Comparative Study of Case Study Summaries With APA Table

Week 4- Case Study: Salix Pharmaceuticals

Student A:

Summary:

Salix Pharmaceuticals, Inc started in 1989 focusing on research. With interest in inflammatory bowel disease, Salix went on a worldwide search for product. They found a compound known as balsalazide disodium by Biorex located in London. Biorex was persuaded to license their product to Salix. With two investor Salix was able to provide products to patients suffering from gastrointestinal diseases. Years later, Salix licensed the rights for rifaximin from Alfa Wassermann. They went on to licensing over twenty products. Salix eventual went on to break barriers in the United States.

Key Issues:

Salix went into the pharmaceutical industry product driven and discovered that investors were more interested in technology.

Financial stability to sustain the costly processes for testing and use in the United States and Europe.

Continuously seeking licenses for global rights from companies and making introduction to the market.

Salix is dependent on outsourced manufactures. New medications will continuously be challenging to discover for Salix and expensive to develop.

Recommendation/Options:

Salix strategy was focusing on solely gastroenterology (Kyriazis & Swayne, 2008). A specific product line is not sustainable in the pharmaceutical market. Salix questions whether they should venture into other specialties, diseases, or drugs.

Change the targeted market. Salix was able to understand the need of the patients and gastroenterologists. They were able to successful meet the needs of patients suffering from gastrointestinal diseases.

Diversify the product line for other specialties. Salix was successful in the gastroenterology market. Salix has partnered with companies who focuses on pain management. Pain management continues to be a challenge as chronic pain remains inadequately treated (Park & Moon, 2010)

Mission:

Salix Pharmaceuticals Inc, mission is to provide products to patients and the gastroenterologists (Kyriazis & Swayne, 2008). I think the mission would remain the same which is to continue to provide a product. The shift in focus should be how Salix achieves this goal. Salix’s approach to achieving their goal is search and develop. Whereas others research and develop. Research and development models are driven by technology and longer product lifecycles (MedTech Europe, 2015). Search and development require additional resources: financials, marketing.

Kyriazis, L., Swayne, L.E. (2008). 2 Case: Salix pharnaceuticals, inc: succeeding on the road less traveled. https://courserooma.capella.edu/bbcswebdav/institution/DHA/DHA8032/220400/Course_Files/cf_salix_pharm.pdf

MedTech Europe (2015). Medical devices and pharmaceuticals: two different worlds in one health setting. https://www.medtecheurope.org/news-and-events/news/medical-devices-and-pharmaceuticals-two-different-worlds-in-one-health-setting/

Park, H. J., & Moon, D. E. (2010). Pharmacologic management of chronic pain. The Korean journal of pain, 23(2), 99–108. https://doi.org/10.3344/kjp.2010.23.2.99

Student B:

Mission/Vision/Values

Salix Pharmaceutical company mission direction for their company is to provide products to gastroenterologists and their patients by using search and development which is different from other similar companies that uses research and development (Kyriazis et.al., 2008). Herbal medicinal medicine such as use of willow tree bark as a compound for use as a therapeutic drug (Kyriazis et.al., 2008). Focusing the company research on market products that was advanced in their life cycle with focus on inflammation and inflammatory disease set the stage for product development for the company road to being rare as a value in the market of product services (Kyriazis et.al., 2008).

Salix Pharmaceutical key issues

The key issues for the company were not enough funding to sustain product development, advertising and being able to expand into different markets being a small company. Partnering with similar companies at the beginning of the organization growth meant selling of partial part of the company to get help with development, distribution and selling of the product to get into the market (Kyriazis et.al., 2008). Obtaining FDA approval of the product to get the rights of the developer ownership from the competition who would want to duplicate the product.

Situational Analysis

The external environment Salix owners needed investors to commit to help financing their company as they were passionate about the product they were selling, companies and doctor offices that would invest in the desirable successful product they would be selling (Moseley, 2018). New small companies would always have difficulties to find investors in the beginning stage of growth. Listing the product, they developed on NASDAQ exchange was a great economic strategy to raise funds for their product development (Kyriazis et.al., 2008).

