Indian Pharmaceutical Companies Research Articles

Assessing the Liquidity Position of Selected Pharmaceutical Companies in India: A Comparative Analysis Before and After COVID-19

This study aims to assess the liquidity position of selected pharmaceutical companies before and after the COVID-19 pandemic. Utilizing liquidity ratio data from 2018 to 2022, the research evaluates changes in financial health for companies like Sun Pharma, Aurobindo Pharma, Lupin Ltd, Cipla Ltd, Dr. Reddy, Cadila Healthcare, Glenmark, Torrent Pharma, Alkem Laboratories, and Divis Lab. The analysis highlights a mixed response in liquidity positions, with some measures showing slight decreases while others display significant increases post-pandemic. The findings suggest that while certain aspects of liquidity have improved, overall stability varies across different financial metrics. The findings of this study are expected to contribute to the existing literature on financial performance in the pharmaceutical sector during global crises, offering valuable insights for investors, policymakers, and corporate managers. Keywords: Pharmaceuticals Industry, Covid19, Financial Ratios, India.

Solvency and Liquidity Analysis of Selected Pharmaceutical Companies in Indian: A Comparative Study

Solvency and Liquidity Analysis of Selected Pharmaceutical Companies in Indian: A Comparative Study

A Quantitative ABCD Analysis of Factors Driving Share Price Volatility in the Indian Pharmaceutical Sector

Purpose: This research employs an innovative ABCD (Advantages, Benefits, Constraints, and Disadvantages) analysis framework to intricately explore and evaluate the diverse factors influencing share price volatility in the Indian Pharmaceutical Sector. Delving into both individual and systemic characteristics, the study quantitatively assesses the effectiveness of various elements impacting share prices. Each component related to share price movements is meticulously assigned a score or weightage, providing a nuanced understanding of their respective contributions. Design: The researcher utilized focused group interviews to collect participants’ viewpoints on the factors influencing share price dynamics in the Indian pharmaceutical industry. Opinions were obtained through designated measurements, and the collected data underwent subsequent quantitative analysis. Findings: In the specific context of the present study, which focuses on the quantitative ABCD analysis of factors driving share price fluctuations in the Indian pharma industry, the research findings underscore the notable impact of advantageous factors on volatility. The outcome of the ABCD analysis substantiates the effectiveness of the concepts/ideas related to Factors Driving Share Price Volatility in the Indian Pharmaceutical Sector. Originality: This research introduces a novel application of the ABCD analytical paradigm to investigate factors influencing variations in the pricing dynamics of shares in the Indian pharmaceutical industry. While ABCD analysis is prevalent in diverse areas, this study pioneers a unique exploration within the pharmaceutical domain. By identifying and evaluating the crucial elements influencing share prices, this work contributes to the originality of studies in the field, presenting a distinctive approach to understanding the dynamics of the Indian pharmaceutical market. Type of Paper: Empirical Analysis.

Risk and Return Trade off: A Study of Indian Pharmaceutical Sector's Stocks

The Pharmaceutical sector experienced major shifts and obstacles as a result of the COVID-19 pandemic. In the post-pandemic era, the industry's continued significance and prominence can be attributed to a multitude of factors. The market prices of Pharma equities have risen substantially as a result of the expansion of the Pharmaceutical industry, which has also garnered the interest of numerous investors. Policies and efforts taken by the government include increasing foreign direct investment, research and development, and a focus on healthcare infrastructure has led to the tremendous growth of Pharmaceutical businesses in India. In order to make well-informed investment decisions, investors, financial analysts, and decision-makers rely heavily on the risk and return characteristics of businesses. The utilisation of risk and return profiles enables stakeholders and investors to assess the long-term financial performance of a company. 17 Pharmaceutical companies out of 20 Pharmaceutical companies in India's Indexed Nifty Pharma Index are included in the sample. The daily returns of a subset of companies were evaluated for the years 2013 to 2023. The retrieved data was used to compute the daily average return, standard deviation, variance, and beta for each selected company, in addition to the Nifty Pharma Index. The correlation coefficient was also computed for each individual stock and the NSE Nifty Pharma Index. Utilising the Sharpe ratio, Treynor, Jensen Alpha, and M square formulas, the most volatile stocks were determined in the Pharmaceutical sector.

