Performance Analysis of High, Medium and Low Companies in Indian Pharmaceuticals Industry.

This study looks into one of the prominent examples of success in India-the Indian pharmaceutical sector. The study tries to draw a performance comparison between high, medium and low category firms within this sector and also tries to assess the most significant variables contributing towards the Compound Annual Growth Rate (CAGR) for firms within each category. Eighty four firms of the Indian pharmaceutical sector formed the sample and they were analyzed for a period of 10 years from 1997-2006. Advertising and R&D intensities were considered along with labor productivity as independent variables to assess their impact on the CAGR. Regression results revealed that labor productivity donned the cap of significant contribution in the high category, while advertising intensity prevailed in the low category. But the medium category indicated non-feasibility for regression. On a comprehensive note, there was no significant performance variation among the firms in the three categories considered. [ABSTRACT FROM AUTHOR]