amgen pharma
Post on 15-Jul-2015
174 Views
Preview:
TRANSCRIPT
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) Roll no: PM/2014/407
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 1
CONTENTS:
INTRODUCTION
MISSION
VISION
CORE PRODUCTS
CORE PRODUCTS COMPETITORS
MILE STONES
RESEARCH AND DEVELOPMENT
PORTFOLIO
STOCK EXCHANGES
DISTRIBUTION
SUPPLYCHAIN
CUSTOMER RELATIONSHIP
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 2
INTRODUCTION:
Amgen (formerly Applied Molecular Genetics) is an American multinational biopharmaceutical company headquartered in Thousand Oaks, California. Located
in the Conejo Valley, Amgen is the world's largest independent biotechnology firm. Neulasta/Neupogen, two closely related drugs used to prevent infections in patients
undergoing cancer chemotherapy; and Enbrel, a tumor necrosis factor blocker used in the treatment of rheumatoid arthritis and other autoimmune diseases.
In 2013, Amgen had revenues of $18.7 billion, an increase of 8%, and net income of $5.08 billion. Neulasta and Neupogen are the company's top grossing medication
accounting for $5.79 billion in sales followed by Enbrel at $4.5 billion. The company spent approximately $3.9 billion last year on research and development.
The company's R&D facilities are located in South San Francisco and Thousand
Oaks, CA; Cambridge and Woburn, MA; Seattle, WA; Burnaby, British Columbia, Canada; Abingdon, Cambridge, and Uxbridge, UK; Regensburg, Germany; and
clinical development offices in additional locations around the world.
In July, Amgen announced a corporate restructuring.
The company will reduce staff by 2,400-2,900, beginning later this year and continuing through 2015, predominantly in the U.S. This represents approximately
12 percent to 15 percent of Amgen's global workforce. The Company will also close its facilities in the states of Washington and Colorado.
History
In the late 1970s, George B. Rathmann left his job as
head of research and development for diagnostics at Abbott Laboratories to take the helm of a
tiny start-up experimenting with a new technology—the ability to splice genes from one
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 3
organism into another. The company’s name was Amgen, and it went on to become the
world’s largest biotechnology company. Because of his work at Amgen and subsequent
biotech companies, Rathmann is considered one of the fathers of the biotechnology industry.
MISSION:
Our Mission: To Serve Patients
Amgen strives to serve patients by transforming the promise of science and
biotechnology into therapies that have the power to restore health or even save lives. In everything we do, we aim to fulfil our mission to serve patients. And every step of the way, we are guided by the values that define us.
OUR VALUES:
Be Science-Based
Compete Intensely and Win
Create Value for Patients, Staff and Stockholders
Be Ethical
Trust and Respect Each Other
Ensure Quality
Work in Teams
Collaborate, Communicate and Be Accountable
Be Science-Based
Our success depends on superior scientific innovation, integrity and continuous improvement in all aspects of our business through the application of the scientific
method. We see the scientific method as a multi-step process that includes designing the right experiment, collecting and analyzing data and rational decision making. It is
not subjective or emotional, but rather a logical, open and rational process. Applying the scientific method in all parts of the organization is expected and highly valued .
Compete Intensely and Win
We compete against time, past performance and industry rivals to rapidly achieve high
quality results. Winning requires taking risks. We cannot be lulled into complacency by previous achievements. Though we compete intensely, we maintain high ethical
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 4
standards and demand integrity in our dealings with competitors, customers, partners and each other.
Create Value for Patients, Staff and Stockholders
We provide value by focusing on the needs of patients. Amgen creates a work
environment that provides opportunities for staff members to reach their full potential. We strive to provide stockholders with superior long-term returns while balancing the
needs of patients, staff and stockholders.
Be Ethical
We are relentless in applying the highest ethical standards to our products, services and communications.
Trust and Respect Each Other
Every job at Amgen is important and every Amgen staff member is important. We attract diverse, capable and committed people and provide an environment that fosters
inclusion, respect, individual responsibility and values diversity. Trust is strengthened through personal initiative and by obtaining quality results rapidly.
Ensure Quality
Quality is a cornerstone of all of our activities. We seek the highest quality information,
decisions and people. We produce high quality products and services. Quality is woven into the fabric of everything we do.