A Sectoral Analysis of BSE-Listed Indian Pharma Companies

Purpose: Investors, including domestic and international firms, venture capitalists, and financial institutions, rely on research to evaluate investment opportunities in the Indian pharmaceutical sector. Research helps assess factors such as market potential, company performance, R&D capabilities, regulatory environment, and risk-return profiles. Research plays a crucial role in guiding research and development (R&D) investments and priorities within the Indian pharmaceutical industry. By identifying unmet medical needs, emerging therapeutic areas, and technological advancements, research helps companies allocate resources effectively and focus on areas with the highest potential for impact and return on investment. The current research includes analysing financial statements, such as income statements and cash flow statements, to assess the profitability and earnings stability of pharmaceutical firms, and also investigate factors influencing EPS growth, such as revenue trends, cost structures, research and development (R&D) investments, regulatory environments, and market dynamics. Additionally, the study of DPS involves evaluating dividend payout ratios, dividend yield, dividend stability, and factors driving dividend decisions, including company profitability, cash flow generation, capital requirements, and shareholder preferences. Understanding the relationship between EPS and DPS in the Indian pharmaceutical sector provides valuable insights for investors, analysts, and policymakers in assessing the financial health, investment attractiveness, and shareholder value creation of pharmaceutical companies. Pharmaceutical companies listed on the Bombay Stock Exchange were selected for the study. Speculations were tested using ANOVA and T-TEST. The audit revealed that investors can invest in Dr. Reddys Laboratories, Abbott India, and Themis Medicare for their EPS to be maximum and Dr. Reddys Laboratories, Abbott India, and Novartis India for their DPS to be maximum. Methodology: Fifteen BSE-listed pharmaceutical companies are considered for the present research work and analysed by using EPS and DPS. Result: Selected Large, medium, and small Indian pharmaceutical companies listed on the BSE were the subjects of this study's analysis of their EPS and DPS. The websites of Money Control and the BSE provided the majority of the time series data used in the study on two different variables, EPS and DPS. Five years, from 2019 to 2020 to 2022–2023 are included in the analysis of the EPS and DPS. The BSE-listed Indian pharmaceutical businesses' EPS and DPS were examined in this study. Descriptive statistics (mean, standard error, standard deviation, skewness, and kurtosis) were computed for the determined EPS and DPS. An ANOVA test is run on the EPS and DPS data to find the differences between the chosen pharmaceutical businesses listed on the BSE. It is recommended that investors put their money into Abbott India, Themis Medicare, and Dr. Reddys Laboratories in order to maximise their EPS, and Novartis India, Abbott India, and Dr. Reddys Laboratories in order to maximise their DPS. Originality/Value: The BSE-listed Indian pharmaceutical businesses' EPS and DPS were examined in this study. Descriptive statistics (mean, standard error, standard deviation, skewness, and kurtosis) were computed for the determined EPS and DPS. Based on the study, the right companies for the investors are recommended. Paper Type: Exploratory research.

Technical reasons for delay and denial of regulatory approval of Initial applications for (Abbreviated) New Drugs filed by Indian Companies by USFDA, 2005-2022

Indian pharmaceutical companies are one of the leading sources of generic medicine to the United States. The US Food and Drug Administration (US FDA) conduct regular inspections and assessments of manufacturing facilities in order to confer product quality and to ensure a firm's compliance with applicable laws and regulations, such as the Food, Drug and Cosmetic Act and related Acts. Identified regulatory violations and noncompliance are notified by US FDA to the manufacturer in the form of 483s and warning letter. Warning letters led to the unfavourable consequences to the company such as loss of trust, reputation and affects their financial stability. A trend analysis of warning letters may help Indian pharmaceutical manufacturing companies to adopt cGMP practices as per the requirement of US FDA and thus will result in reduced number and frequency of warning letters. Therefore, a trend analysis of warning letters issued to Indian Pharmaceutical sector between 2005 till 2022 by US FDA was carried out by extracting the information from publicly available FDA archives and dashboard. There is an increasing trend in number of US FDA inspections in India post 2012 which could be due to the new regulations, updated laws, also the changed expectations and mindset of FDA inspectors. The FDA major findings included inadequate investigations systems, lack of authoritative quality units, product contamination and inadequate documentation practices. The study reported here enlists the expectations of US FDA from Indian Pharmaceutical sector. This will help Indian pharmaceutical manufacturers to adopt the strategies to minimize US FDA warning letters.

Current Scenario of Digitalization in Pharmaceutical Industry

Digitalization is playing an important role in all business sectors. Every sector and industry first oppose the reforms being introduced but law of life is always for the better. Indian pharma industry is still in the early stages of digitalization, it induces transparency, productivity and speeding up the activities. Hence, there is an urgent need of digitalization in traditional and new drug development process. The success of digitalization in pharmaceutical industry depends upon implementation of aspects of good manufacturing practice. In this review, we focused on importance of digitalization in pharma sector in sales improvement, process digitalization, principles of GMP and CDMO digitalization process.

