Lupin Limited - India's Leading Pharma Company

            
 
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Case Details:

Case Code : BSTR191
Case Length : 12 Pages
Pages Period : 1998-2005
Organization : Lupin Laboratories
Pub Date : 2006
Teaching Note :Not Available
Countries : India
Themes : Growth Strategy
Industry : Pharma and Biotech

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Introduction Contd...

Lupin too made significant investments in R&D, infrastructure, exports, herbal markets and other therapeutic segments to compete effectively with domestic and global pharma majors. According to Lupin's 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 R&D to create proprietary intellectual property. The budget 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."10

The Indian Pharmaceutical Industry

The history of the pharmaceutical industry in India can be traced back in the early nineteenth century. Initially, allopathic11 medicines were brought into India by the British and later these medicines were imported in bulk from Britain.

These medicines soon became popular among urban Indians. After the first few decades of their introduction in India, pharma products were being imported from more technologically advanced countries such as Germany.

The production of allopathic medicines within India started with the establishment of Bengal Chemical and Pharmaceutical Works in 1901 by Acharya P.C.Ray.

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The initial growth of the Indian Pharmaceutical Industry (IPI) was extremely slow owing to lack of sufficient funds for pharma research and marketing, few entrepreneurs operating in the industry and lack of government support.

By the time of independence, the industry's total revenues amounted to Rs. 100 million. Immediately after independence, the Indian government sought to achieve a high rate of economic progress.

The government was keen to achieve rapid industrialization in the pharma industry. The IPI grew from Rs. 100 million in 1947 to over Rs.300 billion12 in 2004.

Analysts attributed this significant progress to the absence of the product patent regime in India. In order to boost the IPI, the Indian Government had embraced process patents in drug manufacturing...

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10] Excerpts from Annual Report 2004-2005.

11] Allopathy is the treatment of disease by using medicines that oppose the presenting symptoms. It is conventional medicine practiced by physicians who graduate from medical school.

12] (ORG-IMS data, 2004).

 

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