23Oct 2018 by Reese Bannister

Product Life Cycle and Market Life Cycle in Pharmaceutical Marketing in India

Marketing
“Product life cycle in the pharmaceutical market is same as our life cycle, i.e. introduction (birth), growth, maturity and decline (death)”.In human life we needs various types of calories at different stages in the same way, product of pharmaceutical marketing needs various types of inputs to sustain or maintain longer life of the product.In introductory phase, product is introduced into the market and needs a lot of efforts to get prescription from doctor. Here sale is very low and confers only availability at Chemist level. This phase demands lot of inputs like product detailing, physician’s sample and refer­ence print etc. Image Source: infonam.com ADVERTISEMENTS: Growth phase involves actual sale of product and number of prescriptions should be in­creased. Here fear of competitors to enter and snatch the sale is more…
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23Oct 2018 by Reese Bannister

3 Pricing Strategies Used in Pharmaceutical Market­ing in India

Marketing
Pricing strategies are set as per company objective, market sensitivity, product category, competition etc.There are selective successful pricing strategies in pharmaceutical market­ing are discussed as, 1. Marginal Cost Pricing: In simple terms “marginal cost pricing is the cost of producing one more unit as fixed cost already been covered with existing sales volume”. It means company utilizes its capacity for additional production where profit on small sales remains same but chances of additional margin may increase. Marginal cost pricing is helpful when company gets a bulk order from any institution tender or hospital supply to supply were quoting lowest price is more produc­tive. ADVERTISEMENTS: Torrent pharmaceutical Ltd a Gujarat based pharmaceutical company has their brand Hexidol well settled in market. Hexidol has been used as an anti-psychotic drug containing Halo-…
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23Oct 2018 by Reese Bannister

7 Differences between “Memorandum of Association” and “Articles of Association”

Management
The Memorandum contains the fundamental conditions upon which alone the company is allowed to be incorporated. They are conditions introduced for the benefit of the creditors, and the outside public, as well as of the shareholders. The Articles of Association are internal regulations of the company.The main points of difference between memorandum and articles are as follows:1. Memorandum of Association is the charter of the company. It contains those fundamental conditions upon which alone the company is granted incorporation. Articles of Association contain the rules and regulations framed to govern the internal management of the company. ADVERTISEMENTS: 2. Different clauses of the Memorandum cannot be easily altered. They can be altered for specified purposes and in accordance with the mode prescribed by the Act. Alteration of some of them requires…
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23Oct 2018 by Reese Bannister

3 Circumstances under which the Doctrine of Indoor Management is not applicable

Management
The doctrine of indoor management is subject to the following exceptions when the protection under the rule may not be given to the persons dealing with the company: 1. Knowledge of Irregularity: The protection of the doctrine is not afforded to a person who had the actual or constructive knowledge of the irregularity besetting the transaction. In Howard v Patent Ivory Co., for example, the directors of the company had the authority to borrow up to ? 1000 without sanction of the resolution at the general meeting.Directors lent to the company ? 3500 without any resolution being passed. It was held that the company would be bound only by ? 1000. The Turquand rule was not applied as the directors ought to know that the resolution was not passed so…
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23Oct 2018 by Reese Bannister

9 Important Requirements for the Issue of a Valid Prospectus (Companies Act, 1956)

Management
Issue of prospectus, in order to be valid, must satisfy the following legal requirements: 1. Obligations of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009: These regulations inter-alia deal with appointment of Lead Merchant Banker, Bankers to the issue, Registrar to the issue, filing of various documents along with a draft prospectus, pricing of the securities, promoters contribution, minimum public offer, and disclosure in the offer document.The company is required to file a draft offer document through the lead merchant banker to the SEBI, at least 30 days prior to registering the prospectus with the Registrar of Companies. 2. It must be dated: ADVERTISEMENTS: Every prospectus must be dated. The date given in the prospectus shall be taken to be the date of its publication unless proved to the…
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23Oct 2018 by Reese Bannister

