Term Paper of Incepta Pharmaceuticals Ltd.( Trem Paper)

A study of entire marketing strategy of Incepta Pharmaceuticals Ltd.

A study on entire marketing strategy of Incepta Pharmaceuticals Ltd.

Submitted to: Sheikh Atiqul Islam Senior Lecturer Faculty Business Administration University Of Development Alternative UODA

Prepared By Names K. M. Istiaeake Ahmed Sabbir Ahmed Opu Ahmed Abrar Muttaki Umme Tahiratul Tanny Ismat Jarin Khan Nahida Akter

Student IDs 031123005 032123013 031123013 031123002 032123010 031123019 37th Batch Department of Pharmacy

Date of Submission: April 5, 2016

University Of Development Alternative

University Of Development Alternative Later of Transmittal April 06, 2016 To Sheikh Atiqul Islam Senior Lecturer Faculty Business Administration University Of Development Alternative UODA Subject: Submission of term paper.

Dear Sir, We would like to report that you have request and give us permission to work on entire marketing strategy of Incepta Pharmaceuticals Ltd. We have tried our best to work on it carefully and sincerely to create an informative report. This way I can do the research and get very remarkable experience. That may be useful in feature. We thank you for all participation and their support for the plan was success and managed in accordance in our common hope. Sincerely Yours Ahmed Abrar Muttaki Ismat Jarin Khan K. M. Istiaeake Ahmed Nahida Akter Sabbir Ahmed Opu Umme Tahiratul Tanni

University Of Development Alternative Later of Authorization April 06, 2016 To Ahmed Abrar Muttaki Ismat Jarin Khan K. M. Istiaeake Ahmed Nahida Akter Sabbir Ahmed Opu Umme Tahiratul Tanni

Subject: Authorization of term paper.

Dear All, We have reviewed your term paper and I’m pleased to inform you that have been approved. I should be grateful for every assistance given to University of Development Alternative in obtain copies of this paper to be added to archive there. Thanking You

Sheikh Atiqul Islam Senior Lecturer Faculty Business Administration University Of Development Alternative UODA

Acknowledgement At the very beginning, we would like to express our deepest gratitude to Almighty Allah for giving us the opportunity with strength and patience to carry on this work. In conducting this study, we have received generous help from many quarters, which we like to mention with gratitude and great pleasure. We would like to take this opportunity to express our profound gratitude and deep regard to our honorable course instructor, Sheikh Atiqul Islam, for his exemplary guidance, valuable feedback and constant encouragement throughout the duration of the project. His valuable suggestions were of immense help throughout our project work. His perceptive criticism kept us working to make this project in a much better way. Working under him was an extremely knowledgeable experience for us.

TABLE OF CONTENT Serial Number 1 1.1 1.2 1..3 1.4 1.5 1.6 2 2.1 2.2 2.3 2.4 2.5 2.6 3

3.1 3.2 3.3 3.4 3.5 3.6 4 5 6 7

Topic Name INTRODUCTION Origin of the report Objective of the Report Scope of the report Sources of Data Methodology Limitation COMPANY PROFILE History & Growth (2008-2015) Pharma Market Analysis Quality Teamwork Performance Community MARKETING STRATEGY OF INCEPTA PHARMACEUTICAL MARKETING, SALES & DISTRIBUTION Company Position Product Strength of Incepta Pharmaceutical on the basis of The BGC Growth- Share Matrix Marketing Mix and (4C) on the basis of Incepta Pharmaceutical marketing Plan Brand & Branding Local Global Reach SWOT ANALYSIS OF INCEPTA PHARMACEUTICALS LTD. FINDING RECOMEDATION CONCLUSION

