Management Challenges in Diacon Pharma after Restructuring Divisions on the Basis of Speciality Drug Segments-A Case Study

Most of Pharma companies are creating divisions for their speciality drug segment. Psychiatry, Cardiac and Diabetic are evincing high growth in the Pharma Industry. This is because when product patent gets implemented, MNCs search for partners in India and look for those companies which have a speciality division. Having a speciality division ensures a good and dedicated field force, prescription base and entrenched set of brands and coverage.

Diacon in 1996, created a Speciality Division having Cardiac, Diabetic and Psychiatry categories which were to be looked after by the separate field force. Till Feb 2000, Karan Munjal, Nripesh Bhatia were looking after all the three segments (Diabetic, Cardiac and Psychiatry) in the speciality division in their territory . In November, 2002 cardiac was created as a separate division and soon to follow was psychiatry in April, 2003.

With the separation of Psychiatry division from its speciality division in Diacon, the responsibility of covering Psychiatrists at Lucknow, Kanpur, Faizabad was given to Rakesh Kabir who was stationed at Lucknow. While the responsibility of detailing and meeting Psychiatrists at Kanpur, was with Rakesh, the targets of Psychiatry division had to be achieved by Karan and Nripesh. Same was the case in other territories. This created resentment among above two ABM on these issues. The case further delves into the problems arising out of restructuring process at Diacon pharma.