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Post liberation war, after 1971, 75% of pharmaceutical industry was dominated by Multinational Companies (Mac’s). The National Drug Policy of 1982 has opened the flood gate for the local companies to come and compete. National Drug Policy of 1982 persisted on reducing the price of the medicine and at the same time ensuring highest quality, along with this they also eliminated non-essential medicines from market, which were aplenty from the MAC’S. After a successful implementation of this policy many foreign firms sold out their business to the local companies and thus the evolution of pharmaceutical companies started. As of 2014 there are 269 registered pharmaceutical companies in Bangladesh.Now the domestic market is hugely dominated by local companies, accumulating a market share of and only 3% of market hare is being held by Mac’s.

According to Directorate General of Drug Administration (GAGA) website the value of the locally produced drug was 175 core in 1981 that increased to 325 core by 1985. GAGA is the drug regulatory authority of Bangladesh, which is under the Ministry of Health and Family Welfare. GAGA regulates all activities related to import and export of raw materials, packaging materials, production, sale, pricing, licensing, registration, etc.

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Of all kinds of medicine including those of Arrived, Unman, and Herbal and Homeopathic systems.There are some other regulatory dies namely: The Pharmacy Council of Bangladesh (PC), The Bangladesh Association of Pharmaceutical Industries and etc. Another breakthrough came into effect on in 2001 , when The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) was signed. TRIPS started its journey with a goal “to promote access to medicines for all. ” Just like other under developed countries Bangladesh Was hugely boosted by this treaty.

TRIPS require WTFO members to provide copyright rights, patents; new plant varieties; trademarks; and undisclosed or confidential information. TRIPS also specify enforcement procedures, remedies, and dispute resolution procedures. This treaty will be in effect till 1st January 2016.

So this meant domestic producers can produce without spending much on R or thinking about certain patents, this reverse engineering meant that local producers were producing top notch medicines at lower cost because of low wage labors and subsequently the export of medicine has risen over the years. Pharmaceutical products exports rose from Ticket million in 2011- 2012 to a TX. 4713 million in 2012-2013 mainly because of a growing demand for Bangladesh medicines in Southeast Asia, Asia pacific and Africa.

About the company The company started its operations as a subsidiary of Pfizer Limited in 1972. For the next two decades it continued as a highly successful subsidiary of Pfizer Corporation.However, by the late asses the focus of Pfizer had shifted from formulations to research. In accordance with this transformation, Pfizer divested its interests in many countries, including Bangladesh. In 1 993 Pfizer transferred the ownership of its Bangladesh operations to local shareholders, and the name of the company was changed to Rental Limited.

(Rental Pharmaceuticals) Rental Limited is a Public Limited Company (listed in the Dacha Stock Exchange) that manufactures and markets human pharmaceuticals as well as animal therapeutics. There are 3 manufacturing sites – the 12 acre Mirror Site, the 17 acre Regenerated Site, and 13 acre Baulk site. Rental has about 4,000 employees. Rental pharmaceuticals) In a gesture of corporate charity, Pfizer donated 51 % of its shares to SAID Foundation. Jihad’s micromanage and micro-insurance programs support over 1 lack members and their families with a cumulative loan disbursement totaling to about BAT 575 Scores.

Salad’s health program covers over 10 Iac beneficiaries by delivering services through 2 hospitals with 70 beds each, a panel doctors in Salad’s micro finance branches as well as mobile health teams. The SAID Foundation holds the majority ownership in Rental Limited – it grows with the growth of Rental Limited. Rental Limited contributes about BAT 1 50 Scores annually to the National Exchequer.

Rentals Global Alliances are: EUNICE coral Re-hydration salts) Innovator Vaccines (Arabian, Vexed Hip, and Grapple) BASS, Germany (Animal Nutrition Products) Interval, Canada (Macroeconomic Vaccine) Evans Vending, UK (Disinfectant) Zinger, USA (Metal Amino Acid Complexes) Born Laboratories, Singapore (Nicotine Binders and Intellectuals) Obama Laboratories, New Zealand (Veterinary Products) Rental Limited has International presence in: K, Hong Kong, Philippines, Sir Lankan, Vietnam, Belize, Manner, Nepal, Cambodia, Kenya, Jordan, Guyana, Thailand, Afghanistan and Malaysia. (Rental Pharmaceuticals) Mission To provide maximum value to our customers, and communities where we live and work. Vision To establish Rental permanently among the best of innovative branded generic companies Why we have chosen Rental?Bangladesh is prone to tropical diseases, and this leads to a high demand for pharmaceutical goods. Because of this and the poor health and hygiene situations, a steady growth in the pharmaceutical sector is possible. In our project we have chosen Rental because Rental is one of the leading Bangladesh pharmaceuticals and it is a public traded company focused on the manufacturing and marketing of pharmaceutical and nutritional products for both human and animal use. Moreover it holds 7th position in the industry, they are slowly moving up the industry by attracting more and more market share.

They have their own manufacturing facility, skilled workforce and dedicated distribution team.The company has alliance and partnerships with other pharmacy companies such as Innovator, Vaccines, Interval, Evans Vending and others. This report tells us about how they attained the success and how they can sustain their competitive advantage in the long run.