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Executive Summary Pharmaceutical company is one of the leading export earning sectors in Bangladesh. The economy is mostly depended on export earning since it facilitates the increase in export earning of the country. Every people in the society suffer from several diseases and need medicine for come round from diseases. So it has a potential market for growing out. Pharmaceutical company is one of the leading export earning sectors in Bangladesh. The economy is mostly depended on export earning since it facilitates the increase in export earning of the country. Every people in the society suffer from several diseases and need medicine for come round from diseases. So it has a potential market for growing out. Incepta is second largest Pharmaceutical companies in Bangladesh. Incepta is committed to the development, manufacturing, control and distribution of safe & effective pharmaceuticals products in compliance with current regulatory requirements. Incepta has state-of-the-art facility, robust technology, validated processes and high quality standard. To ensure these, Incepta continues to develop quality management system with personnel of appropriate background, knowledge, training and experience. This term paper is based on the market analysis of Incepta Pharmaceutical Ltd. which upholds the current marketing situation of the company and some recommendations about its branding, advertising strategies, sales promotional activities and so on. With the successful growth nationwide Incepta is now approaching internationally to uphold their brand in the international platform. The company is focusing to ensure high quality and cost effectiveness makes this portfolio even more attractive to potential customers. The company is striving to fulfil its long term vision to provide people globally with high quality health care products at affordable prices in order to improve access to medicine. 1. INTRODUCTION Incepta Pharmaceuticals Ltd. was established in Dhaka, Bangladesh in 1999. The company has a manufacturing facility located at Zirabo, Savar. A second larger manufacturing facility has been built in Dhamrai. Since its inception, Incepta Pharmaceuticals has been launching generic products in the Bangladesh market at a fast pace. The company produces various types of dosage forms which include tablets, capsules, oral liquids, ampoules, dry powder vials, powder for suspension, nasal sprays, eye drops, creams, ointments, lotions, gels, prefilled syringes, liquid filled hard gelatin capsules, lyophilized injections, and human vaccines. Incepta also conducts research and development in order to fulfil unmet needs of the medical community in Bangladesh and abroad.

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The company sells its products in Bangladesh and also has begun exporting to both developed and developing countries around the world. In 2015, Incepta Pharmaceuticals was the first company in Bangladesh to launch a generic version of sofosbuvir in the local Bangladeshi market. The company has begun a gradual shift in strategy to manufacturing and developing more complex generics and focusing on more highgrowth emerging markets. 1.1. Origin of the report The case company in this thesis is Incepta Pharmaceutical Company. Incepta is a manufacturer in the field of medicine. The company produces medicine and offers medicine to hospital or drugstore. The main business of the company is producing medicine and selling the medicine. The company can provide products for the different kind of partners, for example, pharmaceutical companies, hospitals, clinics, pharmacies and other institutes. The business scopes of the company are Clinical medicine, chemical medicine preparations, antibiotic preparations, biochemical medicine, biological products, antibiotic bulk drugs and medical equipment, totalling thousands of varieties. When I did my practical training in the case company, I found out that there was a big space to develop the medicine company, and the company has an opportunity to change to be a manufacturer. Due to the lack of some medicine information and raw materials, the changing of the pharmaceutical company did not achieve the desired results. The company's MPO (Marketing Promotion Officer) Mr. Harunor rashid discussed these problems with me and told us that they needed a new plan to develop the pharmaceutical company. A strategy marketing plan will help the case company managers pay attention to the real market situation and make a competitive strategy for the company. 1.2. Objective of the Report The main objective of the report to analysis the main marketing strategy, to improve and find out the problems of the marketing process of the Incepta Pharma and way to remove the problem. 1.3. Scope of the report If we understand the overall report of the marketing plan of Incepta pharmaceutical company Ltd. This can help us to understand the main problem of our Pharmaceutical Company of Bangladesh and how we can make a good stapes to make a good profit by earning from whole world wide. It also helps to make a good weather in the world market of our Bangladeshi pharmaceutical company.

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1.4. Sources of Data The report is fully exploratory in nature. Data have been collected from both primary and secondary sources. Primary sources of data   

Face to face conversation with the company officers and staffs. Informal conversation with the doctors, MPO, RMP. Exposure on different desk of the organization

Secondary sources of data        

Annual report of Incepta Pharmaceuticals Ltd. Different manuals of Incepta Pharmaceuticals Ltd. Different circulars of Incepta Pharmaceuticals Ltd. Unpublished data. Different textbooks. News papers. Different websites. Bangladesh Economic Review-2008.

