Question

Case Analysis:

Valeant Pharmaceuticals is a specialty drug manufacturer operating in the fast-cycle pharmaceutical industry. In this business, size often matters and Valeant, along with most of the major players in the industry, has aggressively utilized mergers and acquisitions to acquire R&D capabilities and other key strategic resources, create synergies, capture market share, and use acquired legacy products to support future growth. Valeant’s 2010 merger with Biovail Corp was designed with all of these benefits in mind. To develop an effective strategic position, Valeant must address several important external factors including the global economy, advances in technology, population demographics and sociocultural influences, and shifting political/legal forces that affect not only the drug approval process but also the changing nature of healthcare. To address these considerations, Valeant must develop strategies in the areas of marketing and sales, product innovation, operational speed and efficiency, and M&A to position itself for future success The purpose of this case study is to determine if the company’s recent merger with Biovail, other M&A’s and restructuring efforts will yield the benefits promised to shareholders and enable the firm to compete more effectively in the marketplace.To reasonably determine the merit of its strategic approach, external environmental trends, competitor positions, financial indicators, internal resources, and company strategies must be considered.The results of the analysis can then be used to suggest measures which can improve Valeant’s strategic position and potential for ongoing success.

Question: Examine trends in the general and industry environments that impact Valeant’s pharmaceutical business.What conditions are pertinent to the strategic decisions presently facing the company?

Answer 1

Trends in the general and industry environments that impact Valeant’s pharmaceutical business,

• In this business, size often matters and Valeant, along with most of the major players in the industry, has aggressively utilized mergers and acquisitions to acquire R&D capabilities and
• Other key strategic resources, create synergies, capture market share, and use acquired legacy products to support future growth.

Conditions that are pertinent to the strategic decisions presently facing the company, To develop an effective strategic position, Valeant must address several important external factors including the

• Global economy,
• Advances in technology,
• Population demographics
• Sociocultural influences,
• Shifting political/legal forces that affect not only the drug approval process but also the changing nature of healthcare.
  To address these considerations, Valeant must develop strategies in the areas of-
• Marketing and sales, product innovation, operational speed and efficiency, and
• M&A to position itself for future success that will yield the benefits promised to shareholders and enable the firm to compete more effectively in the marketplace.
• To reasonably determine the merit of its strategic approach, external environmental trends, competitor positions, financial indicators, internal resources, and company strategies must be considered.
• The results of the analysis can then be used to suggest measures which can improve Valeant’s strategic position and potential for ongoing success.