...Strategic direction for joint venture between Eli Lilly Co and Ranbaxy Laboratories Limited Problem After enjoying a successful JV partnership with Ranbaxy for the last few years, the strategic decision that Lilly now has to make is how to move forward. The Indian pharmaceutical industry has witnessed some significant changes and it seems that the business goals of both companies have diverged as well. Situation Overview Thus far it appears that Eli Lilly’s decision to enter the Indian market has been a wise one. It has enjoyed a successful partnership with Ranbaxy, which has also allowed its brands to gain recognition within the local market. Considering other metrics, including sales growth, access to new distributors and innovative product development, the JV has proven to be successful as well. Both parties agree that the JV has proven mutually beneficial, however circumstances have changed considerably since the venture was first initiated. Ranbaxy has expanded its own operations internationally and expanded its global reach through various acquisitions. In addition, the business strategies of both firms have taken a divergent direction. Lilly would like to continue to focus on the development of its patented global drugs, through innovation and discovery. On the other hand, Ranbaxy believes that its opportunity lies in offering generic drugs to the local market and increasing its presence abroad. Ranbaxy has signaled an intention to sell its stake in the JV if the...
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...Pharmaceuticals in India, as of 2010[update] | Rank | Company | Revenue 2010 (Rs crore) | Revenue 2010 (Rs billion) | 1 | Ranbaxy Laboratories | 4,198.96 | 41.989 | 2 | Dr. Reddy's Laboratories | 4,162.25 | 41.622 | 3 | Cipla | 3,763.72 | 37.637 | 4 | Sun Pharmaceutical | 2,463.59 | 24.635 | 5 | Lupin Ltd | 2,215.52 | 22.155 | 6 | Aurobindo Pharma | 2,081.19 | 20.801 | 7 | GlaxoSmithKline | 1,773.41 | 17.734 | 8 | Cadila Healthcare | 1,613 | 16.13 | 9 | Aventis Pharma | 983.80 | 9.838 | 10 | Ipca Laboratories | 980.44 | 9.8044 | Major players [edit] Ranbaxy Laboratories Ranbaxy is the leader in the Indian pharmaceutical market, taking in $1.174 billion in revenues for a net profit of $160 million in 2004. It was the first Indian pharmaceutical to have a proprietary drug (extended-release ciprofloxacin, marketed by Bayer) approved by the U.S. FDA, and the U.S. market accounts for 36% of its sales. 78% of Ranbaxy’s sales are from overseas markets; its offices in 44 countries manage manufacturing in 7 countries and distribution in over 100. IMS Health estimated that Ranbaxy is among the top 100 pharmaceuticals in the world and that it is the 15th fastest growing company. By 2012, Ranbaxy hopes to be one of the top 5 generics producers in the world, and it consolidated its position with the purchase of French firm RGP Aventis in 2003. Ranbaxy also has higher aspirations, however, “to build a proprietary prescription business in the advanced markets.” To this end...
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...ELI LILLY IN INDIA RETHINKING THE JOINT VENTURE STRATEGY Abhay Kishore – 01 Abhishek Kunal – 05 Anil Kumar Jadli – 11 J.Harish – 25 Khushal Malik – 28 Sharad Singh – 49 PHARMACEUTICAL INDUSTRY – Global Trend • • • • Mainly concentrated in the United States, Europe, and Japan Developing a drug from discovery to launch took 10 to 12 years. Cost of development of drug is between $500-$800 million. Drugs were strictly controlled by government agencies: o o o o Food and Drug Administration (FDA) – USA, CPMP – Europe 12% 8% North America Europe 38% 18% Asia Japan MHW – Japan DPCO & Indian Patent Act - India • • Size of industry : USD 960 billion in 2012. Few Firms control entire market (Oligopoly). 24% ROW • 4 Firms – Control 20% , • 20 Firms – 50-60%, • 50 Firms – 65-75% PHARMACEUTICAL INDUSTRY – Global Trend • Covered the chemical substance itself • Offered typically 20 years of protection • Usually a lag time of 1012 years by the time the patent was obtained and the launch date • Covered the method of processing or manufacturing the product • Very little protection because it was easy to slightly modify the process Global Issues in Pharma Sector • Prices in of the drugs varied in developed countries • US & Canada by factor 1.2 to 2.5. • Europe by factor 1.1 to 2.5. Parallel Trade: an outside company sells a patented product in a market not designated to sell the drug. o • Independent firm exploited parallel trade by using the differentials...