Work in Teams
Our teams work quickly to move scientific breakthroughs from the lab through the
clinic to the marketplace and to support other aspects of our business. Diverse teams working together generate the best decisions for patients, staff and stockholders. Our
team structure provides opportunities for Amgen staff to impact the direction of the organization, to gain broader perspective about other functions within Amgen and to reach their full potential.
Collaborate, Communicate and Be Accountable
Leaders at Amgen seek input and involve key stakeholders in important decisions. In
gathering input, strong leaders will welcome diverse opinions, conflicting views and open dialogue for serious consideration. They will clearly communicate decisions and
rationale openly and in a timely manner. Once a decision is made, the leader and
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 5
members of the team will all be accountable for the results and for implementing the decision rapidly.
CORE PRODUCTS:
Aranesp® (darbepoetin alfa)
Darbepoetin alfa is a synthetic form of erythropoietin. It stimulates erythropoiesis and
is used to treat anemia, commonly associated with chronic renal failure and cancer chemotherapy.
Mechanism of action:
Darbepoetin alfa binds to the erythropoietin receptor on erythroid progenitor cells,
stimulating RBC production and differentiation.
Side effects:
hypersensitivity reactions including anaphylactic reactions, angioedema,
bronchospasm, skin rash or rashes and urticaria
oedema
pulmonary embolism
raised blood pressure
redness of the skin1
Enbrel® (etanercept)
Etanercept (trade name Enbrel) is
a biopharmaceutical that treats
autoimmune diseases by
interfering with tumor necrosis
factor (TNF; a soluble
inflammatory cytokine) by acting
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 6
as a TNF inhibitor. It has U.S. F.D.A. approval to treat rheumatoid arthritis,
juvenile rheumatoid arthritis and psoriatic arthritis, plaque psoriasis and
ankylosing spondylitis. TNF-alpha is the "master regulator" of the inflammatory
(immune) response in many organ systems. Autoimmune diseases are caused by
an overactive immune response. Etanercept has the potential to treat these
diseases by inhibiting TNF-alpha.
Side effects:
Risk of infection. ENBREL can lower the ability of your immune system to fight
infections. ex TB.
Risk of cancer. For children, teenagers, and adults taking TNF-blocker
medicines, including ENBREL, the chances of getting lymphoma or other cancers may increase.
Blood problems. Low blood counts have been seen with other TNF blocker medicines
Heart failure including new heart failure or worsening of heart failure
EPOGEN® (epoetin alfa)
EPOGEN® is a prescription medicine used to treat a
lower than normal number of red blood cells (anemia)
caused by chronic kidney disease in patients on dialysis
to reduce or avoid the need for red blood cell
transfusions.
Side effects:
feeling light-headed, fainting;
fever, chills, body aches, flu symptoms, sores in your mouth and throat;
pale skin, feeling short of breath, rapid heart rate, trouble concentrating;
easy bruising, unusual bleeding (nose, mouth, vagina, or rectum), purple or red
pinpoint spots under your skin;
seizure (black-out or convulsions);
low potassium (confusion, uneven heart rate, extreme thirst, increased urination, leg discomfort, muscle weakness or limp feeling); or
dangerously high blood pressure (severe headache, blurred vision, buzzing in your ears, anxiety, confusion, chest pain, shortness of breath, uneven heartbeats, seizure)
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 7
Kyprolis® (carfilzomib)
Carfilzomib is an anti-cancer drug acting as a selective
proteasome inhibitor. Chemically, it is a
tetrapeptideepoxyketone and an analog of epoxomicin.
The U.S. Food and Drug Administration (FDA) approved it for use in patients with
multiple myeloma who have received at least two prior therapies, including
treatment with bortezomib and an immunomodulatory therapy and have
demonstrated disease progression on or within 60 days of completion of the last
therapy.
Mechanism of action:
Carfilzomib irreversibly binds to and inhibits the chymotrypsin-like activity of the
20S proteasome, an enzyme that degrades unwanted cellular proteins. Inhibition of
proteasome-mediated proteolysis results in a build-up of polyubiquinated proteins,
which may cause cell cycle arrest, apoptosis, and inhibition of tumor growth
A phase III confirmatory clinical trial, known as the ASPIRE trial, comparing
carfilzomib, lenalidomide and dexamethasone versus lenalidomide and
dexamethasone in patients with relapsed multiple myeloma is ongoing. It is no
longer recruiting and should report in 2014.
