Indian Pharmaceutical Firms Research Articles

Validation of Instrument Measuring the Impact of SCM Practices and SCM Agility on Competitive Advantage and Organization Performance in Indian Pharmaceutical Firms

Over the years, rival companies have appropriately turned their attention towards effectively monitoring their supply chains. There is an emphasis on implementing supply chain management practices (SCMP) and promoting supply chain agility, which will lead to increased performance and competitive edge. The researchers covered SCM practices and competitive advantage under five sub-constructs while SCM agility and performance were represented by two sub-constructs. The study aimed to provide a questionnaire that is both reliable and valid, designed to measure the impact of supply chain management (SCM) practices and SCM agility on competitive advantage and firm performance within the Indian pharmaceutical industry. Data collection was done using a simple random sampling technique which gave 227 complete responses obtained from listed as well as unlisted pharmaceutical companies. The data was then statistically analysed using IBM SPSS 26 and SmartPLS 4. The resultant questionnaire instrument can be used by supply chain professionals in the pharmaceutical industry in order to conduct primary research and to derive insights that would help in crucial decision-making regarding pharmaceutical SCM with the aim of improving organizational performance.

Efficiency and Performance of Top Indian Pharmaceutical Firms: A Comparative Analysis

The Indian pharmaceutical industry has made significant strides in the past five decades and is an important contributor to the provision of quality healthcare services in any economy. This paper studies the efficiency of selected top ten pharmaceutical companies by applying Data Envelopment Analysis (DEA) under constant return to scale (CRS) model and variable returns t ale (VRS) model. The inputs used in the study are assets, salaries, and wages. The outputs used are Return on Asset, and Net Profits. The study found Divis Laboratories and Sun Pharma to be most efficient under CRS and Sun Pharma was found to be most efficient under VRS models during 2019 – 2023. Seven pharmaceutical companies were working under Increasing returns to scale, two were working under constant returns to scale and one was performing under decreasing returns to scale. Return on assets, Net Profit margin and Return on Capital Employed Ratio were used to study financial performance of the pharmaceutical companies. Abbot India had the highest return on assets (17.948%). Divis Labs had the highest Net Profit Margin (27.76%). Mankind Pharma led in Return on Capital Employed (27.524%), This result further adds to the result provided by DEA. Companies found to be efficient by DEA were found to have high performance standards. Also, through the regression analysis the impact of variables Return on Capital Employed (ROCE) and Net profits margin (NPM) on Return on Asset (ROA) was studied. Returns on Assets (ROA) are 93.6% dependent on Net profits margin and Return on Capital Employed. There is significant (p-value = 0.000) relationship between Return on Asset (ROA), Net profits margin (NPM) and Return on Capital Employed (ROCE).

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.

Determinants of dividend policy: An empirical study of selected pharmaceutical firms in India

Determinants of dividend policy: An empirical study of selected pharmaceutical firms in India

What determines the performance of pharmaceutical firms in India on account of COVID-19 interventions?

PurposeThis paper aims to examine the impact of announcements related to 77 interventions by 46 listed Indian pharmaceutical firms during COVID-19 on the abnormal returns of the firms. The study also finds the variables which explain cumulative abnormal returns (CARs).Design/methodology/approachThis study uses standard event methodology to compute the abnormal returns of firms announcing pharmaceutical interventions in 2020 and 2021. Besides this, the multilayer perceptron technique is applied to identify the variables that influence the CARs of the sample firms.FindingsThe results show the presence of abnormal returns of 0.64% one day before the announcement, indicating information leakage. The multilayer perceptron approach identifies five variables that explain the CARs of the sample companies, which are licensing_age, licensing_size, size, commercialization_age and approval_age.Originality/valueThe study contributes to the efficient market literature by revealing how firm-specific nonfinancial disclosures affect stock prices, especially in times of crisis like pandemics. Prior research focused on determining the effect of COVID-19 variables on abnormal returns. This is the first research to use artificial neural networks to determine which firm-specific variables and pharmaceutical interventions can influence CARs.

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

Impact of Enterprise Flexibility on Firm’s Competitiveness: An Empirical Study of Select Pharmaceutical Firms in India

Impact of Enterprise Flexibility on Firm’s Competitiveness: An Empirical Study of Select Pharmaceutical Firms in India

The impact of mergers and acquisitions on performance of firms: A pre- and post-TRIPS analysis of India's pharmaceutical industry

This study analyses the impact of mergers and acquisitions on performance of Indian pharmaceutical firms following the implementation of TRIPS in 1995. In order to identify adequately the effect of mergers, we investigate the impact on firm performance of the merged vis-a-vis the non-merged firms in the post-TRIPS period using difference-in-differences and propensity score matching approaches. Our results suggest that firm performance improved in merged firms, following the mergers. We argue that our finding represents the incidence of “positioning” merger (Gorton et al., 2009). Moreover, transfer of technologies and capabilities helped to improve firm performance in merged firms. Our findings have significant policy implications for Asian countries.

