October 06, 2006

Glenmark - PR activities

This is something interesting that I am seeing as a good PR initiative for a company that is looking to come out of the woods when in trouble. There was a recent news on the company being alleged with anti-asthmatic drug that is choking people. The clarification of the drug effects is available at the company website or you can click on the link below

This was in the NSE website yesterday in corporate communication:

The shares of this company has fallen by more than 15% with this news. The stock movement is available at knowcharts.blogspot.com

The director has now come now to buy the shares of his company to possibly indicate that he is happy with the performance of the drug and is willing to increase stake in his own stock. While this idea is sincerely appreciable I would have preferred if they increased their purchases some more. This purchase by both the directors is less than 0.05% of their existing portfolio, Rs. 4.5 lakhs each. The directors have also taken sometime to respond with this initiative. But yet, I like this initiative better than investing heavily in an advertising campaign which is expensive and may result in similar results on a cost-effectiveness basis.

His indian market would not affected much as the patients hardly ever look at the manufacturer of a drug and his extensive sales network will ensure that the news of their version of the 'correct information' reaches all doctors instantly, thus reducing his downside.

Overall, good idea!!


Anonymous said...

Lots of effort going into your posts. Really appreciate it. Interested to know your academic background before IIM-I.

M B Mahesh said...

Can I know who is this :D