What does the company do? Medfield Pharmaceuticals is a drugs manufacturer with total domestic (US) revenue of $ 329 million in 2009. The company is explicitly focused on the end goal of end’s patient health, as it is mentioned by its slogan: “We Bring Wellness”. The company manufactured and sold three primary drugs, two were for pain management and one for auto-immune diseases. The company also had manufactured another pain management drug of which had been approved by FDA and was ready for distribution. Drugs Medfield Pharmaceuticals manufactured and sold were: • Fleximat, company’s leading seller that is responsible for 64% of its revenue, is a monoclonal antibody used to treat patients with ulcerative colitis, rheumatoid arthritis, and Crohn’s disease, an going disorder that caused inflammation of the digestive tract. The patent for this drug was due to go off in two years from 2009. • Lodamadal was an extended-release tablet for once daily treatment of moderate to severe pain in patients requiring continuous opioid therapy for an extended period of time. This drug was accounted for 12% of revenue. • Orsamorph was a morphine sulfate sustained-release tablet designed to treat intense pain. This drug contributed fir 24% of company’s revenue. It had eight years of patent life left. • Reximet was used to treat acute migraines. However, the company would begin selling this drug in 2012. Industry Background Pharmaceutical industry used to be a powerhouse industry with revenue of billions dollar. 1995 through 2002 was the hey-day period of pharmaceutical industry. In this period, profitability for the pharmaceutical companies was three times more than profitability of the median of all Fortune 500 companies in 2004. However ... ... middle of paper ... ...this action will like come at huge cost, considering a few years ago there was a lawsuit against a drug manufacturer that reformulate its product at the end of it patent life. Even though court held the complaints to be void, the case came under public scrutiny at that time. Takeover offer In 2011, Medfield received an offer to buy the company for $750 million. Given the current state of the company, Susan Johnson, company’s CEO realized that this was a great the opportunity for her to exit the business. She understands that a company with two products, which have substantial patent life left and one product to be sold will attract many buyers. When she first started the company, she focused on developing medicines to make lives better. However, she had to put aside her own cares in evaluating company’s current value in regard to $750 million takeover offer.
The pharmaceutical industry develops, produces, and markets drugs or pharmaceuticals compounds for medical purpose. Pharmaceutical companies produce generic, brand medications and medical devices. The industry is subject to a complex regulatory environment regarding the patenting, testing and ensuring safety and efficacy and marketing of drugs.
Looking more recently at 2016’s first three quarters, we can see a positive change and trend with total sales, total profits, and earnings per share quarter to quarter, and the P/E ratio fluctuates over the past three quarters. Although the P/E ratio has bee fluctuating, the current industry average is 26.1, so Merck’s valuation is greater by about six points and doing better than the majority of the industry. Since Merck has experienced a positive change within the past three quarters and a steady increase after a drop in the past five years, Merck is more favorable and appealing to investors. It can continue to expect a positive rise in stocks because of the attractive outlook on the company and its stock because the stock prices are on the rise and continue to become more
Company Overview: Medtronic, Inc. was founded in Minnesota in 1949, in the garage of Earl Bakken and Palmer Hermundslie (Medtronic, 2014). The company has now grown to be the largest medical technology company in the world today, serving 140 counties (Medtronic, 2014). Medtronic, Inc. specializes in developing products for patients suffering from cardiovascular diseases such as cardiac rhythm disorders, as well as restorative therapies for patients with diabetes, digestive disorders, musculoskeletal trauma and spinal conditions (Network, 2014). They provide state of the art medical instruments and therapies to patients and healthcare professionals around the world. The majority of their sales (approximately 70%) are done here in the United States while the other 30% of their sales are done internationally; mostly with China, India, Puerto Rico, Singapore, the Middle East and South Africa (Medtronic, 2014).
The answer to this question is of course variable depending on many factors, such as drug type, material and use. However, a recent example may be used to understand the flexibility that these pharmaceutical companies truly possess. A drug called Pyrimethamine was released in 1953 by Burroughs Wellcome, a pharmaceutical company based in London. This drug was originally intended to fight malaria, after the microorganisms that cause the disease developed resistance to earlier treatments. In current times, it’s mostly used now to treat toxoplasmosis, a parasitic infection that can be life-threatening in people whose immune systems are suppressed by HIV/AIDS or cancer. In 2010, the company sold the U.S. rights to pyrimethamine (now marketed under the brand name of Daraprim) to another firm, CorePharma. By that time, the patent on the drug had long since expired, but because of the sheer difficulty, nobody bothered to make a generic, essentially making Daraprim a monopoly. CorePharma’s parent company, Impax Laboratories, then sold it to Turing Pharmaceuticals. Almost overnight, the company raised the price from $18 a pill to $750; approximately 42 times the original price. To contrast this, in Britain GlaxoSmithKline sells the drug for 66 cents a pill, and in India, it costs even
Moreover, this health care organization will have a normal regulatory requirement and empowering innovation will unite and bring together patients, health insurance suppliers, medical advantage arranges and the whole health care division. Valuable data will be available electronically to assists patients to work along with their doctor in their healthcare decisions (UnitedHealth Group, 2015). Proof based pharmaceutical will turn out to be generally acknowledged and reliably worked on, enhancing quality care and controlling expenses. Straightforwardness, execution account-capacity and similar adequacy will be embraced overall healthcare administrations, pretty much as they are in different segments of the economy (UnitedHealth Group,
The article states that there are many drawbacks, such as how patents increase the price of these drugs and limit its consumers ability to acquire them. The source is outdated, as it was published in 2006, but it was helpful in understanding the way patents are incorporated in this industry. The insight from the pharmaceutical patents book allowed me to understand the next book about the business aspect of the pharmaceutical industry. In the book, “Pricing, Profits, and Technological Progress in the Pharmaceutical Industry”, Scherer discusses the business of pharmaceuticals in the United States. The necessity of medicines throughout the world is a driving force of this sustainable industry.
