AGP_The Vision 2008

8/6/2019 AGP_The Vision 2008

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The Vision

2008

(Private)Limited


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Business Scope

AGP Defines its business within thePharmaceutical Industry.

The Vision is to become the MarketLeader in the Antibiotics and Pain KillerSegments by providing the highestquality Brands to customers.

AGP has acquired Eli Lillys AntibioticProduct Line to market in Pakistan.

AGP is progressing towards ExportBusiness in Nairobi, Phillipines, Canada.

(Private)Limited


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Competition

GSK Multinational PharmaceuticalMarket Leader

BMS Multinational with competing

products in same market segments.

Hilton National PharmaceticalCompany with same product portfolioin Pain Killer Market

Getz Largest GrowingPharmaceutical National Company inPakistan


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Company

LOGO

(Private)Limited

Company Size = 1.46 Bil PKR

Company Ranking in Pharmaceutical Industry = 11th

Company Market Share : 2.14 %

Business Units = 5

Target Segments = GPs, Gynae, Derma, Surgeons, Paeds/ENT

National Distribution Netwo

rk = AGnC

Branches in Pakistan :Khi, Hyd, Skr, Qta, Mux, Fsd, Gjw, Lhr, Rwp, Psw, DIK

Company Introduction


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64.3 billion PKRGrowing at 11 %

Pharma Market

Others

J01D12.44 bil

15 %

J01D22.31 bil

15 %

M01A13.36 bil12 %

PharmaMarket

PharmaMarket


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e armaMarket

32815344 3458808236179607

4016026742414699

45271007

51212247

57722665

64350755

71370000

79220000

87934200

97606900

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008(+000)

No. of Companie

s

482 489 507 522 542 571 550 583 586 590 602 614 622

IMS QIV,1996- 2004IMS QIV,1996- 2004


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Pakistan Total Pharma Market Value in Billion 64.3Growth 11%

Code Major Therapeutic Class Units Value Share

(+ 00) (+ 000) %

J Systemic Anti-Infectives 1585155 12515684 25.6

A Alimentary Tract & Metabolism 1931218 10041243 20.5

N CNS 846421 5532062 11.3

R Respiratory System 1348845 3877881 7.9

C Cardiovascular System 315153 3354425 6.9

Source : Archives 2002


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Code Category Unit Value Share Goly

(+ 00) (+ 000) % %

J Systemic anti-infectives 1585155 12515684 25.6 13

J01 Antibiotic systemic 1466165 11155194 22.8 13

J01A Tetracycline & Combs 20095 372946 0.8 6

J01B Chloramphenicols & Combs 51043 11196 0.2 15

J01C Broad Spectrum Penicillin (Oral) 421682 2539757 5.2 16

J01D Cephalosporins & Combs 341295 3585083 7.3 18

J01D1 Oral 157910 1799319 3.7 18

J01D2 Injectables 183385 1785763 3.7 17

J01G Fluoroquinolones 121104 1791244 3.7 11

Source : Archives 2002


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Cephalosporins

2344370

1224208

2386699

1316648

2376939

1378886

2719102

1481184

2972966

1502432

3220076

1621802

3710841

1860177

4128542

2119909

4756733

2444720

5320000

2732000

5958400

3060700

6674000

3428020

7474216

3839387

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Cephalosporins & Comb (J01D) Oral (J01D1)

(+000)

IMS QIV,1996- 2004IMS QIV,1996- 2004


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290671

171870

65949

336960

189048

66458

310554

171835

59764

360937

167513

79894

365229

156238

85089

377389

152680

88557

417166

191264

71267

447691

204671

83519

523985

203359

99715

575000

213000

116000

619346

220000

141700

663319

225000

170000

709751

235000200000

0

100000

200000

300000

400000

500000

600000

700000

800000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Velosef Ceporex Keflex

(+000)

Major Players in J01D1

IMS Q-III,1996- 2004IMS Q-III,1996- 2004


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Year Mrkt J01D1 BMS GSK AGPSize in Billion

% % % % % % %

1997 1.31 11.1 25.2 15.8 14.1 9.9 4.9 0.7

1998 1.37 -2.4 23.8 -7.8 13.1 -9.1 4.5 -10.1

1999 1.48 14.6 24.1 16.2 11.2 -2.5 5.3 33.8

2000 1.50 -0.4 24.5 1.1 10.4 -6.7 5.7 6.52001 1.62 7.5 23.5 3.32 9.5 -2.2 5.5 4.07