Side effects:
• Heart problems: KYPROLIS can cause heart problems or worsen pre-existing
heart conditions. Death due to cardiac arrest has occurred within a day of
KYPROLIS administration.
• Pulmonary hypertension (high blood pressure in the lungs): There have been
reports of pulmonary hypertension in patients receiving KYPROLIS
• Lung complications: Shortness of breath was reported in 35% of patients
• Infusion reactions: Symptoms of infusion reactions included fever, chills, joint
pain, muscle pain, facial flushing and/or swelling, vomiting, weakness, shortness of
breath, low blood pressure, fainting, chest tightness, and chest pai
• Tumor lysis syndrome (TLS): You will be closely monitored during treatment for
any signs of TLS
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 8
• Very low platelet count: You will have regular blood tests to check your platelet
count during treatment
• Liver problems: Cases of liver failure, including fatal cases, have been reported in
patients receiving KYPROLIS. Your liver function will be closely monitored during
treatment
• Fetal harm: KYPROLIS can cause harm to a fetus when administered to a
pregnant woman. Women should avoid becoming pregnant during treatment with
KYPROLIS
Neulasta® (pegfilgrastim)
Neulasta® (pegfilgrastim) is a covalent
conjugate of recombinant methionyl human G
CSF(Filgrastim)and monomethoxy-
polyethylene glycol.
Side effects:
Pegfilgrastim (the active ingredient contained
in Neulasta) have included many effects that
have been associated with the chemotherapy that was given concomitantly. These
have included nausea, fatigue, alopecia, diarrhea, vomiting, constipation, fever,
anorexia, skeletal pain, headache, taste perversion, dyspepsia, myalgia, insomnia,
abdominal pain, arthralgia, generalized weakness, peripheral edema, dizziness,
granulocytopenia, stomatitis, mucositis, and neutropenic fever. Most of these effects
have been attributed by the investigators to be the result of the underlying condition
or the chemotherapy administered.
NEUPOGEN® (Filgrastim)
Filgrastim is a granulocyte colony-stimulating factor (G-CSF) analog used to stimulate the proliferation and differentiation of granulocytes. It
is produced by recombinant DNA technology. The gene for human granulocyte colony-stimulating
factor is inserted into the genetic material of Escherichia coli.
Mechanism of Action:
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 9
Filgrastim is a human granulocyte colony stimulating factor (G-CSF) produced by recombinant DNA technology. G-CSF regulates the production of neutrophils within
the bone marrow; endogenous G-CSF is a glycoprotein produced by monocytes, fibroblasts, and endothelial cells.
Adverse effects:
The most commonly observed adverse effect is mild-to-moderate bone pain after repeated administration and local skin reactions at the site of injection. Other
observed adverse effects include serious allergic reactions (including a rash over the whole body, shortness of breath, wheezing, dizziness, swelling around the mouth or
eyes, fast pulse, and sweating), ruptured spleen (sometimes resulting in death), alveolar haemorrhage, acute respiratory distress syndrome, and haemoptysis. Severe
sickle cell crises, in some cases resulting in death, have been associated with the use of filgrastim in patients with sickle cell disorders.
NEXAVAR® (sorafenib)
Sorafenib is a kinase inhibitor drug approved for the
treatment of primary kidney cancer (advanced renal
cell carcinoma), advanced primary liver cancer
(hepatocellular carcinoma), and radioactive iodine
resistant advanced thyroid carcinoma.
Mechanism of action:
Sorafenib is a small molecular inhibitor of several tyrosine protein kinases (VEGFR
and PDGFR) (tyrosine kinase inhibitor or TKI) and Raf kinases (more avidly C-Raf
than B-Raf). Sorafenib also inhibits some intracellular serine/threonine kinases (e.g.
C-Raf, wild-type B-Raf and mutant B-Raf). Sorafenib treatment induces autophagy,
which may suppress tumor growth. However, autophagy can also cause drug
resistance.
Side effects:
Lymphopenia
Hypophosphataemia
Haemorrhage
Hypertension
Diarrhea
Rash
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 10
Alopecia
Hand-foot syndrome
XGEVA® (denosumab)
Denosumab is a fully human monoclonal
antibody for the treatment of osteoporosis, treatment-induced bone loss, bone
metastases, multiple myeloma, and giant cell tumor of bone. It was developed by
Amgen.
