The Bayer Corporation Case Study

High capital expenditure into research and development, lengthy approval process, marketing before any realized returns are a major deterrent for any new entrant. It is a highly regulated industry. Also, the presence of “big pharma” companies deters new competitors.

Those target markets who rely on Johnson & Johnson health and medical needs are mostly patients, doctors, nurses and civilians. Therefore, the company need to sustain their products and services over all these years to ensure that lower income people and underprivileged patients are able to access on their medicines. This however requires the company to balance patient’s access and competitive dynamics in line with their need as the company need to have enough resources to keep on being innovating, creating new and better medicines and at the same time making sure there will be a fair return to the shareholder as well. Johnson & Johnson also work closely with the governments, physicians, non-government organizations and the international donors all around the world to provide its products within an affordable prices to its

In 1906, the Pure Food and Drug Act, that was years in the making was finally passed under President Roosevelt. This law reflected a sea change in medicine-- an unprecedented wave of regulations. No longer could drug companies have a secret formula and hide potentially toxic substances such as heroin under their patent. The law required drug companies to specify the ingredients of medications on the label. It also regulated the purity and dosage of substances. Not by mere coincidence was the law passed only about five years after Bayer, a German based drug company began selling the morphine derivative, heroin. Thought to be a safe, non-habit forming alternative to morphine, heroin quickly became the “cure-all drug” that was used to treat

Heroin was initially created by Charles Wright in 1874 to combat Morphine addiction amongst Civil War soldiers. The commercial production of heroin began in 1898, by the Bayer Pharmaceutical Company, and their “sales pitch” persuaded people that Heroin was a “safe, non-addictive” substitute for morphine, therefore, gaining popularity amongst healthcare professionals and their morphine addicted patients. As a result, numerous

2008). “Scientists had been looking for some time for a non-addictive substitute for morphine. Diacetylmorphine was first synthesized in the Bayer laboratory in Wuppertal, Germany in 1897- by Felix Hoffman…. Yet the white, odorless, crystalline powder deriving from morphine, had been invented in 1874 by an English chemist, C. R. Wright. Bayer had a registered trademark on heroin in August of 1898, in the U.S.”(Askwith 1998). “In a

Pfizer is the largest American pharmaceutical company and one of the largest pharmaceutical companies in the world. It competes with Merck and Glaxo, and markets such well-known medications as Celebrex and Viagra. However, the pharmaceutical industry as a whole has undergone changes in recent years with significant consolidation taking place and with increased scrutiny regarding the ways in which drugs are developed, tested and marketed. In addition, recent controversies have erupted regarding Merck's drug Vioxx, and Pfizer has been the target of unwanted publicity regarding its painkiller Celebrex. This research considers the strategic position of Pfizer, including its strengths and weaknesses as well

This opportunity led to several dealings that would result in Shire Pharmaceuticals purchasing the rights to Europe and Salix to

1.The original motivation behind Bayer’s decision to launch the Makrolon ingredient branding concept was, to give Bayer and it’s partner’s the ability to achieve a differentiation of themselves from the competition and competing products by means of a branding strategy. It was important to Bayer to highlight the advantages of Makrolon and transfer this positive image to the end product with the help of a brand name. With this differentiation it gives the ingredient a unique selling proposition, or USP and encourages the end customer to give preference to products with the Makrolon logo or even keep a look out for this particular product when looking to make a purchase.

The Last in first out (LIFO) liquidation Inventory valuation method was changed as Inventory level in1984, 1983 and 1984 was decreased by Harnischfeger. By adopting this process, inventory that was purchased at lower cost in previous years was sold at higher prices.

An explosion of mergers has occurred in the biopharmaceutical businesses. Contrasting to mergers occurring in the early 2000s, the biopharmaceutical businesses combine for R&D purposes. As stated earlier biopharmaceutical have moved to the forefront and has contributed to in access to 76 billion dollars in 2011 (Lang, 2003). As businesses look for advanced marketing and distribution centers they look to merge. A business may decide to merge into different ventures whereas a similar company is primarily already operating rather than start from scratch, and so the company may just merge with the other company to diversify their products and services.

Since its humble beginning as a small drugstore, Merck has placed a large amount of importance on improving the health and well-being of its customers. As drug patents expire and genetic forms of their top products become available, Merck’s strategy is to do the unexpected; instead of raising the price of their older products in favor of patent protected new drugs, Merck focuses on reducing their cost in order to better compete with their generic counterparts. Additionally, Merck’s plan for growth now encompasses a much more aggressive pursuit of new drugs in their pipeline through extensive research. Merck became the second largest health care company in the world after the merger with Schering-Plough in 2009 and has

In the last several years, Merck’s individual R &D department has not been able to keep pace with declining revenues from existing products. It is only through Mergers and Acquisitions that Merck has supplemented this income.

Introduction AstraZeneca PLC (AstraZeneca, AZN:NYSE, AZN:LSE) is one of the largest pharmaceutical companies in the world. It was formed in 1999 from the merger of Sweden’s Astra AB and UK’s Zeneca Group plc. Core Activities AstraZeneca is engaged in the discovery, development, manufacturing and marketing of prescription pharmaceuticals and biological products for important areas of healthcare: Cardiovascular, Gastrointestinal, Infection, Neuroscience, Oncology, and Respiratory and Inflammation. One of the key benefits of the merger between Astra and Zeneca is seen as their portfolio of new products in development: AstraZeneca call this their 'product pipeline'.

Bayer HealthCare (BHC), is a subsidiary company of Bayer Group, which is concentrate on nutrition and health care with core competitiveness. With the vision of improving the well-being of mankind and animals, BHC studies, produces and markets a wide variety of medical products. Because of its high reputation in medical and healthcare field, BHC takes the leading position and is facing to increasing competition gradually with each passing day.

Merck and Co., Inc. was, in 1978, one of the biggest makers of physician endorsed sedates on the planet. Headquartered in Rahway, New Jersey, Merck followed its starting points to Germany in 1668 when Friedrich Jacob Merck obtained a pharmacist in the city of Darmstadt. More than three hundred years after the fact, Merck, having turned into an American firm, utilized more than 28,000 individuals and had operations everywhere throughout the world.