Strategy and Ratio Analysis of Gsk

Strategy Analysis of GSK

Pharmaceutical Industry Overview of GlaxoSmithKline (GSK)

In Bangladesh, the pharmaceutical sector is one of the fastest growing sectors. After the promulgation of Drug Control Ordinance - 1982, the development of this sector was accelerated. In 2008 the total size of the pharmaceutical market in Bangladesh was estimated to be USD 700 million and is growing at a steady rate. The pharmaceutical sector is the second highest contributor to the National Ex-Checker and the largest white collar labor intensive employment sector of the country. There are 245 registered pharmaceutical manufacturing companies in Bangladesh. The local pharmaceutical manufacturers cater to about 97% of the internal demand.

Today, Bangladesh Pharmaceutical Industry is successfully exporting APIs and a wide range of products covering all major therapeutic classes and dosage forms to 71 countries.

Future prospect of the industry:

The future of pharmaceutical exports from Bangladesh is bright. After the inclusion of the Doha declaration in WTO / TRIPS Agreement, each and every country belonging to the LDC Category has the option not to opt for pharmaceutical product patent until 2016, which means they can now legally reverse engineer patented products and sell in their markets as well as can export to other LDCs. This creates a huge export opportunities for Bangladesh, because, among all the 50 LDCs, Bangladesh is the only country which had a strong base for the pharma manufacturing. Besides direct export operations, there is also a huge opportunity for the Bangladeshi companies to go for the Contract Manufacturing and compulsory licensing.

The current pharmaceutical industry of Bangladesh is a very attractive and a lucrative one. If we consider the Porter’s 5 Forces Model to explain the situation, we can see that the Threat of New Entrants is relatively high compared to other industries as the entry barriers are low. Also government regulations are lenient...