Professional Documents
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BUSINESS PLAN
Date:
- Confidential -
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Confidentiality
This business plan is the property of the Company and is considered to be strictly confidential. It
contains information intended only for the person to whom it is transmitted. With receipt of this plan,
recipient acknowledges and agrees that:
In the event recipient does not wish to pursue this matter, this document will be returned, at
the address listed above as soon as possible.
The recipient will not copy, fax, reproduce, divulge, or distribute this confidential plan, in whole
or in part, without the expressed written consent of the Company.
All of the information herein will be treated as confidential material with no less care than that
afforded to your own company confidential material.
This Business Plan contains forward-looking statements that involve risks and uncertainties. The
Company's actual results could differ materially from those anticipated in these forward-looking
statements as a result of certain factors, including those set forth under "Risk Factors" and elsewhere
in this Business Plan.
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Table of Contents
1.0 Executive Summary
1.1 Objectives
1.2 Mission
1.3 Keys to Success
2.0 Company Summary
2.1 Start-up Summary
2.2 Company Locations and Facilities
3.0 Products
3.1 Product Description
3.2 Competitive Comparison
3.3 Sales Literature
3.4 Sourcing
3.5 Technology
3.6 Future Products
4.0 Market Analysis Summary
4.1 Market Segmentation
4.2 Distribution Patterns
4.2.1 Competition and Buying Patterns
4.2.2 Main Competitors
5.0 Strategies and Implementation Summary
5.1 Marketing Strategy
5.1.1 Pricing Strategy
5.1.2 Promotion Strategy
5.2 Sales programs
5.3 Sales Forecast
6.0 Organizational Structure
6.1 Personnel Plan
7. Important Assumptions
7.1 Break-even Analysis
7.2 Projected Cash Flow
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1. Executive Summary
Teva Pharmaceutical Industries Ltd is a global pharmaceutical company specializing in the
development, production and marketing of generic and proprietary branded pharmaceuticals
as well as active pharmaceutical ingredients. Teva is among the top 20 pharmaceutical
companies and among the largest generic pharmaceutical companies in the world.
With more than a century of experience in the healthcare industry, the Company enjoys a
firmly established international presence, operating through a carefully tailored network of
worldwide subsidiaries. Headquartered in Israel, 91% of Teva's sales, which totaled US$4.8
billion in 2004, are in North America and Europe. Teva has approximately 14,000 employees
worldwide and production facilities in Israel, North America, Europe and Mexico.
Teva's scope of activity extends to many facets of the industry, with a primary focus on the
manufacturing and marketing of products in the following categories:
Human pharmaceuticals
Teva produces generic drugs in all major therapeutics and steriles in a variety of
dosage forms, from tablets and capsules to ointments, creams and liquids.
In addition, Teva manufactures innovative drugs in niche markets where it
has a relative advantage in research and development.
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portfolio of competitively priced products in diverse dosage forms. In 2004, Teva acquired
Sicor, which combined Teva's capabilities and knowledge in the solid dose generic drug
franchise with Sicor's expertise in generic injectables.
Teva's forays into the European market include the purchase of the Dutch industry
heavyweight.
1.1 Objectives
To achieve a 10% market penetration in the non-subscriptions market by the year 2007.
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1.2 Mission
The mission of the company is to import, distribute, and market Teva technologies in the
medical pharmacy field. The technologies will fill market niches that each account for a
minimum of $10 million dollars in potential sales. Each technology will fill a current need in
medical procedure by improving upon an existing technology, or by serve a need that is
clearly defined and acknowledged by medical professionals. Each product shall be priced to
appeal to a managed-care market that stresses lowest cost of total treatment parameters.
The company will import and market Pain reliever and fever reducer Caplets such as
Optalgin, Acamol and Acmoly for children through multiple distribution channels both
foreign and domestic. It is also seeking to establish its corporate identity in the medical
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products field. Growth strategy calls for one joint venture license as well as the following
objectives:
The key elements in the Start-up plan for the company are:
1. The establishment of Corporate Identity.
2. The location and place of doing business.
3. Funding of additional capital raising alternatives.
4. Salary for the two key managers and founders.
5. Formulation of Strategic Plan. Costs of raising capital through private placement.
A start-up capital required as well as capital required for the continuation of operations in the
first six months will be provided by selling the shares in the private placement.
