...Salix has been a successful pharmaceutical company for 15 years. They have used the “search and develop strategy” in the US GI market for continued growth. The question remains can they continue to be successful with this narrow strategy or do they need to alter their mission? Do they need to revamp their “search and develop” strategy? Key issues Salix encounters are increased use of generics, limited scope of disease treatment, and dependency upon other research companies to initially start and develop chemicals. If Salix wants to expand their strategy scope, they could focus on medications in other areas of the body, they could expand outside of the US market, they could further develop their international partner network, or they could focus on their own research instead acquiring licenses and rights to other chemicals. Introduction Salix is a small pharmaceuticals company started in 1989. Since this time, Salix has acquired the rights to develop and market four major prescription compounds. They have become a successful player in the US gastrointestinal market, while profiting from licensing their products in other countries. Although Salix has been successful, the co owners must make a decision on whether or not their current strategy is sustainable. Can they still “search and develop” acquired compounds and stay successful? Salix needs to determine if their existing prescription drugs’ profitability can last while they find another research companies drugs...
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...Asst Manager Maintenance Asst Manager Quality Control Jr. Manger (Q.A)- A 4 3 1 4 1 5 1 Supervision of Production Activities 14500 do 14500 do 14500 do 10840 6 Jr. Manger (Q.A)- B 1 MSc (Pharmaceutical 1640-60-2600In charge of Quality Chemistry)/ MSc (Micro Biology) with 2 years 75-2900 Assurance experience in the relevant field. do 10840 7 Jr. Manger (Q.C) 2 B.Pharm with 2 years experience OR Msc. In charge of Quality (Chemistry)with 2 years 1640-60-2600Control 75-2900 experience/ BSc (Chemistry) with 5 to 7 years experience in relevent Field do 10840 STAFF/WORKERS:TECHNICAL 750-40-950-50B.Sc. (Chemistry) with D.Pharm 1200-60-1500Industrial DA Production of Drug and minimum 3 years 70-1990-80based on cost experience in Pharmaceutical Formulations 2390-95-2865- of living Index production 110-3415 630-25-755-30Minimum 10th Standard + ITI in 905-35-1080Production of Drug Fitter/ Machinist Trade with 2 40-1360-45years experience in a Formulations 1585-55-1860Pharmaceutical Company 65-2185 Minimum 10th Standard + ITI in 605-20-705-25Production of Drug Fitter/ Machinist Trade with 1 830-30-950-35Formulations year experience in a 1230-40-1430 Pharmaceutical Company 630-25-755-30Minimum 10th Standard + ITI in 905-35-1080Maintenance of Plant &Mechanical Fitter Trade with 2-5 years 40-1360-45experience in the relevant field 1585-55-1860Equipements 65-2185 1 Supervisor (Foreman grade) 2 9126 ...
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...Research Paper AstraZeneca Pharmaceuticals, (AZN) is one of the world's leading pharmaceutical companies with 57,000 employees worldwide in over 100 countries. Its corporate headquarters are in London, research and development headquarters are in Södertälje, Sweden, and its manufacturing facilities employ 9,600 people in 16 different countries. The company operates fourteen research and development sites in eight countries and has sales in over 100 countries around the world. AstraZeneca focuses its pharmaceutical business on seven key therapeutic areas: anesthesia and pain control, cardiovascular, central nervous system, gastrointestinal (it is a world leader in this therapeutic area), infection, oncology, and respiratory. Its product range includes such blockbusters as Nexium, Crestor, Seroquel, and Symbicort. AstraZeneca was formed as the result of the 1999 merger of two European pharmaceuticals companies: Astra AB of Sweden, a maker of pharmaceutical products and medical devices, and Zeneca PLC of the United Kingdom, a bioscience company focusing on pharmaceuticals, agricultural and specialty chemicals, and disease-specific healthcare services. One year after its merger, the company achieved sales of US$15.8 billion, with an operating profit of US$4 billion. In 2011, company sales and operating profit were $33.6 billion and $13.2 billion respectively. AstraZeneca is one of the world's largest pharmaceutical companies, with FY2011 sales of $33.27 billion and $10...
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...competitive in the today’s economy characterized by the globalization. By the way, Lot of changes has taken place in the health care industry. And the most significant change involves the growth of managed care in the health care industry. Managed care plans typically provide members with medical insurance and basic health care services, using volume and long-term contracts to negotiate discounts from health care providers. In addition, managed care programs provide full coverage for prescription drugs more frequently than do traditional medical insurance plans. Industry expert’s estimate that by the turn of the century, 90% of Americans will have drug costs included in some kind of managed health care plan, and 60% of all outpatient pharmaceuticals will be purchased by managed care programs. Knowing that the responsibility for managing the provision of prescription drugs is often contracted out by the managed care organizations to PBMs. As the key aspect of the shift to managed care is that the responsibility for payment is...
