power point pitch

Running Head: 4-1 Report 1

4-1 Report: Potential Alternative Buyer/Competitor Research 2

Potential Alternative Buyer/Competitor Research

The company has found success through its new cancer treatment drugs. The cancer treatment drug market is quite saturated, and the products are mainly expensive because the disease is deadly but curable. The owner of a company is looking to sell the company, and there is one potential buyer as well. Still, due to market volatility because of the pandemic and another economic slowdown, it is expected that the interested buyer will pull out of the acquisition. To counter this setback, I will advise the company about the contingency plan and discuss the financial health of the top 3 competitors or organizations in this life science market. 

North American Industry Classification Code (NAICS):

I have used the North American industry classification code website to find out competitors and potential buyers, and I have searched pharmaceutical in the keyword search bar. After the search from the website, the code is 325412. Under this section of code, the top 3 performing companies in terms of sales are Novartis Pharmaceutical Corp, Eli Lilly and Company, and Bristol-Myers Squibb Company. I have also used three criteria to identify these companies as well the international presence of the company, Annual growth in terms of sales, and work on innovation in the company. I have selected these three top companies that can be our potential buyers of all of these companies. I have chosen these criteria because the multinational companies with solid sales numbers and innovative technologies at their disposal can be good potential buyers for our company as they have strong financials to pay for the acquisition (Al‐Ubaydli & McLaughlin, 2017).

Novartis Pharmaceutical Corp:

Novartis Pharmaceutical Corporation is a multibillion-dollar company, and the current market capitalization stands above 207 billion dollars. The company has a presence in almost all developed and emerging economies. The company produces nearly all kinds of medicines related to nearly every disease or virus. The company's financial position is also solid, with a strong balance sheet and income statement. Revenue has shown a good increase recently and is currently standing at 52,877,000,000, which is not the overall highest, but there is a growth in a yearly timeframe. The recent profits have shown a significant increase which is very encouraging. The past growth rate of the company stands at 1.2% annually, which is a good number if we look at the size of the company. Cosentyx is the most selling product of the company. The company should be willing to buy a company whose cancer products are performing well in the market, allowing the company to enter this new market and earn from this opportunity. 

Eli Lilly and Company:

Eli Lilly and company is another big name in the pharmaceutical sector. The company's current market capitalization stands above 297 billion dollars, making the company one of the largest pharmaceutical companies in the world. The company is listed on the New York stock exchange, and the share is currently trading at 311 dollars per share. The company is also a multinational company that manufactures and sells its products in multiple countries. The company also has strong financials, and the revenue of the company stands at 28,318,400,000, which shows an annual growth of around 15 percent. Although the cost has increased significantly, the profits seem stable, and it is expected the profit will increase in the future. The past growth of the company's last five years stands at 17 percent per annum, and the growth for the next five years is expected to be around 6.4 percent per annum. The company's most famous products are related to clinical depression drugs, and the company will be interested in buying our company to enter the cancer-related drugs market (Crommelin et al., 2010).

Bristol-Myers Squibb Company:

Out of these three companies I have selected, Bristol Myers is the smallest, with a market capitalization standing at 167 billion dollars. The company's revenue growth is more than any other company I have selected in the past three years. Revenue has doubled in three years and currently stands at 46,385,000,000 dollars, and the profits of the company have also doubled if we compare the earnings of 2018. The last five years' annual growth was around 5 percent per annum, and growth for the next five years is expected to stand at 21 percent per annum, which is an overwhelming number. The company operates in many different countries and should be interested in buying our company because of the vast revenue growth. The current growth trend will motivate the company's management to buy our company and enter the new market of cancer-related drugs (Helešicová et al., 2018). 

Conclusion

These companies have huge growth potential and have a solid financial position with growth in revenues and profits. Every company with development and good profit numbers is looking to expand into different markets or another segment of the same market. We have a very successful drug for cancer treatment. These companies would love to enter a market with an already established product that will help the company increase its profit and annual growth of revenue. The contingency plan should be pitching these potential buyers the opportunity to add more growth to their existing business models. The focus should be on getting a reasonable or above the market price of the acquisition. After identifying the buyer, the company should focus on the acquisition process. After the pandemic, the focus shifted toward the pharmaceutical companies and their ability to fight the pandemic. All the companies like to expand. Instead of starting from the start, buying an already established business will help the organization focus on its growth and business-related activities.

References

Al‐Ubaydli, O., & McLaughlin, P. A. (2017). RegData: A numerical database on industry‐specific regulations for all United States industries and federal regulations, 1997–2012. Regulation & Governance, 11(1), 109-123.

Crommelin, D., Stolk, P., Besançon, L., Shah, V., Midha, K., & Leufkens, H. (2010). Pharmaceutical sciences in 2020. Nature Reviews Drug Discovery, 9(2), 99.

Helešicová, T., Pekárek, T., & Matějka, P. (2018). The influence of different acquisition settings and the focus adjustment on Raman spectral maps of pharmaceutical tablets. Journal of Drug Delivery Science and Technology, 47, 386-394.