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Competitor Analysis Report for Potential Alternative Buyers

Due to the recent successful development of a potential cancer cure, the company has become an attractive buyout candidate. However, having only one buyer option is too risky in the current unstable market. Therefore, the company should create a list of alternative buyers to have other options for now on sale. The current report aims to determine an appropriate NAICS code for the organization to identify a list of potential buyers. Additionally, three different pharmaceutical companies will be analyzed in terms of their possible interest in buying the organization.

The North American Industry Classification System code that describes this organization is 325412 – Pharmaceutical Preparation Manufacturing. The code 325412 is used for companies that specialize in drug manufacturing and selling (United States Census Bureau, n.d.). Thus, companies that have the same NAICS code can be potential buyers. The code can facilitate a search for firms operating in the same industry, which is crucial if the main buyer cancels the deal. By referring to code 325412, the company is able to identify pharmaceutical companies that have heavily invested in oncology, have the financial ability to buy another firm, and are interested in acquiring innovative drug cancer developers.

Three companies were shortlisted as possible alternative buyers of the organization. These companies are Merck & Co., Bristol Myers Squibb, and Roche. They are major players in the field of oncology research, have good financial performance, and are interested in acquiring shares of other pharmaceutical companies. All three companies fit the ideal buyer description considering their experience, financial performance, and market reach.

Three main selection criteria were used to shortlist the companies. The first criterion was based on the companies’ experience and excellence in oncology research. Considering the organization’s objective, which is to provide quality cancer treatment, it is essential to choose companies that have a proven track record in the field. This criterion fits the ideal buyer description as it implies that the acquired company is more likely to benefit from the buyer’s experience and research efforts.

The second criterion was based on the companies’ financial performance and ability to make acquisitions. The acquisition of a successful biotechnology company requires heavy investment, which rules out many pharmaceutical companies from consideration. Only large multinational corporations with a sufficient financial profile can afford to participate in a merger or acquisition and have sufficient research and development capabilities to continue the acquired company’s work (Cumming et al., 2023). Finally, the third criterion was based on the companies’ global presence and market reach. Multinational companies have research facilities, production sites, and sales forces in different countries, enabling them to sell the acquired company’s cancer treatment worldwide. Such an extensive market reach will help the organization get good returns on its investment.

Other factors were considered when selecting the right options among the alternative buyers, though they were not included in final evaluation. For instance, the companies’ culture is an essential factor that should be considered before making any of the final decisions (Cumming et al., 2023). But company culture can only be determined once the two companies start interacting. Another factor that was not considered was the company’s geographic location. This is because mergers and acquisitions often occur between companies located in different countries. The number of employees was another factor that could have been considered; however, it has less significance than research capability, financial performance, and global presence.

Company Information for Competitors and Potential Buyers

Company	Strategic Vision	Primary Products/Services	Estimated Market Share	Estimated CAGR
Merck & Co.	Advance innovative medicines that improve patient outcomes through science-led research (Merck & Co., 2026).	Oncology therapies, vaccines, cardiovascular medicines, and animal health products.	~6% global pharmaceutical market	~6%
Bristol Myers Squibb	Discover and deliver transformational medicines for patients with serious diseases, particularly oncology and hematology (Bristol Myers Squibb, 2026).	Cancer therapies, immunology, cardiovascular, and neuroscience medicines.	~4% global pharmaceutical market	~5%
Roche	Improve patient outcomes through innovation in pharmaceuticals and diagnostics with a strong focus on personalized healthcare (Roche, 2026).	Oncology medicines, diagnostics, immunology, neuroscience, and rare disease treatments.	~7% global pharmaceutical market	~7%

The most attractive alternative buyer is Merck & Co. because oncology is a major focal point of the company’s operations. Apart from having Keytruda as one of the most significant pharmaceutical products, the company continues to invest in the development of other oncology drugs to meet the demands of the market. The financial performance of Merck & Co. has been consistent, and the recent financial performance indicators (FPI) demonstrate that the company has the financial capability to continue investing in its products and acquire another organization (Merck & Co., 2026). Bristol Myers Squibb also fits as an ideal alternative buyer because the company focuses on developing innovative medicines for oncology and hematology. It has extensive experience with mergers and acquisitions within the pharmaceutical sector and has a strong commercial presence worldwide (Bristol Myers Squibb, 2026).

Roche is third in the list. The reason why Roche is included in the shortlist is because of the company’s leading position in the field of pharmaceuticals and diagnostics. The company invests significantly in the development of precision medicine and cancer research on a continuous basis. In addition, Roche has one of the most promising oncology franchises in the industry (Roche, 2026). The combination of diagnostic and therapeutic solutions for treating cancer will enable the company to maximize the value of the newly developed cancer therapy.

Using the North American Industry Classification System (NAICS) to identify potential buyers is an appropriate approach to determining alternative acquisition candidates. As a result of the analysis, Merck & Co., Bristol Myers Squibb, and Roche were considered as potential buyers. The three companies have proven experience and expertise, strong financial profile, and solid global presence, which makes them desirable acquisition targets. The analysis helps the organization come up with a viable contingency plan in case the intended acquisition is not realized.

References

Bristol Myers Squibb. (2026). Annual Report 2025. https://www.bms.com

Cumming, D., Jindal, V., Kumar, S., & Pandey, N. (2023). Mergers and acquisitions research in finance and accounting: Past, present, and future.  European Financial Management,  29(5), 1464-1504.

Merck & Co. (2026). Investor Relations. https://www.merck.com/investor-relations/

Roche. (2026). Annual Report 2025. https://www.roche.com/investors/annualreport25

United States Census Bureau. (n.d.). North American Industry Classification System (NAICS). https://www.census.gov/naics/