Examining the Relationship between Financial Leverage and Shareholder Payoffs: Insights from the Pharmaceutical Sector in India

This paper empirically examined the effect of financial leverage on payoffs to shareholders, a study of listed Pharmaceutical firms in India. Using annual panel data for a period of 13 years,ranges from 2007-08 to 2019-20 with the application of econometric techniques. The empirical results show that Long Term Debt to Total Assets (LTD/TA) have positive relationship, while Total Debt to Total Assets (TD/TA) has negative relation with Return on Assets (ROE). Thereby evidenced that financial leverage has significant effect on firm performance specifically in terms of payoffs to shareholders particularly during Normal/Bullish phase of Economy when measured through EPS & ROE in sample Pharmaceutical Companies in India.

INVESTIGATING THE IMPACT OF PROFITABILITY ON THE STOCK PRICES OF SELECTED PHARMACEUTICAL COMPANIES- PRE AND POST IPA 2005 IMPLEMENTATION

INVESTIGATING THE IMPACT OF PROFITABILITY ON THE STOCK PRICES OF SELECTED PHARMACEUTICAL COMPANIES- PRE AND POST IPA 2005 IMPLEMENTATION

Cost variation analysis of various oral cephalosporins available in the Indian market

Background: Cephalosporins stand as one of the most frequently prescribed antibiotics for combating infectious diseases. This group has proven to be effective in the treatment of both gram positive and gram negative infections. Analysis of price discrepancies among various brands of oral cephalosporins. Offers guidance for prescribing cost-effectively, which turns out to be beneficial for both the patient and the prescribing physician. A cost-effective prescribing pattern ensures good patient compliance and better treatment outcome. Aims and Objectives: The objectives of the study were to analyze price variation of various single oral cephalosporin formulations available in the Indian market. Materials and Methods: The prices of oral cephalosporins, produced by different pharmaceutical companies in India, with the same strength, were acquired from the current index of medical specialties, January-April 2023. The cost of generics was obtained from the official website janaushadhi.gov.in. The disparity between the highest and lowest prices of the identical formulation manufactured by different companies, the difference between the maximum and minimum prices of brand-name versus generic versions of the identical formulation, as well as the cost ratio and percentage cost variation, were computed. Results: Total number of brands range from 3 to 79 for various drugs. A large price variation was seen across the different brands. The maximum price variation 521.11% was seen with 100 mg of Cefixime and minimum price variation of 14.13% was seen with 125 mg of cefdinir. Conclusion: With the high variation in prices seen among the different drugs it is important to consider the affordability of the patient before prescribing the drug to ensure completion of the course and better treatment outcome.

The impact of intellectual capital on financial performance for selected Indian pharmaceutical companies

The impact of intellectual capital on financial performance for selected Indian pharmaceutical companies

A Retrospective Study of Documentation Shortfalls Mentioned in USFDA Warning Letters Issued to India Pharmaceutical Industries

The pharmaceutical industry is an indispensable sector that ensures patients have access to safe and effective medications. Therefore, it is essential that companies comply with regulatory standards and maintain accurate and complete documentation practices. This study will investigate the documentation violations cited in warning letters sent to Indian pharmaceutical companies between 2010 and 2022. The analysis will focus on identifying the most common documentation deficiencies and the impact they have on the pharmaceutical industry in India. The findings of this research will provide Indian pharmaceutical firms with valuable insights. to improve their documentation practices and ensure compliance with regulatory standards. This information will be useful for stakeholders in the pharmaceutical industry, including regulatory agencies, pharmaceutical companies, healthcare professionals, and patients. By understanding common documentation violations, companies can take proactive steps to prevent them and avoid regulatory penalties. The findings of this study will aid policymakers and regulatory agencies in devising strategies to enhance the integrity of pharmaceutical industry documentation practices. The findings will also inform the development of educational and training programs for pharmaceutical companies, which can help them enhance their documentation practices and ensure compliance with regulatory standards

A depth study on financial performance of selected Indian pharmaceutical companies listed on NSE

This paper focuses on study on financial performance of selected pharmaceutical companies listed on NSE. For this purpose, the researchers considered 10 Indian pharmaceutical companies for 10 years span of time from 2012-2021. Anova test has been applied for the study and profitability with the use of SPSS and Excel. For this, the researchers have considered profitability ratios namely Profit Before Depreciation, Interest and Tax and Return on Equity, considered as explanatory variables.

Dealing with the Coronavirus: The Case of the Indian Pharma Industry

The pandemic induced lockdown lead to supply and manufacturing disruptions that were swiftly dealt with by the Indian Pharma Industry through successful industry-government collaboration. By May 2020 production was back to normal and exports were higher than the same period in May 2019. The case deals with the processes that enabled this to happen, the policy responses and the changes that happened in the period from March 2020 to August 2020.

