Beximco Pharmaceuticals Ltd

BEXIMCO PHARMACEUTICAL COMPANY LTD Here is the management report, which you asked me to prepare.. In the process of formulating this project report I selected a PHARMACEUTICAL company,â€Å"BEXIMCO PHARMACEUTICALS† which produces world class live saving medicines in our country. I gained knowledge about managing the product & the structure from online articles and reports.Along with it, I employed the management concepts developed throughout the course to construct an effective management project to demonstrate the mentioned firm’s entire management strategies in Bangladesh. This plan is formulated with the idea of managing the all managerial activities of a large firm like BEXIMCO PHARMACEUTICALS LIMITED. A special note of acknowledgement is to our course instructor Mr Shahid Hossain for letting me do this project on Beximco Pharmaceuticals .He was very generous and productive toward mewhile conducting the course and he was the person who has guided methroughout prepar ing the report. The way he taught was really interesting and effective. All of these activities have been conducted within a very short time and we think it became possible only for  his dynamism. Taking the course with him was a great fortune for me. Finally, I would like to thank myr family and friends whose support I needed to complete my project. TABLE OF CONTENTSCONTENTS PAGE NO Mission Statement 1 Executive Summary 2-3 Organogram 4 Organizational Chart 5 Situation Analysis 6-16 Swot Analysis 17-20 Matrix of Swot Analysis 21 Objectives 22 Management Issues 23 Conclusion 24 Appendix 25 BIBLIOGRAPHY 1. Company Website : http://www. beximcopharmaceuticals. com 2. Books : Kotler Philip (2010), Principles of Marketing (12th edition). Prentice Hall, New Jersey, USA. * Kritner Robert (2009). Management (11th edition). Houghton Mifflin Harcount Publishing Company. (Boston – New York). * H. Donelly (2008), Fundamental Management (10th edition). Mcgraw, Hill Irwin * William J. Nickels (2009) Understanding Business (9th edition) Mcgraw, Hill Irwin. 3. Newspaper * The Ittefaq * The Independent. * Finanacial Express 4. Personal Interview Mr. Hashem Awal Chowdhury, Senior Executive Officer,Planning 5. ANNUAL REPORT OF BPL 2011 Ltd, BPL Annual Report 2011 6. Advertisement Shantinagar billboard DOHS, Mohakhali billboard 7. Magazines Indian Times Magazine MISSION STATEMENTBeximco Pharmaceuticals Ltd (BPL) is a leading manufacturer of pharmaceutical formulations and Active Pharmaceutical Ingredients (APIs) in Bangladesh. With decades of contract manufacturing experience with global MNCs, skilled manpower and proven formulation capabilities, the company has been building a visible and growing presence across the continents offering high quality generics at the most affordable cost. The company is committed to enhancing human health and well- being by providing contemporary and affordable medicines, manufactured in full compliance with global standards. The compan y continually strive to improve their core capabilities Strengthening research and development capabilities, creating partnerships and building presence across the globe.To address the unmet medical needs of patients and to deliver outstanding results for our shareholders. Our vision is to be one of the most trusted, admired and successful pharmaceutical companies in the region with a focus on. EXECUTIVE SUMMARY Beximco Pharmaceuticals Ltd. belongs to Beximco Group, the largest private sector business conglomerate in Bangladesh. It was incorporated in the late 70s, Beximco Pharma began as a distributor, importing products from global MNCs like Bayer, Germany and Upjohn Inc. , USA and selling them in the local market, which were later manufactured and distributed under licensing arrangements. The Company introduced its own branded generic products in 1983.Since then, the journey continued, and today, Beximco Pharma is a leading manufacturer and exporter of pharmaceuticals in the coun try, winning National Export Trophy (Gold), a record four times. Beximco Pharma’s manufacturing facilities have been accredited by major Global regulatory bodies and it has expanded its geographic footprint across four continents. Having a broad portfolio of more than 500 products and a dedicated team of around 2,700 employees, Beximco Pharma is committed to provide access to medicines which are affordable and manufactured in strict compliance with global standards. During the year 2011 we have successfully registered 48 products in overseas markets.In 2011, we introduced 40 new generics in 55 presentations, five of which were launched for the first time in Bangladesh. The 55 new products include the sectors given below: * Analgesic * Anti-effective * Cardiovascular * CNS * Endocrine & Met Disorders * GI System * IV Fluid * Muscular Skeletal * Ophthalmic * Respiratory * Skin * Vitamins and Minerals * Others We maintained our record of uninterrupted growth, achieving a 21. 