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    Pharma Link

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    ucallmeshweta
    Pharmalink Laboratories produces the aspirin tablet brand Curepill at its factory in Vasai, India. It supplies domestic and international markets. The document outlines Pharmalink's production process, demand and supply factors, costs, break-even analysis, and competitive environment. It finds Pharmalink has reached profitability and works in a competitive market, though it faces threats from stricter regulations and generic competition internationally.

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    Pharma Link

    Uploaded by

    ucallmeshweta
    278 views24 pages
    Pharmalink Laboratories produces the aspirin tablet brand Curepill at its factory in Vasai, India. It supplies domestic and international markets. The document outlines Pharmalink's production process, demand and supply factors, costs, break-even analysis, and competitive environment. It finds Pharmalink has reached profitability and works in a competitive market, though it faces threats from stricter regulations and generic competition internationally.

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    Pharmalink Laboratories produces the aspirin tablet brand Curepill at its factory in Vasai, India. It supplies domestic and international markets. The document outlines Pharmalink's production process, demand and supply factors, costs, break-even analysis, and competitive environment. It finds Pharmalink has reached profitability and works in a competitive market, though it faces threats from stricter regulations and generic competition internationally.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    278 views24 pages

    Pharma Link

    Uploaded by

    ucallmeshweta
    Pharmalink Laboratories produces the aspirin tablet brand Curepill at its factory in Vasai, India. It supplies domestic and international markets. The document outlines Pharmalink's production process, demand and supply factors, costs, break-even analysis, and competitive environment. It finds Pharmalink has reached profitability and works in a competitive market, though it faces threats from stricter regulations and generic competition internationally.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    Download as pptx, pdf, or txt
    of 24

    ECONOMIC ANALYSIS

    OF
    PHARMALINK LABORATORIES

    Group Members
    Ankita Agarwal (61)
    Aditi Gupta (71)
    Richa Ladha (81)
    Deepak Patil (91)
    Pinkesh Shah (101)
    Shweta Singh (111)
    Content
    1.Pharma Industry
    2. Overview
    3. Type of firm
    4. Process of production
    5. Demand and its attributes
    6. Type of demand
    7. Demand curve
    8. Sources of Supply
    9. Supply & its determinants
    10.Cost & cost analysis
    11.Break even point analysis
    12.Price elasticity
    13.Market & competitors
    14.SWOT Analysis
    15.Conclusion
    Pharma Industry
    • The domestic pharma industry
    continues to grow at 11-12 %
    • The global average of five-six
    percent
    • Vision 2015 statement indicates an
    18 percent plus CAGR for the
    Pharma sector
    • Indian pharma industry is 4th largest
    in volume terms& 13th in value
    terms (US Dollar)
    Overview
    • Manufacturing of Pharmaceutical specialties
    • Established in year 2000
    • Core product is Aspirin tablet & its brand name is
    Curepill
    • Liquid orals, Ointments and Capsules
    • Maintaining high quality norms at all levels are
    strictly adhered
    • Domestic and overseas clients
    • Competitive pricing policies and service oriented
    approach.
    •
    cont…

    • The factory is Located at Vasai (E), it’s an Industrial


    Complex
    • Qualifies all the norms and regulations of hygiene as
    space as set forth by the
    – Schedule M of Drugs & Cosmetics Act, 1940
    – GMP norms set by the FDA
    • Mr. Gopal T. Agrawal, Managing Director of the
    Company


    Firm

     Pharmalink Pvt. Ltd.


    • Owned by Mr. Gopal Agrawal
    • Sole Proprietorship Firm
    • Sources of Finance: Self-financed


    Process of Production
    q Dry-granulation or slugging
    q Weighing
    • The Acetylsalicylic Acid, the active ingredient, and the lubricant are
    weighed separately.
    q Mixing
    • Mixing is done in Glen Mixer. The mixture is then mechanically separated
    into units which are called slugs.
    q Dry screening
    • Small batches of slugs are forced through a mesh screen by a hand-held
    stainless steel spatula.
    • Large batches are filtered through Fitzpatrick mill.
    q Compression
    • The mixture is compressed into tablets
    • Single-punch machine (for small batches)
    • Rotary tablet machine (for large scale production).
    Attributes of Demand
    • Demand is relatively inelastic
    • Price : Rs.15 (for 10 strips*10 tablets)
    • Point of time
    • Market: African countries like Nigeria, Ghana
    • Quantity: bulk

    •
    Type of Demand
    • Direct Demand :

    – Curepill is a direct demand because commodity


    demanded by final consumer are for their own sake.