The Efficacy of Salesforce Control Systems: Their Impact on the Pharmaceutical Industry in India

The salesforce control system plays an important role in salesforce performance and organization effectiveness. This study investigates the influence of behaviour-based and outcome-based control systems on eight performance-related variables. Data have been collected from sales executives of pharmaceutical companies in India on the basis of a self-administered survey. A standardized close-ended survey instrument was utilized to gather the data. Post screening, a usable sample of 346 responses was analysed by employing partial least square structural equation modelling. The results indicate that although both kinds of salesforce control systems are acceptable, the behaviour-based one appears to be slightly better. Academic and managerial implications are discussed in this article.

Sub-standard or Sub-legal? Distribution, Pharma Dossiers, and Fake-talk in India.

In this article, I look at Indian pharma 'dossiers'-the bundles of paperwork that testify to pharmaceutical quality and adherence to regulatory standards-and how they illustrate a wider and ongoing shift from a paradigm of drug safety to one of drug security. By examining how dossiers enact and enable claims of 'quality', I argue that it is in a drug's paperwork-rather than its chemical composition-that quality or fake-ness is produced. Based on interviews with Indian traders and officials, and an examination of how their work has changed over time in accordance with the regulatory shift to drug security, I show that in many instances the paperwork has come to be more important than the pill itself. This analysis contests the dominant pharmaco-regulatory notion of fake-ness, which privileges chemical composition above all else. In this way, my analysis of the dossier shows that drug security is itself a powerful form of fake-talk, one that informs the entire market and the conditions of possibility of international commerce today.

Voluntary Disclosure of R&D Activities: A Comparative Study of Selected IT and Pharmaceutical Companies in India

This study looks at voluntary R&D disclosure trends in the annual reports of a few Indian IT and pharmaceutical industries. A self-created R&D disclosure index has been created for the study's purposes. Secondary data provide the foundation of this investigation. The chosen IT and pharmaceutical firms' public annual reports were used to get the data. The study examines the extent of voluntary R&D disclosure both at the aggregate level and is based on a disclosure checklist comprising 52 elements of R&D information. Descriptive statistics have been utilised for the comparison of IT and pharmaceutical firms. The outcome demonstrates that, in comparison to IT businesses, pharmaceutical companies have disclosed more R&D information in annual reports in the context of total voluntary R&D disclosure

Dilemma to Dominance: Decoding the Evolution of the Indian Pharmaceutical Industry - A Case Study

The Indian pharmaceutical industry has undergone a significant evolution, transitioning from a domestically-focused sector to a global powerhouse. Initially, Indian pharmaceutical companies primarily catered to domestic healthcare needs. However, with the implementation of economic reforms in the 1990s, the industry witnessed rapid growth and expanded into international markets. The Indian pharmaceutical industry has experienced a remarkable transformation, establishing itself as a global leader in the production and export of generic drugs. The industry has demonstrated superior growth performance, making it one of the fastest-growing sectors worldwide. Productivity levels and innovation play a significant role in determining competitiveness, and the Indian pharmaceutical industry has shown impressive capabilities in these areas. Government policies have been instrumental in driving the industry's self-sufficiency and internationalization. The establishment of public sector pharmaceutical enterprises and the introduction of intellectual property regulations, pricing control, and research and development (R&D) support have propelled the industry's growth.
 This case study aims to provide an in-depth analysis of the journey of the Indian pharmaceutical industry, exploring its growth, challenges, and the dilemma it faces in balancing innovation and affordability. By examining the sector's perspective, challenges, and identified dilemmas, this case study aims to equip readers with a comprehensive understanding of the industry. The case delves into the journey and challenges faced by the Indian pharmaceutical industry. It investigates the industry's growth, the perspective of Indian pharmaceutical companies, the challenges they encounter, and the identified dilemmas. The case also provides teaching notes and objectives to enhance the readers' knowledge and decision-making skills within the pharmaceutical industry.

Impact of Working Capital Management on Profitability: A Studyof the Select Indian Pharmaceutical Companies

The smooth running of business operations demands an efficient management of working capital by properly managing the inventory, accounts receivables and accounts payables of the business. This helps companies not only fulfil their short-term financial commitments but also boost their earnings. Therefore, the present study aims at verifying the impact of working capital management on the profitability of the companies under pharmaceutical industry in India. For empirical analysis, the data of 618 pharmaceutical companies is taken over a period of seven years from 2014–2015 to 2020–2021 and multivariate panel data regression technique is applied on data for estimating the results. The findings of the study validate that the profitability of companies is significantly influenced by working capital management. These findings will provide an insight to corporate managers and owners of pharmaceutical companies in deciding appropriate working capital strategy.

Company Risk of Selected Pharmaceutical Companies in India During the Post-liberalisation Era: An Empirical Assessment

Company Risk of Selected Pharmaceutical Companies in India During the Post-liberalisation Era: An Empirical Assessment