Mechanism of action:
Denosumab is designed to inhibit RANKL (RANK ligand), a protein that acts as the
primary signal for bone removal. In many bone loss conditions, RANKL overwhelms the body's natural defenses against bone destruction.
Side effects:
The most common side effects include infections of the urinary and respiratory tracts,
cataracts, constipation, rashes, and joint pain. A small study found a slightly increased risk of cancer and severe infections.
Significantly increased rates of eczema and hospitalization due to infections of the skin. It has been proposed that the increase in infections under denosumab treatment
might be connected to the role of RANKL in the immune system. RANKL is expressed by T helper cells, and is thought to be involved in dendritic cell maturation.
CORE PRODUCTS COMPETITORS:
Aranesp's only competitor is Procrit, sold by Johnson & Johnson (JNJ).
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 11
AbbVie's Humira (adalimumab) and Johnson & Johnson's psoriasis drug Stelara
(ustekinumab) presents a strong competitor to Enbrel.
Roche’s Mircera is the main competitor in Europe.
Velcade is considered to be equally potent and thus serves as an alternate choice.
Teva Pharmaceutical has been given a green light by the European Commission
(EC) for Lonquex, a rival to Amgen's blockbuster Neulasta.
Teva’s biosimilar poses a threat to sales of Neupogen.
Most of the molecules are in Phase 3 contains molecules which may soon influence
the competitive landscape, include Celsion’s ThermoDox, ImClone/Eli Lilly’s
ramucirumab, Medigen/Progen’s muparfostat and Novartis’ Afinitor (everolimus).
Milestones:
1980
AMGen (Applied Molecular Genetics Inc.) established as a California corporation on
April 8
George B. Rathmann named CEO.
1983
Company changes name to Amgen.
A research team led by Fu-Kuen Lin clones the gene for human erythropoietin (EPO)
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 12
and produces recombinant EPO, later patented and named EPOGEN® (Epoetin alfa).
Initial Public Offering of 2,350,000 shares at $18 per share raises $40 million
1985
A research team led by Larry M. Souza clones the gene for human granulocyte colony-
stimulating factor (G-CSF) and produces recombinant G-CSF, later patented and
named NEUPOGEN®
1987
Amgen receives first patent on DNA used in producing Epoetin alfa
1988
Gordon M. Binder named CEO
1989
Immunex clones the gene for a soluble TNF receptor and later develops and patents a
fusion product, Enbrel® (etanercept)
Amgen receives first U.S. patent for recombinant G-CSF (NEUPOGEN®)
FDA approves EPOGEN® for the treatment of anemia in patients with end-stage renal
disease
EPOGEN® named "Product of the Year" by Fortune magazine
1991
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 13
FDA approves NEUPOGEN® to decrease the incidence of infection associated with
chemotherapy-induced neutropenia in patients with non-myeloid cancers
Amgen establishes the Amgen Foundation for charity.
NEUPOGEN® named "Product of the Year" by Fortune magazine
1992
Amgen sales surpass $1 billion
1994
Amgen receives U.S. Department of Commerce National Medal of Technology
1996
Amgen sales surpass $2 billion
1998
FDA approves Enbrel® (etanercept) to treat patients with rheumatoid arthritis
1999
Amgen sales surpass $3 billion
FDA approves Enbrel® to treat moderately to severely active polyarticular-course
juvenile rheumatoid arthritis
2000
Kevin W. Sharer named CEO
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 14
2001
FDA approves Aranesp® (darbepoetin alfa) to treat anemia associated with chronic
renal failure
2002
FDA and EMEA approve Neulasta® (pegfilgrastim) to decrease the incidence of
infection in patients with non-myeloid cancers receiving chemotherapy
FDA approves Aranesp® for the treatment of chemotherapy-induced anemia in patients
with nonmyeloid malignancies
Amgen completes Immunex acquisition
FDA approves Enbrel® to treat the signs and symptoms of active arthritis in patients
with psoriatic arthritis
2003
FDA approves Enbrel® for the treatment of ankylosing spondylitis and other expanded
indications
2004
The FDA and EMEA approve respectively Sensipar® and Mimpara® (cinacalcet HCl)
for the treatment of secondary hyperparathyroidism in chronic kidney disease patients
on dialysis
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 15
FDA approves Enbrel® for the treatment of chronic moderate to severe plaque psoriasis
in adults
Amgen completes Tularik acquisition
2005
EMEA approves Kepivance® , Aranesp® Sureclick™ and Neulasta®Sureclick™
Amgen Europe BV (Breda) receives Gazellen award for fastest growing company in
the province Brabant.
