Submitted To:

Dr. Sibyl Noman Khan

Course Instructor (MBA 550)

Strategic Management
Department of Business Administration
School of Business

Submitted By:
Md. Abdullah Al-Baki ID#1025012

Date of submission: 23rd November, 2010

BEXIMCO PHARMACEUTICALS LTD ~ COMPANY BEFORE & AFTER FIVE (05) YEARS STRATEGY.

Date of submission: 23rd November, 2010

Table of Contents
Topic Page No

Company Background4-5 Operational Organogram...6 Product Line...............7-10 Health & Personal Care..................... 8-9 Foods.......9-10

Strategy.11-19 Before Five Years Strategy.......................11-12 After Five Years Strategy ........................13-14 Present Strategies..........15-19

What I Learned..20 Conclusion ....21

COMPANY BACKGROUND ABOUT BEXIMCO PHARMACEUTICALS LTD.

Beximco Pharmaceuticals Ltd. is a leading edge pharmaceutical company and is a member of the BEXIMCO Group, the largest private sector industrial conglomerate in Bangladesh. The strategic strengths of Beximco Pharma are its strong brand recognition, highly skilled work force and diversified business mix. Beximco Pharma brands Neoceptin R (Ranitidine), Napa (Paracetamol), Amdocal (Amlodipine), Neofloxin (Ciprofloxacin), Bexitrol F (Salmeterol Plus Fluticasone), Bextrum Gold (Multivitamin and Multi Mineral) and Atova (Atorvastatin) are among the most recognized brands in the Bangladesh Pharmaceutical industry. Beximco Pharma started its operation in 1980, manufacturing products under the licenses of Bayer AG of Germany and Upjohn Inc. of USA and now has grown to become nation's one of the leading pharmaceutical companies, supplying 15% of country's total medicine need. Today Beximco Pharma manufactures and markets its own `branded generics' for almost all disease ranking from AIDS to cancer, from infection to asthma, from hypertension to diabetes, both nationally and internationally. Beximco Pharma manufactures a range of dosage forms including tablets, capsules, dry syrup, powder, cream, ointment, suppositories, large volume intravenous fluids, metered dose inhalers etc. in several world-class manufacturing plants, ensuring high quality standards complying with the World Health Organization (WHO) approved current Good Manufacturing Practices (cGMP). The recipient of three times `gold' national export trophy, Beximco Pharma is the largest exporter of pharmaceuticals from Bangladesh, spreading its presence in many developing

and developed countries across the globe. Beximco Pharma is the only company in Bangladesh to receive this highest national accolade for export, for record three times. Beximco Pharma markets its brands through professional sales and marketing teams in African, Asian and European markets. It also supplies its products to renowned hospitals and institutions in many countries, including Raffles Hospital and K K Women & Children Hospital in Singapore, MEDS and Kenyatta National Hospital (KNH) in Kenya, Jinnah Hospital, Agha Khan Hospital and Shaukat Khanum Memorial Hospital in Pakistan. Beximco Pharma is also an enlisted supplier of WHO andUNICEF. Another important business activity of Beximco Pharma is the contract manufacturing for major international brands of leading multinational companies. Beximco Pharma is acclaimed domestically and internationally for its outstanding product quality, world class manufacturing facilities, product development capabilities and outstanding service. Beximco Pharma has a strong market focus and is anticipating continued future growth by leveraging business capabilities and developing superior product brands and markets. In particular the company is very interested in developing a strong export market in USA and Europe. To meet the future demand Beximco Pharma has invested US$ 50 million to build a new state-of-the-art manufacturing plant, confirming to USFDA and UK MHRA standards. This new plant will also offer contract-manufacturing facility to leading pharmaceutical companies, especially from Europe and US.