2002 1.86 11.9 23.2 10.5 10.6 25.2 3.9 -19.5

2003 2.11 13.2 22.0 7.3 10.0 7 4.1 17.1

2004 2.44 17.4 21.9 17 8.5 -0.6 4.1 19.392005 2.73 11.1 21.0 9.9 7.8 4.9 4.2 16.7

2006 3.06 11.1 20.2 7.9 7.1 3.2 4.5 22.1

2007 3.42 11.1 19.3 7.1 6.5 2.27 4.8 19.9

2008 3.83 11.1 18.5 7.0 6.8 4.4 5.2 17.6

Growth

IMS Q-III,1997- 2004IMS Q-III,1997- 2004


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Which Indications

To Target ?


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AGP Prescription AuditOthers

9%SSTI

6%

RTI

85%

Rx Index, IMS, 2002Rx Index, IMS, 2002


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Prescription Share of

BMS

RTI50%

UTI9%

SSTI16%

Others25%



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Prescription Share of

GSK RTI77%

UTI7%SSTI

7%

Others9%



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Which Specialities

To Target ?


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AGP Customer Audit

P h y2%

Surg0%

P a e d s2%

RM O9%

G P s87%



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BMS Share in Specialities

Surg6%

RMO20%

Gyn2%

Phy2%

Paeds3%

EENT3%

GPs64%



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GSK Share in Specialtites

P h y1 %

P ae d4 %

S u r 1 %

G y1 %

D e rm1 %

E E N2 %

R M2 0 %

G P7 0 %



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Age Bracket


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Prescription share in Age Groups

0

5

10

15

20

25

30

35

40

under 1 1 - 4 yrs 5-11 yrs 12-19yrs

20-29yrs

30-39yrs

40-54yrs

55-64yrs

65+ yrs

BMS GSK AGP(+000)



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Competitor Analysis

Where We Are ??


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ParametersParameters BMSBMS AGPAGP GSK GSK Product Life Cycle Mature Growth Mature

Product Size 1.98 bil 1.46 bil 8.4 bil

Distribution P.D.s AGnC MnPProduct Portfolio Antibiotics/Pain

Killers/Vitamins/Oncology / CNS /

Respratory

Antibiotics/ Vitamins/Pain Killers

Oncology/Antibiotics/ Pain

Killers/ CNS/Cardio / Resp.

Customer Base GPs + Gynae +Surg + RMO + ENT+ Paeds + Phy

GPs + Gynae + RMO GPs + Paeds +RMO + Gyne +

ENT + Dent

Marketing Operations Lucrative Lucrative Lucrative

Production Capacity CompletelyUtilized

Under Utilized CompletelyUtilized + 3 rd Party

Mnftg

Human Resource Deployment 260 SPOs 190 SPOs 430 SPOs

Financial Capabilities High High High

Brand Ownership High Mediocre HighMana ers Ca abilites Experienced Fresh Experienced


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s r u on na ys s (*Assuming total 300 W.S. & 1000 RetailOutlets/100 Institutions)

ChannelChannel ProductProductMixMix

OutletOutletCoverageCoverage

Market ReachMarket Reach

No. of Outlets sellingProduct Mix

Total no. of Outlets

Sale of Product MixSale of all brands

AGnC Distributor to W. Sale AGP 83 % 3 %

Distributor to Retailer 50 % 1.2 %

Distributor to Institutions 2 % 0.1 %

Distributor to Consumer 0 % 0 %

MnP Distributor to W. Sale GSK 85 % 32 %

Distributor to Retailer 75 % 24 %

Distributor to Institutions 56 % 18 %


P.D.s Distributor to W. Sale BMS 76 % 24 %Distributor to Retailer 86 % 31 %

Distributor to Institutions 67 % 19 %



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Cost Analysis

RawMaterials

OperationalCost

FixedCosts

Inventory Cost LogisticCost

Distr.Cost

SellingCost

Total

AGP 18 % 21 % 16 % 11 % 9 % 4 % 21 % 100 %

BMS 16 % 21 % 21 % 9 % 11 % 8 % 14 % 100 %

GSK 12 % 18 % 25 % 11 % 13 % 4 % 17 % 100 %


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To Predict Future

P olitical Affairs : Army Dominance in Institutions L egal Issues : WTO Factor E conomic Climate : Local Pharma Industry Revolution

S ocial Changes : Doctors getting personalized T echnological Advancement : Research & Development

Consider the above parameters


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Key Performance Indicators (KPIs)

