Updated on 8 April 2013
Ranbaxy and Daiichi Sankyo are leveraging on their ‘hybrid business model’ to expand their global footprint
Ranbaxy, like many other Indian firms is leveraging on big pharma's change in strategy from ‘profit alone' model to ‘profit together' model. It is expanding to various countries in an innovative way which is through Hybrid Business Model. Since 2008, when Daiichi Sankyo acquired Ranbaxy, the two companies have been leveraging on this hybrid business model which brings together the complementary strengths of a global generic company (Ranbaxy) and a top global innovator (Daiichi Sankyo).
The coming together of the two entities marks a paradigm shift in how global pharmaceutical companies collaborate to serve the needs of patients effectively. A spokesperson from Ranbaxy said, "Both Ranbaxy and Daiichi Sankyo believe that this revolutionary model is best suited to cater to the changing dynamics of the global pharmaceutical industry. The combined entity now ranks among the top 20 global pharmaceutical companies."
The collaboration extends beyond marketing and covers the entire value chain including R&D, supply chain, quality & safety management, sales and manufacturing and also corporate social responsibility (CSR). As a member of the Daiichi Sankyo group, in markets where Ranbaxy is the stronger player, Ranbaxy takes the lead to promote both its own generic products, as well as Daiichi Sankyo's innovator products, irrespective of the nature of the market.