Indian Pharmaceutical Industry Research Articles

Unveiling investor behavior: An investigation into India’s pharmaceutical sector during COVID-19

This study examines the factors influencing retail investors’ decision to invest into the Indian pharmaceutical sector amidst the COVID-19 global health crisis. Confronting the obstacles introduced by the pandemic has helped create a robust foundation for the Indian pharma sector to grow rapidly in the future. As the industry demonstrated signs of considerable future growth, investors favored pharmaceutical investments during COVID-19. Retail investors were mainly the ones who went on a shopping spree during the pandemic. This backdrop provides a unique context to explore the retail investors’ behavior in the Indian pharmaceutical landscape. Leveraging the Theory of Planned Behavior (TPB), this study marks the first attempt to introduce behavior toward market fundamentals as a mediating factor into the TPB framework. To conduct the study, data were collected from 305 retail investors located in Karnataka’s South Canara region, who invested into the Indian pharmaceutical industry during the pandemic, using snowball sampling. The e-survey was employed for data collection. The results reveal that attitudes toward pharmaceutical investments, subjective norms, Perceived Behavioral Control (PBC), and behavior toward market fundamentals have significantly influenced investor decisions. Notably, behavior toward market fundamentals has partially mediated the relationship between attitude toward pharma investment and investment decision and PBC and investment decision. However, the mediation effect of behavior toward market fundamentals was not evident between the subject norm and the investment decision. The study holds pivotal implications for policymakers, government bodies, and industry stakeholders to promote pharmaceutical investments.

Major Driving Forces for Indian SME Pharmaceutical Industry

Major Driving Forces for Indian SME Pharmaceutical Industry

Assessing Productivity Dynamics in the Indian Pharmaceutical Industry: A Comparative Analysis of the Foreign and the Domestic Ownership Influences

This study investigates the impact of competition (foreign vs. domestic) on the total factor productivity of domestic firms. We used two specific indicators to measure foreign and domestic competition in the Indian pharmaceutical industry: market shares and The Herfindahl-Hirschman Index, constructed for a five-digit NIC level, highlighting the intensity of product-level competition. The Levinsohn and Petrin methods calculate the total factor productivity, and dynamic panel data estimators are applied to estimate the model. The research findings indicate that foreign presence has a notable and statistically significant influence on the productivity levels of domestic firms. In contrast, the impact of domestic competition is found to be inconsequential. This research addresses the policy debate by providing convincing evidence that the existence of Multinational Enterprises (MNEs) can increase local business productivity through knowledge spillovers and competitiveness.

Supply Chain Management in the Indian Pharmaceutical Industry: Challenges, Innovations, and Future Directions

Supply chain management (SCM) plays a crucial role in the pharmaceutical industry by ensuring the efficient flow of pharmaceutical products from manufacturers to end-users. The Indian pharmaceutical industry, renowned for its generic drug manufacturing capabilities, faces unique challenges and opportunities in SCM due to factors such as complex regulatory requirements, diverse market dynamics, and evolving global standards. This paper examines the intricacies of SCM in the Indian pharmaceutical sector, exploring key challenges, innovative practices, and future directions to enhance efficiency, transparency, and resilience across the supply chain.

The Insight Meditation Enhanced Stress, Depression, and Anxiety Reduction in Working Professionals Like Medical Representatives Determined by Using Serum Cortisol Level and Electroencephalogram: A Qualitative Study