6% increase in sales to Tk. 7,890. 24 million (2010: Tk. 6,490. 85 million). In 2011 we significantly enhanced our prescription share in sales of the formulation products and maintained, as expected, growth in all our key therapeutic segments. Sales of our Active Pharmaceutical Ingredients (APIs) also recorded a significant 37. % growth to reach Tk. 486. 91 million (2010: Tk. 355. 24 million). However, its impact on the overall profitability of the company is currently low because of a low gross margin predominantly due to the high cost of import of intermediate materials to manufacture these APIs. In 2011 export sales grew by 18. 1% to Tk. 390. 32 million (2010: Tk. 330. 54 million). Along with sales growth, Beximco Pharma also achieved a marked growth in profit in 2011. Our pre-tax profit increased 23. 2% to Tk. 1,677. 85 million (2010: Tk. 1,361. 53 million). Gross margin as percentage of sales however, slightly declined to 48% as against 48. 9% for the prior period.As the company c ontinue to evolve into a stronger company, their strategy for growth is to build a strong and diverse product portfolio; to expand our geographic reach; and to develop and leverage our generic drug capabilities. All these will drive them to build a future for our employees, to create value for shareholders and to focus on the reason for being in this business – to enhance the health and wellbeing of people. They are confident that their Company will continue to deliver strong financial results and achieve sustained growth in the coming days. Organogram Organisational Chart * Member’s name| * Designation| BOARD of DIRECTORS| |A S F Rahman| Chairman| Salman F Rahman | Vice Chairman| Nazmul Hassan MP| MD| Iqbal Ahmed| Director| Md. Abul Qasem| Director| Osman Kaiser Chowdhury| Director| A B Siddiqur Rahman| Director| Ad. Ahsanul Karim| Director| Dr. Abdul Alam Khan| Independent Director| | | Management Committee| | Nazmul Hassan MP| MD| Osman Kaiser Chowdhury| Director| R abbur Reza| Chief Operating officer| Ali Newaz| Chief financial officer| Afsar uddin Ahmed| Director, commercial| Lutfur Rahman| Director, manufacturing| Zakaria Seraj Chowdhury| Director, international marketing| A R M Zahidur Rahman| Executive Director, production| Shamim Momtaz| Executive Director, manufacturing| Md.Tahir Siddiqui| Executive Director, Quality| Jamal Ahmed Chowdhury| Executive Director, Finance and Accounting| | | Executive Committee| | Osman Kaiser Chowdhury| Director| Nazmul Hassan MP| MD| Rabbur Reza| Chief Operating officer| Ali Nawaz| Chief financial officer| Afsar Uddin Ahmed| Director, commercial| SITUATION ANALYSIS Situation analysis is a method managers use to analyze both the internal and external environments of an organization in order to understand the firm’s own capabilities, customers and business environment. INTERNAL FACTORS: Refers to the environment inside the organization within which a manager works. LEVELS OF MANAGEMENT: Strategic leve l:The Board of Directors A S F Rahman Chairman Salman F Rahman Vice Chairman Nazmul Hassan MP Managing Director Iqbal Ahme Director Mohammad Abul Qasem Director Osman Kaiser Chowdhury Director Abu Bakar Siddiqur Rahman Director Advocate Ahsanul Karim Director Dr. Abdul Alim Khan Independent Director The strategic level must make sure the technical level operates within the bounds of the society.Thus the strategic level determines the long range objectives and directions for the organization- in other words, how the organization interacts with its environment. (Textbook) Technical level: Middle floor managers, Branch Managers, Factory Managers work like a connector and works in the middle. At this level, the managerial task is twofold: 1. Managing the operations functions. 