RESEARCH AND DEVELOPMENT:
Amgen aspires to be the best human therapeutics company. Achieving our goal starts
with building the world’s premier R&D organization. Our R&D Guiding Principles
were inspired by this pursuit and designed to reinforce our strategic priorities.
Continue to focus on unmet needs in patients with serious illness. While Amgen is
always adapting to new opportunities and challenges, we’ve retained a consistent
commitment to the same mission. That mission is to enhance and extend the lives of
patients facing serious illness.
Demonstrate the value of our medicines. Patients will not benefit from medicines they
cannot access, and access is contingent on meeting high expectations from regulators
and payers. To meet those expectations, we must develop medicines that are well-
differentiated in terms of their therapeutic value and supported by compelling health
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 16
economic evidence. By positioning Amgen’s medicines to achieve commercial
success, we are also providing the basis for future investments in R&D.
Drive operational efficiency. Money we save by adopting increasingly efficient
approaches can be used to conduct more trials or run more experiments. Operational
efficiency increases Amgen’s R&D productivity and our ability to maintain innovation
in the face of rising cost pressures on the industry.
Maintain modality independence with a focus on biologics. Our R&D organization is
focused on a “biology-first” approach to drug target selection that requires modality
independence. We recognize our deep expertise in biologic development and
manufacturing and the higher success rates for developing biologic medicines.
However, we also understand that proficiency in small molecules is required to access
the majority of drug targets, and we are committed to maintaining and productively
utilizing that expertise.
The paradigm for this industry remains innovation. Discovery research is essential to
long-term success in our industry. We reaffirm the need for internal innovation based
on cutting-edge biology, which must be coupled with an aggressive effort to harness
external innovation.
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 17
PIPELINE:
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 18
PRODUCT PORTFOLIO:
Aranesp® (darbepoetin alfa): This medication is used to treat
anemia (low red blood cell count) in people with long-term serious kidney
disease (chronic renal failure) and people receiving chemotherapy for
some types of cancer (non-myeloid cancers). Darbepoetin alfa helps to
reverse anemia. It also helps to reduce the need for blood transfusions.
Enbrel® (etanercept): Etanercept is an injectable drug that is used for
treating rheumatoid arthritis, ankylosing spondylitis, psoriatic arthritis and plaque
psoriasis.
EPOGEN® (epoetin alfa) : Epogen is used to treat anemia (a lack of
red blood cells in the body) in patients with chronic kidney disease.
Epogen is also used in HIV patients who have anemia due to treatment
with zidovudine and in cancer patients who have anemia due to
chemotherapy.
Kyprolis® (carfilzomib): Kyprolis is a proteasome inhibitor used
for patients who have already received at least two other
treatments and whose disease has progressed (got worse) on their
last therapy or within 60 days of their last therapy. Proteasomes are
enzymes found in cells that play an important role in regulating cell
function and cell growth by controlling the breakdown of important
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 19
enzymes. As a proteasome inhibitor, Kyprolis blocks the activity of
proKyprolis growth and survival of cancer cells.
Neulasta® (pegfilgrastim): Neulasta (pegfilgrastim) is a man-made
form of a protein that stimulates the growth of white blood cells in your
body. White blood cells help your body fight against infection. Neulasta is
used to prevent neutropenia, a lack of certain white blood cells caused by
receiving chemotherapy.
NEUPOGEN® (Filgrastim): White blood cells help your body fight
against infection. Neupogen is used to treat neutropenia, a lack of certain
white blood cells caused by cancer, bone marrow transplant, receiving
chemotherapy, or by other conditions.
NEXAVAR® (sorafenib): Nexavar (sorafenib) is a cancer
medication that interferes with the growth and spread of cancer cells in the
body. Nexavar is used to treat liver cancer, thyroid cancer, or a type of
kidney cancer called advanced renal cell carcinoma.
Nplate® (romiplostim): Nplate® is a man-made protein medicine
used to treat low blood platelet counts in adults with chronic immune
thrombocytopenia (ITP), when certain other medicines, or surgery to
remove your spleen, have not worked well enough.
