MBA 699 - Module 6 - Investor Pitch

Johnathon Davis

4-1 Report: Potential Alternative Buyers/Competitor Research

MBA 699

Professor Shindell

September 18, 2022

4-1 Report: Potential Alternative Buyers/Competitor Research

Introduction

As a business development manager for a life sciences firm, to find higher success in new cancer treatment medications. The report focuses on identifying and studying the top three firms in the market and industry. The data is summarized in a report to the VP because the list of organizations is considered for the alternative purchaser. Firstly, the North American Industry Classification system code is discussed to find purchasers in the segment. Secondly, three competitors are considered by focusing on the NAICS code. Lastly, the CAGR, market share, primary services and products and strategic vision of Gilead Science Inc, Eli Lilly and Company, and Novartis Pharmaceuticals Corporation are explained effectively.

North American Industry Classification System (NAICS) Code

The NAICS code for the life science company is 325412, the code for the pharmaceutical preparation business. The code is for the industry of manufacturing organizations that create in-vivo pharmaceutical and diagnostic preparations that can be used both externally and internally. NAICS code can aid in finding essential data related to organizations in a similar industry (census.gov, 2022). The code will be necessary for finding effective purchasers as it delivers data about top organizations in the industry. It would be attentive to manufacturing can treatment medicines. The NAICS code provides an overview of data related to the organization that aids in deciding which organization will be the top fit for the organization.

Top Competitors

The top three firms in the pharmaceutical preparation manufacturing industry with a NAICS code of 325412 are Gilead Science Inc, Eli Lilly and Company, and Novartis Pharmaceuticals Corporation (Lopes et al., 2013). These organizations are the major competitors for the life science firm and might be alternative purchasers for the organization. The standards utilized to select these three organizations comprise organizations' income and sales volume. Besides, the revenue and sales volume are essential to focus on the consumer pool of the organization and if they have a good effect in the market to confirm the cancer treatment medicines that can reach various persons possibly. This standard affects the life science firm if the acquiring organization does not possess the need to vend the treatment, and obtaining organization might not focus on purchasing the firm. So, it also confirms that a life science organization intends to make the medicine available to all that require it is completed if the organization has a distinct possessor.

Besides, the maturity and size of the organization are focused on selecting three firms. The size of a firm is essential as a larger organization will aid in decreasing competition and improving purchasing strength (Kessel, 2014). The maturity of an organization is crucial in confirming that the organization can reduce issues that may cause the organization to close. The maturity and size of the acquisition organization are necessary for a life science firm as they will confirm that the organization will keep running its operations. Resources of the organization are the third criterion utilized to make decisions related to the top three competitors of life science firms. The standard is crucial as it confirms that the firm inclines to need other organizations and also has the capital to purchase them. So, it is essential for a life science firm as it confirms that the receiving firm has the funding to fulfill the acquisition.

Furthermore, the criteria focused on selecting the top three organizations and were not utilized to comprise the culture and location of the company. The location is a crucial aspect to be focused on as it influences the lives of workers and their family members. If an organization is in another zone and might decide to move the organization, it will make the workers locate again. It was not utilized as a criterion as some jobs can be completed remotely, and this movement might not influence various workers (Petrova, 2014). The organizational culture is another criterion to be focused on as an organization's culture is an essential aspect during merger and acquisition that determines the working of employees efficiently.

Company Information

Novartis Pharmaceuticals Company is an international pharmaceutical firm based in Switzerland and USA. It is among the major pharmaceutical firms worldwide and makes numerous drugs. The organization was founded in 1996 once the divisions of Sandoz and Ciba-Geigy merged. Its net income was 51 billion dollars in 2021, which was high than the net income of 2020 (Novartis, 2022). The organization has about 7000 workers and delivers approximately 107 medicines in the United States. Moreover, the company focuses on improving healthcare problems through innovation and technology by designing breakthrough treatments and making them approachable to various persons as latent.

Besides, Eli Lilly and Corporation is a pharmaceutical organization in the USA and is present in the USA and other eighteen states. Eli Lilly founded the organization in 1876, and the firm is focused on creating quality medicine (Lilly, 2022). The critical values of the company comprise respect, excellence and integrity for persons that focus on inclusion, diversity, and creativity. The organization also focuses on bringing innovation in innovative ideas to bring improvement in medicine’s quality. So the company also has about 36,000 employees all over the world.

Furthermore, Gilead Science Incorporation is a pharmaceutical organization in the USA that focuses on producing and researching anti-viral treatments. The firm's main aim is to develop medicine for persons with life-endangered illnesses utilizing transformative and bold technology and science (Gilead, 2022). Therefore, the firm focuses on developing and researching medicine for unfulfilled medical requirements. It also considers cancer studies and other illnesses that need to be fulfilled.

Conclusion

It is concluded that competitor analysis helped examine organizations' performance in the life sciences industry while focusing on medicines and pharmaceuticals. Team members of firms agree with the approaches and conduct preliminary research that might not aid in acquisition evaluation and recognition of alternative purchasers in present purchasers back out.

References

census.gov. (2022). Introduction to NAICS. Retrieved from census.gov: https://www.census.gov/naics/

Gilead. (2022). Decades of Achievements: Celebrating 35 Years. Retrieved from Gilead: https://www.gilead.com/

Gilead. (2022). Gilead UK and Ireland. Retrieved from Gilead: https://www.gilead.co.uk/

Lilly. (2022). Leading with Purpose. Retrieved from Lilly: https://www.lilly.com/

Novartis. (2022). Novartis Pakistan. Retrieved from Novartis: https://www.novartis.com/pk-en/

Lopes, G. D. L., De Souza, J. A., & Barrios, C. (2013). Access to cancer medications in low-and middle-income countries.  Nature Reviews Clinical Oncology,  10(6), 314-322.

Petrova, E. (2014). Innovation in the pharmaceutical industry: The process of drug discovery and development. Innovation and marketing in the pharmaceutical industry (pp. 19–81). Springer, New York, NY.

Kessel, M. (2014). Restoring the pharmaceutical industry's reputation.  Nature Biotechnology,  32(10), 983–990.