A case study in social contribution

If you’re in the pharma business or work in healthcare, you’ve heard of Ranbaxy’s brands.

Ranbaxy Laboratories Limited (Ranbaxy) is India’s largest pharmaceutical company. The enterprise is an integrated, research-based pioneer, and produces a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across the globe. The company’s footprint extends across 23 of the top 25 pharmaceutical markets in the world; all together, Ranbaxy operates in 46 countries, has seven world-class manufacturing facilities, and serves customers in more than 125 countries.
 
Ranbaxy’s alliance with Daiichi Sankyo Company Ltd. has created a culture of innovation and the company considers itself to be a “generic pharmaceutical powerhouse.” The combined enterprise has reason to believe its own hype: Ranbaxy ranks among the top 20 pharmaceutical companies in the world.

The company has major aspirations that extend past global manufacturing and distribution of world-class pharmaceuticals. Ranbaxy desires to have a strong presence in developed markets—and intends to dominate the world market—hoping to be “amongst the Top 5 global generic players [with] global sales of US$5 billion by 2012.”

They are well on their way to achieving this goal. With a tenure that reaches back to 1961 (incorporation), the company has truly become an economic success story. The company recorded global sales of US$1,682 million in 2008, an astonishing figure for the time—this growth was four per cent. Of this revenue, 54 per cent come from emerging markets, and 39 per cent came from developed markets.

With a pull towards emerging markets, Ranbaxy has focused on being a responsible corporate citizen in a variety of ways. Ranbaxy SA is a perfect example of how a company can leverage its market position to improve social conditions.

Ranbaxy SA sets the bar

The wholly owned subsidiary of Ranbaxy, the SA arm of the company Ranbaxy S.A. (Pty) Ltd was set up in 1998—and has been spearheading a world of change since the branch’s early days. According to the company, “there has been a constant effort to differentiate Ranbaxy from the myriad of other generic manufacturers by establishing the corporate heritage and the vision of becoming a research-based international pharmaceutical company.” However, although the pharma industry is often seen as bottom-line driven, pioneers like Ranbaxy are leading the cause for social change, especially in the area of new drug development, for countries in need of healthcare excellence.

Ranbaxy is currently the fifth-largest generic company in South Africa, due to an acquisition of Be-Tabs in 2006 which turned over US$30 million. The company has been going strong since it began working in the SA region over a decade ago, and it’s no wonder they are at the top of their class for drug development.

Ranbaxy SA’s product portfolio is divided into three strategic areas: Acute, Chronic and OTC. The acute products represent the bulk of the company’s turnover and include anti-infectives and anti-fungals. The company is committed to community investment which stems from a vision from the global enterprise; so it is no surprise that Ranbaxy SA is actively involved in social causes. Currently, the company has a joint-venture with Community Investment Holdings (South Africa), “Sonke Pharmaceuticals (Pty) Ltd,” and through this partnership Sonke markets and sells Ranbaxy’s range of anti-retroviral products in South Africa and other African markets, so tells the company website. The team at Ranbaxy is ethically-driven. With 52 staff in the SA branch, and a sales tally of US$24 million, the company has every reason to invest in its operating regions.
    
The company’s mission is to “be a premier community-based organization in primary health care to achieve positive health for all in our services.” This is because Ranbaxy does not just view success in terms of commercial gains but also sees how corporate social responsibility is the key for “providing a deep, symbiotic relationship that exists between the company and the environment” in which it functions. The company learned that this relationship is important during it tenure dominating the market.

Back in 1979, the company was “awakened” to the grim health scenario of India, and then found that it was necessary to help those with little access, if they had access at all, to basic health care. They decided to develop Ranbaxy Rural Development Trust which operated independently. The idea was that this trust would deliver primary heath care to the underserved—carrying on the notion of “health for all.” The programme grew, and is now a professionally managed, non-profit independent body called Ranbaxy Community Health Care Society (RCHS)—which operates alongside the financial support of the company. This marks a truly representative corporate commitment to change by a company in the pharma industry.  

Anti-disease—necessity and change

Ranbaxy is no stranger to meeting the needs of people around the world, whether through community activities or the company’s products themselves. The company’s comprehensive anti-HIV portfolio includes Bio-Equivalent Anti-Retrovirals (ARVs) and Anti-Infectives for Opportunistic infections.

The company endeavours to make ARVs accessible to all patients that need them globally, and leverages its global offices, especially in SA to expand availability. Ranbaxy not only works with local communities on a ground level, but also works with Ministries in various countries, NGOs, and other groups, in order to support their treatment programs. Humanitarian groups have sourced ARVs from the company, including MoH-Nigeria, MSF in various countries, MDM-Cambodia, and MEDS in Kenya. The Ministry of Health in Zambia has recognized Ranbaxy’s initiative in making ARVs available for a reasonable price in that country—showing again a commitment to health.

The Ranbaxy website states that “Encouraged by the positive response to its efforts to make quality anti-HIV generics, Ranbaxy is committed to working on all possible fronts and seeking partnerships to improve access to these medicines.” Indeed, wherever there is a need, there are Ranbaxy partnerships.
The company plans to continue to develop more need-based programs with emphasis on education and empowerment. They plan to do this through “access to information and provision of quality services” with the goal being to improve quality of life and “achieve sustainable human development.”

Addressing an unmet need

It is with these goals for better quality of life in mind, the company also operates an anti-malaria project targeted at places that have an unmet need, such as Africa.  The anti-malaria project started in 2003 and is on track.

Sadly, malaria is one of the most persistent and deadly diseases in the world, claiming the lives of more than one million people every year. Malaria is a disease that claims mostly children under the age of five and pregnant women, particularly in developing countries.  

Malarial deaths are generally found in sub-Saharan African (about 90 per cent) however now there is a higher concentration in Asia and Latin America—showing a need for Ranbaxy’s treatments.  

According to the company, “although anti-malarial drugs have a large market, it is a market with very limited resources. Together with the challenges of drug resistance, poor health systems, lack of affordable, safe and convenient treatment options, malaria treatment represents one of the largest unmet medical needs.”

Ranbaxy has responded, and “is developing a synthetic peroxide anti-malarial drug in order to address this unmet need. The company has commenced Phase-III clinical trials for this drug in India, Bangladesh and Thailand” and is “committed to developing a drug that is not only safe and effective, but also affordable to people in India, Africa and other disease endemic countries.”

Clearly, the market is wide open for Ranbaxy to address the needs of people all over the world. The company can only continue to increase its reach, and TABJ will report further on the developments of treatments in SA and beyond as we see Ranbaxy continuing to improve social conditions.  Ranbaxy has African operations in Cameroon, Egypt, the Ivory Coast, Kenya, Morocco, Nigeria, Senegal, Uganda, Zimbabwe, and strives to operate to its fullest potential in all of these regions as well as South Africa. (Source: www.ranbaxy.com, see company news for more Ranbaxy information.) 

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