Term Paper

on

Beximco Pharmaceutical Ltd.

Course: Business Environment (BUS
203)

Submitted By:
Name

ID

Golam Ishtiaque Khondokar

Sharif Tausif Mustafa
Md. Mehedi Hasan
Taposh Roy
Syeda Tanzina Hossain

13104129
12204115
13104004
12304054
12304083

Submitted To:
Ms. Asheka Mahboob
Lecturer I
BRAC Business School
BRAC University

Date: April 04 , 2015

TERM PAPER ON BEXIMCO PHARMACEUTICAL LTD.

Letter of Transmittal
Date: April 04, 2015
Mrs. Asheka Mahboob
Lecturer I
BRAC Business School
BRAC University
66 Mohakhali, Dhaka.

Subject: Submission of term paper on Beximco Pharmaceutical Ltd.

Dear Madam:
Here is the term paper on Beximco Pharmaceutical Ltd. that you asked us to submit within the 4 th
of April, 2015.Our study in this term paper is about the PESTLE and SWOT analysis of Beximco
Pharmaceutical Ltd

Therefore we would like to place this term paper for your kind judgment and valuable
suggestions.
Thanking you.
Sincerely Yours,

Sharif Tausif Mustafa

ID: 12204115
BUS 203, Section:04
On behalf of the group members.

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TERM PAPER ON BEXIMCO PHARMACEUTICAL LTD.

Table of Contents

Letter of Transmittal........................................................................................................................1
Executive Summary.........................................................................................................................3
Introduction......................................................................................................................................4
PESTLE Analysis............................................................................................................................6
Political........................................................................................................................................6
Economic.....................................................................................................................................6
Social...........................................................................................................................................6
Technological...............................................................................................................................8
Legal............................................................................................................................................8
Environmental..............................................................................................................................9
SWOT Analysis.............................................................................................................................10
Strength......................................................................................................................................10
Opportunities.............................................................................................................................11
Weaknesses................................................................................................................................11
Threats.......................................................................................................................................11
Recommendation...........................................................................................................................13
References......................................................................................................................................15

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TERM PAPER ON BEXIMCO PHARMACEUTICAL LTD.

Executive Summary

BEXIMCO pharmaceuticals Ltd is one of the leading health care companies in

Bangladesh and has been making every effort to ensure the effectiveness and safety of the
medicines that it produces. Physicians and patients of the company reply on the efficacy
of the medicines of BEXIMCO Pharmaceuticals Ltd. the time of critical needs
demonstrating their confidence and trust on BPL products. BPL has a remarkable mission
statement, which is being seriously pursued in its thoughts and actions. An increasing
amount of contribution is ploughed back into social causes demonstrating BPLs
commitment to the nation. As BPL continues to grow, it should not only benefit itself but
it should also positively contribute to the nation and society where it operates.

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TERM PAPER ON BEXIMCO PHARMACEUTICAL LTD.

Introduction

Beximco Pharmaceuticals Ltd (BPL) is a leading manufacturer of pharmaceutical

formulations and Active Pharmaceutical Ingredients (APIs) in Bangladesh. The company is one
of the largest exporter of pharmaceuticals in the country and its state-of-the-art manufacturing
facilities are certified by global regulatory bodies of Australia, European Union, Gulf nations,
Brazil, among others. The company is consistently building upon its portfolio and currently
producing more than 500 products in different dosage forms covering broader therapeutic
categories which include antibiotics, antihypertensive, antidiuretics, antiretroviral, anti-asthma
inhalers etc., among many others. 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. Ensuring access to quality medicines is the powerful aspiration that
motivates more than 3,000 employees of the organization, and each of them is guided by the
same moral and social responsibilities the company values most. Over the years since starting its
journey it had gained a position through an effective management, efficient fund generation, and
timely diversification. Today it is an established business concern in the countrys business arena.
It all began in 1980 when BPL's first product made under license of Bayer AG, Germany
rolled out of a small manufacturing plant in Tongi, Dhaka. Products made under license of
Upjohn Incorporated, USA followed. After its initial years of struggle it broke ground with the
launching of its own products in 1983. Today, BPL holds almost 15% share in the domestic
market.

