Market Analysis of Pharmaceutical Sector

1. VIT BUSINESS SCHOOL
Market Analysis of Pharmaceutical Sector
Pfizer
Jeevan Raj

2. Contents
VIT Business School: ............................................................................................................................. 3
Introduction to Pharmaceutical Sectors ................................................................................................. 4
Market Share Analysis............................................................................................................................. 5
Turnover in Billions of Top 10 Companies .............................................................................................. 5
Interpretation ......................................................................................................................................... 5
Capital Labour Ratio ................................................................................................................................ 6
Introduction ............................................................................................................................................ 6
Interpretation ......................................................................................................................................... 6
Employee Strength and Turnover ........................................................................................................... 7
Company Analysis ................................................................................................................................... 7
Prediction of Share Price by Weka Introduction..................................................................................... 7
Forecast of share price using SPSS Software .......................................................................................... 8
Conclusion ............................................................................................................................................. 11

3. VIT Business School:
VIT University was established in 1984 by well-known educationalist and former parliamentarian, Dr. G. Viswanathan, Founder and Chancellor. Dr. V. Raju, Former Professor of State University of New York, USA, currently the Vice Chancellor, Dr. Anand A. Samuel, Pro-Vice Chancellor. Chennai Campus is in Vandalur-Kelambakkam Road.VIT University has more than 17 Bachelor’s and 32 Masters’ programmes, 29000 (including 1000 foreign students from 44 countries) and 4000 faculty members Accreditation:  The National Assessment and Accreditation Council (NAAC) of the University Grants Commission (UGC) has accredited the university with a 'A'.  The Institution of Engineering and Technology (IET), and the Energy Institute, UK have audited the teaching-learning processes at VIT and accredited the programmes in 2004, with the highest validity of five years  Programmes at VIT are accredited by the Institution of Engineers, India (IEI).  The Accreditation Board for Engineering and Technology (ABET) of the USA accredited the Civil, Mech, CSE, biomedical, ECE, EEE programmes. VIT Business School, under the aegis VIT University has created a niche for itself as an institution promoting excellence in management education and research with Dr. M J Xavier as its Executive Director.

4. Introduction to Pharmaceutical Sectors
Pharmaceutical industries play a major role in the developing world. Pharmaceutical Industries develop, manufactures and produces drugs licensed for use as medications. The Drugs which are manufacturing are subject to a variety of laws and regulations regarding the patenting, testing and ensuring safety and efficacy and marketing of drugs. Most of today's major pharmaceutical companies were founded in the late 19th and early 20th centuries. As diseases are growing more in number, It is a great challenge for researchers and scientist to develop new drugs in the present scenario.
Numerous new drugs were developed during the 1950s and mass-produced and marketed through the 1960s. These included the first oral contraceptive, "The Pill", Cortisone, blood-pressure drugs and other heart medications. MAO inhibitors, chlorpromazine (Thorazine), haloperidol (Haldol) and the tranquilizers ushered in the age of psychiatric medication. Diazepam (Valium), discovered in 1960, was marketed from 1963 and rapidly became the most prescribed drug in history, prior to controversy over dependency and habituation.
The pharmaceutical industry entered the 1980s pressured by economics and a host of new regulations, both safety and environmental, but also transformed by new DNA chemistries and new technologies for analysis and computation. Drugs for heart disease and for AIDS were a feature of the 1980s, involving challenges to regulatory bodies and a faster approval process.
Drug development progressed from a hit-and-miss approach to rational drug discovery in both laboratory design and natural-product surveys. Demand for nutritional supplements and so-called alternative medicines created new opportunities and increased competition in the industry.

5. Market Share Analysis
Turnover in Billions of Top 10 Companies
Interpretation
From the distribution of sales turnover of top 10 Pharmaceutical companies, it is noted that Johnson & Johnson has excelled in its volume of sales and revenue generation with a turnover of 67200 Billion, followed by Pfizer with a turnover of 58986 Billion. Novartis holds the third position with a turnover of 56673 Billion.
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Pfizer
Novartis
Roche
Johnson & Johnson
Merck & Co
GlaxoSmithKline
Sanofi
Eli Lilly
AstraZeneca
Abbott Laboratories

6. Capital Labour Ratio
Introduction
The following bar chart is a graphical representation of Labour capital ratio. Labour Capital Ratio is calculated by Firm’s Capital by Number of employees.
Interpretation
From the findings it is inferred that Johnson & Johnson has a highest Labour Capital Ratio. Pfizer stands in the second position and GlaxoSmithKline stands in the third position.
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Sanofi
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AstraZeneca
Abbott Laboratories
Labour Capital Ratio
Labour Capital Ratio

7. Employee Strength and Turnover
Company Analysis Prediction of Share Price by Weka Introduction
Weka is a collection of machine learning algorithms for data mining tasks, Weka is used here to forecast the share price of Pfizer using data of the last traded price. The forecast uses data of
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8. previous month. Horizontal axis indicates the last traded share price. The bold red line indicates the last trade price until available data, and the jotted lines indicate the predicted price.
Interpretation
The prediction of the share price of Pfizer was done using Weka and it proved successful to gauge the price. In the above prediction it is inferred that the price Increases gradually.
Forecast of share price using SPSS Software
Introduction
SPSS Software package was used for statistical analysis of data using dependent and independent variables to forecast the share price of Pfizer. Different variables such as last traded price, Opening price, High price were used to forecast the share price. Data for analysis was taken for a period of 1 month prior to analysis. The blue line indicates the actual opening price of the share whereas the red line indicates the forecasted price.

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Forcasted Value
Original Price

10. Interpretation
The level of accuracy for the forecast was high, it is inferred from the forecast that the share price increased during end of July 2014, and dipped during the following month to rise again at the end of June and subsequently rising till August 2014 where it touched its peak and finally stabilized during the end of August. The analysis was 94% accurate.

11. Conclusion
Pfizer is one of the top leading pharmaceutical Company in the world. It is founded in 1849. Pfizer has its headquarters in New York, USA. Pfizer products and drugs have been served worldwide. It has generated revenue of 58,986 Billion in 2013, and has employee strength of 91,500. When compared to other Pharmaceutical companies, Pfizer is pretty good in all aspects.
Market Share Analysis
From the distribution of sales turnover of top 10 Pharmaceutical companies, it is noted that Johnson & Johnson has excelled in its volume of sales and revenue generation with a turnover of 67200 Billion, followed by Pfizer with a turnover of 58986 Billion. Novartis holds the third position with a turnover of 56673 Billion.
Labour Capital Ratio
From the findings it is inferred that Johnson & Johnson has a highest Labour Capital Ratio. Pfizer stands in the second position and GlaxoSmithKline stands in the third position.
Weka Prediction
The prediction of the share price of Pfizer was done using Weka and it proved successful to gauge the price. In the above prediction it is inferred that the price Increases gradually.
SPSS Forecasting The level of accuracy for the forecast was high, it is inferred from the forecast that the share price increased during end of July 2014, and dipped during the following month to rise again at the end of June and subsequently rising till August 2014 where it touched its peak and finally stabilized during the end of August. The analysis was 94% accurate.

12. For Further details Contact: Dr P James Daniel Paul, Professor, VIT- BS, Chennai, jamesdanielpaul.p@vit.ac.in Tel: +91 44 3993 1040 HP: +91 98402 94590 Mr. Jeevan Raj, Student, VIT-BS, Chennai, Jeevajohn67@gmail.com Tel: +919944899472