The Silicon Review - Best Business Review Magazine Super 30 Companies of the Year 2019 | Page 35

extending significant component
of benefit to the retailer. In a true
generic model, the drug costs are
lower and the end consumer is
extended the cost benefit. demand a stronger, complete and
accountable structure of Legal
and Compliance departments.
The trading influenced current
generic business model hence is
expected to have a better shape with
respect to policies, structure and
capabilities in the next decade. 5. Corporate hospital dominance
in urban India – The top of the
pyramid will be major corporate
dominating the urban segment
and bottom of the pyramid will be
the mass insurance driven rural
segment.
In India, next decade will migrate
towards the US generic model
and this will compel many Indian
companies to adopt ‘true generic’
model from their current one.
3. Government policies on mass
medical insurance – ‘Modicare’
though in its very early stage is
making all strategy heads to sit and
proactively anticipate its impact
on healthcare and drugs market in
India.
A group of MNCs have already
responded with their interest to
manufacture a ‘low-cost alternate
brand’ exclusively for this scheme.
Managing profits through branded
formulations and balancing the
market shares and overall bottom
lines through a strategic approach
to mass medical insurance policy
will be a skill to look for in the next
decade.
4. UCPMP impact on organisation
behavior – For all non-pharma
readers…UCPMP is a voluntary
code of conduct in practice for
pharma companies to ensure an
‘ethical and compliant’ ecosystem
in the market. Currently, it has a
varying degree of execution across
different companies. All major
Indian pharma companies have
taken up this seriously and there is
a visible improvement in the ethical
and compliant ecosystem in recent
times.
However, it is still voluntary.
Conversion of UCPMP to law will
Processes, documentations, and
audits will supersede marketing
aggression. Marketers ought to
have compliance knowledge as
well as a legal team should be
compelled to have sensitivity
towards business priorities.
It’s expected that more than
30 percent urban corporate
business will depend on the rates
that you offer rather than ‘orthodox
brand promotion to HCPs’. Corporate
hospitals routinely called key
accounts and its management
will hence be a new, independent,
and self-sufficient business lever
for pharma companies.
Individuals with key account
management capabilities,
negotiation skills will observe
sustainable growth opportunities
in the next decade.
Digital though not mentioned
above will be a compulsive
adoption along with other
forthcoming challenges.
Forthcoming challenges are
definitely different from what
Indian pharma sector has
experienced in past. Every challenge
will demand a separate and
exclusive skill set which
will be largely different from
existing marketing and sales
driven mindset. Proactive approach,
right capability building, not just
speed but the quality of the actions
and most important, segmentation
of business in right buckets
will be the key to successfully
face the challenges of next decade.
6. Expansion into Medical devices,
Diagnostics & OTC – Pharma
companies have better equity
among stakeholders across the
entire healthcare industry. This
includes Doctors, Paramedical
staff, Pharmacists and Purchase
head of all hospitals. With change
of healthcare practice, preference
of patients and the emergence of
structured hospital chains,
pharma companies are stretching
to reinvent their product portfolio
and sales models.
A survey shows that in a hospital,
a patient spends only 25% of
medicines, however 50% on
treatments involving medical
devices & diagnostics, apart from
rest 25% on hospital stay & fee.
This is a big opportunity for pharma
companies to go to next level and
include devices & diagnostics in
their portfolio and leverage their
years of equity with all stakeholders
in healthcare industry.
Additionally, masses in large
are moving from curative to
preventive attitude. This is
opening up “Wellness” market, that
allows population to make their
own decision to use these OTC
healthcare products. With India’s
large population, many pharma
companies are targeting this market
and introducing products for
Weight management, Cough & cold,
Pain management, Skinceuticals,
Nutritionals and Gastro health.
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