1.5. Methodology The data have been used in this study are basically collected informally. This is totally an explorative study. As a result, data are collected by studying and reviewing the statement, circular and manuals of the organization. The relevant data was collected by informal discussion with the company officials regarding the business and promotion of the products that they produce to describe the present situation of pharmaceutical promotion in Bangladesh. To understand the marketing process of incepta pharma first we make contact a MPO of the company and take his interview to understand the marketing ethics of the company and also try to know the problem what the company have to face. We also try to look after the other company those are marketing over the world and there technique to solve the problems and there marketing strategy which can help insepta Pharmaceutical company. 1.6. Limitation A large number of limitations in this report. We can do our maximum work in internet base analysis and report study. We can’t give the security that the references we use to make this report all are 100% true or 100% false. But we can ensure that, we try to do our best as we can to

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make a proper and useful report which can help to development of marketing policy of Insepta Pharmaceutical and our Bangladeshi pharmaceutical companies. Like any other study the limitations of this study is not out of questions. But the following factors seem to me as the some points of weakness of this study, despite all out co-ordination from the organization.    

One of the notable limitations of this report is sales report is not disclosing some data and information for obvious reasons, which could be very much useful. It was not possible all the time for observing all the Marketing promotional tools used in pharmaceutical sector both in national and international. It was impossible to find out the exact effect of marketing promotional tools used in pharmaceutical industry. Entrance to every nock and corner of the organization was not possible for me.

2. COMPANY PROFILE Incepta Pharmaceuticals Ltd. is now the 2nd largest company of the country and recognized as the fastest growing of the top five manufacturing company in the country. Established in the year 1999, the company has come a long way. Currently the Zirabo plant consists of several buildings with state of the art technology. Dedicated cephalosporin manufacturing building, a specialized manufacturing building for the production of lyophilized products, insulin and amino acids and newly built liquid and semisolid manufacturing building and large warehouse is also in operation. Another multipurpose building for housing the Research & Development operation along with the canteen facility is also there. Currently all the products are coming from the plant at Zirabo. The company now produces almost all types of dosage forms covering nearly all therapeutic area. Incepta now has one of the largest and competent sales force and large distribution network of its own, operated from 21 different locations throughout the country. A most dynamic skilled and dedicated marketing team comprising of pharmacists and doctors are at the core of the marketing operation. These highly skilled professionals play a crucial role in providing the necessary strategic guideline for the promotion of its product. 2.1. History & Growth Incepta Pharmaceuticals Ltd. is a leading pharmaceutical company in Bangladesh established in the year 1999. The company has a very big manufacturing facility located at Savar, 35 kilometer away from the center of the capital city Dhaka.

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>>December 16th 1998, the construction of the factory began. >>August 1999, office operations began. >>December 1999, first batch of product Neodin S 150 (Ranitidine 150 mg tablet) was produced. >>January 2000, sales began formally. >>February 2000, training of the first batch of medical representatives began. >>April 2000, with the launching of Osartil (Losartan Potassium) the first prescription product of Incepta was launched in the market. The company started off in a new direction. Several other first ever product, Celenta (Celecoxib), Rofenta (Rofecoxib) and Omidon (Domperidone) followed in the footsteps of Osartil.A total of 23 new generics with 35 presentations were launched this year. 4 of these generics were first ever in Bangladesh.By the end of 2000 Incepta was the number 31st company of the country.There was massive restructuring throughout the company. Sales, Distribution, Marketing Strategy Department, and Factory; all were reorganizedA total of 18 new generics with 37 presentations were launched this year. 11 of these generics were first ever in Bangladesh. By the end of the year Incepta was ranked the 12th company of the country. The company had a phenomenal growth of 448% over the previous year (IMS). >>2002, A total of 32 new generics with 49 presentations were launched. 14 of these generics were first ever in Bangladesh.Massive expansion project of the factory was envisioned. New office for the sales and distribution operation was also taking shape.