The social culture is to obtain global rights to be sole owner of the product would open the door to global customers. Partnering and selling of licensure of the product in the marketplace proved to be successful as the company of Salix was growing with their successful product that led to development of another medicinal product. The competitive situation is that Gastrologist account for a small group to sell product to and the largest is licensed medical doctors, general practitioner and internal medicine physicians would become the target audience to sell the product to (Kyriazis et.al., 2008). The molecular compound of Salix product was the first FDA approved to treat the diseases Salix products catered to was proven safe for the companies through its clinical trials that made it successful to sold and licensed (Kyriazis et.al., 2008).

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Strategy Formulation

Salix liked for pharmaceutical proprietary who were in their late stage of developing to partner with similar organizations to reduce risk, time with a degree of safety and relative safe data for product investment (Kyriazis et.al., 2008). Salix strength was also in selling their own product to benefit financially for higher profit. Salix strength as in their successful marketing skills and direct sales force that they centered on their target market field for highest prescribed gastroenterology specialist. Many disease that would use Silex had more than 70 million customer that could use the drug (Kyriazis et.al., 2008). The downsize is the competitor generic drug could be sold cheaper than the brand name medicine. Another weakness of the company is not having enough financial financing to do business on their own (Kyriazis et.al., 2008).

Implement Strategies

Salix strength was also in selling their own product to benefit financially for higher profit. Salix product target was the invention of herbal drug, production of the drug and formulation and promote of their drug product to the medical specialist that would be using it for treatment of their patients (Kyriazis et.al., 2008).

The FDA regulatory agency drove the company to make sure their product was safe and that it gets on the OTC list as a prescription drug as its goals for their products (Kyriazis et.al., 2008). Clinical trial testing was the process to accomplish and show benefits and no harm to be approved as a product to be sold. Generic drugs of the medicine could be sold by market competitors but, brand name by the developing company only (Kyriazis et.al., 2008). Salix Pharmaceutical was also able to a rare value in the marketplace from its competitors and were able to offer dosages at a lower cost to be top competitor. The uniqueness of Salix products made it a sought after drug (Kyriazis et.al., 2008). Salix Pharmaceutical decision to sell and market its own products made for the company a significant stream of revenue. Salix was able to become a global product due to them having the rights of the product.

Patient protection gives the company security against its competitor after the protected period time has ended (Kyriazis et.al., 2008). Salix medicinal product uniqueness in its mechanism relieve of drug delivery allowed them to treat a range of treatment options for certain diseases that was a successful move (Kyriazis et.al., 2008). Sales and marketing were a strategy by maintaining contact with its buyers and repeat customers was a part of success efforts of the company. Advertising, and publications of product in regard to strategy and offering coupons and lower pricing of some product makes the company attractive to its customers (Kyriazis et.al., 2008).

Measurement success

Financial measures fluctuation in financing is expected in any industry is to be expected if the liabilities are monitored and addressed when needed. Revenue growth must be closely monitored with introducing new products as large risks could be used to support product growth and expansion.

Recommendations & Conclusion

Salix Pharmaceutical ability to produce quality, safe products should create products that could be dual in other similar markets to compete with other companies. Salix Pharmaceutical knows the value in marketing and sales as it is to produce quality safe products should always be its mission and future goal (Kyriazis et.al., 2008). Constant monitoring and development of improved products should be a continual basis as the company moves into different markets of growth. The growth of Salix Pharmaceutical and strategy int other markets should change the mission of the company. Safe reliable product with change product delivery increasing should move in steady pace of growth. Sales and marketing should get a good amount of research as well as new developing products. Getting the company in many arenas of health care helps them to expand target areas to get new targets as they move forward in new development of different products (Ginter, et.al, 2018). Searching out regulations to stay legal lawful in distributing their products and ownership of them will increase revenue growth as the company go forward in the future.

References:

Ginter, Peter M., et al. The Strategic Management of Health Care Organizations, John Wiley & Sons, Incorporated, 2018. ProQuest Ebook Central, https://ebookcentral-proquest-com.library.capella.edu/lib/capella/detail.action?docID=5228460. Retrieved 1/21/2023

Moseley, G. B. (2018). Managing health care business strategy (2nd ed.). Jones and Bartlett. Retrieved 2/1/2023

Kyriazis, Leonidas and Linda E. Swayne. Salix Pharmaceuticals, Inc : Succeeding on the Road Less Travelled (2008). Retrieved 2/1/2023