Company Research

1
Company ResearchIndustry Analysis

• John Bertoli
• Erik Eliassen
• Laura Johnson

Denis Mairena Alexis Peine-Ardila Alexis Sowuleski
Samantha Zucker
2
Company Size
Company Research

• Annual Sales
• 9.5 Billion
• Employees
• 32,600
• Sales/Employees
• 291,656
• Fiscal Year
• Dec 31

3
Specializing Areas

• Anti-infectives
• Arthritis and Immunology
• Cancer Therapies
• Erectile Dysfunction
• Cholesterol-lowering/Cardio Vascular

• Skin Disorders
• Foot Care
• Sun Care
• Animal Health
• Allergy and Respiratory
• Hepatitis

4
Profitability

• Net sales in 2005
• 9.5 billion
• Remicade most profitable product

5
Major Subsidiaries
Company Research

• Private Subsidiaries
• Schering-Plough Products Inc.
• Schering-Plough Healthcare Products Inc.
• Canji Inc.
• Douglas Industries Inc.
• White Laboratories Inc.
• Schering-Plough Veterinary Corp.
• Bain De Soleil Company Inc.

6
Major Subsidiaries (cont)
Company Research

• International Subsidiaries
• Schering-Plough S.A
• S.A. V.Mane Et Fils
• Schering Plough C.A.
• S.A. Vaquier Transports

7
Market Geographic Sales Coverage
Company Research

• Global business facilities in 50 countries
  across six continents
• United States largest customer base
• Extent of worldwide product sales
• Over 120 countries
• Different standards in different countries

8
Market Segment
Company Research

• Manufacturing
• OTC drugs
• Animal health care
• Foot and sun care products
• Egg decorating kits

9
Major Competitors
Company Research

• GlaxoSmithKline
• Top 5 pharmaceuticals
• 37 million in sales (2005)
• 19 in FT Global 500
• Johnson Johnson
• Medical devices and pharmaceuticals
• 55 million in sales (2005)
• 14 in FT Global 500
• 32 in Fortune 500
• Sanofi-Aventis
• 3rd largest pharmaceutical company
• 33 million in sales (2005)
• 28 in FT Global 500

10
Other Competitors
Company Research

• Abbott Labs
• Amquen
• AstraZeneca
• Bayer
• Biovail
• Bristol-Myers Squibb
• Chiron
• Eli Lily
• Genentech

• Med Pointe
• Merck
• Novartis
• Perrigo
• Pfizer
• Roche
• Sepracor
• Watson
• Wyeth

11
Market Size
Industry Analysis

• 565 billion worldwide sales for audited markets
• 7 sales growth from previous year
• 602 billion audited and unaudited

12
Market Size (cont.)
Industry Analysis

• North America
• 265.7 billion
• Europe
• 169.5 billion
• Japan
• 60.3 billion
• Asia-Pacific Region (minus Japan)
• 46.4 billion
• Latin America
• 24 billion
• China
• 11.7 billion

13
Market Growth
Industry Analysis

• Driven by
• longevity of the population
• rising wealth
• regulatory approval of expanded indications for
  existing products
• launch of innovative new products

14
Market Segmentation
Industry Analysis

• Based on different diseases and ailments
• Top 3 Sectors
• Central Nervous System Drugs
• Cardiovascular drugs
• Gastrointestinal/metabolism agents

15
Research and Development
Industry Analysis

• Pharmaceutical industry very dependent on this
• Industry leaders spend to find and market
  new products
• Continuously need to find new products
• Patents last a finite amount of time

16
Pricing
Industry Analysis

• Factors
• Safety profile of a drug versus its rivals
• Size of the market
• Competition
• Development costs

17
Pricing (cont.)
Industry Analysis

• Varies based on whos buying from companies
• Hospitals
• High Volume
• Low Price
• Government
• Large discounts
• Pharmacies and Wholesale Distributors
• High Prices

18
Key Players in Industry
Industry Analysis

• GlaxoSmithKline
• 37.2 billion
• Johnson Johnson
• 50.2 billion
• Sanofi-Aventis
• 33.7 billion

19
Economic Growth and Profitability
Industry Analysis

• Challenges of industry
• Generic competition
• Increased costs
• Operating
• Marketing
• Companies need
• New products
• Successful advertising

20
Technology Trends
Industry Analysis

• Internet and Networking Programs
• Connect companies
• Share research and other info

21
e-Business
Industry Analysis

• Products sold to suppliers, not individuals
• 18 sales over internet
• Company websites provide info
• Investors
• Consumers

22
Globalization of Pharmaceuticals
Industry Analysis

• 300 billion/year
• 10 largest companies control 1/3 market
• 6 in US
• 4 in Europe
• Not that global

23
Globalization (cont.)
Industry Analysis

• India
• Next big outlet
• Global partnerships
• Singapore
• United Kingdom
• Germany

24
Capitalist Goals vs. Socioeconomic Needs
Industry Analysis

• Want money
• Lose money fulfilling world needs
• Public-private partnerships
• Compensate by raising prices
• Generic drugs developed to lower consumers
  expenses

25
Government Regulations
Industry Analysis

• Food and Drug Administration
• Drug Price Competition and Patent Term
  Restoration Act
• Prescription Drug Marketing Act
• Generic Drug Enforcement Act
• Restrictions on marketing
• Price control

26
Resources

• www.fda.gov
• www.who.int/en
• www.internetweek.com
• www.pwc.com
• www.ftc.gov
• library.findlaw.com

• www.lexis-nexis.com
• galenet.galegroup.com
• finance.yahoo.com
• www.mlmlaw.com
• www.nytimes.com

27
Questions?