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Profitability of Indian Pharmaceutical Firms

  • Mainak Mazumdar
Chapter
Part of the Contributions to Economics book series (CE)

Abstract

Using an imbalanced panel of over 2,372 firms, in this chapter, we have examined the determinants of the profitability of Indian Pharmaceutical firms for the period 1991–2005. Our study indicates that industrial structure does not favorably create any entry barrier for firms to insulate its high profit earning from the incumbents. The analysis also indicates that firm-specific strategies like marketing or R&D intensity do not have any favorable impact on the profitability of firms. However, the interaction between R&D and marketing is one of the most successful strategies for firms. In other words, if firms can come out with new products that have some therapeutic qualities and successfully market the product , they can earn higher profit. We also find that firms that have more niche products under their commands are more profitable.

Keywords

High Profit Entry Barrier Export Intensity Advertisement Expenditure Herfindahl Index 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.Centre De Sciences Humaines (CSH)New DelhiIndia

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