ORGANIZATIONAL ORGANOGRAM

PRODUCT LINE

Allergic Disorders
Beximco Pharma has a strong focus to offer treatment solutions for both seasonal and perennial allergic rhinitis. The journey of Beximco Pharma in this arena began with the licensing arrangement with Bayer AG of Germany for the manufacture and marketing of Incidal in Bangladesh . Products in this category also include a proprietary drug, developed by the R & D team at Beximco Pharma and provides 24-hour relief of allergic rhinitis with congestion (marketed under the brand name - Pretin D) Beximco Pharma will continue to build on its tradition of launching the generic versions of all the research molecules in this category.

Analgesics & Antipyretic

Beximco Pharma is the largest provider of analgesic medicines in Bangladesh, led by the strong performance of Napa, a preparation of paracetamol. Paracetamol is the safest analgesic in the world for more than 50 years. Napa is the number one brand in terms of unit sales in Bangladesh and is available in 13 forms and strengths.

Anti-infectives
Beximco Pharma is one of the leading companies in the field of antibacterial and antiviral treatments offering a wide range of products. The anti-infective products of Beximco Pharma are offered in different dosage forms: Tablet, Capsule, Large volume and Small volume parenterals for systemic administration and Cream and Ointment for topical administration. Beximco Pharma is the only company is Bangladesh to manufacture antiviral products to treat most serious infections of HIV (AIDS).

Eye Care

Beximco Pharmaceuticals Ltd has introduced its vision unit in the year 2009. Now Beximco Pharma got around 20 ophthalmic products in its product range covering various Therapeutic groups like Anti-infective, Anti-inflammatory, Artificial Tear, Antiallergic, Anti-glaucoma and eye vitamins and minerals etc. Continuous enrichment of ophthalmic product range is going on.

Cardiovascular
Beximco Pharma has always been the leader in Bangladesh cardiovascular market with innovative product offerings to treat almost all type of cardiovascular diseases like Hypertension, Coronary Artery Diseases, Hyperlipidemia, Heart Failure, Arrhythmia etc. Beximco Pharma's amlodipine brand Amdocal is the number 1 cardiovascular brand since 1996.

Central Nervous System

Beximco Pharma has a wide range of CNS medication provide effective treatment of different diseases involving CNS including anxiety, depression, migraine, epilepsy, insomnia, schizophrenia, dementia etc.

Cough & Cold

Wide product range of Beximco Pharma offers the doctors freedom to choose the right medication for different types of cough: dry cough, chesty productive cough and other cough associated with common cold.

Endocrine & Diabetes

Beximco Pharma offers wide range of products ensuring effective treatment of type II diabetes. It has the generic versions of all the leading research molecules including Glipizide, Gliclazide, Metformin, Glimepiride, Pioglitazone Repaglinide etc.

Muscloskeletal
Osteoarthritis, Rheumatoid arthritis, Muscle spasm, pain of musculoskeletal origin are some of the diseases that limit the activities of daily life of millions of patients. Beximco Pharma with its wide range of products in the musculoskeletal category offers effective treatment solution forr those patients

Oncology
Beximco Pharma manufactures a generic version of Tamoxifen (Tamona) which is being used successfully world wide for the treatment of breast cancer disease. The company also has a proven drug for the treatment of nausea and vomiting associated with cancer therapy.

Vitamins & Minerals Supplement

Beximco Pharma's many brands in the vitamins and nutritional supplement category has gained trust of the physicians in treating various vitamins and nutritional deficiency symptoms.

Respiratory

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Beximco Pharma is the leading manufacturer of pressurized Metered Dose Inhalers (MDI) in Bangladesh and are among the few companies in the world manufacturing CFC (Chlorofluorocarbon) free MDIs. It has a wide range of inhalers 'Reliever', 'Preventer' and 'Controller' for the treatment of asthma and COPD. The company also undertakes contract manufacturing for GlaxoSmithKline for its 'reliever' brand. In collaboration with Europe's one of the leading manufacturers of specialty medical devices and respiratory drug development companies, Beximco Pharma successfully developed and introduced country's fist CFC-free HFA based MDIs in September 2006.