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TERM PAPER ON BEXIMCO PHARMACEUTICAL LTD.

Existing Leading Pharmaceuticals Companies

Name of The Company

Tk (Crore)

Growth %

1,378

Share
%
19.18

SQUARE

INCEPTA PHARMA

650

9.05

32.17

BEXIMCO

620

8.62

40.33

OPSONIN PHARMA

355

4.94

26.09

ESKAYEF

348

4.84

24.82

RENATA

340

4.73

29.63

ACME

319

4.44

17.34

A.C.I.

293

4.08

18.81

ARISTOPHARMA

286

3.99

21.63

10

DRUG INTERNATIONAL

270

3.75

18.18

(Top Pharmaceutical Company of Bangladesh: 2014, 2013)

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TERMAnalysis
PAPER ON BEXIMCO PHARMACEUTICAL LTD.
PESTLE
It never ceases to amaze me why so many businesses fail to take the time to look at the
macro and the micro environments when completing their business plans and strategies. These
external forces will play a big part in shaping the final outcome of the ultimate corporate
achievement. The macro environment tends to have a long term impact and requires extensive
research.

Political
If we consider the status of occurrence of political unrest, than we can see that its a low potential
factor. Political unrest can greatly affect the decision making process of Beximco
Pharmaceuticals Limited. Political disturbance has a potential impact on the actions of an
organization. Recently Beximco Pharma may disturbed by many political problems. Their export
and import may shut off due to strike. There is now growing political focus and pressure on
healthcare authorities across the world. This means that governments will be looking for savings
across the board.

Economic
The global economic crisis still exists yet government reports still show that the spending on
healthcare per capital continues to grow. Will the current healthcare models exist tomorrow? The
growth in homecare (as seen in the Nutrition sector) demonstrates how nursing services have
moved to the private sector and have become a key business offering.
The reduction in consumer disposable income will have an impact on those countries using
health insurance models particularly where part payment is required. These economic pressures
are seeing an increased growth in strategic buying groups who are forcing down prices.
Increased pressure from shareholders has caused a consolidation of the industry: more mergers
and acquisitions will take place over the coming years.

Social
These environments basically include the values, beliefs, traditions, customs, language and forms
of a society. It is very important for any business, because customers are actually emerged from
these sections. As these values, customs and testes change, managers must also change. Socio6|Page

ONa BEXIMCO
PHARMACEUTICAL
LTD. and actions. For example
culturalTERM
trends PAPER
may pose
potential construction
to manager decision
Beximco Pharma has to make new products as their existing product demand has fallen or for
newly made diseases. Because a customer tastes or preference has been change a lot. Beximco
Pharma also contributes a lot of the social programs needy groups of society.
CSR Initiatives:
Official sponsor of the FIFA friendly match between Argentina and Nigeria held in
September, 2011.
Official sponsor of the Bangladesh National Cricket team for the ICC Cricket World Cup
2011.
Sponsoring events and national sport stars and teams.
Proyash - A specialized institute that works for the holistic development of children with
special educational needs through different programs.
Proyash - Include early childhood development programs (ECD), special schooling,
therapeutic interventions, medical and neuro-developmental assessment, leisure time and
co-curricular activities, training for the teachers, parents and integrated services.
Charity contributions through the Gono Sahajjo Songstha (GSS) for the educational
sector for the unprivileged.
Free drugs during natural calamities and distribution of clothing during winter.

Awareness Campaigns: Awareness is needed to be fit and healthy. Prevention is the best cure
and the first step is to create awareness. Every year, Beximco Pharma campaigns touching on
different forms of health impediments ranging from Asthma, Diabetes, Hypertension and many
more. This campaign activity includes rallies in addition to organizing and sponsoring scientific
seminars and conferences for various associations and societies in medical disciplines.
(www.beximcopharma.com)

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TERM
PAPER ON Program:
BEXIMCO
PHARMACEUTICAL
LTD. a program where their
Employee
Volunteering
Beximco
Pharma has organized
employees as volunteers devoted their time and energy in spreading smiles across the faces of
children battling the ultimate battle of survival against cancer. The children are currently being
treated at the ASHIC Foundation. They arranged an outing at an amusement park in the capital
city where the children were accompanied by their parents and representatives. Later Beximco
Pharma donated hospital equipment to the palliative care unit where the children at the terminal
stage of cancer are being treated.

