Merck Swot Analysis
Merck SWOT Analysis
MGT/521
July 25, 2012
Merck SWOT Analysis
Company Overview
Merck is the 2nd largest pharmaceutical company in world offering prescription
medications, biologics, vaccines, animal health, and consumer care products. It generated 48
billion dollars in revenue in 2011 and has 40,000 employees. Research and development of
proprietary medicines for global marketing is the core of the business. Recent acquisitions and
transactions designed to take advantage of emerging markets. Stakeholders include:
shareholders, medical professionals, medical researchers, medical facilities, and patients.
Key Facts
Headquarters: One Merck Drive P.O. Box 100 Whitehouse Station, NJ 08889-0100
Phone: (908) 423-1000
Web Address: merck.com
Revenue (USD Mn) 48,000
Financial Year End: December
Employees: 86,000
New York Stock Exchange Ticker MRK
SWOT Analysis
Strengths Continues to benefit from strong M&A activity
Has a diverse portfolio of product offerings
Strong research & developmental pipeline with 20 products in late-stage development.
Weaknesses
Pricing pressure caused by Health Care Insurance payment structure and government regulation in the United States and abroad.
Significant litigation involving Vioxx.
Uncertainty regarding new product development in Biologics
Opportunities
Emerging Global Markets are growing at double-digit percentage rates.
Generic Biologics Market to exploit competitor’s patent expirations.
New Mergers and Acquisitions, Joint Ventures, and Licensing agreements are promising.
Threats
Uncertainty in Global regulations, trade agreements, and political conditions.
Global economic austerity programs may cause pricing pressure or abandonment of projects.
Competition from generic drugs due to Patent expiration.
Strengths
Continues to benefit from positive M&A activity
MGT/521
July 25, 2012
Merck SWOT Analysis
Company Overview
Merck is the 2nd largest pharmaceutical company in world offering prescription
medications, biologics, vaccines, animal health, and consumer care products. It generated 48
billion dollars in revenue in 2011 and has 40,000 employees. Research and development of
proprietary medicines for global marketing is the core of the business. Recent acquisitions and
transactions designed to take advantage of emerging markets. Stakeholders include:
shareholders, medical professionals, medical researchers, medical facilities, and patients.
Key Facts
Headquarters: One Merck Drive P.O. Box 100 Whitehouse Station, NJ 08889-0100
Phone: (908) 423-1000
Web Address: merck.com
Revenue (USD Mn) 48,000
Financial Year End: December
Employees: 86,000
New York Stock Exchange Ticker MRK
SWOT Analysis
Strengths Continues to benefit from strong M&A activity
Has a diverse portfolio of product offerings
Strong research & developmental pipeline with 20 products in late-stage development.
Weaknesses
Pricing pressure caused by Health Care Insurance payment structure and government regulation in the United States and abroad.
Significant litigation involving Vioxx.
Uncertainty regarding new product development in Biologics
Opportunities
Emerging Global Markets are growing at double-digit percentage rates.
Generic Biologics Market to exploit competitor’s patent expirations.
New Mergers and Acquisitions, Joint Ventures, and Licensing agreements are promising.
Threats
Uncertainty in Global regulations, trade agreements, and political conditions.
Global economic austerity programs may cause pricing pressure or abandonment of projects.
Competition from generic drugs due to Patent expiration.
Strengths
Continues to benefit from positive M&A activity
References: IMAP Pharm & Biotech Industry Global Report (2011). IMAP Global Pharma & Biotech M&A Report (2012). Merck 2010 Annual Report (2011). Form 10-K, Merck & Co.. United State Securites and Exchange Commission. (2012, February). U.S. Food and Drug Administration. (2012). Retrieved from http://www.fda.gov/drugs/development Biomanufacturing Shows Signs of Maturity. (2012). Retrieved from http://www.pharmamanufacturing.com Merck: Enduring Value in Big Pharma. (2011). Retrieved from http://money.msn.com/top-stocks