1. Serving as a liaison between those who produce the product or service and those who use output. In other words, for the operations level to do its work, managers at the technical level must make sure they have t he correct materials and see that the output gets used or sold. (Textbook) Operational level:Rabbur Reza Chief Operating Officer Ali Nawaz Chief Financial Officer Afsar Uddin Ahmed Director, Commercial Lutfur Rahman Director, Manufacturing Zakaria Seraj Chowdhury Director, International Marketing A R M Zahidur Rahman Executive Director, Production Shamim Momtaz Executive Director, Manufacturing Mohd. Tahir Siddique Executive Director, Quality Jamal Ahmed Choudhury Executive Director, Accounts & Finance. In any organisations, the operations level focuses on effectively performing whatever the organization produces or does.In Beximco pharmaceuticals, the operations fuction is at the core of their business. The managerial task here is to develop the best allocation of resources that produces the desired output. (Textbook). Research & development R&D is the key to success for any pharmaceutical company. We have given it top priority and have made substantial investment in upgrading our generic drug capabilities as we firmly believe R&D plays the most important role in spurring innovation and helps a company go up the value chain. Our research and development activities are closely focused on market needs and driven by technological progress in order to create product differentiation.Our team comprising top class formulation scientists with extensive experience of working in leading pharmaceutical companies in the world continuously strives to integrate the advanced technological changes to create competitive edge and match international standards. There has been a series of positive developments in the year and our team successfully introduced 40 new generic formulations in 55 different presentations and expanded our dosage delivery portfolio with technology driven products like prefilled syringes, total parenteral nutrition, dry powder inhalers, etc. Beximco Pharma’s well defined organizational structure, policy guidelines and internal controls ensure effi ciency of operations, and compliance with applicable regulations. The Company continuously upgrades these systems in line with the best practices in the industry.Other initiatives to keep our team updated with the recent advances in analytical methodology, platform technology, and regulatory affairs include frequent in-house and overseas workshops and training programs. The benefits we derive as a result of these initiatives will only increase in the coming years. Beximco Pharma’s R&D team works meticulously towards creating generic formulations that are comparable to innovators’ formulations. Their dedication can be witnessed in their successful development of challenging formulations such as multi-layer tablets, sustained release formulations, dispersible tablets, melt-in mouth tablets, and chewable vitamins; to name just a few.To add to that, Beximco Pharma was the pioneering local generic company to produce anti-retroviral drugs and to proactively launch CFC œfree metered dose inhaler formulation. In addition, we are also developing a number of APIs to ensure availability of raw materials across the range of therapeutic classes. Our capability to produce hi-tech, specialized niche products as well as drug delivery systems has been our core strength to transform BPL into an innovation-driven generic drug company. Human Resource We recognize it is our people’s unwavering values that molded us into who we are today. It is their tireless contributions that have propelled us to greater heights over the years. They are indeed our greatest assets in the way they create meaningful difference.Every product, every experience, and every breakthrough we ever presented for the betterment of human health and well-being have been made possible by our people. We are prouder than ever of the collective intentions and determination we have witnessed time and time again. The shared vision and values, reflected in our leadership and execution, help us attract the very best. Currently, the Company employs almost 2,700 people including around 400 white-collar professionals such as Pharmacists, MBAs, Doctors, Chemists, Engineers, Microbiologists etc. In 2011, we welcomed into the Beximco Pharma family highly experienced expatriates in key positions to deliver a fresh take on strategic direction as we steadily progress towards our aspirations of becoming a global pharmaceutical company.We are strong advocates of the notion that learning never really ends simply with the completion of formal education. One of the best perks of being a part of the Beximco Pharma family is that the people undergo continuous training and development programs to further develop their skills. In 2011 alone, over 30 such workshops and training, covering various departments, were conducted. Within Beximco Pharma, we support employees interested in reaching out to others. In 2011, we launched our very own internal Knowledge Center as a platform for continu ous learning and interconnectivity; an initiative that is stills quite a novel concept in Bangladesh.However, we know that competence alone is not enough; it is them intricate threads of connectivity, binding us as one family, which makes our organizational culture truly coveted and one of a kind. We have also undertaken a major corporate branding initiative as a reflection of our rejuvenated drive and aspirations. Financial Position We maintained our record of uninterrupted growth, achieving a 21. 