Preserving Cultural Heritage: Beximco Pharma hopes to preserve and promote Bangladeshi
vibrant heritage in a way that would imprint its immortal beauty in the hearts of todays modern
demography and the generations to come. In 2011, Beximco Pharma sponsored and organized
the grand cultural event, at the National Museum, marking the 150 th birth anniversary of
Rabindranath Tagore; the legend who had irrefutable contribution towards the heritage and
identity of Bengali culture.

Technological
Technological advancements will create new business prospects both in terms of new therapy
systems and service provisions. The online opportunities will see the growth in:

New info and Communications technologies.

Social Media for Healthcare.

Customized Treatments.

Direct to Patient Advertising.

Direct to patient communications.

Legal
The pharmaceutical industry has many regulatory and legislative restrictions. There is also a
growing culture of litigation in many countries. The evolution of the internet is also stretching
the legislative boundaries with patients demanding more rights in their healthcare programmers.
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TERM PAPER ON BEXIMCO PHARMACEUTICAL LTD.

Environmental
There is a growing environmental agenda and the key stake holders are now becoming more
aware of the need for businesses to be more proactive in this field. Pharmaceutical companies
need to see how their business and marketing plans link in with the environmental issues. There
is also an opportunity to incorporate it within their Corporate Social Responsibility
programmers. Marketing and new product development should identify eco opportunities to
promote as well.

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TERM PAPER ON BEXIMCO PHARMACEUTICAL LTD.

SWOT Analysis

A situation analysis is a technique for matching organizational strength and

weakness with environmental opportunities and threats to determine the organizations
right which is known as SWOT analysis (strength, weakness, opportunity, threat). Every
organization should be able to identify the purpose for which it is best suited. Strategies
are faced not with snapshot of the environment and the organization but with a movie of
rapidly changing event. Strategic planners whether top managers, key operating manager
or staff planning specialist, have many way to scan environment for opportunities,
threats, strength and weakness.

Strength
BPL is one of the leading companies in the pharmaceutical industry of the country and
could attain almost 15% of the local market. The strength of attaining such position in the
industry are:
Market Recognition
Beximco has secured market recognition in the market through innovative marketing strategies
and aggressive product promotion. The companys strong support to the medical community has
gained its brand loyalty from the doctors.
Market growth
The market is expected to grow by 15 to 20% per annum for the next 5 years. The compounded
annual growth for the previous 6 years was 15%. The next stage of growth is expected to come
from backward integration to manufacture high volume raw materials, introduction of Hi-Tech
manufacturing process that are difficult to imitate products, and exports.
Aggressive diversification
BPL is keen to diversify its capacity of produce and market. Strong export demand and
international product registration have led BPL to embark on a massive capacity expansion as
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PAPERofON
BEXIMCO
PHARMACEUTICAL
evidentTERM
in expansion
plant
and establishment
of new plant inLTD.
compliance with FDA (Federal
Drug Association) quality mark. Recently BPL signed a new contract for loan of about 1100
million BDT for its FDA (Federal drug Administration) compliant plant that costs over BDT
3,000 million BDT.
Basic Chemicals and Multipurpose Chemical Plant
Currently bulk antibiotics amoxycillin, ampicillin, and cloxacillin are being produced with an
installed capacity of 35 tons per month. It is going to introduced Cephalexin and Cephradine
very soon; like-wise in its multi purpose unit, production of Amlodipine, Fluconazole,
Clotrimazole, Cetirizine Hcl, Tramadol, and Riboflavin 5-phosphate sodium.