The company registered an excellent growth of 55.85% over the previous year. By the end of the year Incepta was ranked the 10th company of the country (IMS). >>2003, Incepta kept on introducing innovative and newer molecules to the local market. A total of 32 new generics with 48 presentations were launched. 18 of these generics were first ever in Bangladesh.The new office (Dhanmondi) for the sales and distribution operation was inaugurated. The company registered an excellent growth of 28.5% over the previous year (IMS).By the end of the year Incepta was ranked the 8th company of the country (IMS). >>2004, A total of 17 new generics with 32 presentations have been launched. 6 of these generics were first ever in Bangladesh. 5

The company maintained an excellent growth of 48.2% over the previous year (IMS).The ranking went up again and the company was ranked the 5th largest company of the country with the highest growth rate among the top five (IMS). >> 2005, We thrived under challenge and excelled in venturing into unexplored grounds and continued to satisfy our customers. Incepta was audited and accepted as a supplier for UNICEF & UNDP. We started to supply lifesaving drugs to UNICEF from March, 2005.A total of 27 new generics with 76 presentations were launched. 12 of these generics were introduced first time ever in Bangladesh. The company maintained an excellent growth of 34.8% over the previous year (IMS).The company was ranked 3rd largest with the highest growth among the top five (IMS) >>2006, By 2006 Incepta had positioned itself as an innovative research oriented and knowledge based pharmaceutical company specializing in analysis, design and development of new products. Incepta successfully started overseas marketing operation from May 2006.A total of 25 new generics with 82 presentations were launched. 9 of these generics were first ever in Bangladesh.The company maintained an excellent growth of 31.26% over the previous year (IMS).The company maintained the ranking of 3rd largest (IMS). >>2007, Incepta pioneered the introduction of biotech products (Human Insulin) and lyophilized products (Pantoprazole injection) in the Bangladesh pharmaceutical market. This was the first time a local pharmaceutical company produced such highly sophisticated technology product in the country. A total of 32 new generics with 82 presentations were launched. 4 of these generics were first ever in Bangladesh. Marketing, Sales, Distribution and Administration departments shifted to the fully owned new office premises in Tejgaon, Dhaka. The international standard head office of Incepta started operation in the new office premises on 1st October, 2007.A marketing and sales team was setup in Myanmar headed by a country manager from the Marketing Strategy Team to promote the 35 products registered with the Myanmar FDA.The company maintained a growth of 12.93% over the previous year (IMS).The company held the 3rd largest ranking (IMS) among the companies.

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2.2. (2008-2015) Pharma Market Analysis Our Growth In Comparison With Local Pharma Market (IMS* Data)

Beginning in 2000, Incepta has been launching new and innovative products at a faster pace than its competitors. Up to December 2014 it has already launched 399 generics with a total of 706 presentations. The company produces a wide variety of dosage forms covering nearly all the major therapeutic classes. During the last 14 years of operation Incepta launched as many as 140 new generics for the first time ever in Bangladesh. High focus on quality and timely introduction of much needed essential medications previously unavailable in the country has enabled Incepta to become the second largest pharmaceutical company of the country. Year 2015 2014 2013 2012 2011 2010 2009 2008 2007

No. of Products 742 706 686 631 632 594 585 532 451

First Ever Product 5 3 7 7 9 10 4 10 17

IMS Rank* 2nd 2nd 2nd 2nd 2nd 2nd 2nd 2nd 3rd 7

2006 2005 2004 2003 2002 2001 2000

368 288 198 154 119 78 35

9 12 6 18 14 11 4

3rd 3rd 5th 8th 10th 12th 31st

* Intercontinental Marketing Services (IMS)

2.3. Quality Since 1999, the Incepta name has been synonymous with the trust and reliability inherent in the word Quality. Quality is ingrained in the work of our colleagues and all our Values. We are dedicated to the delivery of quality healthcare throughout the nation. Our business practices and processes are designed to achieve quality results that exceed the expectations of patients, customers, colleagues, business partners and regulators. We have a relentless passion for Quality in everything we do. 2.4. Teamwork We know that to be a successful company we must work together, frequently transcending organizational and geographical boundaries to meet the changing needs of our customers. 2.5. Performance We strive for continuous improvement in our performance, measuring results carefully, and ensuring that respect for people are never compromised. 2.6. Community We aim to become nation's most admirable business enterprise through our honest and intelligent approach to everything that we do. We strive to support the community where we live and to also support our nation as far as possible at the time of its need. We truly believe that we can only survive and grow if our nation remains healthy. 3. MARKETING STRATEGY OF INCEPTA PHARMACEUTICAL (MARKETING, SALES & DISTRIBUTION) A complete and integrated Marketing, Sales and Distribution network is required to make the information on products and services available to the customer. 8