Top 15 Privileges and Exemptions Enjoyed by a Private Company in India

Management
Since a private company does not involve funds from the public, it needs less stringent control from the regulatory provisions. Accordingly, certain provisions of the Companies Act which are applicable to public companies do not apply to private companies.These exemptions are referred as the privileges or advantages of a private company. These are: 1. Members: ADVERTISEMENTS: A private company can be formed with only 2 persons as members. 2. Prospectus: A private company need not issue prospectus. It is also not required to file a ‘statement in lieu of prospectus’ with the Registrar before allotment of shares. Thus a private company is exempted from complying with the provisions of the Act regarding the issue of the prospectus. Image Source: knitasia.com 3. Certificate of commencement of business: A private company can…
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23Oct 2018 by Reese Bannister

8 Most Important Features of a Company (Indian Companies Act, 1956)

Business
Following are the broad features of a company: 1. Incorporated Association: Company is an incorporated association of persons created by the law of the country. In India companies are formed and registered under the Companies Act 1956. Incorporation of a company requires registration of formal documents with the Registrar of Companies.Memorandum of Association is the important document which contains the fundamental conditions and purposes for which a company is formed. In fact, a company does not have its existence beyond its memorandum of association. The other important document is the Articles of Association which lay down the rules and regulations for governance of the company. Image Source: myfirstchoicebusiness.com ADVERTISEMENTS: The ‘Registration Certificate’ or the ‘Certificate of Incorporation, grants a legal entity to a company enabling it to discharge functions such…
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23Oct 2018 by Reese Bannister

Provision for “Annual General Meeting” of a Company Under the Indian Companies Act 1956

Management
(1) Meaning and Purpose: Annual General Meeting is a regular meeting of the members of a company which is held annually. This meeting provides an opportunity to the members of the company to review working of the company and express their views on the management of the company. Image Source: interqualityproject.euThe purpose of calling the meeting is to transact the ordinary business of the company. The ordinary business consists of: ADVERTISEMENTS: (a) The passing of the annual accounts,(b) Declaration of dividends,(c) Election of directors in place of those who are retiring by rotation,(d) Appointment and fixation of the remuneration of auditors of the company. (2) Statutory requirement: ADVERTISEMENTS: It is a statutory requirement on every company to call and hold an annual general meeting every year. The first annual general…
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23Oct 2018 by Reese Bannister

6 Important Medico Legal Aspects in India Related to Safety of Patients in a Hospital

Management
Important Medico legal Aspects Related to Safety of Patients in a Hospital are given below: 1. Protection of Rights of Patients: In India, unlike in many other countries, the rights of the patients have not yet been spelt out in a legal form. Even the level of awareness among public as well as health care professionals is low.However, the fundamental rights enshrined in the constitution and certain laws enacted from time to time, have spelt out the obligations of the health care providers towards patients and have, indirectly, conferred certain rights on the patients. ADVERTISEMENTS: Learning from the world wide movement and the emphasis by the JCAHO/JCI (USA) on the Rights of Patients in their Accreditation Standards, National Accreditation Board for Hospitals and Health Care Providers (NABH) (India) have also,…
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23Oct 2018 by Reese Bannister

5 Essential Requisites of Valid Call on Shares (Indian Companies Act, 1956)

Business
Demand made by a company towards the payment of value of shares in pursuance of resolution of the Board and the terms of the Articles is termed as call. However, money payable on application and allotment are not calls.Payment made by a shareholder by installments is not calls. A call can be made only after the minimum subscription is allotted and the company is entitled to commence business. Call may also be made by a liquidator in the course of the winding up. Articles usually provide the rules regarding making of calls and these are to be strictly followed.Section 36(2) of the Companies Act provides that all money payable by any member to the company under memorandum or articles shall be a debt due from him to the company. But…
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