Recent Activities in the Biotechnology Industry Sector

• Sales fluctuate due to the frequently cyclic nature of the industry but they aim to remain above 3 million annually.

The barrier to enter Biotechnology industry is high. The first barrier is the extensive requirements in funding coming from heavy expenditures in R&D, along with the risk of little to no returns or even heavy losses if the drug fails to reach the market. Regulatory environment partly contributes to the barrier as the new drug approval process can be time-consuming with relatively 89% of failure to pass through. The second barrier is specialization. Companies with knowledge in obscure diseases will enjoy low threat of new entrant for there are few experts in the field.

In 2008, Johnson & Johnson was named the 3rd best performing stock on the Dow Jones Industrial Average. It has uniquely positioned itself to remain a leader in a competitive industry against the rapidly changing backdrop of healthcare. The company’s main competitors are Eli Lilly, Novartis and

U.S. based companies hold rights to most of the world’s rights on new medicines and holds thousands of new products currently being developed. As of 2012, the industry helps support almost 3.4 million jobs in the U.S. economy. It is also one of the most heavily R&D based industries in the world. In the United States, the environment for pharmaceuticals is much friendlier than other countries around the world in terms of pricing ability and regulations. Both the Pharmaceutical and Biotechnology industries have experienced significant growth in the past year with year-over-year increases of 13.02% and 34.69% respectively. It is an even more striking when looking at the past five years considering both have beat out the S&P 500 with pharmaceuticals increasing an additional 31.44% and the biotechnology sector besting an astonishing 269.3% more return than the

Biotechnology, at its simplest is technology based on biology – it employs the use of cellular and bimolecular processes to develop products and technologies. The variety of living cells used for their biochemical talents range from simple singled-cells bacteria and yeast to complex multi-cellular organisms, such as plants and humans. Over the years, biotechnology has been a rapidly developing area of

The company is so large that no one drug can lift it from its current sales doldrums. In addition, the company was once highly attractive to investors, but its recent stock price fell to 1997 lows. This may put pressure on the company to attempt acquisitions at a time when the company is ill-equipped to integrate a new company into its organization, and it is engaged in a cost-cutting program at a time when it may need to invest even more in research and development (McTigue Pierce, 2005).

There are several rewards to consider with expansion of Biocon. Currently in India, there is a growing market for contract research organization and the growth of Biocon falls right within this opportunity. The growth is expected to last for more than few years with a rate that looks promising. Clinigene is expected to reap revenues much higher than the current Biocon and Syngene combined (Kalegaonkar A., Nov 4, 2008). It will take clinical studies to a higher level with better options in terms of drug manufacturing. With other countries ready to outsource the service of clinical studies, Clinigene’s future looks bright.

What has been the financial performance of AstraZeneca over the last three years, and how does this compare to a company in the same industry?

"Biotechnology involves any technique that uses living organisms or parts there of to make or modify products, to improve plants or animals or to develop micro organisms for specific uses" (Dr Sriwatanapongse, www.afic.org)

Located in South San Francisco, CA, Genentech was started in 1976 by a biochemist Dr. Herbert Boyer and Robert A. Swanson. From 1995-2009 Arthur Levinson had become the CEO of Genentech; presently it is Ian T. Clark. Genentech is a leading biotechnology company, using human genetic information to discover, develop, manufacture and commercialize medicines to treat people with serious or life-threatening medical conditions (2014). Biotechnology is the technology based on the science of cellular and biomolecular processes to develop technologies and products that help improve peoples’ lives and the health of our environment. How biotechnology uses cellular and biomolecular processes are by using molecular mechanisms by which genetic and

The pharmaceutical industry includes companies that research, develop, market or distribute generic and branded drugs. The industry expanded during the 1980’s and drugs to treat heart disease and AIDS were prominent. Consumer demand for nutritional supplements and alternative medicine increased during the 1990’s with the Internet facilitating direct purchases of drugs. Advertising for direct consumption of pharmaceutical drugs became more prominent; pharmaceutical companies were criticized for over medicating personality or social problems.

Biotechnology is defined as is the application of biological organisms, system or process to manufacturing and service industries.

Biotechnology is a broad term. Basically, it is the “tools and techniques [opening] new research avenues for discovering how healthy bodies work and what goes wrong when problems arise”(Siedler para. 1). It covers controversial technology and procedure, like genetic engineering and gene therapy. It is controversial because it can affect everyone(Jeremy para. 16). As a consequence, the development of biotechnology has been a “slow, quiet progress”(Kirsner para. 3) because society may or may not recognize the repercussion of it. However, scientist like Smith- a previous chief for the Cambridge biotech company, Genzyme- continues to develop biotechnology(para. 1). Because biotechnology can be controversial, yet scientist continues to develop it;

Achieve a median composite eight-year product development cycle by 2010. Deliver two new molecular entity (NME) launches on average per year from 2010. In order to achieve the above objective, ensure that we have 10 or more NMEs in Phase III development by 2010. Development cycle times and quality for small molecules and biologics. Number of NME launches per year. Attrition rates. Number of development projects by phase. Number of in-licensing deals, alliances and acquisitions. R&D investment levels. Improving R&D quality and speed through leading-edge science, effective risk management and decision-making and overall business efficiency. Maximising the value of our biologics business and continuing to build a major presence in this fast-growing sector. Investing in external opportunities to enhance our internal innovation through in-licensing, alliances and acquisitions. 2008 target exceeded for small molecule development cycle times. NME and life-cycle management progressions

This is a strategic analysis of GlaxoSmithKline that examines the key factors that influence the company and its activities. The strategic analysis will examine key factors in the company’s internal and external environment and their influence on the company’s strategies. GlaxoSmithKline is a global healthcare company that offers pharmaceutical, vaccines and consumer products. The company is a product of various mergers, the latest occurring in 2001 between GlaxoWellcome and SmithKline Beecham. The company started in London United Kingdom in 1715 as Plough Court pharmacy and has evolved to become one of the leading global healthcare companies. The healthcare company operates in more than 150 countries with 89 manufacturing locations and research centers in the USA, China, UK and Belgium. In 2015, the company’s sales grew to £23.9 billion from £23.0 billion in 2014 (GlaxoSmithKline plc. 2015).