Merck: Business Analysis
Merck is a flourishing research-driven pharmaceutical company, which discovers, develops, manufacturers, and promotes an extensive variety of human and animal health products. Although Merck is one of the biggest pharmaceutical companies of the world, they still come across problems today while striving to sustain a lead against its competition. Merck has achieved success with its lengthy history of breakthrough drugs and the development of three significant pharmaceutical products: antibiotics, vitamins, and hormones. Merck’s success relies heavily on its management and how they modify the business model in place to that of the ever-changing economy. Influence of Economic Trends
The global pharmaceutical market is likely to undergo a wide variety of changes with new competition arising in India, China, Malaysia, South Korea, and Indonesia. This new competition has a growing economy and has made a difference between the product cost and disposable income of consumers. According to NASDAQ (2011),“ Global pharmaceutical market sales are expected to grow at a 4-7% through the year 2013 largely being driven by the growing access to health care in emerging economic regions” (para. 2-5). Short-term growth within this area is stimulated by the United States market, as it continues to be the largest pharmaceutical market in the world. A focal point on research and development in special drugs and generic drugs will remain a strong means to meet 2011 goals of earning $315 billion dollar in sales within the United States. Strategies
Merck & Co., Inc. has outlined its long-term strategic goals in how the company devises to develop and market medicines and vaccines worldwide. Merck plans to enhance the value of its medicines and vaccines through lifecycle management and will put time into implementing internal and external growth opportunities such as regional business expansion. The company also plans to obtain additional growth from budding markets. According to Drug Discovery & Development (2011), “In addition, the company is making significant investments in key emerging markets, including China and India, with the goal of attaining a leadership position in those markets over the long term” (para.3-12). Furthermore, Merck is also moving to diversify its portfolio by creating a new division, Merck BioVentures, which leverages a unique platform for both follow-on and novel biologics (Drug Discovery & Development, 2011). Merck new division called Merck BioVentures (MBV) will use Merck’s privately owned glyco-engineering technology to become a chief provider of biologics, which symbolizes an important marketing opportunity because of the broad patent expiration of leading biologics scheduled to take place in 2017. According to Drug Discovery & Development (2011), “Merck has also been involved in extensive diverse research and development efforts to include 47 active clinical programs across the company’s major research franchises: bone; respiratory; immunology and endocrine; cardiovascular; diabetes and obesity; infectious diseases; neuroscience; oncology and vaccines” (para. 3-12). The Drug Discovery & Development (2011) website, Merck is diversifying its scientific portfolio through internal and external research collaborations. The company focuses on developing novel, best in class or follow-on treatments for patients in primary care, specialty care, and hospital settings. Additionally, Merck Research Laboratories is engaging in a collection of treatment protocols that consist of small molecules and vaccines. Merck continues to invest in introducing its medicines and vaccines around the world by engaging in suggestions for Gardasil and developing new fixed-dose combinations with Januvia as well as an extended release formulation of Janumet. Merck will also have a global launching of new commercial models. This strategy uses new marketing technologies to accompany a new, more...
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