Modeling Enterprise Flexibility and Competitiveness for Indian Pharmaceutical Firms: A Qualitative Study

Modeling Enterprise Flexibility and Competitiveness for Indian Pharmaceutical Firms: A Qualitative Study

Navigating the open innovation paradox: an integrative framework for adopting open innovation in pharmaceutical R&D in developing countries

In this paper, we combine evidence from eight Indian pharmaceutical firms with extant literature and global best practices to conceptualize an integrative framework addressing the open innovation paradox (OIP), i.e., the tension between intellectual protection and openness. Firms in developing countries face additional challenges in the adoption of open innovation, such as the prevalence of open science norms, weak technology transfer systems, and mistrust between universities and industry; therefore, they employ open innovation selectively for pharmaceutical research. Prior research has examined the strategies to resolve OIP in the context of developed countries; the integrative framework proposed in this paper describes strategies for resolving the OIP in the context of developing countries. This framework illuminates the coping processes of the case firms and provides guidelines to uplift and accelerate the adoption of open innovation strategies in developing countries’ pharmaceutical sectors, and thus provides value to both theory and praxis.

Do cross border acquisitions increase shareholder's wealth The case of Indian pharmaceutical firms

Indian pharmaceutical firms have been on an acquisition spree and witnessed around 216 cross border acquisition deals worth more than $11,350 million during January 2005 to March 2019.1 The primary motive of this study is to analyse the impact of cross border acquisition (CBA) announcements on the short-run abnormal returns to Indian acquirers in the pharmaceutical sector. This study applied event study methodology and analysed 55 CBAs that happened in 24 foreign markets by 27 Indian pharmaceutical firms, from the year 2005 to 2018. Both parametric and non-parametric tests were applied to examine the robustness of abnormal returns. It was found that the announcements of foreign acquisitions by Indian pharmaceutical firms have created wealth gains for the shareholders. Further, there is strong evidence that Indian pharmaceutical firms experience significant positive abnormal returns surrounding the acquisition announcements of target firms in the developed markets and in contrast experienced insignificant negative abnormal returns when the acquired target firms were based in developing markets.

Measurement of Total Factor Productivity and its Determinants in Indian Pharmaceutical Industry: An Application of Data Envelopment Analysis

The present paper evaluates total factor productivity growth and its determinants for the period of 2009-10 to 2019-20. The paper employs data envelopment analysis based Malmquist Index for calculating TFP growth and panel data models for estimating its determinants. The data were collected from CMIE- PROWESS for the firms that are having sales more than Rs. 100 Crores based on the year 2009-10. The total of 96 firms were used for the analysis and are in terms of rupees in Crores. Total sales, cost of raw materials, salaries and wages, capital cost, and cost of Advertising and marketing are used for calculating TFP. Company age, value of shares, profit, R&D expenditure, value of import and value of exports are used for determinants. It was found that the year 2013-14 recorded positive TFP growth that was mainly due to technological change. It is evident from the result that negative TFP growth is reported in most of the firms during the study period. The main reason for lowest TFP growth is due to technological change in Indian Pharmaceutical firms. Age and export were significant and positive, whereas R&D was a significant and negative relationship with TFP. Rests of the determinants were insignificant with TFP.

Corporate Governance, Working Capital Management and Profitability: Empirical Insights of Indian Pharmaceutical Firms

Corporate Governance, Working Capital Management and Profitability: Empirical Insights of Indian Pharmaceutical Firms

Corporate governance, working capital management and profitability: empirical insights for Indian pharmaceutical firms

Corporate governance, working capital management and profitability: empirical insights for Indian pharmaceutical firms

Innovation in Indian Pharmaceutical Industry: Impact of Changing Regulatory Regime

Background: The Pharmaceutical industry has always been fostered with a culture of radical innovation. Nevertheless, the significance of radical innovation is yet unrealized by the Indian pharmaceutical firms. 
 Introduction: The Indian pharma companies often seek immediate profit avenues rather than investing in radical innovation. They lead by imitation than innovation. This has been majorly due to the lax intellectual property laws in the country.
 Objectives: This paper ruminates on the significance of a stringent intellectual property regime and its impact on profitability and innovation.
 Result: The findings of the study indicate that increased R&D intensity enhances innovation. Furthermore, this relationship is bolstered in the presence of a stringent intellectual property regime. The findings also indicate that enhanced innovation activity increases the profitability of the firms.
 Conclusion: Innovation activity is enhanced in presence of a stricter intellectual property regime, and this indeed has a positive impact on the firm profitability as well. Hence, as the results of the study indicate, the pharmaceutical firms in India should be encouraged to invest in research and development, especially considering the stricter patent laws. It will help firms bolster their profitability and have a sustained competitive advantage in the industry.