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...TOPIC : RANBAXY LABORATORIES Submitted to: Prof. Deepak Shyam MBA Dept Submitted by: Nithin Unnikrishnan Nair 1PT12MBA36 CONTENT * INTRODUCTION * VISION AND MISSION * INDUSTRY ANALYSIS(PORTER’s FIVE MODEL) * SWOT ANALYSIS * COMPETITIVE STRATEGY OF RANBAXY * BCG MATRIX * GLOBAL STRATEGY FOR GROWTH * RANBAXY LABORATORIES INTRODUCTION Ranbaxy Laboratories ltd is an Indian multinational pharmaceutical company that was incorporated in India in 1961. The company went public in 1973 and Japanese pharmaceutical company Daiichi Sankyo acquired a controlling share in 2008. Ranbaxy exports its products to 125 countries with ground operations in 43 and manufacturing facilities in eight countries. In 2011, Ranbaxy Global Consumer Health Care received the OTC Company of the year award . Ranbaxy was started by Ranbir Singh and Gurbax Singh in 1937 as a distributor for a Japanese company Shionogi. The name Ranbaxy is a portmanteau 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. In June 2008, Daiichi-Sankyo acquired a 34.8% stake in Ranbaxy, for a value $2.4 billion. In November 2008, Daiichi-Sankyo completed the takeover of the company from the founding...
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...Pay for Delay Written By: Jed O’Brien Metropolitan State College of Denver at Denver November 24, 2011 For years pharmaceutical companies have been trying to protect their expensive drugs, protected by patents, by paying rivals large sums of money from producing cheaper, alternative drugs. In an article written by Marian Wang, she discusses a particular case in which Pfizer makes “…a deal with certain pharmacy benefit managers … to block generic versions of Lipitor.”(Wang, Pfizer’s Latest Twist on ‘Pay for Delay’) There are a few ethical issues with this: one, the rival companies are infringing on patent laws, two, larger pharmaceutical companies are trying to create as much profit for their company until their patent runs out, and three, Americans in need of the drug are forced to pay higher prices for their drugs. The latter two issues go hand in hand with one another. Patents are used to protect a company’s invention and gives the company exclusive rights to sell that invention. In this case the invention is a drug. But, in the drug business, companies can get a hold of a drug and break down the chemical components making it easy to duplicate. It is not right for competitive companies to be able to easily break down a drug when all the hard work has been done by another and profit. Just because there have been minor adjustments with the chemical structure of the drug gives the rival company the right to market and sell their product. At the same time doesn’t...
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...Ethical Dilemma – Samouel’s Greek Cuisine Joshua has spent several hours researching his portion of his team project. His job is to collect secondary data. The conflicting information that Joshua has found is still considered secondary data even though it is not from a reputable firm. Secondary business data can be very helpful in determining the correct business path for a company to go in. The data, though conflicting should still be incorporated and explained in his research findings to his group. The data is from a government -sponsored website and may be very valuable. Joshua should stay late and examine the quality of the data he has found on the conflicting website. He needs to look at the reliability and the validity of the data that is presented. Who is the information being provided through and how was it collected, and is it free from bias? What was the data in the study originally collected for and does that influence the outcome. The information is from a government sponsored website so there is some credibility in the source. I do not feel that Joshua should ignore this research in his findings. If Joshua feels that he does not want to include this data he should talk to his group and explain why he feels it is not relevant. It should not be hidden from the findings if it has a role to play in the research and can help the restaurant’s performance in the future. There is a value in secondary research and when it is used appropriately...
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...Enoch Olutayo Dr Kristin Rajan Engl 1102-222 6th September 2013 Courage is a virtue As a kid, I watched a lot of cartoons. Some were memorable and had an impact on my life, while some were not. One of the most memorable was a cartoon called ‘Courage the Cowardly Dog’. You can probably see from the title that this cartoon was very interesting. It has had a big impact on my philosophy as I have learnt life facts from watching it. I believe that I wouldn’t be the same person that I am today if I never came across it. I think it’s safe to say that as a kid, I did not know and understand a lot of things. The world to me was in black and white. You were either the good guy or the bad guy and when I watched TV, I always liked the good guys. This was how I felt when watching ‘Courage the Cowardly Dog’ but all that started to change as I grew up. This cartoon was about a dog named Courage that was adopted by a woman named Muriel. She found him abandoned on a trash can hungry and needing a diaper change. Her and her husband, Eustace, were on their way home when she saw him and immediately fell in love with him. Courage loved Muriel for being nice and loving, almost like a mother to him, so he always took care of her. As you can probably see from the title of the show, Courage’s name is a contradiction of his actual personality. He got frightened by almost anything and was always suspicious of people and activities that happened around him. They lived in the middle of nowhere, which...