KPIs Standard Where weare

Improvement Plans

I II III

SPO Yield 10 lac 5 lac Increase Dr on List

ReduceTerritory Size

Expandportfolio

Double DigitGrowth

25 % 7 % Launch newProducts

ExpandCoverage

Open newSpecialties

StandardMinute Value

(Productivity Time)

Rs. 1000 per minute

Rs. 633.5per minute

Increaseworking time

in Field

ExpandCoverage

Open newSpecialties

Employeeturnover

0 % 15 % Training Hierchy Incentives

SkillDevelopment

No Limit Mediocre TrainingWorkshops

On JobTraining

Out HouseTraining

Strong

Distribution

MnP AGnC Increase Field

Force

Increase Vans Increase

Branches


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Confrontation Matrix

WeaknessesWeak DistributionInexperienced ManagersLack of Branding Power

No RnD

Strengths6 sigma OrganizationPositive Work ClimateAggressive Attitude towardsGrowthProduction CapacityGrowing Phase

Opportunities New Product Segments New Customer BaseInstitutional BusinessExpansion of Field Force

Managers Training

Threats

Loss of Sales because of SubstitutionMajorly Driven by GPsCustomer BaseLikely entry of Competition

PROMISING

After Improvement

HIGH

RISK


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The Customer : Basis of our Business

What do

Customerswant ?

MOST IMPORTANTASPECTS

How dowe

Score ?

Whats theCompetition

upto ??

Key Strengths&

Weaknesses

l f


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Relative Importance of Factors

Factors Importance Range

AbsolutelyCritical

VeryImportant

QuiteImportant

Not soImportant

NotImportant

Dont want it Total

Quality 90 % 5 % 5 % 100 %

Efficacy 90 % 10 % 100 %

Safety 100 % 100 %

Convenience 50 % 35 % 10 % 5 % 100 %

Regular Reminder 75 % 20 % 5 % 100 %

Presentable SPO 50 % 20 % 20 % 10 % 100 %

Marketinggimmickry

35 % 20 % 20 % 20 % 5 % 100 %

You scratch myback & I willscratch yours

35 % 25 % 5 % 15 % 20 % 100 %

Availability 90 % 5 % 5 % 100 %

Discount 25 % 10 % 25 % 25 % 15 % 100 %

Price 95 % 5 % 100 %

i C i i


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Buying CriteriaS.No

Product Related Weightage Velosef Ceporex Keflex

1 Quality 10 % 10 % 10 % 10 %

2 Efficacy 10 % 10 % 10 % 10 %

3 Safety 15 % 15 % 15 % 15 %

4 Convenience 10 % 10 % 5 % 5 %

5 Discount 3 % 2 % 1 % 2 %

6 Price 10 % 7 % 8 % 8 %

S.No

Service Related

1 Regular Reminder 10 % 5 % 5 % 8 %

2 Presentable SPO 5 % 5 % 5 % 2 %

3 Marketing gimmickry 10 % 5 % 5 % 7 %

4 You scratch my back & Iwill scratch yours

2 % - - % 1 %

5 Distribution 15 % 15 % 15 % 5 %

TOTAL 100 % 85 % 79 % 73 %

Philli R l ti P f


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Phillips Relative PerformanceRating Matrix

Good

Same

Bad

Efficacy Convenience

Quality Safety Discounts

Price

Regular

Reminder Presentable SPO

MrktgGimmicks

Deals

Distrib.

Keflex Vs. Velosef & Ceporex


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Sir,

That completes the first part of thispresentation Market Dynamics Internal Analysis Confrontation Matrix

Customer Demand Our Position in Customers Eyes


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NowNow

THE PATH TOWARDS 2008THE PATH TOWARDS 2008


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The Mission


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Strategic Intent

Nothing but the Best !!

Core

Values

Core

Purpose

BusinessVision

Big, Hairy,Audacious

Goals

Core Values:Quality Pharma

Products

Core Purpose:We Value Life

Business Vision:Market Leader inJ01D1

BHAG:200 mil in 2008


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How will we grab Velosef share ??

Hit its 500mg Strength


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Velosef Line Contribution

125 Sus14%

250 Sus16%

500mg Cap57%

250mg Cap13%

IMS, Q IV 2004IMS, Q IV 2004


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500mg Capsu l15%250mg

Capsule5%

125mg Sus33%

250mg Sus16%

Drops31%

IMS, Q IV 2004IMS, Q IV 2004

Keflex Line Contribution (In 2004)


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500mg Capsul25%

250mg Capsul8%

125mg Sus26%

250mg Sus15%

Drops26%

Keflex Line Contribution (In 2008)


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Where do we see ourselves ??