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...Analysis on Merck's Acquisition of Medco The reason behind a lot of Mergers & Acquisitions is due to the many changing forces in the business environment. Competitiveness, survival and profitability are key factors to the M&A. In the case of Merck, the plan for acquisition of Medco followed as competitors such as SmithKline Beecham, Roche Holdings Limited Eli Lilly and Company announced their plans to acquire other pharmaceutical companies and Health systems such as those of Diversified Pharmaceutical Services Incorporate, Syntel Corporation and PSC Health Systems, respectively. There still exist concerns on the executive team's side regarding whether or not to move forward with the acquisitions. Some favor the move and some do not. There are concerns about the synergies and integration of a highly research oriented pharmaceutical company such as Merck with a drug marketing company like Medco. In addition, there are concerns on the need to continue increasing the stock price for Merck and about the different business cultures between the two and how they may not mix well. This could result in an expensive failure. On the other hand, the marketing department fully supports the acquisition. The acquisition will provide leverage for marketing opportunities in the managed care area, given the size of the database for Medco. So, the plan is for Merck to acquire Medco for a $6.6 billion offer. Clear and substantive analysis of the M&A is needed for better decision making. Medco...
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...The Global Pharmaceutical Industry: Conduct an external analysis Introduction The pharmaceutical industry is described by high levels of risky and lengthy R&D process, tough competition for intellectual property, tighter government regulations and powerful pressures on buying power. (Johnson, 2006) In 2011, several blockbuster drugs patent like Lipitor will expire, possibly endangering the revenues of the pharmaceutical industry for the next three to five years. On the global level, the historical supremacy of the US was being challenged with the highest market growth rates recorded in emerging markets. The industry more than ever need to get a handle on the slippery business by offering a true step change in strategy. This case study will critically analyse the Global Pharmaceutical Industry with PESTEL, Porter’s five forces, SWOT analysis and plausible views of industry in the future. PESTLE PESTLE analysis used to help organisation to understand in depth that what is the current status of the organisation and the external factors which are effecting. It also helps to the Management to make strategy for the future and overcome the weak areas of the organization. PESTLE is comprises of political, Economical, Social, Technological, Legal and Environmental factors. Political The both policies (domestic and foreign) of government have a great effect on the industry innovation as compare to the other factors. To get the attentions of firms due to increase the economic...
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...Biovail Case Assignment Questions: 1. How many truckloads of product are actually required to carry $10 million of product? Show your calculations. Given: a. 1 Wellbutrin XL tablet is estimated to be 1.5 cm3 (this includes the packing space) b. 1 18-wheeler trailer’s dimensions are: 17m x 4.5m x 2.5m Since the tablet and the trailer are using different units of measurements we need to convert the trailer dimensions to centimeters before we can calculate the volumes. a. To convert meters into centimeters the ratio is: 1meter = 100 centimeters 17m= 1,700 centimeters 4.5m = 450 centimeters 2.5m = 250 centimeters To calculate volume b. Volume of a rectangular prism = a x b x c Volume= 1,700 x 450 x 250 Volume = 191,250,000 cm3 c. To find out how many Wellbutrin XL tablets fit into a trailer 1.5x=191,250,000 X=127,500,000 d. How much revenue does Biovail get from a single pill ? 400% 35% $2.83 Biovail → Distributor → Wholesaler → Retailer 0.52 ← 2.10 / 400% ← 2.83/1.35%=2.10 127,500,000 x 0.52= $6,630,000 One truck can definately carry $10 million worth of Wellbutrin XL tablet product. 2. How should the company recognize revenue based upon the two possible FOB contract structures mentioned in the case? Since Biovail’s stock is publically owned it needs to file its financial statements with the SEC. The SEC requires that it abide by GAAP...
