TY - JOUR
T1 - Trend analysis of cost efficiency for the pharmaceutical industry
T2 - A dea approach
AU - Alam, Teg
AU - Rastgi, Rupesh
N1 - Publisher Copyright:
© 2019 by the authors; licensee Growing Science, Canada.
PY - 2019
Y1 - 2019
N2 - This paper evaluates the efficiency of five Indian pharmaceutical Industries using Data Envelopment Analysis (DEA) approach. The paper uses Net Block, Cash and Bank Balance, Share Capital, Reserve and Surplus, Secure Loan and Unsecured Loan as input variables and Investments and ‘Loans and Advances’ as output variables. In this study, the Basic Radial Models input oriented with Constant Returns to scale (CRS) are used to estimate the efficiency of pharmaceutical Industries. The DEA tool assists the administrators to identify the inefficient measures and take necessary actions for improvement. The results are indicative of the scenario that changed patent laws in India are not detrimental to the financial and overall health of Indian pharmaceutical companies in general. The Indian pharmaceutical companies have suitably modified their business model to cope up with the changed legal environment. It is a positive sign for all Indian pharmaceutical companies that they are dynamic in management and operational policies to face any new situation and shall flourish more in the coming days.
AB - This paper evaluates the efficiency of five Indian pharmaceutical Industries using Data Envelopment Analysis (DEA) approach. The paper uses Net Block, Cash and Bank Balance, Share Capital, Reserve and Surplus, Secure Loan and Unsecured Loan as input variables and Investments and ‘Loans and Advances’ as output variables. In this study, the Basic Radial Models input oriented with Constant Returns to scale (CRS) are used to estimate the efficiency of pharmaceutical Industries. The DEA tool assists the administrators to identify the inefficient measures and take necessary actions for improvement. The results are indicative of the scenario that changed patent laws in India are not detrimental to the financial and overall health of Indian pharmaceutical companies in general. The Indian pharmaceutical companies have suitably modified their business model to cope up with the changed legal environment. It is a positive sign for all Indian pharmaceutical companies that they are dynamic in management and operational policies to face any new situation and shall flourish more in the coming days.
KW - Data Envelopment Analysis
KW - Efficiency and Slack
KW - India
KW - Pharmaceutical industry
UR - http://www.scopus.com/inward/record.url?scp=85063996521&partnerID=8YFLogxK
U2 - 10.5267/j.msl.2019.1.014
DO - 10.5267/j.msl.2019.1.014
M3 - Article
AN - SCOPUS:85063996521
SN - 1923-9335
VL - 9
SP - 749
EP - 754
JO - Management Science Letters
JF - Management Science Letters
IS - 5
ER -