Do Supply Chain Performance Influence Firm Profitability? A Predictive Approach in the Context of the Indian Pharmaceutical Industry

The competitive nature of the pharmaceutical industry necessitates that its multifaceted supply-chain be cost-efficient and profitable. This paper aims to ascertain the critical supply-chain financial indicators influencing pharmaceutical-supply-chain (PSC) performance, revealing its unique features and assessing these indicators’ effect on profitability. This paper measures the PSC performance of 55 public-limited Indian pharmaceutical firms, including multinational enterprises, integrating supply-chain financial variables and SCOR KPIs through a ten-year timeline. The critical supply-chain-performance indicators (SCPIs) are identified from the measured set through factor analysis. A panel data random effect model is developed, linking these critical SCPIs and profitability to understand their significant influence on profitability. This paper has evidenced the existence of three critical SCPIs, revealing working capital efficiency, material flow efficiency and investment efficiency. It has also proved the significant influence of these SCPIs on firms’ profitability and has brought out the importance of material flow efficiency in terms of inventory and distribution efficiency as a leading contributing factor for profitability. This paper contributes to finding key PSC performance features and their vital role in pharmaceutical firms’ profitability. Supply-chain managers can enhance PSC’s specific performance areas to be cost-efficient and can increase the firm’s profitability.

Assessing Impact of Liberalization on Financial Performance Sustainability of Indian Pharmaceutical Industry using Structure Conduct Performance Model

The Indian Pharmaceutical Industry is ranked third largest by volume and fourteenth by value. It thus accounts for 10% of world’s production by volume and 1.5% by value according to Department of Pharmaceuticals, Government of India. Recognizing the immense potential for growth of Indian pharmaceutical industry and its direct impact on Indian economy the present paper tries to analyze the market structure of the Indian pharmaceutical firms and assess how the sustainable profitability of firms is affected using structure conduct performance model. The study founds out the sustainable profitability is statistically related to firm size, export and import, raw material expenses, power use and wage intensity but there seems to be insignificant effect of market share and mergers and acquisition on firm’s performance in terms of sustainable profitability.

A Study of Multilayered Profitability Analysis by Using DuPont Model: Evidence from Indian Pharmaceutical Industry

Profitability is used as a prime indicator to measure the sustainable performance of an organization. The current study made an attempt to apply the DuPont model to investigate the multilevel profitability determinants for the pharmaceutical industry of India. The study also estimates an empirical model to predict the association of profitability with factors such as profit margin, asset utilization, leverage, interest load and tax load of firms in the pharmaceutical industry of India. For this purpose, a dataset for 170 companies from 2010–2011 to 2018–2019 was analysed initially by using panel data regression followed by stepwise panel data regression. The study successfully applied and tested the DuPont model with respect to the firms of the pharmaceutical industry in India. It was found that the factors such as profit margin, asset utilization and leverage had a significant positive effect on the firms’ profitability and the factor interest load had a significant negative effect on the firms’ profitability. The tax load does not have an impact on the profitability of the pharmaceutical firms in India. These findings are expected to provide a guide for understanding the profitability of the firms in a better way.

Opportunities for Patents in Pharmaceutical Industry: An empirical study Drug Developers Opinion

Industries devote huge sums of money and resources in research and development to bring new medications to market in the fiercely competitive pharmaceutical sector. The price of creating new pharmaceuticals is significant, and it can take a while for them to reach the market. Patents give pharmaceutical companies a temporary legal monopoly on their product, which encourages innovation by enabling them to recoup their costs and turn a profit. In the pharmaceutical sector, there is a huge potential for patents, and businesses are constantly looking for innovative strategies to safeguard their inventions. Patents give drug developers an advantage over rivals in the market in addition to safeguarding their intellectual property. A business that has a substantial patent portfolio can stop rivals from entering the market and stealing market share. A strong patent portfolio can also draw investors and business partners because it shows a company's dedication to innovation and capability to safeguard its intellectual property. People from Pharmaceutical industry are considered in this research work, and it is found that Patents give pharmaceutical firm a legal monopoly on temporary basis on their product, Patents give medicine developers a competitive edge in the market, Patents has given Indian pharmaceutical firms the chance to be more creative and develop novel medications.

Temporal Strategies and Firms’ Speedy Responses to COVID‐19

Temporal Strategies and Firms’ Speedy Responses to COVID‐19