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...Concurrent Events : 2011 DHAKA, BANGLADESH 24-26 FEBRUARY-2011 The 8th International Exhibition on Asian Pharmaceutical Industries THE GATEWAY TO THE SOUTH ASIAN PHARMA MARKET Join with Expected Exhibiting Companies 450 Over Trade Professionals 9000 On sq. mt. Floor-space 8500 From Countries 28 VENUE : Bangabandhu International Conference Centre, Dhaka. Bangladesh ORGANISED BY SUPPORTED BY Bangladesh Association of Pharmaceutical Industries Bangladesh Aushad Shilpa Samity OFFICIAL ONLINE MEDIA If South Asia is your market, APE 2011 is your show www.asiapharma.org 2011 DHAKA, BANGLADESH 24-26 FEBRUARY-2011 Bangladesh Association of Pharmaceutical Industries Bangladesh Aushad Shilpa Samity ORGANIZING COMMITTEE CHAIRMAN Mr. Salman F Rahman PRESIDENT'S MES SAGE Vice-Chairman, Beximco Group CONVENOR Mr. Adbul Muktadir We, Bangladesh Association of Pharmaceutical Industries (Bangladesh Aushad Shilpa Samity) are delighted to inform you about the forthcoming international exhibition on South Asian Pharmaceutical industry – ASIA PHARMA EXPO- 2011 to be held in Dhaka from 24 to 26 February 2011. The South Asian Pharmaceutical market is currently experiencing unprecedented growth and as a result the ASIA PHARMA EXPO provides unlimited opportunity to all related business and trade professionals. In all our previous Asia Pharma Expo events, the participants from neighboring countries and other parts of the world...
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...I see the finish line before me and it is becoming a reality. People enter college for many reasons; this was the first step in my plan for the future. About five years ago, I had an accident. During this time, I was confined to a wheelchair and could not walk. While in therapy to begin walking again, I found that without insurance and very little money, you cannot afford your medication or even a simple wheelchair. During one of my many visits to the therapist, I was introduced to medical sales. I was given free samples of the medications I needed and could not afford at the time. I begin to read everything I could get my hands on to learn about the job of a medical sales representative. I found there are two sides to this job: Pharmaceutical Sales Representatives, and Durable Medical Equipment (DME) Sales Representatives. After much research, I discovered, although I loved sales, it was important to me to know I was making a difference in daily people’s lives. This caused me to choose to pursue a career in DME. I wanted to make sure that I had all of the needed qualifications to achieve this goal. Obtaining my degree was one of these qualifications. Step two was enrolling in a college. As fate would have it, we had a job fair at work and within six months I was in school. I then set down and made a short range goal of finding a job in a durable medical company. My strategic goal was to become the lead sales representative. I started my career late in life so my goal...
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...Unethical Marketing of Prescription Drugs: Misleading Direct-To-Consumer Advertising and Disease Mongering. October 3, 2011 Unethical Marketing of Prescription Drugs Introduction The purpose of this ethical paper is to investigate the marketing tactics being used by pharmaceutical companies and discuss the ethical issues involved. The primary source of information discussed in this paper was gathered from analysis of business and scholar journals, case studies, and current news articles. The main focus of my research was placed on the unethical practices of pharmaceutical companies and the current marketing regulations in the United States. The unethical practices primarily covered in this paper include disease/fear mongering, and the misuse of direct-to-consumer & physician-directed marketing to increase the profits of pharmaceutical firms. But before we get into the unethical practices taking place in today’s pharmaceutical industry, let’s take a look at the idea of ethics. So, what exactly is ethics? Merriam-Webster defines ethics as “the discipline dealing with what is good and bad and with moral duty and obligation,” and “a theory or system of moral values” (Merriam-Webster, 2011). As you can see, this is a complex but vague definition to say the least. In today’s world of international business where firms operate across cultural boundaries and face stiff competition in the fight for profits, it’s even more difficult to clearly define the meaning of...
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...c) Demand d) Competition- The Rise of the Generics e) Market Failure, Government Intervention and Price 4) Performance page 7 5) Impact of the Global Economic Downturn page 9 6) Summary page 10 7) Conclusion page 11 Bibliography page 12 8) 1. Introduction This paper briefly examines the current state of the pharmaceutical industry, as well as the economic characteristics, performance, and the impact of the global recession. The industry is made up of several enterprises engaging in the research, development, manufacture and marketing of medicines, vaccines, medical devices, and nutritional products for humans and animals. Though, this multi-billion dollar industry includes large ethical drug multi-nationals (often referred to as Big Pharma), mid-sized specialty pharmaceutical companies, manufacturers of generics, small biotechnology and biopharmaceutical firms, and service companies, 1 for the purpose of this paper, the emphasis will be mainly on drug makers. 2. History/Overview of the Industry The pharmaceutical industry of today is a far cry from its humble beginnings in the nineteenth century of physicians mainly prescribing plant extracts to being technology intensive, dominated by a few large companies with significant research and development (R&D) budgets, and significant government oversight. Over the past five years, the industry has been characterized by mega-mergers and acquisitions...
