The retail pharmacy sector is worth more than 460 billion dollars with increasingly high customer demands. Everyone who wants to take benefits of the right medication needs convenience in any of the types of pharmacies in the market, whether it is brick-and-mortar pharmacies, online pharmacies, e-pharmacies or Omni-channels stores.
For the last couple of years, the Indian pharma sector has witnessed heightened merger and acquisitions (M&A) activity as some leading companies reorganize their portfolios. It happens due to some sudden requirements arising in the pharmacy sector that reshape the pharmacy working and force companies to merge with each other.
Article Content-
- What is affecting the pharmacy sector the most? Big pharmacy brands taking control of smaller brands
- What are Merger & Acquisitions (M&A) activities, and why are they done?
- Some major Merger and Acquisition in India
- How are the ongoing market competition changing Pharmacy business nature?
- How is ongoing market competition affecting Small and medium pharmacy businesses?
- Let’s See How SWIL Be a Better Pharmacy Management Software Option For You
What is affecting the pharmacy sector the most? Big pharmacy brands taking control of smaller brands
Many pharmacy software development companies that work for small level( For SMEs) have to force to compete with a big business brand or development companies. Investment wise they are strong and have the ability to capture the market easily.
In this scenario, if you depend on mid/small level development companies, then, as a pharmacist, you are always at the risk of revealing/breaching your business data. Then, it should be necessary that you connect with a company that not only sells software & services but also takes care of pharmacy personally.
Before briefing the above factor, lets understand what Merger & Acquisitions (M&A) activity and why it is done.
What are Merger & Acquisitions (M&A) activities, and why are they done?
Mergers and Acquisitions often referred to as M&A, are a tool for expanding one’s business. It is an arrangement whereby the assets, liabilities and business of two companies become vested in or under the control of one company.
Pharma businesses in India not only serve the domestic market but also export their goods to several international pharma markets. The Indian pharmaceutical business is renowned for its general industrial experience, affordable manufacturing, and research infrastructure. So, here are some of the concerns that are driving the Indian pharma sector towards acquisitions:
- Possibility of price gains
- Availability of essential products is limited
- Market share consolidation that results in anti-competitive behavior
- Decreased availability of generic drugs
- Lack of challenge to Multinational Corporation (MNC) patents
Some major Merger and Acquisition in India
- Merger between Ranbaxy and SunPharma
- Acquisition Of Primal Healthcare by Abbott
- Daiichi’s Acquisition of Ranbaxy
- Sun Pharma acquisition of Taro
- Dr Reddy’s Laboratories acquisition of UCB & more.
These mergers are done between pharmaceutical manufacturing companies to enhance the overall pharma sector.
But in India, another acquisition comes to light between pharmacy software development companies.
Big/leading software development companies are now approaching small and mid-size development companies to merge. This is happening because major companies are ambitious, and this is a way for them to expand their businesses. But the biggest loss that is likely to happen in everyone’s affair is pharmacy software users.
The pharmacy companies from whom the software is purchased trust the pharmacy development companies. The chances of data loss or data breach increase when such acquisitions occur.
To avoid this pitfall, we have a solution which we will discuss further in this blog.
Acquisition Of MargERP Limited By API Holdings Limited
Marg ERP, founded in 2000 in Delhi, India, is a leading technology platform for micro, small and medium enterprises, offering traditional enterprise resource planning, application-based, business-to-business (B2B) ordering, and financial technology services. In 2021, MargERP was acquired by API Holdings Limited.
Acquisition Of Medlife By PharmaEasy
The deal will make PharmEasy the largest player in the domestic online pharmacy sector, with the combined entity set to serve 2 million customers a month. As soon as Medlife ceased operations, its users moved to the pharmacy, which will now serve 2 million families every month.
It is a simple looking process. But in the backend, users have to face many problems and worry about their data security.
DigiHealth acquires Pharmarack & AIOCD AWACS
Pharmarack Technologies deals with B2B services, and AIOCD AWACS is a market research firm. DigiHealth acquires both for better IT infra play. Over time, the downstream supply chain of the pharmaceutical business has developed a digital ecosystem that AWACS and Pharmarack share. The investment has been undertaken to create a top-notch pharmaceutical distribution and supply chain IT environment.
This merger happens due to ongoing competition in the market.
How are the ongoing market competition changing Pharmacy business nature?
The ongoing market competition leading to mergers and acquisitions has completely changed the working process of a pharmacy. Pharmacies are taught to make more customer-centric decisions and engage themselves with technology.
How is ongoing market competition affecting Small and medium pharmacy businesses?
- Small and medium pharmacy businesses get a chance to connect with the latest /modern technology sets.
- They expand their development work in various ways (economically and financially).
- Businesses get the opportunity to work with large customer groups.
- They get a chance to enhance the overall business profit.
- Companies get more reach to the different types of customers.
Above all changes, the big change is dealing with customer data personally. These are challenges that must be overcome before merging the two companies. Companies should give their users proper notice of their merger so that customers can better understand and decide what is best for them. This creates a high satisfaction level and maintains trust.
But, if the pharmacies don’t get any prior notification, the sudden change is difficult to handle, and sometimes it leads to huge business loss.
For this position, you need to integrate with a software development company that has been in the market for a long time and has a clear vision.
Let’s See How SWIL Be a Better Pharmacy Management Software Option For You.
SWIL is a well-known name in the pharmacy market, which has been sustained for 28 years due to its sincerity and credibility towards its work in the market. It is associated with more than 30000 software users, and SWIL continues to grow by adopting new technologies.
SWIL’s SwilERP, RetailGraph, and Unisolve software are dedicatedly capable of serving pharma’s retail, wholesale, store chain and distribution segments. The software guarantees complete data security and gives us quick resolution to customer inquiries.You can contact our support team for more details and get deep insight.