Prolia® (denosumab): is a prescription medicine used to treat
osteoporosis in women after menopause who: are at high risk for fracture,
meaning women who have had a fracture related to osteoporosis, or who
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 20
have multiple risk factors for fracture cannot use another osteoporosis
medicine or other osteoporosis medicines did not work well
Sensipar® (cinacalcet): Sensipar is used to treat hyperparathyroidism
(over activity of the parathyroid glands) in people who are on long-term
dialysis for kidney disease. Sensipar is also used to lower calcium levels
in people with cancer of the parathyroid gland
Vectibix® (panitumumab): Vectibix (panitumumab) is a cancer
medication that interferes with the growth and spread of cancer cells in the
body. Vectibix is used to treat metastatic colorectal cancer that has
progressed after treatment with other chemotherapy.
XGEVA® (denosumab): Prevention of skeletal-related events (need
for radiation, fracture due to cancer in the bone, surgery to the bone, or
compression of the spinal cord) in patients with bone metastases from solid
tumors. Treatment of giant cell tumor of the bone.
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 21
MARKETING & DISTRIBUTION:
They maintain sales and marketing forces primarily in the United States, Europe
and Canada to support our currently marketed products and in preparation of the
launch of Prolia™. We market our products to healthcare providers, including
physicians or their clinics, dialysis centres, hospitals and pharmacies. We also
market certain products directly to consumers through direct-to-consumer print and
television advertising, and also through the Internet. In addition, for certain of our
products, we promote programs to increase public awareness of the health risks
associated with the diseases these products treat, as well as providing support to
various patient education and support programs in the related therapeutic areas.
In the United States, we sell primarily to wholesale distributors of
pharmaceutical products. We utilize these wholesale distributors as the principal
means of distributing our products to healthcare providers. In early 2008,
ENBREL’s distribution model was converted from primarily being shipped directly
to pharmacies to a wholesale distribution model similar to our other products. In
Europe, Aranesp®, Neulasta® and NEUPOGEN® are principally sold to healthcare
providers and/or wholesalers depending upon the distribution practice in each
country. We monitor the financial condition of our larger customers and limit our
credit exposure by setting credit limits, requiring letters of credit and obtaining
credit insurance, as we deem appropriate.
SUPPLYCHAIN:
A supply chain is a system of organizations, people, activit ies, information, and
resource involved in moving a product or service from supplier to customer. Supply
chain activities transform natural resources, raw materials, and components into a
finished product that is delivered to the end customer.
In the 1980s, the term supply chain management (SCM) was developed to express the
need to integrate the key business processes, from end user through original
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 22
suppliers. Original suppliers are those that provide products, services, and
information that add value for customers and other stakeholders. The basic idea
behind SCM is that companies and corporations involve themselves in a supply chain
by exchanging information about market fluctuations and production capabilities.
The primary objective of SCM is to fulfil customer demands through the most
efficient use of resources, including distribution capacity, inventory, and labour. In
theory, a supply chain seeks to match demand with supply and do so with the
minimal inventory. Various aspects of optimizing the supply chain include liaising
with suppliers to eliminate bottlenecks; sourcing strategically to strike a balance
between lowest material cost and transportation, implementing just-in-time
techniques to optimize manufacturing flow; maintaining the right mix and location of
factories and warehouses to serve customer markets; and using location allocation,
vehicle routing analysis, dynamic programming, and traditional logistics optimization
to maximize the efficiency of distribution.
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 23
CUSTOMER RELATIONSHIP:
Customer relationship management (CRM) is a system for managing a company's
interactions with current and future customers. It often involves using technology
to organize, automate and synchronize sales, marketing, customer service, and
technical support.Customer relationship management systems track and measure
marketing campaigns over multiple networks. These systems can track customer
analysis by customer clicks and sales. Places where CRM is used include call
centers, social media, direct mail, data storage files, banks, and customer data
queries. CRM systems are customer relationship management platforms. The goal
of the system is to track, record, store in databases, and then data mine the
information in a way that increases customer relations. CRM is “all the tools,
technologies and procedures to manage, improve, or facilitate sales, support and
related interactions with customers, prospects, and business partners throughout the
enterprise”.
DEPARTMENT OF PHARMACEUTICAL MANAGEMENT (NIPER-HYD) 24
top related