The Indian pharmaceutical industry is one of the fastest-growing sectors of the Indian economy and ranks among the top 15 drug-manufacturing countries globally. Among the fastest-growing industries in the world, the pharmaceutical industry has increased over the years. A pharmaceutical company appoints a medical representative to make their products easily reach healthcare specialists and then be used by the general public. The medical representatives construct a well- built network with doctors, clinical specialists, medical practitioners, paramedical experts, Dietitians and nutritionists, paediatricians, gynaecologists, psychiatrists, etc. The problem of stress is widespread in every job description, and it may affect directly or indirectly in the form of health issues and low productivity; the demands of achieving targets induced among medical representatives. Much of this credit goes to Medical Sales Representatives or Pharmaceutical Sales Representatives (also known as MR, PSR) who are solely responsible for the promotion of products among Physicians, Hospitals, and pharmacies and are accountable for sales results. They act as the face of the Pharma company contributing to a better quality of life for customers, building goodwill, and increasing the company’s market share. Pharmaceutical sales representatives (PSR) play a large role in helping an industry in a rapidly changing environment to achieve a new corporate vision and normally these medical representatives are in the highest stress position. Most pharmaceutical sales representatives experience significant job stress and unhappiness levels. Stress, depression, and anxiety are the most common psychiatric disorders all over the world. One of India's oldest meditation methods, vipassana also known as Insight meditation, helps a person become aware of things as they are. The goal of the Vipassana method, which aids in self-change via self-observation, is to finally arrive at a condition of inner and exterior peace and mental equilibrium. It is a process of "Self- exploration" to the normal base of the brain and body that removes mental smog and results in a healthier personality filled with love and empathy. Electroencephalography (EEG) is an efficient modality that helps to acquire brain signals corresponding to various states from the scalp surface area. These signals are generally categorized as delta, theta, alpha, beta, and gamma based on signal frequencies ranging from 0.1 Hz to more than 100 Hz. This paper primarily focuses on EEG signals and their characterization for various states of the human body. Beta wave induced the production of cortisol. Also, the beta wave is necessary for our everyday lives, such as thought, communicating, arguing, and problem-solving, during conscious mental work. This Beta wave can also lead to tension, anxiety, and restlessness as they enable us to think properly. Persistently elevated cortisol concentrations are associated with metabolic disorders. Cortisol is a vital hormone sometimes known as the stress hormone in humans, as it is involved in the body's natural response to physical or emotional stress. cortisol has effects on memory, mood, and neurological diseases. Cortisol is best known for mediating the body’s reaction to stress. This study aims to review the existing research and challenges of serum cortisol levels (cortisol is an indicator of stress) and EEG signals with the Insight meditation effect.

Pharmaceutical exports and patents in India – a systems approach

Purpose The Indian pharmaceutical industry currently faces multiple challenges, including rising costs and slowing export growth, which in turn have limited its ability to expand presence in global canvas. Given the nature of sectoral dynamics, a pharmaceutical firm must undertake huge investments in R&D to introduce product innovation, in turn enhancing market share and sustaining profit streams. The development of novel medicines, confirmed by the granting of patent rights, provides a pharma company edge over its competitors. In addition, presence of innovator firms within the industry invigorates the sectoral value chain and raises efficiency. Hence, it is important to analyze whether granting patent rights enhances the exports of pharmaceutical products in the Indian context. Design/methodology/approach The current study explored this question using a simultaneous-equation framework. Specifically, the authors use the methods developed by Davidson and MacKinnon (1993) and Greene (2003) to obtain heteroscedasticity-consistent estimates. The time-series properties of the data were further probed, and robust estimates were used to test the theory. Methods developed by Baltagi (1981) have been used further to refine the authors’ estimations. Findings After controlling for relevant variables, it is observed that granting of patents caused a significantly positive impact on pharmaceutical exports. Furthermore, the change in the patent administration regime had a significant impact on patent fillings, which further impacted their exportability. Compared to patents granted patents filed had a higher impact on pharmaceutical exports. Originality/value This study attempts to apply the framework developed by Goldstein and Khan (1978) with necessary modifications to suit the context of a developing country. The application of the 3SLS method to estimate the export supply equation for pharmaceutical products is a novel approach to the research question in general and to the Indian context in particular. System autocorrelation and heteroscedasticity tests were performed to refine the results further.

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.

The New Three-Dimensional Safety Approach for the Implementation of Process Safety Management (PSM) and Improving Safety Aspects for the Pharmaceutical Industry in India – An Overview

Implementation of the fourteen elements of process safety management (PSM) helps to build a good safety culture in the organization. The new three-dimensional approach, which consists of good safety practices, safety precautions, and frequent checking of the process equipment and its devices has been applied to the various elements of the process safety management. The elements of process safety management are six, four, and three are good safety practices, safety precautions, and frequent checking of process equipment and its devices but one of the elements is the combination of all the three-dimensional approach, which is a trade secret, which insists that all the people in the organization should follow all the documented procedures from two to thirteen elements of the process safety management, the controlled copy should only be used inside the company premises. We have taken secondary published data for assessing the deviations of the three-dimensional safety approach for the human failures in the pharmaceutical industry, which has led to various incidents/accidents from October 2017 to September 2021. The deviation, which we have observed for the good safety practices, safety precautions, and frequent checking of process equipment and its devices was ten, nine, and one numbers before implementation of the process safety management. After the implantation of the process safety management, the incidents were reduced to three numbers from January 2022 to August 2023, in which deviation has been found in the two and one for the good safety practices and safety precautions.

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.

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).

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.