To achieve our purpose and mission, we affirm our values of integrity, respect for people, innovation, performance and leadership. Around 5300 individuals from diverse disciplines including pharmacy, microbiology, MBA, Accounting, Engineering and Medicine are working nationwide under the umbrella of Incepta. All the skilled and professional personnel are set at their very appropriate responsible positions. Our sales team comprising highly professional science graduate and post-graduate people are involved in the timely and smooth promotion of our products for the benefits of our doctors, people as well as the whole nation. Incepta has its own large distribution network having 20 depots all over the country. They make the products available in every single drug store of the country. The depots are located in Dhaka, Chittagong, Rajshahi, Khulna, Sylhet, Barisal, Comilla, Noakhali, Mymensingh, Magura, Bogra, Narayangonj, Rangpur, Dinajpur, Tangail, Jessor, Moulovibazar, Cox's Bazar and Feni. 3.1. Company Position: To identify the Marketing Strategies of incepta pharmaceuticals use the below marketing concepts: We can find the strategies of firms by the roles they play in the target market: Leader Challenger Follower Nicher Company focused Competition focused

Where Square Pharmaceuticals is leading the industry in terms of market share there is Incepta Pharmaceuticals who is lying in the Market Challenger position in terms of market share.

3.2. Product Strength of Incepta Pharmaceutical on the basis of The BGC Growth- Share Matrix About 1058 product in Incepta Pharmaceuticals. Maximum Drugs are in Tablet, Capsule and injectable forms. Now days Incepta build a separate Vaccine centre and manufacture a large number of vaccines. They make a good profit in vaccine manufacturing and seals. On the other hand they invest a large amount of money in the insulin and related biological product but they cannot bring out the basic amount of profit in this section. 9

Some normal product such as Antibiotic, Myomine, Esonix are trying to make a good profit. In future, if the company give a good look on this product , they may Trane around.

3.3. Marketing Mix and (4C) on the basis of Incepta Pharmaceutical marketing Plan:

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3.4. Brand & Branding Incepta Has 1,053 registered product in DGDA, Bangladesh. To market this product the copmay have to branding the product and have to build a brand value of the product in the market. Incepta follows the Brand procedure which is given bellow---

3.5. Local Market The domestic market is highly concentrated and competitive. The local manufacturers dominate the industry capturing market share of 90%. While the multinationals cater to the remaining demand. According to IMS Health, the top 10 companies hold 68.5% market share, the top 20 hold 85.73%, and the top 31 hold 94.1%, while the remaining 169 companies shared 5.9% among them. Incepta Pharmaceuticals Ltd. target segments for different production are well defined, each product are well positioned and segmentation done on well planned manner. 3.6. Global Reach There is tremendous potential for the export of medicine from Bangladesh to become a growing, booming business. The Central Pharmaceuticals Ltd has a large potential market abroad. Drugs produced in the country commands high demand in the foreign markets as the sector maintains high quality. 11

Bangladesh is now almost a self-sufficient in its pharmaceuticals sector as 92% of the country drug demand is met by local manufacturers. With the success in the domestic market place the Bangladesh Pharmaceutical Industries are now attempting 9 to enter into the international market. We market our products in 46 countries of the world through our distribution partners. Asia: Afghanistan,Armenia,Bhutan,Cambodia,Georgia, Myanmar, Kong Hong, Laos, Maldives, Mongolia, Singapore, Sri Lanka, Tajikistan, Turkey, Turkmenistan, Jordan, Macau, Vietnam, Yemen, East Timor. Africa: Algeria, D. R. Congo, Ethiopia, Ghana, Mauritania, Nigeria, Seychelles, Somalia, Swaziland, Togo, Kenya, Lesotho, Uganda, Mali. Europe: Finland, Ukraine, United Kingdom. South America: Guyana, Bolivia, Colombia, Venezuela, Ecuador. Oceania: Fiji. 4. SWOT ANALYSIS OF INCEPTA PHARMACEUTICALS LTD.