Skin Care
Beximco Pharma's robust product line in the skin care category offers easy and convenient solution to wide range of skin diseases like fungal and bacterial infections, eczema, atopic dermatitis, other inflammatory skin diseases requiring corticosteroid therapy, acne, psoriasis, and various other dry skin problems.

BEFORE FIVE YEARS STRATEGY

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Core Values
Trust and reliability to the products emerged as one of the core values of Beximco Pharmaceuticals Limited. It maintains quality in manufacturing of products according to the rules of the WHO. Hiring a competent branch of people who are best in their capacity to serve the company best, strengthen the BPL function of operation .It also give emphasize on promoting new products through research and bringing cost efficiency in business operations. Beximco Pharma believes that it is in the business which deals with human health which makes it more responsible to keep the highest standards of its products. Through its products it tries to deliver clear benefits to the patients. Good products, however, are only one side of its expression of commitment. BPL believes its responsibility lies even more in ensuring that the society gets benefited while it continues to grow.

Corporate Social Responsibilities

Corporate social responsibility is an integral part of BPLs business strategy which is reflected in its mission statement. Every employee of the company knows that the company does not view its success and achievements in financial terms only, but also in terms of its deep relationship with the society. Each year, an increasing amount of contribution is ploughed back into social causes, demonstrating Beximco Pharma's commitment to the nation. More importantly the company's contribution extends beyond one-time donation to ongoing participation as reflected in its partnership with NGOs working for AIDS patients, in supporting sports, and in raising disease awareness among the people.

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BPL donated medicines worth millions of taka to victims in national and international calamities. Donation of medicines to victims of earthquake in Pakistan and victims of tsunami in Sri Lanka are worth mentioning. The company maintains a team of scientists who works as pharmaceutical experts for good governance that give direct benefit to the common people and shareholders. Beximco Pharmaceuticals Limited carefully designed its facilities for reducing hazardous impact on the environment through operational excellence providing a friendly environment for a healthy society for tomorrow being the main responsibility of BPL.

AFTER FIVE YEARS STRATEGY

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Manufacturing Facilities
Located at Tongi, near the capital city Dhaka, BPLs manufacturing site is spread over an area of 20 acres which houses a number of self contained production units including oral solids, metered dose inhalers, intravenous fluids, liquids, ointments, creams, suppositories, ophthalmic drops, injectables, nebulizer solutions etc. The bulk drug unit for producing paracetamol is also located within this site. Companys penicillin API and formulation units are situated at Kaliakoir, a few kms from the main site. The plant and machinery throughout the site have been designed by and procured mostly from renowned European companies. Beximco Pharma has its own utility infrastructure to ensure adequate generation and distribution of purified water at all times. The installed capacity of power generation is 8 MW. There is also liquid nitrogen generation facility on site.

Quality Policy
Beximco Pharmaceutical Limited's mission is to achieve business excellence through quality by understanding, accepting, meeting and exceeding customer expectations. Beximco Pharmaceutical Limited (BPL) follows International Standards on Quality Management System to ensure consistent quality of products and services to achieve customer satisfaction. BPL also meets all national regulatory requirements relating to its current businesses and ensures that current Good Manufacturing Practices (cGMP) as recommended by World Health Organization is followed for its pharmaceutical operations. The management of BPL commits itself to quality as the prime consideration in all its business decisions. All employees of BPL must follow documented procedures to ensure compliance with quality standards. 14

The pool of human resources of the company will be developed to their full potential and harnessed through regular training and their participation in seeking continuous improvement of work methods.

Environmental Policy
BPL is committed to maintain the harmonious balance of our eco-system and therefore constantly seeks ways to manufacture and produce products in an eco-friendly manner so that the balance of nature remains undisturbed and the environment remains sustainable. In pursuit of this goal, BPL will comply fully with all local and national environmental regulations. Conserve natural resources like water and energy for sustainable development, and adopt environmentally safe processes. Ensure appropriate treatment of all effluents prior to discharge, to prevent pollution or degradation of environment. Ensure appropriate communication and cooperate with internal and external interested parties on environmental issues. Create awareness on environmental issues among our employees and suppliers. Adopt modern waste management technology.