Drug Recalls: Trend analysis of Recalls by Indian Pharmaceutical Industry during the period 2013-2023

With the advanced technologies, increasing complexities of the manufacturing processes, more stringent inspections, and dynamic regulatory environment under which manufacturers work, there are high possibilities that a pharmaceutical firm will undergo a recall of one of its products. A recall can impact a company in product exposure, sales, manufacturing costs, and patients trust. The study presented here explored the drug recalls made by Indian Pharmaceutical Industry during the period of 2013 – 2023. There is an increasing trend in number of recalls post 2017 which could be due to the new regulations and, scientific discoveries. The major reasons for recalls primarily included cGMP deviations, failure to comply with approved specification, labeling mix ups. The study enlists the expectations of US FDA from Indian Pharmaceutical sector. This will help Indian pharmaceutical manufacturers to adopt the strategies to minimize drug recalls.

Regulation of brands in the Indian pharmaceutical industry in the 1960s: Examination of the Tariff Commission Report, 1968

The literature on the Indian pharmaceutical industry has examined the importance of product patents and the attempts policy has made to regulate them. However, it has not done the same for the question of brands. Our study addresses this gap. The Tariff Commission Report of 1968, a turning point in the price control policies of the 1960s, is examined. The examination revealed two important points: first, there were attempts to regulate brands through policies; and second, brands were of high importance to all the major industry players. This became evident in the industry's resistance to the government's regulatory efforts.

Impact of Artificial Intelligence (AI) on Selected Human Resource Management (HRM) Functions in Pharmaceutical Industry in India

The study aims to assess artificial intelligence's effects on select HRM functions and to validate the proposed conceptual framework through empirical analysis showing the connection between HRM function as well as artificial intelligence. Questionnaire consisting of closed-ended questionnaires were distributed in order to achieve these goals. The reliability, validity, and correlation analysis were used to assess the factors that make up the suggested model. The hypothesis was further tested and the suggested model was validated using regression analysis. Findings show that all variables account for 89% of HRM explanation, with a R square (R2) of 0.890. The ANOVA values for the regression model, indicate validation at a 95% confidence level. The beta (β) values of all factors are 0.902 and 0.545 in the coefficient summary, which is a reasonable representation of their influence on HRM. These strong AI-based HR apps are a valuable tool for any type of business, even though they lack cognitive capacities of humans. This study will help most businesses to successfully integrate AI-related techniques into hiring, according to our research, as AI will permeate every aspect of HR in the near future and should be seen as a good thing since it makes life better.

Firm-level productivity and its determinants in the Indian pharmaceutical industry

Firm-level productivity and its determinants in the Indian pharmaceutical industry

Investigating structural links amongst the job engagement's determinants and consequences in the Indian pharmaceutical industry

Investigating structural links amongst the job engagement's determinants and consequences in the Indian pharmaceutical industry

Effect of Capital Structure on Shareholder Value: Evidence from Panel ARDL Approach

This study examines the effect of capital structure on the shareholders’ value in Indian pharmaceutical industry collecting data over a period from 2001 to 2020. Further, the study also investigates the long-run and short-run relationship between capital structure and shareholder value. This study employs pooled, fixed, random effect regression models and panel autoregressive distributed lag analysis. The shareholder value of Indian firms is measured by earnings per share (EPS) and market value added (MVA) while the debt-equity ratio, interest coverage ratio, and total liabilities to total assets are the proxy variables for capital structure. The study reveals that capital structure influences shareholder value significantly. The findings also explored the existence of a long-run relationship between capital structure and shareholder value.

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

Pre and post impact of GST on medicines: Retailers’ perspective

GST is known as the Goods and Service Tax levied to improve economic condition of nation. The implementations of GST have impact on the entire sector including the pharmaceutical industries. The GST Rates for medicines were decided by the GST council. GST is levied under 5 different rates, namely NIL, 5%, 12%, 18% and 28% based on the HSN code of the item. The general statement is GST is positively impact on the Indian Pharmaceutical Industries via the four different taxes levied on the medicines and it reduced the cost of production and it helps to business daily operations. Retailers are supplying medicine to the ultimate customers from manufacturers; but the medicine retailers’ survival depends on Government rules and regulation. To trace out the reliability of the statement “GST makes some positive impact and some negative impacts” the researchers have chosen the research area entitled “Pre and Post Impact of GST on Medicines: Retailers’ Perspective”. The researchers to attain the objectives, the primary data collected from 67 retailers by adopting Convenient Sampling method with help of structural questionnaire. Garrett Ranking Techniques has been adopted to prove the result qualitatively as well as quantitatively.

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.