6% increase in sales to Tk. 7,890. 24 million (2010: Tk. 6,490. 85 million). In 2011 we significantly enhanced our prescription share in sales of the formulation products and maintained, as expected, growth in all our key therapeutic segments. Sales of our Active Pharmaceutical Ingredients (APIs) also recorded a significant 37. % growth to reach Tk. 486. 91 million (2010: Tk. 355. 24 million). However, its impact on the overall profitability of the company is currently low because of a lo w gross margin predominantly due to the high cost of import of intermediate materials to manufacture these APIs. In 2011 export sales grew by 18. 1% to Tk. 390. 32 million (2010: Tk. 330. 54 million). Along with sales growth, Beximco Pharma also achieved a marked growth in profit in 2011. Our pre-tax profit increased 23. 2% to Tk. 1,677. 85 million (2010: Tk. 1,361. 53 million). Gross margin as percentage of sales however, slightly declined to 48% as against 48. 9% for the prior period.This was due principally to depreciation in the value of the Taka against the Dollar and the high level of domestic inflation. However, with our constant drive to contain costs and effective profit optimization strategies, the negative impact of rising cost on profit has been kept to the practicable minimum. The Board of Directors has recommended 21% stock dividend for approval of the shareholders for the year ended 31 December, 2011. Technological Advancement Beximco Pharma has always been a pioneer in adopting innovative technologies. This brings both sophistication and the potential to sustain growth to our business. Over the past couple of years we have made considerable nvestments in facilities and processes to improve productivity, drive growth and achieve excellence in operations. Situated near Dhaka, the capital city of Bangladesh, our manufacturing site extends over an area of 23 acres. The site houses manufacturing facilities for producing various drug formulae in different strengths and delivery systems such as capsules, tablets, intravenous fluids, metered dose inhalers, ophthalmic drops, injectables and nebulizer solutions. The site has its own utility infrastructure to ensure adequate generation and distribution of electricity with an installed capacity of 10 MW, in addition to water purifying and liquid nitrogen generation facilities.The bulk drug unit for producing paracetamol is also located within this site. The Company’s penicillin API and formulation u nits are situated at Kaliakoir, a few kms from the main site. The company has diversified into innovative delivery systems such as dry powder inhalers, total parenteral nutrition, prefilled syringes and lyophilized products. * Oral Solid Dosage * Metered Dose Inhaler * Intravenous Fluid * Inject able, Ophthalmic and Nebulizer * Liquid, Cream and Ointment Val EXTERNAL FACTORS These are the forces that act on the organization from outside. DIRECT FORCESThese are the forces that have direct and immediate influence on the organization. CUSTOMERSWe offer our customers a comprehensive and high-quality product portfolio encompassing all major therapeutic categories, available in various dosage forms including tablets, capsules, syrup, suspension, sterile eye drops, injectables, nasal sprays, creams, ointments, suppositories, IV fluids, metered dose inhalers, dry powder inhalers, prefilled syringes etc. Over the years, we have nurtured and developed a special bondage with the medical commun ity. We stand by healthcare providers and appreciate their valiant services to the community at large. COMPETITOTORS Square Pharma Reneta GlaxoSmith Klein’ ACI Limited Eskayef Bangladesh Limited The ACME Laboratories Limited EDCL Aristropharma Limited Orion Pharmaceuticals limited Indirect Forces * Political Analysis: Political analysis creates a great impact on business growth.The Beximco Pharmaceuticals is an established company, it gets many positive support of Bangladesh government, which enables it to advance its product. In addition it suffers many political unexpected conditions, like- political instability, and high risk investment, high rate of tax, high barriers of rules and regulation and so on. Because of strikes, obstruction and any other political issues, it noses a lot. But now they adopt