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...Running Head: VIEWING ETHICS THROUGH MY EYES Viewing Ethics through My Eyes Business Ethics Heather Morgan Aiken Technical College Running Head: VIEWING ETHICS THROUGH MY EYES Abstract Ethical choices are made every second, rather knowing it or not, you make one every day. Versus being in a work environment, at a school activity, or being around friends and family. Every one's views are different when it comes to ethics and it all relates back to how you view situations and how you intend to follow through with the choices you make. Ethics relates back to how you were raised; rather through spiritual beliefs or in the home. Everyone's beliefs are different and that's what makes ethics it's own virtual way of views. Running Head: VIEWING ETHICS THROUGH MY EYES Viewing Ethics through My Eyes Business Ethics Ethics can be perceived in more than one form. I view it in the sense of virtue ethics, based on character traits people have that are good (Anne T. Lawrence, James F. Weber, 2011, p. 83). The method I would enforce would be the justice method (p. 83). Everything should be based off a fair and just form no matter the person, they should all be treated equal. I have an older brother and my parents raised us equally, even though we are four years apart in age. Anything he received, I received the same thing or something of the same value. I was raised to believe that...
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...In the article “Don’t Leave Your Hand in the Cookie Jar,” the author states that John Davies and Karl Schumaker have totally opposite opinions about how to make the year-end adjusting entries for 2009. John is an assistant controller. He has a master’s degree in accounting, is a CPA, and has three years of solid experience with a major accounting firm. Karl, John’s immediate boss, a controller, is 20 years older than John, and he has a B.S. in management and a general M.B.A. from a top graduate school. Moreover, he has over 25 years of corporate accounting and finance experience even though he has no public accounting experience. The adjusting entries in question consist of accounts receivable bad debt, product returns, and product warranties. The accounts receivable bad debt is the first accounting adjustment they have different opinion. Karl would to prefer to bring the bad debt up to 3% of sale this year from 2.75% last year because he thinks an economic slowdown is coming. Besides, Karl believes in conservative accounting, so he thinks that the accountants should use the least favorable amount. However, John thinks the bad debt should be keep as same as 2.5%. John said that he does not see the need to bump up the bad debt percentages, and he mentioned they can adjust it in future as needed. The second adjusting entry they hold the opinion differ from each other is product returns. Karl wants to keep the 1% on product returns, but John thinks the product returns should...
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...Whitney Summers Ms. Wert English 101 H December 3, 2012 Genetic Engineering Just imagine the scene: and newlywed wife and husband are sitting down with a catalog, browsing joyously, pointing and awing at all the different options, fantasizing about all the possibilities that could become of their future. Is this a catalog for new furniture? No. This catalog for all features, phenotype and genotype, for the child they are planning to have. It is basically a database for parents to pick and choose all aspects of their children, from the sex of the child, to looks, and even to personality traits. Parents since the beginning of time have “planned” to have children, but never have they been able to legitimately “plan” out their child. This scene does not seem typical for our time and age, but truthfully it is what is becoming of our world. Through substantial research and experimentation that is taking place, scientists, specifically biologists, are becoming keener to the field of engineering; Genetic engineering that is. When one thinks of “genetic engineering,” the first thought is probably a perfect child, or paradoxically some inconceivable creature, forged under the microscope in a scientific laboratory. Though both of these are genetic engineering, many people do not consider other things, such as genetic engineering of agriculture and medicine, both of which are extremely useful. Through the genetic altering of plants and crops, scientists have been able to manipulate...
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...1) The Booth Pharmaceutical Corporation has to face whether or not to continue selling the drug Vanatin. In participating in the activity, acting as a board member of the Booth Corporation, I along with my other group members were faced with an ethical dilemma. The dilemma was; should the company continue to sell Vanatin even though is has dangerous effects? The drug Vanatin is a major profit producing aspect of the Booth Corporation comprising 12% of its gross income in the United States. Additionally, the corporation makes about the same amount of money in foreign markets under a different name. Booth Pharmaceutical can continue to sell the product and with help from lobbyists get past the FDA. However, the drug is proven to have been the cause of 30-40 deaths per year. The ethical decision comes down to whether or not the lives of 30-40 people per year is worth the revenue generated for the Booth Corporation from Vanatin. 2) If the Booth Corporation decides not to produce the product, than that will be a major loss for their revenue per year. Through discussion, my group assumed that this would probably result in pay cuts and layoffs. The company has no substitute product for Vanatin so they would lose a tremendous amount of customers. If the drug was banned and the sale of Vanatin seized, the other party, the scientists, would have accomplished their goal. Additionally, innocent patients’ lives would be potentially saved. If the Booth Corporation continues...