Purpose Rental established itself as one of the finest pharmaceutical companies Of the country. Since inception they have worked their way in producing high quality medicine for both human and animals maintaining all the legal laws and regulations. They are well renowned and they do posses a strong brand value in the minds of the consumers. They are very much customer focus and they have a well designed CARS activities.Rental always possessed threat to all the other companies around in this sector; they are one of the top ten companies in this industry in terms of revenue generation.

So we wanted to figure out the strategies that this company uses to keep competing in the industry, and what are its core competencies and what other policies it uses in its day to day operations. Industry Analysis Which industry does it belong to? Rental falls under pharmaceutical industry of Bangladesh, a part of Health Care sector. Here companies don’t engage that much in research and development, it is more of a branded generic market. There are 269 companies producing more than 800 branded generics.Although firms don’t engage in research and development but the firms are still able to survive and produce new kind of medicine mainly due to The Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) treaty.

Under (TRIPS), the World Trade Organization allowed developing and poor nations to produce generic drugs without compulsory licenses or paying the patent elders for a certain time frame. For developing countries like India and China, the timeline was up to 2005. For Least developed countries, including Bangladesh, the time line was up to 2016.

Within this timeshare, pharmaceutical industries are legally allowed to reverse engineer, manufacture and sell generic versions of on-patent pharmaceutical products for domestic consumption as well as for export in low developed country.As in 2005 India and China had to stop exporting due to expiration of TRIPS in their country, opened a huge opportunity for Bangladesh to export pharmaceutical products. Among the least developed countries Bangladesh had the stronger base on producing pharmaceutical products and hence the export kept on growing. Although the industry has 269 firms but top 5 firms enjoy around 46% of total market share. The top 20 firms have a total market share of around 77% which shows how the most of the firms are struggling to get market share in terms with the market leaders.

Here established firms are enjoying a greater success with opportunity of new firms is virtually nil. Figure No. Market Share of Local Firms As heath care sector is very sensitive there are numbers of regulatory bodies uppercasing in this sector.

To name a few there is Directorate General of Drug Administration (GAGA), which regulates all activities related to import and export of raw materials, packaging materials, production, sale, pricing, licensing registration, then there is National Drug Policy of 2005. There is pharmacy Council Of Bangladesh (PC), The Bangladesh Association Of Pharmaceutical Industries controlling and looking after all the aspects of pharmaceutical products. Health care sector was boosted during the budget allocation of 201 1-2012, the outcome of the budget was very positive for the verbal industry.Few outcomes of the budgets are: Withdrawal of VAT (15%) and Import duty (5%) from leukocytes filter import by pharmaceutical companies.

Withdrawal of supplementary duty (20%) and reduction of import duty (12% from 25%) for Cartridge/ Membrane filters import by pharmaceutical companies. Reduced duty (3% from 12%) for sandwich panel import by pharmaceutical companies. Reduced duty for import of certain pharmaceuticals raw materials (5% from 12%).

Extending eligibility for tax holiday from June 201 1 to June 2013. Stages in Industrial Life cycle Figure 2: Stages in Industrial Life cycle The industry is now at a maturity stage with over 260 companies. This mature growth phase is characterized above average growth, but no longer accelerating growth.Industries in this phase now face increasing competition and, as a result, profit margins begin to erode. As the industry approaches maturity, the industry life cycle curve becomes noticeably flatter, indicating slowing growth. Some experts have labeled an additional stage, called expansion, between growth and maturity. While sales are expanding and earnings are growing from these “cash cow” products, the rate has slowed from the growth stage. In fact, the rate of sales expansion is typically equal to the growth rate of the economy.

Some competition from late entrants will be apparent, and these new entrants will try to steal market share from existing products.Thus, the marketing effort must remain strong and must stress the unique features of the product or the firm to continue to differentiate a firm’s offerings from industry competitors. Firms may compete on quality to separate their product from other lower-cost offerings, or conversely the firm may try a low-cost/low-price strategy to increase the volume of sales and sake profits from inventory turnover. A firm at this stage may have excess cash to pay dividends to shareholders. But in mature industries, there are usually fewer firms, and those that survive will be larger and more dominant. While innovations continue they are not as radical as before and may be only a change in color or formulation to stress “new” or “improved” to consumers. Industry Growth Analysis 201 1 2012 2013 Exports of Pharmaceutical Products 272.

391 . 2 465. 5 Overall Exports 145007. 6 180310 189659.

7 *All the values are in Scores. Table No. L Industry Growth Analysis Figure No. Percentage of Pharmaceutical exports Exports are growing indicator of the growth of Pharmaceutical industry.

TRIPS treat enabled Bangladesh to increase its export of pharmaceuticals over the last few years. Since the treaty on 2005 the export has seen an upward growth. Bangladesh, among all the other least developed country has the most developed pharmaceuticals, has exported mainly in all the other least developed countries. Expiration of TRIPS treaty in India and China has allowed even a higher rate of growth.

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