with rules of exporting, producing, importing and so on. They use BCP (Business Continuation Plan) to fight against any critical political issues. [ Documentary,Newspaper] * E conomic Analysis: In economy, the biggest threat for â€Å" Beximco Pharmaceuticals† would be economic recession.During the recession, the Beximco’s growth will be adversely affected. Because of the high interest rate, inflation rate and economic downturn it’s growth is not just affected by the local economy but also in the international economy. * * Social Analysis:†Beximco Pharmaceuticals â€Å" has performed many social activities, to improve the company image. To reach the goal, the group implements the local job creation program as well as health and education program Corporate Social Responsibility: Our vision is to make significant contribution to humanity by improving health. This vision guides our Company’s operations, including its commitment to corporate responsibility.We work together with non-profit organizations who work to improve people's lives through research, information, and advocacy. As the Company writes its success story as a n emerging leader in the pharmaceutical industry, we also realize that responsibility towards all our stakeholders increases in tandem. We remain committed to being a good corporate citizen. Prevention is the best cure and the first step is to create awareness. Every year, we launch campaigns touching on different forms of heath impediments ranging from asthma, diabetes, hypertension and many more. Campaign activities include rallies in addition to organizing and sponsoring scientific seminars and conferences for various associations and societies in medical disciplines. ANNUAL REPORT CultureCulture is a very complex environmental influence, encompassing knowledge, beliefs, values, laws, morals, customs and other habits and capabilities an individual acquires as a member of society. As BEXIMCO is a global MNC, management must adapt its managerial practices to the specific and unique aspects of culture. Most of the time they follow formal ways to control the employees, and get their full potentiality. They also follow the profit oriented by doing more customer service and social responsibilities. SWOT ANALYSIS: Strength: Diversification The strength of Beximco Pharmaceuticals Ltd. lies in its diversified products and dosage forms.BPL has been producing solid products like tablets and capsules and liquid products like syrup, suspension and solution, as well as semisolid products like cream and ointment. It is   the pioneer company to manufacture and market nasal sprays, inhalation aerosols and suppositories in Bangladesh. In 2001, Beximco Pharmaceuticals Ltd. stepped into a new path–bringing SmallVolume Parenteral(SVP) or injectable dosage form. Arixon is it’s first small volume injectable product It is a preparation of Ceftriaxone, which is considered as a breakthrough antibiotic in the history of medicine, . In 2002, Arixon is predicted to be one of our leading brands interms of sales revenue.The company has lot of diversified products like, Na pa: Neoceptin R: Neofloxin: Tycil : Aristovit M etc. Achivement of National Export Trophy First export market operation with finished pharmaceutical products1994-95 : Achievement of National Export Trophy (Gold) as the first pharmaceutical company of the country. R ; D B P L is a company that is continuously searching for the next treatment advancements. BPL’s portfolio features a range of high-quality, effective products. This product portfolio, combined with the steady stream of promising new products in development, is one of the many reasons BPL is among the nation's leading pharmaceutical companies. We have introduced 26 new products in 2001.Around 70 new products are in our development pipeline. They will obviously enrich our portfolio to employment of the employees so that they can cope with the rapidly changing business environment. Innovation is a major priority that we want to promote. Accordingly, training programs are regularly undertaken for the staff to seek opp ortunities for skills improvement. Weakness: Too many departments There are too many departments under the supervision of the gm which can cause low productivity due to large span of supervision. Diseconomy of scale: If the company exceeds the optimum size there would be diseconomies of sale. Availability of substitutes Availability of very close substitute goods.For example: medicine produced by other pharmaceutical companies Opportunities: Adding new products BPL always tried to add new products of different therapeutic classes in its portfolio and these products