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...Pharmaceutical Advertising Pharmaceutical advertising, which dates back to the 18th and 19th century, conveys a message to consumers in which medication can relieve just about any ailment. Today, these ads are everywhere. They exist on billboards, television, radio, the newspaper, magazines, and the Internet. Direct-to-consumer marketing (DTC) almost challenges the individual to question whether or not he or she has a medical issue. This is synonymous with selling an illness and not a remedy. Pharmaceutical advertising and marketing among health care providers remains questionable in terms of ethical practices. Pharmaceutical representatives promote their medications through a commonly known marketing strategy, which involves the use of gifts to entice or persuade the health care provider. These gifts involve pens, pads, lunch, dinner, and luxurious trips. Effective advertising and marketing should promote a product that gains the interest of an individual without question. Advertising, mainly in the form of pharmaceuticals should not be misleading and should not insinuate that common occurrences produce a medical problem. The History of DTC Marketing Originating in the 18th and 19th century, DTC marketing deluded consumers through misleading and falsified advertising. Moving on into the 20th century, “pharmaceutical ads accounted for nearly half of newspapers’ advertising revenue” (Huh, DeLorme, Reid, & Soontae, 2010, para. 3). The Pure Food and Drug Act became a law in...
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...manufacturing laboratory with the Bulgarian Pharmaceutical Cooperative Society in 1942, the company grew into Galenus Factory, the first modern pharmaceutical enterprise on the Balkan Peninsula. After its nationalization in 1953, Galenus Factory was renamed to Chemical-Pharmaceutical Plant. After the successful privatization in September 2000, Sopharma has become a private pharmaceutical company with priorities aimed at the establishment of the world standards for quality and efficiency. In 2000, 67% of Sopharma was privatized by Elpharma - a consortium between Unipharma and Electroimpex. Bulgarian pharmaceutical company Unipharma was just privatized by the present CEO of Sopharma Ognian Donev while Electroimpex was owned by Bulgarian businessman and entrepreneur Borislav Dionisev. After Privatization Sopharma modernized and increased its production capabilities. At present Sopharma is the main unit in the structure of the group “Sopharma Industries”. As of September 2009 Sopharma owns 16 subsidiaries - 8 in Bulgaria and 8 abroad. Most of them operate in the field of medicine and produce different types of products for medicine and cosmetics or support the main activity. Some Bulgarian subsidiaries are publicly traded and are listed on the Bulgarian Stock exchange. 2. Environment a. GDP, inflation, exchange rate, current account deficit b. Products and Markets Sopharma is currently active in three areas: • production of pharmaceuticals, including medicines, mainly generics...
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...Question 2 Use scenario planning techniques to consider the various environmental influences which may affect the global pharmaceutical industry in the future? Key drivers for change: Scientific advances leading to new drug discovery processes and greatertargeting of treatments. Continued mergers and acquisitions leading to more rapid concentration in theindustry or vertical integration. Transformation of traditional distribution or business models (including greateruse of the Internet for DTC marketing). Threat to intellectual property resulting from a combination of genericcompetition and the HIV/AIDS crisis in Africa. More informed consumers.Opposing key drivers: The pharmaceutical industry facing a rapidly changing environment, whichoffers both opportunities (such as harmonisation of regulatory requirements)but also threats (more discriminating purchasers); The need for global presence to achieve adequate return on escalatingmarketing capabilities and R&D costs; A strong focus on healthcare cost containment, such that new treatments mustbe justified on cost-benefit grounds, adding to development costs; To command price premiums, new products must offer unique benefits, yetinformation leakage means that most products are imitated rapidly; IT developments provide greater access to detailed healthcare information forboth providers and patients, also pushing forward cost-effective treatments; Educated consumers demanding advances...
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...Executive Summary RECOMMENDATION My recommendation to the Board is to approve the merger with Medco. Medco is one of the top benefit management companies and with the right preparation prior to merger the downside of the merger can be minimized. The potential upside given industry trends and where it is headed are too great to ignore. Medco’s position in the market and success as a company, have proven it would be a valuable asset. The insight it can give Merck and the access to the market to increase share and give insight to Merck’s drug treatments will be invaluable. MARKETING & SALES CONSIDERATIONS Currently Merck has to send out its own reps to doctors where Medco does the same to doctors and companies. This will eliminate that area for Merck and result in a $1 billion annual savings in redundant marketing costs by a reduction of Merck’s sales force by using the marketing strategies of Medco’s database and ideology of marketing to plan managers as opposed to doctors. OPERATERATIONAL CONSIDERATIONS Medco’s database that allows Merck to identify prescriptions that can be switched from competitors to their brand will help increase market share while weakening competition. Merck pharmacists will be able to suggest these switches to the patient’s doctor. FINANCIAL CONSIDERATIONS Medco has about 33 million customers in the United States and manages 95 million prescriptions a year for government, unions, insurance firms and companies. Revenues for Medco were...
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