PRESENT STRATEGIES

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MARKET POLICY

Domestic Market
Being a developing country, the pharmaceutical market and at the same time, the pharmaceutical industry of Bangladesh is growing. In this growing market, BPL has been able to maintain its growth through its innovative marketing strategies. In Bangladesh, BPL introduced the concept of quality management system by being the first company to achieve ISO 9001 certification that reflects its commitment to quality in every aspect of business. BPL covers the health care community of whole Bangladesh based in both urban and rural markets, through its 18 strategically located depots.

International Market
To fuel the continuous growth of BPL, the company has started exploring international markets. The quality of BPL products, strengthened by its ISO 9001 certification, has brought immediate success in UK, America, Australia, France, Brazil, India, Pakistan, Sri Lanka, Yemen, Myanmar and Vietnam.

Regulatory Approvals

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The manufacturing facilities of Beximco Pharma have been audited and approved by: National Health Surveillance Agency (ANVISA), Brazil (MDI) Therapeutic Goods Administration (TGA), Australia (OSD, MDI and Spray) Gulf Central Committee for Drug Registration (for GCC member states)(OSD & MDI) Qualified by UNICEF (MDI & OSD) Qualified by Global GlaxoSmithKline (MDI) Qualified by Asthma Drug Facility (ADF), France (MDI) Qualified by Global F Hoff Mann La Roche (OSD) Approvals by UK MHRA and USFDA are under process OSD, Oral Solid Dosage; MDI, Metered Dose Inhaler

Research & Development

With strong reverse engineering capability, we focus principally on developing high quality generic formulations, matching the profile of innovator products. We also focus on simplifying manufacturing processes and improving cost efficiency. Our growing innovation is evident from successful launching of a number of advanced formulations like multi-layer tablets, sustained release formulations, dispersible tablets, melt-in mouth tablets, chewable vitamins etc. In proprietary research, we conducted collaborative research with Ciba Specialty Chemicals of Switzerland. With Our R&D team has successfully developed a range of CFC-free HFA MDIs. In addition, we are also developing a number of APIs to ensure availability of raw materials across the range of therapeutic classes. Our capability to produce hi-tech, specialized niche products as well as drug delivery systems has been our core strength to transform BPL into an innovationdriven generic drug company.

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Corporate Social Responsibility

Commitment to our society is an integral part of the way we are doing business. We do not judge our success in financial terms only; we value even more the deep relationship with the society we live in. Each year, a substantial amount of our earning is ploughed back into social causes, so that our society gets benefited while we continue to grow.

1. Donation of medicines
We donate and make available a large quantity of medicines to the victims of natural disasters, both national and international. Medicines for the victims of earthquake in Pakistan, sunami in Sri Lanka, and cyclone SIDR in Bangladesh are a few worth mentioning.

2. Providing Treatment for AIDS patients in Bangladesh

Responding to the needs of thousands of AIDS patients in the country, we are proud to be associated with the initiatives to provide treatment for these patients. Since 2005, Beximco Pharma has been supplying ARV drugs through Dutch Bangla Bank, a leading local bank, for treating the AIDS patients in Bangladesh. These ARV drugs are distributed through Ashar Alo, Mukto Akash, and Confidential Approach to AIDS Prevention (CAAP) NGOs working for the HIV/AIDS patients

3. Oseflu to fight against Avian and Swine Flu

Since its launch in March 2006, Oseflu, BPLs brand of oseltamivir capsule, has been donated to the govt. of Bangladesh as well as different reputed organizations including ICDDR,B in response to the pandemic Avian as well as recent Swine Flu. We also supplied Oseflu to the government of Myanmar as a part of our CSR initiatives

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Overseas Markets
The company is the largest exporter of pharmaceuticals from Bangladesh and the only company to receive National Export Trophy (Gold), the highest national accolade for export, for record three times. BPL has a global footprint in more than 45 countries across four continents and currently in the process of entering the emerging markets of CIS with increasing focus on regulated markets like EU and USA.

