Preview

Merck Swot Analysis

Good Essays
Open Document
Open Document
1571 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Merck Swot Analysis
Merck SWOT Analysis

MGT/521
July 25, 2012

Merck SWOT Analysis

Company Overview

Merck is the 2nd largest pharmaceutical company in world offering prescription

medications, biologics, vaccines, animal health, and consumer care products. It generated 48

billion dollars in revenue in 2011 and has 40,000 employees. Research and development of

proprietary medicines for global marketing is the core of the business. Recent acquisitions and

transactions designed to take advantage of emerging markets. Stakeholders include:

shareholders, medical professionals, medical researchers, medical facilities, and patients.

Key Facts

Headquarters: One Merck Drive P.O. Box 100 Whitehouse Station, NJ 08889-0100

Phone: (908) 423-1000

Web Address: merck.com

Revenue (USD Mn) 48,000

Financial Year End: December

Employees: 86,000

New York Stock Exchange Ticker MRK

SWOT Analysis

Strengths Continues to benefit from strong M&A activity

Has a diverse portfolio of product offerings

Strong research & developmental pipeline with 20 products in late-stage development.

Weaknesses

Pricing pressure caused by Health Care Insurance payment structure and government regulation in the United States and abroad.

Significant litigation involving Vioxx.

Uncertainty regarding new product development in Biologics

Opportunities

Emerging Global Markets are growing at double-digit percentage rates.

Generic Biologics Market to exploit competitor’s patent expirations.

New Mergers and Acquisitions, Joint Ventures, and Licensing agreements are promising.

Threats

Uncertainty in Global regulations, trade agreements, and political conditions.

Global economic austerity programs may cause pricing pressure or abandonment of projects.

Competition from generic drugs due to Patent expiration.

Strengths

Continues to benefit from positive M&A activity


References: IMAP Pharm & Biotech Industry Global Report (2011). IMAP Global Pharma & Biotech M&A Report (2012). Merck 2010 Annual Report (2011). Form 10-K, Merck & Co.. United State Securites and Exchange Commission. (2012, February). U.S. Food and Drug Administration. (2012). Retrieved from http://www.fda.gov/drugs/development Biomanufacturing Shows Signs of Maturity. (2012). Retrieved from http://www.pharmamanufacturing.com Merck: Enduring Value in Big Pharma. (2011). Retrieved from http://money.msn.com/top-stocks
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Assignment1 Copy
    • 4284 Words
    • 13 Pages

    Assignment1 Copy

    Insurance acts as intermediary between buyer and provider and has no incentive to provide a better price or higher quality. This is especially true in the movement from the medical model to the business model of health care. “The United States spends more on healthcare than any other country in the world, in 2008 US healthcare costs were 2.3 trillion or 7,000 per capita. The US per capita cost is 45% greater than our northern neighbor Canada, and 33% greater than Norway”. (Organization for Economic Co-operation and Development (OECD), 2011). The business model is profit based. Requiring a profit almost always includes streamlining of services and mandating cost controls. Both of which limit the insured’s access to services, drugs, and new technology.…

    • 4284 Words
    • 13 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Whole Foods Swot Analysis
    • 454 Words
    • 2 Pages

    Whole Foods Swot Analysis

    Our group researched and conducted a SWOT analysis on Whole Foods Market. The strength is being one of the top grocers in the U.S. by providing healthy and organic food. The option to purchase high quality natural food is available for consumers who are health conscious. The weakness for Whole Foods is viewed as a luxury shopping destination. Lower and middle class people with limited finances cannot afford to shop there on a regular basis. The opportunity is available to expand within international markets. Whole Foods can explore nonexistent markets internationally with the potential for growth. The threat is competitors will have an interest to gain consumers for their business. Competitors can utilize many avenues such as advertising and commercials to attract customers.…

    • 454 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Obamacare Annotated Bibliography Analysis
    • 742 Words
    • 3 Pages