are highly appreciated by the health professionals. Most important of them are Triocim, Arixon, Prosan, Recox, Atova etc. Introduction of these new products enriched it’s product portfolio and is contributing to enhance it’s sales. Apart from all these, we have intensified and consolidated our marketing efforts another overseas markets, like Myanmar, Kenya, Yemen and Vietnam. To capitalize immense opportunit ies in these overseas markets, we are bringing in more new and exciting brands in these markets.Last year, BP donated one ‘Medical Information K i o s k’ to the Myanmar Medical Association of Mandalay which gained enormous attention and acceptance in the minds of the medical community of Mayanmar. In Kenya, number of salespeople has been increased to best exploit its huge market potentials. All these efforts are already bringing in desired results. Entering into new horizons and establishing new overseas markets will remain our top most priority in 2002 also. Russia, Ukraine, Sri Lanka, Cambodia, Nepal will be on the list. We are confident that our process of globalization will continue with a more and more accelerated speed in the coming days. TechnologyTechnology carries the promise of tomorrow. The benefits of technology belong to all of us benefits that create new opportunities and open doors toa better life. For example, the new inhaler plant of BPL has been design in a way to ensure highest-possible quality at every stage of manufacturing and quality control. World-class facilities are being employed in each and every step including mixing, filling, testing, labeling, batch printing and other procedures to ensure manufacturing of world class products. Threats: Supply cost effective materiaals BPL has a commitment to the society to supply world class Active Pharmaceutical Ingredients (APIs).Therefore, BPL is not only engaged in formulations but also in fine chemicals business with a view to supplying cost effective quality materials to other local companies as well as for captive consumption. Competition Beximco Pharmaceuticals Ltd. has been preparing itself for the post-WTO open market competition. It has all the courage to compete with world leaders in pharmaceuticals business when the tariff and non-tariff barriers will be withdrawn The new USFDA standard plant is planned to be operational in early 2003. Once completed, this will be one of the finest facilities available anywhere in the globe. OBJECTIVES Increase rate of purchase by existing customers by 10 percent by the year end. Strategy Such a strategy may involve devising a marketing plan to encourage customers to purchase more of a product.Tactics used to carry out the strategy could include price reductions, advertising stressing the many benefits of the product, packaging the product in different sized packages or making the product available at more locations. Design additional features into product that will induce new uses by existing buyers Strategy This strategy include much more than simply getting the product to the new market. Before considering sales techniques such as packaging and promotion. Company often find they must establish a foothold. MANAGEMENT ISSUES Centralization Centralization refers to the location of decision making authority in the hierarchy of the organization.The upper level managers in the organization make all the significant dec ision and managers at all levels can command their subordinates to undertake legitimate work related activities. The idea of centralization can be difficult to grasp in a particular organization for several reasons. People in the in an organization can have different decision making authority. Moreover, all decisions are not of equal importance in organization. Thus subjectively they do not have authority but objectively they have authority. Matrix Organization The matrix organization structure attempts to maximize the strengths and minimize the weakness of both functional and product bases.Matrix organization structure achieved the desired balance by superimposing or overlaying a horizontal structure of authority, influence and communication on the vertical structure. Matrix organization facilitates the utilization of highly specialized staff and equipment. CONCLUSION This is Beximco Pharmaceutical’s firm as a whole. I have discussed the mission, executive summary, organizat ional structure, situation analysis, swot analysis, objectives and management issues of the company. I have also given some important data regarding this company. I hope you can have the clear picture of Beximco Pharmaceuticals company at a glance. APPENDIX Appendix are given after this page