Case Analysis:
Valeant Pharmaceuticals is a specialty drug manufacturer operating in the fast-cycle pharmaceutical industry. In this business, size often matters and Valeant, along with most of the major players in the industry, has aggressively utilized mergers and acquisitions to acquire R&D capabilities and other key strategic resources, create synergies, capture market share, and use acquired legacy products to support future growth. Valeant’s 2010 merger with Biovail Corp was designed with all of these benefits in mind. To develop an effective strategic position, Valeant must address several important external factors including the global economy, advances in technology, population demographics and sociocultural influences, and shifting political/legal forces that affect not only the drug approval process but also the changing nature of healthcare. To address these considerations, Valeant must develop strategies in the areas of marketing and sales, product innovation, operational speed and efficiency, and M&A to position itself for future success The purpose of this case study is to determine if the company’s recent merger with Biovail, other M&A’s and restructuring efforts will yield the benefits promised to shareholders and enable the firm to compete more effectively in the marketplace.To reasonably determine the merit of its strategic approach, external environmental trends, competitor positions, financial indicators, internal resources, and company strategies must be considered.The results of the analysis can then be used to suggest measures which can improve Valeant’s strategic position and potential for ongoing success.
Other pharmecautical competitors:
Accera, the company looking into the metabolic aspects of Alzheimer's, will have data coming out on its phase 3 trial in the first quarter of 2017.
Merck, which has a BACE inhibitor that works along the amyloid hypothesis, will have a phase 3 trial wrapping up in July 2017.
Axovant, whose drug aims to treat the symptoms of Alzheimer's, will have phase 3 data coming out in the second half of 2017.
Question:
Conduct a comparative analysis of the company’s primary competitors in the neurology division. What are the strategic implications of this comparison? What corrective actions are suggested?