    Obamacare Annotated Bibliography Analysis

    This article discusses the price tag that comes along with ObamaCare. Many believe that insurers have created plans with more benefits that also cost more. Prior to the Affordable Care Act, insurance premiums increased by 14%. Too many people may not be able to afford this high cost, especially those who are self employed. The author informs the American public that there may be yet another increase in the insurance premiums. This…

    • 742 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Hcs 440: Economic Terms And Health Care History
    • 880 Words
    • 4 Pages

    Hcs 440: Economic Terms And Health Care History

    The history and economics in health care can be traced back to the late 1890’s, but became prevalent in the 1930’s. Over the course of the last century health care industry has evolved to multi-billion dollar industry. This evolution can be attributed to managed care and third party payee systems. The cost of care has been the forefront for debate for over the last two decades in the United States. The cost of care has rising so dramatically some Americans are unable to receive coverage for the health needs. After researching health care economics, a timeline of this evolution is apparent.…

    • 880 Words
    • 4 Pages
    Better Essays
    Read More
  • Better Essays

    HCA 305 Final Paper
    • 2396 Words
    • 7 Pages

    HCA 305 Final Paper

    American people look at their insurance bills, co-pays and drug costs, and can 't understand why they continue to increase. The insured should consider all of these reasons before getting upset. In 2004, employee health care premiums increased over 11 percent, four times more than the rate of inflation. In 2003, premiums rose 10.1 percent and in 2002 they rose 15 percent. Employee spending for coverage increased 126 percent between 2000 and 2004. Those increases were lower than expected. (National Coalition on Health Care, 2005, Facts on health care costs.)…

    • 2396 Words
    • 7 Pages
    Better Essays
    Read More
  • Best Essays

    Pfizer Industry Review
    • 4325 Words
    • 18 Pages

    Pfizer Industry Review

    The pharmaceutical industry began in the early 1800’s when several chemical companies were founded in Philadelphia, marking the beginning of our current pharmaceutical manufacturing industry (Pfizer, 2008a). Founded in 1849, Pfizer has grown into a multibillion-dollar corporation by providing many of the highest quality drugs available today (Pfizer, 2007). However, many factors impact the continued success of Pfizer and the pharmaceutical industry in general. After reviewing these factors, it is our recommendation that Pfizer focus on short-term consolidation and long-term global expansion into emerging markets while focusing research and development efforts in the biotech sector.…

    • 4325 Words
    • 18 Pages
    Best Essays
    Read More
  • Good Essays

    Argumentative Essay On Obamacare
    • 486 Words
    • 2 Pages

    Argumentative Essay On Obamacare

    The inadequate reimbursement to doctors by government insurance substantially increases private insurance prices. Back in 2009, cost shifting of over $88 billion of payment from Medicaid and Medicare beneficiaries already added more than $1,500 extra per year in premiums and $1,800 extra in total out-of-pocket costs to every family of four with private insurance. According to the Green Mountain Care Board, the primary regulator of health care in Vermont, the cost of hospital services shifted from those on government insurance to the privately insured population in that state alone has grown from $154 million in 2005 to nearly triple that amount, now over $400 million in 2014. As a consequence of the regulations of Obamacare, private insurance is headed for becoming affordable only to the affluent, particularly ironic given that this administration tries to portray itself as reducing…

    • 486 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Underinsured Social Issues
    • 975 Words
    • 4 Pages

    Underinsured Social Issues

    Healthcare is one of the top economic and social problems facing not only United States but also many other countries in the world. While there are many issues that modern health care needs to deal with the most common problem are health insurance costs. The rising costs of health insurance together with the rising costs of medical care are impacting many families. Inability to pay bills for medical treatment affects now not only uninsured but also people who pay for medical coverage.…

    • 975 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Managed Care Payment Systems
    • 1167 Words
    • 5 Pages