Product Line Development


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Keflex 125mg Susp

(+000)

IMS Q III, 1996 to Q III, 2004

768510090

11976

2051722608

2638222721

27666

3237835154

40000

45000

52000

0

10000

20000

30000

40000

50000

60000

1996 1998 2000 2002 2004 2006 2008Keflex 125 Susp


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9119 8584 8119

1006511160

12472

10550

12549

15785

19100

22200

25000

29000

0

5000

10000

15000

20000

25000

30000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Keflex 250 Susp

Keflex 250mg Susp

(+000)



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Keflex 250mg Caps

3524 3537

52595793 5728

5279

3855 4053

52836140

9000

12000

15000

0

2000

4000

6000

8000

10000

12000

14000

16000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Keflex 250 Cap(+000)



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Keflex 500mg Caps

(+000)


8314

14131

18684 18336

14763

9147 10506

15406

20000

30000

41000

52000

0

10000

20000

30000

40000

50000

60000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Keflex 500 Cap


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Keflex Drops

1901621331

19397

2401827257

29662

24994

2874530862

34693

40500

47000

52000

0

10000

20000

30000

40000

50000

60000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Keflex Drops(+000)


T ti l Pl


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Tactical Plan2006

Increase Doctor Coverage in Local Cities Base SPOs in Hospitals Tap Local Potential & Gynae Segment Include in Hospital Formularies

2007 Deploy SPOs in Potential Towns Increase Coverage in Peripheral Areas Expand into Surgery Segment Grab Tender Business

2008 Government Institutions Street Business

Hospital Business Tender Business

Segments of GPs, Gynae, Surgery should be our domain.We should enter into Hospitals, Government Institutions & dominate Streets


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Competitive Innovation

Increase Field Force Size SPOs = 85 RSMs = 17

SMs = 3 Expand Specialities

GPs

Gynae Surgery RMOs

Paeds

Till 2008


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In 2006

Increase Field Force

Karachi SPOs = 16 / RSM = 2 Hyderabad SPOs = 6 / RSM = 1 Sukkur SPOs = 5 / RSM = 1

Quetta SPOs = 2 / RSM = 1 Multan SPOs = 5 / RSM = 1 Bahawalpur SPOs = 4 / RSm = 1 Gujranwala SPOs = 3 / RSM = 1 Lahore SPOs = 10 / RSM = 2

Faisalabad SPOs = 5 / RSM = 1 Rawalpindi SPOs = 8 / RSM = 1 DIK SPOs = 3 / RSM = 1 Peshawar SPOs = 6 / RSM = 1

Total SPOs = 72 / RSMs = 14

S i D if


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Strategic Drift

Surgery = 10 A4 = 5 A3 = 5 A2 = 0

Paeds = 2 A4 = 2 A3 = 0 A2 = 0

Others = 8 A3 = 3 A2 = 5

Daily Calls = 18

Doctors on List = 140

GPs = 70 A4 = 45 A3 = 15 A2 = 10

Gynae = 35 A4 = 20 A3 = 10 A2 = 5

RMOs = 15 A3 = 5 A2 = 10


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Working Behavior

Morning = 12 CallsMorning startsOT Reminder

Ward WorkingHospital OPDsGPs WorkingDischarge Slips

Evening = 6 CallsGPs WorkingConsultant Calls

Daily Chemist Calls = 6


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Meeting ScheduleWeekly Meeting Every Monday - 3:00 PM to 5:00 PM

Quarterly Meeting Regional Meeting - 9:00 AM to 5:00 PM

6 Monthly Meeting Zonal Meeting - 2 days

Annual Meeting Pakistan Level - 3 Days

For Expansion Strategy consider the following parameters


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1. The Costs of Gaining Share & ROI2. Knock On Effect3. Changing Loyalty of Customers from

Competition involves higher investments

4. Organization Intent to Grow5. PLC6. Increase in Share is attractive from

less appealing and less profitablesegments

7. Monopoly Legislation8. Competitive Fight9. Short Term Gain10. Competitive Retaliation11. Brand Equity12. Dont Fall in No Mans Land

For Expansion Strategy, consider the following parameters


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Take Risks

BUT

Take Calculated Risks !!


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Wish us GoodLuck !!

Documents

AGP_The Vision 2008