Drug companies justify high prices by saying how expensive the research and development of a new drug is. For once, this is a truthful statement by these companies. Research and development is a long and a costly process. However, drug companies are much less involved in the research and development than they would have us believe. Big drug companies actually contribute very little to the research and development of a new drug. Marcia Angell speaks on the research and development process in her book on drug companies saying, “Contrary to industry propaganda, it is almost always carried out at Universities or government research labs, either in this country or abroad.” (21-22). Professors and students in universities across the world conduct the research and develop new drugs for drug companies. Every year drug companies make huge profits providing little funding towards research and development, while their research is bei...
Also, there are issues with finding patients for clinical trials and noncompliance with patients, unmaintainable expense models, safety of products, globalization, and a move from a more provider-focused business model towards a patient-focused business model. There is also a problem with the rising expenses of creating innovative life-saving medication and the reduction in compensations, burdens of pricing, and the easy access to getting some of the medications such as, Acid Reducers. The negative view of the pharmaceutical industry would be an economic setting that is reducing investments in real innovations and scientific audacity, lack of teamwork, data, and resource sharing amongst the public and private organizations. Another negative view would be the useless methods that are being utilized to find and create new and recent products (Grom,
The pharmaceutical industry confronts several dilemmas every year. Most of these dilemmas revolve around money or whether or not to sacrifice now for a bigger payoff in the end concerning money and/or lives. Pharmaceutical companies tend to use shortcuts that create ethical problems. Drug companies have spent millions/billions of dollars in research, and they obviously want to see favorable results during the testing stage so they know that they didn't spend all that money for nothing. The companies usually are the ones who influence what, when, how and who tests their drugs. This gives them an influential leg up on the negative outcomes. Sometimes, drug companies have even resorted to testing on individual without their approval. The pharmaceutical industry spends money to make money, but the majority of people who are sick tend to reside in third world countries that cannot afford to pay the premiums that the drug companies charge. Sometimes, this can result in drug companies not pursuing a drug that could save millions of lives just because they wouldn't be able to make a profit.
Good health is vital to all of us, and finding reasonable solutions to the most intriguing health care challenges of our world waits for no one. That's why Pfizer is committed to applying science and our global resources to improve health and well-being at every stage of life. Pfizer strive to provide access to safe, effective and affordable medicines and related health care services to everyone who need them. Pfizer is the maker of Benadryl, Celebrex, Diflucan, Depo-Provera, Flaygl, lyrical, Lipitor, Zanax, and Zoloft just to name a few. Pfizer makes products for just about every ailment that a person could possibly have from birth-control to depression. They are just an amazing company and to think what would the world be like without their products.
Pharmaceutical products are the key element of health systems that helps the community. Despite pharmaceutical being a huge multi-billion dollar industry. This element of governance describes the negative and positive sides of the pharmaceutical industrial parameters.
The pharma companies in general are optimistic about the M and A. The growth of the pharmaceutical industry is expected to be driven by the diabetes, skincare and eye care segment.
Australia’s pharmaceutical is a knowledge-based, technology-intensive industry that its aim is to develop and commercialise the outcomes of Australia’s long-term investment in medical research (AGDI 2014). It undertakes the development, production and supply of pharmaceutical products domestically and internationally (ALRC 2014).
This week’s case study concerning Genzyme’s strategic direction was very interesting in that they essentially pursued a strategy that seemingly was purposely avoided by other players in the pharmaceutical industry (Schilling, N.D.). Their strategy centered on developing prescriptions for rare diseases. Typically “developing a drug takes 10 to 14 years and costs an average of $800 million to perform the research, run the clinical trials, get FDA approval, and bring a drug to market,” and in turn it is normally intuitive, from an economic standpoint, to attempt to develop drugs that will have a substantial market so to be able to assure enough revenue is generated to produce a significant profit. In turn, drugs marketed towards treating
The pharmacy industry is structured in four major segments: Institutional pharmacies, which distribute drugs for inpatient use in hospitals or long-term health facilities; Retail pharmacies, which fill prescriptions for individual customers in physical stores; Mail order and specialty pharmacies, which permit the patients to have access to larger doses of prescriptions or provide drugs and similar services for specialized medication regimes; and pharmacy services, which gives prescription drug benefit management programs to different government entities, health insurers and large employers. This industry began when benefits of separating prescriptions of medicines from dispensing the drugs were seen.