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Alternative Buyer Research Report and Acquisition Road Map 1
Brian Nossokoff
MBA-699-Q2843 Strategic Opportunity Mgmt 23TW2
5-1 Milestone Three: Alternative Buyer Research Report and Acquisition Road Map
January 11, 2024
Dr. Robert Shindell
Alternative Buyer Research Report and Acquisition Road Map 2
Alternative Buyer Research Report
Introduction
An acquisition is not a business item to be expedited. There are many things to consider for a company to be absorbed successfully, and not least of which is understanding the company that is going to completing the purchase and its history. Things like its Compound Annual Growth Rate (CAGR), state of the market, and its financial status are of paramount concern. Merck & Co. Inc. seems to hit all the right thresholds to be the frontrunner to purchase our company.
Current Market
Merck & Co. Inc. has their foothold in many different industries such as vaccines, biologic therapies, animal health, but the most notable aspect is their spot in the pharmaceutical industry. The company was established in 1891, and though their history is arguably tainted due to its Vioxx-related lawsuits that had the company paying out $4.85 billion dollars to settle the claims made citing increased disposition to heart attacks and strokes in patients taking it for a year and a half or more (Krauskopf, 2007), has rebounded quite admirably to become the pharmaceutical giant it is today. Research and development is of utmost importance to the company. Merck & Co. Inc. has even compiled a staple of most doctors’ bookshelves, The Merck Manual
, which is composed
of a massive listing of human ailments and their treatments. Even in the 1960s, Merck was commonly churning out more substantial medications than any of its rivals in the industry, setting the standard for the pharmaceutical industry, and often resulting in their staff being pried away due to the prestige of the company (Hawthorne, 2004).
Alternative Buyer Research Report and Acquisition Road Map 3
Merck & Co. Inc. boasts an impressive portfolio of pharmaceutical products for both animals and humans, and arguably the most groundbreaking medication of which being Keytruda. Keytruda is one of the oncology pharmaceuticals that Merck has produced that has earned them noteworthy responses, even from the Johns Hopkins Kimmel Cancer Center researchers at the 2015 American Society of Clinical Oncology annual meeting, where value is always the biggest focus. Merck understands the importance of having options for treating cancer, and they do not shy away from researching to ensure that patients have appropriate value in their treatments, as studies show that it is one of the most effective pharmaceuticals, posing minimal risk to its patients (Raedler, 2015).
Merck’s other products include products such as Januvia (for type 2 diabetes), Zetia (for high cholesterol), Remicade (for rheumatoid arthritis, Crohn’s disease, ankylosing spondylitis, and plaque psoriasis), Gardasil (human papilloma virus vaccine), and Ivermectin (an anti-
parasitic medication that has been used to treat river blindness and in some cases, though no recorded proof of efficacy, has been used in the treatment of COVID-19 (Popp, et al
, 2021)). As you can see, Merck has their presence in a wide array of ailments for their patients. This coincides with the strategy of Merck to improve the health and wellness of both humans and animals by expanding the access to medications and vaccines, providing value for their external stakeholders in times when they need it the most. Merck sports a positive Compound Annual Growth Rate (CAGR) coming in at 14.9%. CAGR details the mean annual growth rate over a period of time longer than a year and is one of the most commonly used ways to determine the Return on Investment (ROI) (Wayman, 2023). A
rate of 14.9% shows long-term sustainability. Additionally, market share is a substantial consideration as well. Market share signifies the percentage of sales in a market that a
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