as an inheritance ‘to dispose of' after his great-grandmother's passing. He is ultimately respectful to his past family members and sees the ‘exonerated stone' as a mark of triumph not embarrassment. He shows great support and respect towards his great-grandmother and is brave enough to speak against what other people think are right, illuminating the support and love felt for his great-grandmother. In sonnet 2, we are introduced briefly to Heaney's grandparents. Yet again, Heaney feels respect towards them and sees their way of life as organised and traditional, a successful way to be. He clearly feels great affection and love towards them as he listens to his mother's imperatives in order not to upset them and make things easier for his mother, ‘to welcome home a bewildered homing daughter'. The final member of Heaney's family that we are introduced to is his father. In sonnet 3, Heaney sees and portrays him as a quiet man, a man who does not speak much, ‘hammer and tong at the prayers for the dying'. There is also a hint that Heaney's father is a man of few emotions, at the suggestion that he is not crying at his wife's bedside. However, in sonnet 7, Heaney sees him in a whole new light. His father describes his mother as ‘good' and ‘girl', and talks about the early days of their courtship, and finally shows her affection by bending down to her ‘propped-up head'. Heaney is overjoyed at this, ‘she could not hear but we were overjoyed', as his father finally feels like he did towards his mother. It is possible that Heaney feels a slight closeness towards his father at this point, that both are united in their grief. He clearly feels love towards his father, and his comforted by the words spoken by him at his mothers deathbed.

The Problem Of Teen Pregnancy Rates - 951 Words

Introduction to Nature and Scope of Research In reviewing the literature of multiple studies and reports, I found that there is significantly more data and research in regards to the problem of teen pregnancy and the associated problems that are attributed to adolescent childbearing than there are specific to the effectiveness and efficacy of second chance homes. Second chance homes help teen mothers and their children comply with welfare reform requirements under the 1996 law (Housing and Urban Development, 2016). Second chance homes can also support teen families who are homeless or currently residing in foster care (Housing and Urban Development, 2016). In addition, research has shown that over 60% of teen parents have experienced sexual and physical abuse by household member requiring the need for alternative housing options (Housing and Urban Development, 2016). Assessment of Effectiveness of Current Policy and Limitations of existing Research I would find it hard to say that the second chance home policy is effective simply based on the currently decreasing teen pregnancy rates. Since PRWORA was enacted in 1996, there have been several major policy changes that could also be affecting the decrease in teen pregnancy. Two examples would be the U.S. Supreme Court ruling to extend the constitutional right to privacy to a minor s decision to obtain contraceptives and the Patient Protection and Affordable Care Act of 2010 which gave all insured minors access to freeShow MoreRelatedProblems with Teen Pregnancy in Oklahoma Essay1032 Words   |  5 PagesOklahoma has been ranked number two in teen birth rates according to a Tulsa World article. Teen pregnancy has always been a problem in America. More and more teens are becoming pregnant every day. Most of them can’t afford the expenses of birth control. Others do not know how to prevent it. 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