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:

Summarize the company’s strategies. Are there any inconsistencies with these strategies, current market conditions, and internal capabilities?

Answer 1

Valeant pharmaceuticals is on of the famous and wellknown international company which is established in 1959 by Milan,fiunded in California.Headquaters are canada,quebec and laval.The company is famous for its reaserches and development in introducing all varieties of medicines.Its has a great histroy of providing almost all types of medicines and it is having approcimately 20,700 employees.The company started to develop its products primarly baes on the requirement of the marked.The products belongs to the areas are dermatology,gastrointestinal,eye care,neurology and generics.Based on the products that they supply in the market,can identifoy the growth of that company.

Valeant pharmaceuticals become the famous pharmaceuticals company which grown international,because of the rapid growth in the market it started acquring and merging with other pharmacetical companies to gain the market value and give the best to the investors and stakeholders.Their strategy is to develop the best medicines for all critical medical issues.The research and development team in Valeant introduced the medicines for major issues that occurs in dermetology and gastrology feilds.Not only to get the best in the market they introduced generic medicines to available in market for lower cost.This generic medicines will help people to buy medicines for low cost with high effect,people who fails to buy medicines with high price can use these generic medicines to cure the major health issues.

Because of the growth and development in the market valeant pharmaceuticals with in short span of time it became the valuable company under the leadership of Pearson and started merging and acquisitions with Salix,Lomb and Bausch,Allergran and Biovail Corp.After merging with Biovail its R&D team and strategic method has changed and started growing in the pharmaceutical industry.The overall performance of the company changed under Pearson,the key person to bring the success for the company and its having some debts before he became CEO,he cleared and leads the company towards profits.

There are inconsistencies in the Valeant's pharmaceuticals,as every come will have pros and cons Valeant's to have faced that while it started it faced lot of issues and took time to understand the market needs.The company involved in number of controversies surronding drug prices increase,an investigation and case also filled on the company with in small span of time it cleared all the allegations that was on the company.They faced drug inflation issues stated that the company increasing the prices of their products.They have issues with the stakeholders,as there are so many allegations on drug price increase.They got abbused because of the price hike that is 66% compare to other medicines.

The Pearson the key person behind the success of Valeant pharmaceuticals,started acquiring the major drug companies which develops medicines in the feild of neurology and gastreology.This is the best part of the company as per the market needs and uses he started merging with companies that develops medicines as per market needs.They annalysed market needs and based on that they started developing the medicines on life saving.The strategies that the company has played is by acquiring the major companies that do reaserch on major life saving medicines.It started attractng the investors in to it.Most of the stakeholders are joined with Valeant's pharmaceuticals because it got drug approvals from all major countries.It started selling skin care products which are high in the market with brand like Loreal and started introducinh contact lens which is also another mile stone in the eye industry.