YK Hamied thinking about his succession plans As the clock struck 9 Yusuf Hamied leaned back in his chair, took off his glasses and clinched his eyes. It had been a long day for the 79 year old veteran, not that he wasn’t used to it. He had spent countless hours in that office since 1960 chalking out plans and strategies that elevated Cipla to the pinnacle of Indian pharmaceutical industry. Indomitable and indefatigable as he may be, he had held the helm for ages now, and it was time for his nephew Kamil to steer the ship forward. But as it turned out Yusuf Hamied was staring at Kamil Hamied’s official resignation, who decided to quit Cipla after 7 years to pursue his personal career objectives. Yusuf Hamied had been mentoring Kamil and his …show more content…
The pharma companies in general are optimistic about the M and A. The growth of the pharmaceutical industry is expected to be driven by the diabetes, skincare and eye care segment. The leading pharmaceutical companies including Cipla is expected to be the part of the governments ‘Jan Aushadhi’ project with the aim of commercialising the project by procuring general drugs from them in bulk. The government plans to the Jan Aushadhi stores to 3000 by 2016. Company overview: Cipla Khwaja Abdul Hamied established Cipla in 1935 but it was only in 1937 that he was able to start the production of the drugs. Cipla is an acronym for the chemical, industrial and pharmaceutical laboratories. Today the production facilities of the companies are spread across locations in India like Goa, Patalganga, Kurkumbh, Mumbai, Vikhroli and Bangalore. Cipla, apart from having a strong presence in the Indian market, have a prospering export market and exports to more than 150 countries. Cipla has a huge product portfolio containing more than 200 brands of which some are leading in their categories. Apart from this, the company has excellent process RnD skill. The extensive distribution network makes Cipla, the biggest pharma company in
Citicorp Case Analysis 1. What is the difference between a. and a What is the difference between primary and secondary capital? What is relevant to this case? Primary capital consists of common stock, perpetual preferred stock, surplus, undivided profits, mandatory convertible instruments (debt that must be convertible into stock or repaid with proceeds from the sale of equity), reserves from loan losses, and other capital reserves. These items are treated as permanent forms of capital because they are not subject to redemption or retirement.
On the basis of these findings, I recommend that Johnson & Johnson is a considerable place for employment for someone who is seeking to be part of a pharmaceutical organization
An Analysis of GlaxoSmithKline The business that I have done research into is GlaxoSmithKline. This company is a globalised research-based pharmaceutical public limited company. Its ownership structure has changed a great deal since the original company was first established in 1715. Originally a pharmacy, the company has expanded, merged with and taken over other companies over the decades.
In exchange for their support of Obama care, it is believed that PhRMA will receive preference on future policies that will be worth billions to the industry (Blaine). Also, laws such as the Food and Drug Administration Safety and Innovation Act limits foreign competition and counterfeit drugs which will increase the profits of PhRMA's
Johnson and Johnson is poised for growth on many fronts. Their short-term outlook is bright due to a lead position in the drug-coated stent market. They should also see a substantial increase in prescription drug sales from the recently enacted Medicare regulation, which will grant prescription drug coverage to more Americans. In the long run, J&J should see consistent sales growth fueled by the aging demographics in the United States. Moreover, the medical supplies and services needed by the elderly population will increase simultaneously with the aging of the large baby boomer population. While there is no doubt that J&J is a corporation that has gone a long way and due to its reliability, culture and growth will continue to do well, analyzing the effectiveness of their current strategy is still essential. The question of whether J&J should become more centralized in order to adapt to the changing hospital industry needs to be addressed. Because of the changes in the hospital sector and because of the changes that distributors underwent in order to meet the hospital changes, J&J inevitably needs to change as well and become more centralized. While I do not think it is possible or even necessary for J&J to become completely centralized, J&J should consider the benefits of becoming more centralized. If J&J continues to be as decentralized as they are they will have a hard time adapting to change, communicating within the organization and contact within the organization will decrease as well.