    • Complementary demand:

    – it creates a complementary demand for Vitamin B


    capsules.
    Demand Curve
     Quantity Price
     100.03 15 Y
    Ep<1
     100 16

    D


    16
    Price
    15
     D

    100.03 X
     100

     10
    Sources of Supply

    It receives its raw materials from:


    • Nectar Drug, Mumbai


    • Primer Drug House, Mumbai


    Supply and its Determinants
    • Price of commodity: Rs 15
    • Cost of production: Rs 10
    • State of technology
    • Number of firms : many firms in the market but
    has two main competitors.
    • Government policies : FDA approval and license.
    Cost
    • DIRECT COST
    – DIRECT MATERIAL : Acetyl Salicylic Acid
    – DIRECT LABOUR
    – DIRECT EXPENSES

    • INDIRECT COST
    – INDIRECT MATERIAL
    – INDIRECT LABOUR
    – INDIRECT EXPENSES

    Cost Analysis
    Cost per month Average Cost per
    (Rs.) unit (Rs.)

    Total Fixed Cost (TFC) 1,50,000 7.5 (AFC)


    Total Variable Cost 50,000 2.5 (AVC)
    (TVC)
    Total Cost (TFC + TVC)2,00,000 10 (AC)

    Total Sales 3,00,000 15


    Net Profit 1,00,000 5
    Contribution (sales-VC) 2,50,000 12.5
    Short run Cost Curves

     y TC 200 TVC

    Total Cost

     TVC 50


    TFC
    TFC
    150

     o
    Output 300 x
    Note: The numbers presented are in multiples of 1000s

     15
    Break-Even Point Analysis

    TR 15

    Y TC 10
     Break even of it 5
    Pr
    Point
    Total Revenue/ cost

     B Variable Cost 2.5


    s s TFC
     Lo


    Fixed Cost 7.5
    X

    O
    Output/ Sales
    BEP= TFC/(P-AVC) = 7.5/(5-2.5) = 3

    Price Elasticity
     Price elasticity shows responsiveness to demand to
    change in price.
    Price Elasticity (Ep)

    Ep= (Q2-Q1)/Q1
    (P2-P1)/P1

    = (100.03-100)/100 (16-15)/15
    =0.0045
    Since Ep<1, it is relatively inelastic.
    Market & its Competitors
    Zenufa
     SHALINA

    LABORATORIES PVT. LTD


     

     Medicine: • Shalina successfully


     ZENASPIRIN 300 develop and market
      ASPIRIN 300 MG innovative products.
    • • They produce
    DIAZEPAM

    Pharmalink laboratories works in


    PERFECTLY COMPETITIVE
    MARKET
    SWOT Analysis

    Strengths

    1. Low cost of production.


    2. Increasing liberalization of government policies.
    Opportunities

    1. Aging of the world population.


    2. Growing incomes.
    3. Growing attention for health.
    4. New diagnoses and new social diseases.
    5.Spreading attitude for soft medication (OTC drugs).
    Weakness

    1. Lack of experience to exploit efficiently the new


    patent regime.
    2.Very low key R&D.
    3.Low share of India in World Pharmaceutical
    Production (1.2% of world production but having
    16.1% of world's population).
    4.Very low level of Biotechnology in India and also
    for New Drug Discovery Systems.
    Threats
    • Stricter registration procedures.
    • High entry cost in newer markets.
    • High cost of sales and marketing.
    • Competition, particularly from generic products
    Conclusion
     Pharmalink Laboratories has a good hold over
    foreign market.

     It has reached a stage where it is making a adequate


    profit.

     Works in relatively competitive market.


    THANK YOU

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