Running Head: POTENTIAL ALTERNATIVE e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e
e e e e e e 1
4-1 Report: Potential Alternative Buyers/Competitor Research
MBA699
SNHU
POTENTIAL ALTERNATIVE e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e
e e e e e e e e e e 2
Introduction
At present, the life sciences organization has a potential buyer who is interested in
acquiring the firm. However, a possible roadblock that has been identified revolves around the
recent instability in the economic and market setting. Due to these constraints, the potential
buyer might reconsider the acquisition proposal. In the report, an in-depth analysis has been
conducted to identify a number of alternative buyers in the life sciences industry. The three
main competitors and potential buyers have been identified that the life sciences company might
consider in case the original buyer backs out.
North American Industrial Classification System (NAICS) code
The North American Industrial Classification System refers to the standard that is
utilized by the Federal statistical agencies for the classification of business organizations for
gathering, evaluating and publishing statistical information pertaining to the business economy
of the U.S (Naics Association, 2021). This system is used in several North American nations
such as the U.S., Canada as well as Mexico. It helps to classify businesses by assigning a six-
digit code. e
As the firm operates in the life sciences domain and has been involved in the production
of cancer treatment drugs, the appropriate NAICS code is ‘325412.’ This code is applicable for
‘Pharmaceutical Preparation Manufacturing. (Pharmaceutical Preparation Manufacturing.
NAICS Association, 2021)’ The specific code primarily involves establishments that specialize
in the manufacturing of in-vivo diagnostic elements as well as pharmaceutical preparations that
are intended for the external and internal consumption in the form of doses. As the company
works on creating new kinds of treatments and medicines that can influence the quality of
POTENTIAL ALTERNATIVE e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e
e e e e e e e e e e 3
health of individuals, it belongs to the specific NAICS category. The specific code can be
utilized for the purpose of identifying potential buyers that the business entity can take into
consideration in case the potential buyer decides against buying the firm. Based on the code, it
is possible to identify top market players that are operating in the life sciences domain and that
could serve as potential acquirers for the entity.
Top Competitors
With the help of the NAICS code, it is possible to identify the key market players in
terms of financial performance, such as revenue, that have been assigned the same code. A
number of organizations have been identified that are making revolutionary changes in the
pharmaceutical industry in the United States of America and are making new discoveries in
terms of innovative oncology commodities.
Novartis Pharmaceuticals
Novartis Pharmaceuticals is the first firm that has been identified as the chief competitor
that operates in the specific industrial domain. This global healthcare organization has been
offering innovative solutions for addressing the evolving health needs of patients all across the
globe (Naics Association, 2021). It has been chosen as one of the competitors since the
acquisition by the firm can help the staff of the life sciences organization to exploit their
capabilities and work on new and unexplored areas in the pharmaceutical context. The chief
criterion for shortlisting the company is its soli technical capabilities in the life sciences domain.
Bristol-Myers Squibb
POTENTIAL ALTERNATIVE e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e
e e e e e e e e e e 4
The second competitor that has been identified is Bristol-Myers Squibb. This global
biopharmaceutical company has been involved in exploring, developing as well as delivering
innovative drugs and medications for patients. As it is considered to be one of the largest
pharmaceutical businesses that operate at the global level, the employees of the exiting firm can
get the opportunity to continuously learn and grow in the dynamic market setting. The criteria
that have been used is the robust advancement of the firm in the research and development area
can act as a major advantage for the firm’s staff. e
Regeneron Pharmaceuticals
Regeneron is one of the leading biotechnology organizations that has been capitalizing
on the power of science and technology for creating new kinds of medicines for individuals
suffering from different kinds of health complexities. The company has continuously focused on
its innovation capabilities which have helped it to become a key player in the life sciences
domain. The organization has been chosen as one of the key competitors that the business must
take into consideration if the original buyer backs out. The criteria that have been used for the
identification of the firm is the high experience in the medical manufacturing area. e
Company Information
An in-depth insight into the identified competitors has been presented since it could help
in making the selection of the final buyer.
Novartis Pharmaceuticals
The strategic vision of Novartis Pharmaceuticals is to focus on transformative treatments
by challenging the conventional medical paradigms (Naics Association, 2021). It offers a
POTENTIAL ALTERNATIVE e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e
e e e e e e e e e e 5
diverse range of products to meet the evolving health needs of people. Some of the main
products of the company include Adakveo, Afinitor/Votubia, Arzerra, etc. The busienss holds
over 5 % of the market share in the operational industry. Its revenue forecast (CAGR) for a
period of 5 years is approximately 1.5 %.
Bristol-Myers Squibb
The firm’s strategic vision is to create a world where there is seamless access to quality
health care solutions, and it does not depend on who a person is or where he or she lives. It has
a diverse portfolio of pharmaceutical products while spanning several areas such as oncology,
cardiovascular as well as immunology. The market share of the business for Quarter 1 of 2022
was 8.73 % (CSIMarket.com, 2022). The company’s revenue forecast (CAGR) for a period of 5
years is around 6.7 %. Thus, the potential for the business to witness growth in the life sciences
domain is high.
Regeneron Pharmaceuticals
The strategic vision of the Regeneron Pharmaceuticals business is to make the use of
science so that it can create new medicines for its customers (CSIMarket.com, 2022).. The
brand’s oncology product portfolio is vast. Some of the most common products of the business
are Dupixent, Eylea, Inmazeb and many more. The market share of the company keeps
fluctuating since it is interlinked with the strategic use of technology to create new products.
The revenue forecast (CAGR) of the pharmaceutical company for a period of 5 years is close to
27.0 %.
Conclusion
POTENTIAL ALTERNATIVE e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e
e e e e e e e e e e 6
A number of competitors have been identified that the large life sciences organization
can take into consideration in case the original buyer backs off and decides against acquiring the
business. The businesses that have been identified also function in the life sciences domain. By
choosing one of the companies as a potential buyer, it will be possible for the business to
successfully exit the market setting. Furthermore, it will also be possible for the staff members
to get an opportunity to continuously operate and grow in the evolving market setting and
deliver value for the target market audience.
POTENTIAL ALTERNATIVE e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e e
e e e e e e e e e e 7
References
CSIMarket.com. (2022, May 15). BMY's vs. market share relative to its competitors, as of Q1
2022. CSIMarket. Retrieved June 30, 2022, from
https://csimarket.com/stocks/competitionSEG2.php?code=BMY
Naics Association. (2021). Retrieved June 30, 2022, from https://www.naics.com/
Pharmaceutical Preparation Manufacturing. NAICS Association. (2021). Retrieved June 30,
2022, from https://www.naics.com/naics-code-description/?code=325412