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...me knocked-out most of the day. Please remember that I’m given extra time on assignments via the Kaplan University office of student disabilities. Abstract This term paper for unit two review three articles, Ethics Consultation in United States Hospitals This term paper also defines 8 financial terms. Keywords: Balance sheet, Shareholder Equity, EBITDA, EBITDAM, Financial Ethics, Financial Benchmarking, Financial Trend Analysis, and Ratio Analysis. Unit 2 Term Paper Business ethics is the appropriate business guidelines and customs regarding debatable issues, like the way a CEO runs his company, illegal stock trading, corruption, business social and monetary obligations. The government’s authorities frequently enforce business ethics, still there are times when businesses alone will use a straightforward structure that organizations can abide by so that they simply may benefit the public interest (investopedia.com, 2013). Article Review The first article chosen for this assignment, is Betsy Gallup’s article Ethics Are an Important Part of Running a Health-Care Facility, and she explains ethics as having three components: independence, integrity and objectivity (2009). The article continues by explaining ethics in the healthcare sector; as patients’ at a healthcare facility or hospital we expect to receive fair and ethical care from the facilities medical professionals attending to us. One expects the same ethical behavior...
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...Business Ethics across Cultures Article Review Clarissa R. Hoover XMGT/216 August 4th, 2012 Dr. Frank Czarny, Ph.D. Business Ethics across Cultures Article Review Business ethics and perspectives play a major role in how every business operates on a daily basis. This essay will examine two articles of foreign countries business ethics and perspectives. In addition, the essay will provide a brief summary of the articles. Also, the essay will demonstrate the primary ethical perspectives of the two countries. In addition, the essay will discuss the contributions to understanding global ethical perspectives. Furthermore, the essay will illustrate how the business ethics of a foreign country compares to that of The United States of America. Even though, some business ethics and perspectives differ from country to country generally they are the same. It is very important to uphold an elevated level of ethical behavior when conducting business in a foreign country. There are four main ethical perspectives that one should empathize with which are: character, obligation, results, and equity (Bullard, 2009). When examining ones character individuals should establish their thoughts on what shall be perceived as good versus what is good to accomplish. Furthermore, each individual should realize everyone has a different perspective on how businesses work in a global market. Another ethical perspective one should examine is obligation. Obligation can be described as doing...
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...Ethics Case One ethical lesson from this article, is when something is wrong, one should speak up and let their voice about the issue be heard. A second lesson from this case is that a lot of times middle management does not report all of the facts to top management in order for critical decisions to be made. Finally, a third ethical lesson from this case is to tell the truth about effects of decisions or information being presented, so that way it is true and unbiased. All three of the above listed lessons are relevant to someone who decides to enter into the accounting profession. This is because as accounts, one of our duties is to provide accurate and timely information in order for decisions by investors, creditors, and internal managers to be made. Most all of the ethical lessons that were discussed in the case were based on misleading information, or information that was inaccurate when trying to make a final decision. The decisions discussed in the case were not made in order to help make decisions; rather top managers were trying to save themselves and their reputations. The first ethical lesson pulled from the case was that when there is information that is misrepresented or wrongly described, one should not hesitate to speak up. Whether you are looking over information from peers on your own level or information from top-level management or anyone higher in a company than you, one should be able to speak up to misrepresented information. As someone going...
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...Ethics Game Dilemmas ETH/316 August 7, 2013 Esteban Soto The Case of the Mysterious Roses and The Case of the Cold Feet The ethics game simulations in these scenarios took the managers of the organizations through different ethical dilemmas. Until faced with an ethical situation in the workplace you really do not know what your decision would be as a manager. In any situation you have to make the best decision for the organization without compromising your own morals and values. This paper will discuss the ethical dilemmas in these organizations and my decisions of The Case of the Mysterious Roses and The Case of the Cold Feet. The Case of the Mysterious Roses In this simulation I was the Director of Sales in the organization. I received an email from my administrative assistant and a work colleague in the organization telling me of an employee Gayle Dornier, receiving flowers from an anonymous person. The person that sends me the email assumes it is another employee sending the roses. Bill Witherspoon, a Research Scientist who also works in the company sends me an email informing me of him and Gayle’s work relationship and asking me to be lenient on Gayle because of issues she is going through. The next email I receive is from Gayle asking to speak with me in confidence but doesn’t disclose to me the reason for the meeting. The ethical issue is for me to determine how I can ensure Gayle can talk about what happened while still meeting my responsibility as...
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