1. Introduction to the Industry and Company
1.1 Industry Overview
The Australian pharmaceutical market in which MYX compete is a technology-intensive, knowledge-based one which “comprises bio-medical research, biotechnology firms, originator and generic medicines companies and service-related segments including wholesaling and distribution” (Department of Industry n.d.a). In order to assess the investment prospect of the industry, a Porter’s Five Force analysis is conducted (see reference list for the reference used in the framework).

1.1.1 Porter’s Five Forces

1.1.2 Industry Prospect
The industry is going to continue growing in the next few years as the federal government are keen to introduce less costly biosimilar drugs to gradually replace traditional biological drugs in …show more content…
• in-licensing and out-licensing products to optimize the balance between profitability and technology diversification • small-scaled market capitalisation and market share compared to that of the top ten companies listed under the PBS which may cause the limitation of growth
• has relatively little bargaining power when negotiating distribution contracts in the US in prior year which may contribute to the recent build-up of inventory of one of MYX’s key products, Doryx1
• lack of involvement associated with corporate social responsibility (CSR) and sustainability, whereas SIP has various CSR programs such as Guardian Angel knitting program, Juvenile Diabetes Research Foundation2. Lack of CSR appearance can be detrimental to MYX’s reputation
Opportunities Threats
• expected future expansion in the US market by developing US specialty dermatology franchise and building new specialty therapeutic