Besides the retail outlets, Beximco Pharmas products are being supplied to renowned hospitals and institutions like Raffles Hospital and K K Women & Children Hospital in Singapore, MEDS and Kenyatta National Hospital (KNH) in Kenya, Jinnah Hospital, and Agha Khan Hospital in Pakistan.

Contract Manufacturing Opportunities

Rising cost of healthcare and medicines has become a global concern, and in order to reduce cost across the value chain, pharmaceutical companies from developed markets continue to look for suitable partners in developing countries for shifting or outsourcing their production. With decades of experience in generic drug manufacturing, world class capabilities as well as significant cost advantages, Beximco Pharma can be an ideal partner for you to meet your contract manufacturing needs. Since its inception, Beximco Pharma has established itself as a reliable partner for a number of world's leading pharmaceutical companies. The company has maintained a track record of sound professionalism and its management has always adhered to international standards providing a culture and working environment similar to that of a multinational company. Currently the company has contract manufacturing agreement with GlaxoSmithKline (GSK) for producing Metered Dose Inhaler product. These partnerships have provided BPL much valuable expertise and know-how to manufacture world-class products. The company offers significant cost advantage as a manufacturer, as the average wage in

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Bangladesh is probably the lowest in the world, and at least two to three times lower than that in China or India. Prospective partners can benefit themselves with competitive advantages like availability of highly skilled manpower at a very low cost, low energy cost, Govt. policy support, investor friendly environment etc.

WHAT I LEARNED

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I learned, Beximco Pharmaceuticals Ltd. believed in growth strategy, sometimes through concentration, sometimes integration and some being diversification. It started off with horizontal integration in 1980 and then it had unrelated diversifications. Continuing that till 1980s to 20100 it changed its track to related and specific diversification as their strategies and objectives switched to closure and disposals of the varied factories in order to restructure and cut costs. This included the cut down of workforce from the workplace. However, in all these periods, the strategies proved to be beneficial for the company as there has been a number of diversifications and as well as forward vertical integration that included the acquiring of Beximco Pharma manufactures a range of dosage forms including tablets, capsules, dry syrup, powder, cream, ointment, suppositories, large volume intravenous fluids, metered dose inhalers etc. in several world-class manufacturing plants, ensuring high quality standards complying with the World Health Organization (WHO) approved current Good Manufacturing Practices (cGMP). The company set new reconstructed their strategies Beximco Pharma would now turn into concentration and focus on their primary line of business, thus cut down excess costs from restructuring, high level of outsourcing and also closure of factories In spite of this, Beximco Pharma stood up by overcoming the obstacle via retrenchment strategy which ensured the revitalization of the company resource and status. The company planned new strategies encompassing that there would be higher annual sales thus maintaining the top position in the business field, more outsourcing, rise in the world-wide buying etc. Through all these steps the company gained international and national Awards, Recognition and Consumer-Trust, therefore created a new milestone in the world of business.

CONCLUSION

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After knowing the whole strategic management techniques followed by Beximco Pharma it is clear that, no company can follow one form or approach from the corporate level strategy. Situations vary and so does the business strategies to meet the demand at a given point of time. However, Beximco Pharma has also been that of a kind where they practiced different types of growth strategies, reached boom and at the same time company followed to the need for recovery stage where they have gone through the renewal strategy. But more or less it can be said that Beximco Pharma preferred either growth through market developments and if not so then stability; with a consistent approach towards consumer. Well the sum up of the case study can be stated as that with all their superior strategies and techniques they have continued to stay prosperous from centuries and also hope to maintain that throughout.

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