Teva

In: Business and Management

Submitted By ankur2703
Words 333
Pages 2
Markets in the radar..

1

• • • • • •

US UK & Netherlands Germany & France Latin America India Japan

Analyzing Markets – Strong presence

2

US
UK & Netherlands

• World’s largest generic market • Major drugs set to loose patent protection over the medium term • Systematic erosion of generic prices • Tightening market as more companies competing for exclusivities

• “Pharmacists” driven market • 49% generic penetration • 75% of Teva’s revenues from Europe

Latin America

• Strong presence after Ivax acquisition • Emerging market with high growth potential • Favorable government policies

Analyzing Markets – Lacking Foothold

3

Japan India
Germany & France

• 3rd largest pharmaceutical market - heavily regulated • Generics penetration 10% - expected to increase with ageing population • Entry barrier - perception of generics to be of inferior quality

• • • •

Govt. policies to provide higher quality care Budgetary constraints – preference for low cost drugs Emergence of middle class Low labor costs

• High growth potential – 50% of Teva’s European revenues • “Physician driven” or “branded generics” market • High cost of sales and marketing activities • Government regulated pricing

Markets to Focus!!
US – Acquisitions of firms focusing on bio-similar Latin America – organic growth

India – Acquisitions of low cost generic producers UK & Netherlands

International Markets
• Pharma Market
CGR (2000 - 2005)
14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Europe Japan East Asia & China Latin America

5

Recommended Strategy
• Increase foothold in East Asia and China
 Mitigate threat from low cost producers  High growth potential

1

140 120 100 80 60 40 20 0 2006 2008 2010 2012 2014 2016

116.4 90.86 70.91 55.33 33.7 43.18

So…
• US
 Major drugs set to loose patent protection over the medium…...

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