Weaknesses
The company does not produce any kind of injectable. The company can increase its
market share by producing injectable. BPL has a narrower product line and number of products
than its principal competitors in the market. Unless the product line and number of product are
expanded the market share of BPL will be endangered in near future.

Opportunities
There are some of the sectors where BPL has not entered but that possess ample
opportunities. One of such sector is SVP or small volume Parenteral that is known as injections
in the market. Due to having the quality attainment capability as evident in producing IV
products, expertise and resource BPL should immediately think of this product and decide upon
having the feasibility study.
International market is also another very lucrative sector for BPL. In the world market the low
cost of product is an important upper hand for BPL to market its product. The new FDA
compliant plant will assist BPL to confirm the world market about the quality of its products.

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Threats
Competition from the local pharmaceutical companies and the very specifically in
context of price is a major threat for BPL. The poor economic status of Bangladesh requires a
low price of drugs to ensure public health. For the reasons like high cost of maintaining quality
of products and high distribution cost etc. the products of BPL cost higher than that of other
companies. As a result BPL is in fear of losing market in the rural areas of Bangladesh.

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TERM PAPER ON BEXIMCO PHARMACEUTICAL LTD.

Recommendation

Beximco Pharmaceuticals Limited should increase its product variety. Product variety
represents different types of items of medicines. At present, Beximco offers around 180 different
types of medicine. Some other companies are offering more than this. BPL can diversify itself
from others by operating in highly specialized segments such as anti-cancer segments.

Introduction of new products to doctors is vital because it can enhance the image of the
company. It is always a good idea to find a gap to introduce a new item. Beximco can locate the
products areas where there are less number of alternatives and also higher amounts of
requirements.
BPLs promotion is quite weak. They should provide more product samples gifts to the doctors to
increase their image among them.
Doctors should be informed previously that new medicines are coming up and will be offered
within two or three months. Thus the doctors can perceive an insight about the new Beximco's
medicines as an alternative of competitor's existing items and Beximco pharma can gain good
rapport with the doctors.
BPLs distribution is quite weak. Steps must be taken to strengthen the distribution network. This
will require more effort on the part of the medical representatives.
Pharmaceutical direct-to-physician marketing efforts have typically been isolated from other
customer-centric activities, including those conducted by field sales forces. A dis-jointed
relationship exists between pharmaceutical sales teams and direct-to-physician marketing. While
the pharmaceutical industry has made significant investments in direct-to-physician promotions,
the sales force is generally uninformed about their timing or end results. BPL should enhance
their ability to link home office conducted marketing campaigns with field force activities
through information, software, and service solutions to make these efforts more coordinated and
therefore more effective.
Direct to consumer (DTC) essentially means any campaign or communication programme
intended for and targeted to consumers - the primary end users of a product. In relation to
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TERM PAPER
ONthe
BEXIMCO
LTD.
pharmaceutical
products,
consumersPHARMACEUTICAL
may be patients, friends
or family members, caregivers
or the general public.
The strict regulations that have governed the communication of information about prescription
medicines in Bangladesh meant that the primary marketing focus has been on the people who
actually make prescribing decisions; the doctors
These include the impact of communication to consumers via the internet, patient education,
word of mouth or use of editorial space or air time in print and broadcast media.
More than ever before patients are getting involved in making their own healthcare decisions.
The growth in over-the-counter drugs and the dissemination of information on the world wide
web and in consumer magazines have all contributed to a thirst for information. Beximco
Pharmaceutical Limited can make an advantage of this and bring about some changes to fulfill
these needs and as result it will enhance the image of the company.
Direct to consumer (DTC) advertising is thought to enhance competition between brands, which
can lead to improved quality and lower prices for consumers but, most importantly, it can
improve public health.

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References

Top Pharmaceutical Company of Bangladesh: 2014. (2013, May 12). Retrieved from
https://mydreamlan.wordpress.com/2013/05/12/list-of-pharmaceutical-companies-andtop-pharmaceutical-companies-of-bangladesh-2013/
www.Beximco-pharma.com
www.beximcolimited.com
www.slideshare.net
www.academia.edu

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