Threat of new entrants is relatively high. Companies forming alliances are potential rivals. Even if earlier such company was not considered to be a threat, after merging with some research and development company or forming alliance with another pharmaceutical company it would become a rival to Eli Lilly. The threat is however weakened by significant research and development costs necessary to successfully enter the business. Eli Lilly’s focus on a relatively narrow market of sedatives and antidepressants weakens the threat of new entrants, but other products that form lesser part of company’s sales such as insulin and others are exposed to high threat of new entrants. The need of obtaining certificates and licenses also weakens the threat of new entrants. Discussed above leads to the conclusion that threat of new entrants is medium.
Total revenues increased 17% to $52.5 billion in 2004 and39% to $44.7 billion in 2003, primarily due to the acquisition of Pharmacia Corporation (Pharmacia) on April 16, 2003, the impact of foreign exchange and strong product performance
The point at which they decide to produce will rest on their own adversity of revenue, risk and effort. The company also needs to know the price elasticity of the curve: the greater the price elasticity, the more a company such as Pfizer will struggle to establish high prices and a high volume. Although monopolies appear damaging at times, there are arguments that they are an advantage to society. Monopolies in the pharmaceutical industry drive companies to pursue research and development (R&D) efforts to gain new patents. According to a 1992 study, among the 24 U.S. Industry groups, pharmaceuticals dedicated 16.6% of their amounts to basic research, while all other industries averaged at 5.3% (Sherer 1307).
Janssen is a division of Johnson and Johnsons that primarily focus on diseases that can help develop new strategies in improving prevention as well as developing vaccines and its accessibility to the world. The pharmaceutical company of J&J invests large amounts of money in research and development of its products. The competitive environment of Johnson and Johnson is very high for pharmaceutical companies due to which that many companies are releasing drug products and other devices. However, this company does not face any potential competitors due to which that it is a large company that provides a wide range of opportunities such as finances, and experiences. This leads to advantages compared to other competitors due to whom the pharmaceutical companies creates a barrier because of the high cost in research and development in medicine. In addition, Johnson and Johnson have to make sure that it has many suppliers for different categories for their products especially in medicine if one supplier causes shortages. Although suppliers do not bargain for the price values of its products, it still influences the price in the market in different countries. In addition, finding
PROBLEM STATEMENT Teva Pharmaceuticals, the first multinational pharmaceutical company in Israel, has become a successful global giant in the industry of generic drugs. After experiencing a long period of success and growth in the generic drug industry against some big western pharmaceuticals, the company had acquired many well known pharmaceutical companies and had achieved its goal of $1 billion. theory seemed to be in trouble in building a new strategy and vision to compete with the rapidly growing generic industry. They confronted two big issues as key hurdles in their way.
Scherer, A. (2012) ‘M&A in Big Pharma: Holy Grail or Buying Time’, Contract Pharma, 21 Mar [Online]. Available at: http://www.contractpharma.com/contents/view_experts-opinion/2012-03-21/ma-in-big-pharma/#sthash.NnrBSo3O.dpuf (Accessed at: 15 December 2013)
10. Collis, David, and Troy Smith. "Strategy in the Twenty-First Century Pharmaceutical Industry:Merck&Co. and Pfizer Inc." Harvard Business School, 2007: 8-12.
The original case was about Chiron, a biotechnology company, in the United States. Chiron was acquired in 2006 by Novartis, a Swedish company formed by the merger of Ciba-Geigy and Sandoz Laborites. Since Chiron itself no longer exists, we have focused our case around Novartis as of 2013. Novartis specializes in diagnostic services, generic and name brand medications, ophthalmological tools, as well as a small segment in pet health. The business prides itself in producing the latest drugs, hiring the best talent, and being a global leader in the pharmaceutical industry. Over the years the company has survived by focusing on its internal development in addition to a series of mergers, acquisitions, and corporate restructurings. Being a pharmaceutical company, the entire population is impacted: patients, physicians, employees, hospitals, and investors are some of the most important stakeholders.
Lorna works hard to raise her pharmacy’s profile within Kenora in order to attract new customers. She is constantly scanning the horizon to offer new healthcare services to customers, and implement government compensated services. Lorna’s ongoing challenge is to have her entire team embrace the rapidly changing landscape of pharmacy practise with the confidence to succeed.
In reviewing the case of Fred Maiorino, a successful salesperson for Schering-Plough for over three decades, a lot of factors came into play in which were not favorable for both Fred, who as a result lost his job, and the management of Schering-Plough, in particular Jim Reed, the sales manager for the company.