The domestic picture (based on ORG data) does not appear to be materially different, though it is probably too early to estimate whether the current figures are an accurate indication of the future scenario. Figures presented by German multinational Merck KGaA's Bernhard Scheuble at the annual pharmaceuticals conference at Piccadilly, London, indicate that erosion in market share has been as high as 53 per cent in the case of the Hoechst-Roussel combine.

Sheuble's figures show that while Hoechst and Roussel brought with them individual market shares of 3.4 per cent and 1.6 percent respectively in 1973, by 1994, the combined share of the entities was down to 2.3 per cent (a decline of 53.1 per cent). Warner-Lambert and Parke-Davis came a close second when the duo's market share plunged over 47 per cent from 2.7 per cent in 1970 to 1.4 per cent in 1996. It is, however, important to note that dwindling market shares do not necessarily translate into reduced margins.

In India, Hoechst and Roussel began with market shares of 2.6 per cent and 1.2 per cent respectively in March 1993, but this fell to 3.2 per cent in August 1998 (a 18.75 per cent drop), according to ORG data (MAT). In the medium term, says Sheuble, SmithKline and Beecham (beginning with a combined market share of 3.4 per cent in 1988) saw an erosion of 21.5 per cent, to touch 2.7 per cent by 1996.

Says Interlink Marketing Consultancy managing director RB Smarta, "Today's intelligence alliances must be sure that they are creating value both for the customer and the organisation. Market share is an important issue. If amerger of field forces results in the loss of brand/corporate equity with the medical fraternity, it will disturb the equilibrium. Issues like integrating a unionised and non-unionised field force, product synergy can no longer be ignored if the partners want to ensure creation of value."

Glaxo and Wellcome, in the short term, a 9.7 per cent drop in market share, from 4.9 per cent in 1994 to 4.4 per cent in 1996. In the case of American Home Products and American Cyanamid, the market share plunged by 19.2 per cent to 2.7 per cent in 1996, from 3.3 per cent in 1993.

Back home, Glaxo Wellcome saw its market share move southwards to 6.6 per cent in October 1998, from combined levels of 7 per cent in December 1996 (5.7 per cent down). Swiss multinationals Hindustan Ciba Geigy and Sandoz had a combined market share of 2.1 per cent in December 1996, but saw this slip, as Novartis, to 1.9 per cent by October 1998. Analysts, however, say that short-term decreases in the market share may not be uncommon given thatthe new entity could take up to two years to integrate and rationalise its operations. "Integrating field forces and rationalising the product portfolio could initially indirectly depress market shares. But if there is no upturn even during the medium turn, eventually shareholder value may suffer," an analyst said.

Scheuble's figures show that independent companies like Pfizer have posted a 47.6 per cent jump in market share during 1990-96, while Merck & Co and Abbott Labs, too, have improved their shares. In India, except for Abbott, both Pfizer and Merck have defended their turf with the American MNC even improving its share a tad.