Consequently, the company might have enough drugs from the three sectors to take it forward for several years and since it has a big number of products at phase II and III its future prospect seems to be intact and its global presence gives it more lever where with effective marketing, both the existing drugs as well as new introductions will get good market share. It has a good working relationship with its staff and is an award winner as one of the best places to work for mothers with children, which means its chance of attracting highly qualified staff is there.
Schering-Plough is known as a company that gets rid of ailments such as running noses, sunburn for tanners or for those who stay in the sun for a long period, also its fight against fungal feet is also gets the limelight. It is a major player in three sectors unlike its competitors and makes prescription and over the counter drugs, animal health products, and personal care products.
Its allergy medications Claritin and Nasonex are very popular and household products and it has a good role to play in anti-infective such as hepatitis and has a number of drugs both on the market and under R&D. Its erectile dysfunction pill Levitra that it co-promoted with Merck is cheaper in price and could be another choice for those who prefer to buy cheaper drugs and could compete with the most popular erectile dysfunction drug such as Viagra, which is a bit expensive. Consequently, with it OTC offerings that include Afrin nasal sprays, Dr. Scholl's foot care products, and sun care lines such as Coppertone and Bain de Soleil the company is on solid grounds to grow as well as to make profit for its stakeholders. Its cholesterol-lowering drugs Zetia and Vytorin, could eventually become very popular enabling the company to put more products on the market that are sure income generators. Moreover, its recent agreement to acquire Akzo Nobel's Organon unit in 2007 will improve its chance and it could eventually improve its rank as well as its market share.
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If we go into PEST and SWOT analysis government and medicine are inseparable in most cases since the government is one of the main buyers of the medical products the drug companies are coming up. The governments role extends much farther than buying the products, it is also involved in a big scale in the R&D stage of many of the products to the point the public R&D sector is always outdoing the private sector in bringing drugs into the market revealing that the two are inseparable.
Governments also come up with different laws in order to protect the citizens to which the drug manufactures have to adhere to and from time to time it comes with incentives that could be in a form of tax break or a grant and the like, which shows any drug company will have to work in compliance and hand in hand with the government. When it comes to doing business globally taking into consideration what kind of political stability is there in a given county is important, especially if any kind of investing is contemplated, as well as the level of government intervention in the structure of the business also will have to be looked at.
In the year 2004 Schering-Plough had a brush with the government that cost it more than $500 million that was instigated because of one of its products an alubterol inhaler where the government was able to detect infringement on public trust that necessitated the company’s being inspected by a third party inspector. The pharmaceutical market estimated to be around $500 billion in the year 2004 has a stock value growth estimated to be 10. 5% for the year 2003-2010 whereas the Health Care industry has a growth of 12. 5%.
It is only the information technology sector that has an expected growth rate of 12. 6%, which means drug companies have a big role to play in the nation’s, as well as global economy. Looking at what Schering-Plough generated for the year 2006 at $10 billion and as the 17th player in the industry it has a significant role to play, and it also has enough products in the pipeline to enable it to keep and improve that position as some of its products such Zetia, Vytorin, and Claritin are popular and have a good market share.
At the same time since the company has a global presence especially in the EU and Japan that are the largest among nine geographic markets that account for more than 80% of the global sales, its chance of growing its market shares is there as long as the existing popular products continue to hold their existing popularity and if one of its existing or a new product gains more ground.
When it comes to social issues the company recognises that both wealthy as well as developing nations need drugs in order to enable their citizens fend off disease, live better life and live longer, which means the importance of the drug manufacturing companies is not going to waiver. At the same time the company recognises, at least in the U. S.
what the retiring of the baby boomers soon would mean for its business because they are expected to live much longer and as they are ageing their need for drugs to help them stay healthy and to live longer would always increase showing the important role the drug industry could continue to play in various social classes starting from children to grown ups. In addition, there are diseases that are not contained or conquered yet such as AIDS that are still intimidating challenges and will bring society and the industry closer while searching solutions.
Epidemics such as SARS and bird flue are also challenges that come and go that could be turned into economic advantages while they keep both society and the drug industry in close interaction. Other area that will keep the interaction of society and the drug industry is older diseases that had been under control that would start developing resistance to certain drugs such as gohnorea that had been in the news recently and this also creates another reason for interacting, as well as a challenge that could be converted into economic advantage for the drug manufacturers such as Schering-Plough.
When it comes to technology anyone of the drug manufacturers including Schering-Plough will have to adapt using the latest technology so that they will not fall behind in whatever they are bringing into the market and technological development could also shorten the amount of time it takes to bring a drug into the market which could stretch up to 15 years and could also bring the cost involved to discover, research and develop a particular drug and bring it to the market that is estimated to be around $500 million.
Schering-Plough is also admitting that it is in the look out for the latest technology in its industry and does not hesitate to implement any new technology that will help it tackle its working process.
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