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5. FINDING After observing all information about Incepta Pharmaceuticals Ltd. We can realize that this company faces some problems. Among them they invest a huge amount of money for giving gift to the doctors for satisfying them to prescribe their drugs. In other hand they do not invest sufficient money in research and development sector. For this they become looser in the computation of the global world. There is another problem this is lack of coordination between industry and academic. Sometimes they manufacture fake and low quality products which hamper the reputation of the company. That is the overall problems of the company.

6. RECOMEDATION We know about the problems of the company.We can take some steps to overcome these problems.They have to decries the amout of money which are invested for the doctors.They have to invest a large amount of money for research and development sectors for improving the quality of the products and sprade all over the world.They should manufacture qualified drugs by giving concentration of the profit of the company. The development of Pharmaceutical industry in Bangladesh dates back to early 50‘s when several national companies started operation and now there are lots of opportunities for this sector and entrepreneurs are being more encouraged in this sector. Incepta Company strives to support community where they live and also the nation as far as possible in times of need. Here are some overall recommendations for Incepta Pharmaceutical Ltd:

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Incepta Pharmaceutical Ltd. should presence more in the district town and in some important rural areas as these markets is still untapped. Looking for cost effective sources of raw materials to bring down the product cost. Incepta can provide fund in educational initiatives in therapeutic area, disease Prevention. Incepta industry should play an important role in educating healthcare practitioners on emerging treatments and technologies. In addition to broader educational initiatives, it is also recommend that Incepta can use their CRS funding for education directed at the local community level More emphasis on service oriented approach to overcome price objection by doctors through relationship building. More strategies collaboration with other foreign manufacturers is needed to gain access to technology and resources. More flexible functional policies are needed to match the changing environment of the industry. Incepta can take initiative for field activities among younger generation of prescribers which will help to build potential future prescribers. Make public all results, including negative or unfavorable ones, in a timely fashion while avoiding redundancy. Transparently report statistical methods used in analysis. 7. CONCLUSION Their vision is to become a research based global pharmaceutical company in addition to being a highly efficient generic manufacturer. The company is continuously expending activities beyond the geographical boundary of Bangladesh. The company is open to collaborate with interested and relevant practices in various countries. Incepta will continue to strive to provide high quality medicine at affordable prices to the people here in Bangladesh and other parts of the globe. Incepta strongly believes that commitment towards people and the society as a whole positively contributes towards its business objective. Incepta adopts different strategies which create a sustainable advantage for the company. It is the first Bangladeshi pharmaceutical company to implement SAP to manage resources throughout the company operation. This world class 14

resource management system allows the company to become more efficient and effective in its day to day operation. Incepta is taking special efforts to ensure presence in the rest of the globe. Incepta currently sells its product in many countries of Asia, Africa, Central and Latin America and has started to sell in Europe. In Europe the company has registered its own product in UK and has started selling. It is evident that Incepta Pharmaceuticals Ltd. will be maintaining its position and also trying to gain a competitive market share by implementing innovative strategies in the coming years as it is demanded by the highly competitive local and global pharmaceutical industry environment.

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Bibliography      

Kotler Philip and Gary Armstrong, Principle of Marketing. (12th Edition) Kotler Philip, Marketing Management. (12th Edition) Malhotra Naresh K, Marketing Research. (5th Edition) Anals Micle, Marketing of Pharmaceutical Product. (International Edition) Bangladeshi-American Pharmacists’ Association Journal 2006, 2007, 2008. Journal from – Pharmacy Council of Bangladesh Bangladesh Medical Association Bangladesh Pharmaceutical Society Bangladesh Pharmaceutical Manufacturers Association

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Annual Report of Biopharma Laboratories Ltd. 2006, 2007, 2008 & 2009. Annual Report of Ministry of Health and Family Welfare. Website of Ministry of Health and Family Welfare and the Directorate of Drugs Administration Research paper from Ministry of Health and Family Welfare. Report from Consumer Association of Bangladesh. http://www.inceptapharma.com/ www.google.com www.reportbd.com

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