    Managed Care Payment Systems

    Individual payments for health care services received have undergone many changes over the past one hundred and fifty years in this country. For many years a fee for service system was in place. This was acceptable at the time because costs were low. However, as costs began to rise, changes in the system occurred as well. Private insurance companies started to form in the 1920s to help consumers afford medical care when needed. Through several evolutions over the years and due to increased costs of medical care, we saw new market oriented public policy initiatives starting to form by the 1980s. In 1970 health care spending represented 7% of the national income, but by 1993 it grew to 13.4% (White, 2004). Health care costs were starting to get out of hand and something needed to be done to address it. "In the public sector, important initiatives included the introduction of the Medicare Prospective Payment System, a range of state reform efforts, and the Clinton administration 's health reform initiative. At the same time, private insurers introduced changes that set in motion a fundamental restructuring of relationships in the health care market place, ultimately giving rise to managed care" (White, 2004). This paper will discuss the rationale, effectiveness, strengths, and weaknesses behind this relatively young reimbursement payment system called managed care.…

    • 1167 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Affordable Care Act
    • 3429 Words
    • 14 Pages

    Affordable Care Act

    Oberlander, J. (2011). Throwing darts: Americans ' elusive search for health care cost control. J Health Polit Policy Law. 2011 Jun;36(3) , 477-484.…

    • 3429 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Obamacare
    • 353 Words
    • 2 Pages

    Obamacare

    Private medical insurance is valuable to have, but can come with many disadvantages for the consumer. The article “the U.S. Healthcare system” focused on the faults of the United States healthcare system when compared to other countries with Universal healthcare. America has the most expensive healthcare system in the world. One reason for the rising cost of healthcare in America is that an estimated “19.3 to 24.1 % of the money is spent on administration cost. Obama wants to make sure that America is not being taken advantage of by insurance and prescription drug companies. Some insurance companies are overcharging doctors for their malpractice insurance, which is causing patients to have to pay more in order to be seen by a doctor.…

    • 353 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Affordable Care Reform
    • 1656 Words
    • 7 Pages

    Affordable Care Reform

    There have been numerous failed attempts to reform the United States healthcare system over the years. However, the most recent attempt that has been implemented is the Affordable Care Act, under the Obama Administration. As a result, since 2010 changes have been implemented to reform the United States healthcare industry, which affects the insurers, providers, and the subscribers in different ways. Consequently, the Affordable Care Act does not have full support from everyone and it faces numerous challenges (Bodenheimer & Grumbach, 2012). Overall, it is estimated that 2.6 trillion dollars is spent on healthcare in the United States each year (Van Gorder & Topol, 2012). Therefore, it is essential to acknowledge the inflation in healthcare…

    • 1656 Words
    • 7 Pages
    Good Essays
    Read More
  • Powerful Essays

    Merck Case Study
    • 3527 Words
    • 15 Pages

    Merck Case Study

    “The mission of Merck is to provide society with superior products and services by developing innovation and solutions that improve the quality of life and satisfy customer needs, and to provide employees with meaningful work and advancement opportunities, and investors with a superior rate of return.”…

    • 3527 Words
    • 15 Pages
    Powerful Essays
    Read More
  • Best Essays

    Swot Analysis of the Glaxosmithkline.
    • 1471 Words
    • 6 Pages

    Swot Analysis of the Glaxosmithkline.

    Glaxosmithkline is, after Pfizer Inc, the largest pharmaceutical company in the world. It was formed in 2000 as the result of a merger between two large companies GlaxoWellcome and SmithKlineBeecham. The company operates primarily in 117 countries, their products are currently manufactured in 37 and are sold in over 140 countries. It is headquartered in Brentford, England and employs about 110,000 people with sales of Ł22.7bn. Their strategies for the future are: qrow a diversified global business, deliver more products of value, simplify the operating model. Putting these plans into action they want to contribute to their challenging and inspiring mission – enabling people to do more, feel better and live longer. (Gsk. 2009).…

    • 1471 Words
    • 6 Pages
    Best Essays
    Read More
  • Good Essays

    Organization and Brand Equity
    • 1366 Words
    • 6 Pages

    Organization and Brand Equity

    Today Merck employs over 55,000 and produces some of the most well-known pharmaceutical products on the market, including Singulair and Gardasil. The company's intererests range from pharmaceuticals, vaccines and veterinary health to consumer education…

    • 1366 Words
    • 6 Pages
    Good Essays
    Read More

Related Topics