Glenmark's innovation - A case study

[Date of Submission]

EXECUTIVE SUMMARY

The paper deals with the analysis of a case study based upon an Indian pharmaceutical firm, Glenmark. The case discusses the scenario of the new CEO of Glenmark, who's vision is to take the company towards innovation and have therefore lead the company in the area of discovery research. The case discusses the various industry trends that require strict actions by Glenmark, while the company manages to strive through the financial crisis of 2008 that was faced by many companies including Glenmark. The paper has discussed the steps taken by the CEO in and has also analyzed the business model followed by the Glenmark, while also analyzing the future plan of action for the company in order to be successful in the area of discovery research.

EXECUTIVE SUMMARY2

Introduction to the Case4

Question # 1)4

Answer)4

Glenmark's Generics Business4

Glenmark's Drug Discovery Business6

Question # 2)8

Answer)8

Question # 3)9

Answer)9

Question # 4)11

Answer)11

Step # 1 - To focus upon the expansion in the area of generics production11

Step # 2 - Investing heavily in the area of R&D of discovery research11

Step # 3 - Establishment of Glenmark's centre's through out the developed countries12

References13

Introduction to the Case

Glenmark is a pharmaceutical that was initially established in India, the case discusses the vision of Glenmark's new CEO Saldanha of taking the company from its previous business of generics towards a new area, which is of discovery research. The case puts the reader in the shoes of the new CEO of Glenmark and informs about the various industry trends. The problem in this case is of Glenmark entering into the area of discovery research and the problem that it is facing with regards to it.

Question # 1)

Glenmark started to diversify into discovery research in 2004. Compare the generics and drug discovery businesses. What are the capabilities needed to survive and succeed in each? Do you think Glenmark was right to enter the discovery space? 

Answer)

Glenmark's Generics Business

The decision of Glenmark entering into the generics business was evident as of the downward trend of the entire global biopharmaceutical industry from 2008 as of the international financial crisis, which had hindered the markets of the developed countries a lot, which were a very important area of the generation of revenues for Glenmark.

In addition to this, the steep declining of the revenues of the biopharmaceuticals industry in India from 2008, which declined from a level of 6.6% growth to a 4.8% growth level and as according to the case was expected to decline from US$ 773 billion to US$734 billion in the upcoming year of 2013. These facts of the downfall of the biopharmaceutical industry and of the growth being seen in the generics industry attracted Glenmark to invest in the global market for the generics drugs, which in turn was expected to grow to a level of US$ 129.3 billion by the year of 2014.

Furthermore, the expected growth in the Indian generic drug growth market was expected to total at a rate of 15-20 per ...