This table will describe the expenses for the first stage of the start up (first 3 months):
Legal $5,000
Import 3 type of product $25,000
Brochures $3,000
Marketing $12,000
Rent $1,000
Transit from port $6,000
Custom and Tax $8,500
Logo Design + Business cards $1,000
Management Salaries (6 months) $45,000
Storage $6,000
Packaging $4,000
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Translation of instruction $2,000
Total Start-up Expenses $118,500
3.0 Products
The company. Will initially market three distinct products.
1. Optalgin Tablets, for the relief of pain and to lower temperature.
2. Acamol Tablets, Pain reliever and fever reducer.
3. Acamoly Syrup, Pain reliever and fever reducer for children.
The technology used in these products is the subject of seven patents in the application
process.
Detailed and technical descriptions of the company initial product lines are as follows:
Optalgin Tablets
Caplets Tablets
COMPOSITION
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Each caplet contains: Each tablet contains:
Dipyrone 500 mg Dipyrone 500 mg
Inactive Ingredients: Inactive Ingredients:
Starch, gelatin, magnesium stearate, Starch, gelatin, magnesium stearate,
talc, colloidal silicon dioxide, talc, colloidal silicon dioxide.
hydroxypropyl-methylcellulose, titanium
dioxide, polyethylene glycol, polysorbate.
THERAPEUTIC ACTIVITY
For the relief of pain and to lower temperature.
.Drug Reg. No.: Tablets: 168720611; Caplets: 662527767
Teva Pharmaceutical Industries Ltd
ACAMOL®
Tablets/Caplets
Composition
Each tablet/caplet contains:
Paracetamol 500 mg
Inactive Ingredients
Tablets:
Maize starch, polyvidone, stearic acid.
Caplets:
Maize starch, polyvidone, stearic acid, hydroxypropyl methylcellulose,
ethylcellulose, diacetylated monoglycerides.
Therapeutic Activity
Pain reliever and fever reducer.
Drug Registration Number
Acamol caplets: 035 04 25337 05, 128 74 25337 00
Acamol tablets: 020 16 20534 00
Teva Pharmaceutical Industries Ltd.,
ACAMOLY
Syrup
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.
Composition
Each 5 ml contains:
Paracetamol 125 mg
Each 5 ml contains 1 gram
sucrose.
Inactive Ingredients
Glycerin, sucrose, propylene
glycol, alcohol,
carboxymethylcellulose
sodium, sodium cyclamate,
methylparaben, sodium
chloride, carmoisine,
menthol, cream soda flavour, passion fruit flavour,
colour FD&C blue no.1, purified water.
Therapeutic Activity
Pain reliever and fever reducer.
Drug Reg.No.: 021082052500
Teva Pharmaceutical Industries Ltd.,
P.O.Box 3190
Moreover, Extended use of some pain relievers like Paracetamol may interfere with some
high blood pressure medications. These pain relievers belong to a group known as Non-
Steroidal Anti-Inflammatory Drugs or NSAIDs. These drugs work by blocking the body's
production of prostaglandins, substances which play a role in inflammation and fever.
But prostaglandins also have a role in the regulation of blood pressure. By blocking
prostaglandin production, NSAID pain relievers may prevent your blood pressure medication
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from working the way it was designed. Many commonly prescribed high blood pressure
medications (including diuretics, ace inhibitors, and beta blockers) work by relaxing blood
vessels and decreasing the amount of fluid inside them. Taking NSAIDs can counteract this
effect.
3.4 Sourcing
Primary sourcing for the company will be Teva Pharmaceutical Industries Ltd, which
located in Israel. P.O.Box 3190, Petah-Tikva. The company will perform final assembly
and distribution from its own facility in Georgia.
3.5 Technology
Acamol, Acamoly and Optalgin are patent attorney for Teva Pharmaceutical Industries Ltd.
Seven patents have been authored and filed. All patents take into account both offensive and
defensive postures in their claims. Opinion of legal counsel is strong and firm that all of
Teva’s patent applications are enforceable and defensible.
Plans for future development by the company include additional ideas and technologies to be
import by the company; In addition the company may seek to acquire technologies developed
by others once it attains sufficient capitalization to do so. It is the objective of the company to
both innovate and market its products. Once an industry reputation has been achieved and
marketing channels opened expansion into other medical products areas becomes potentially
rewarding.
The two key factors influencing discussion of the company’s market are the medical
procedures and product usage statistics and the customer or chain of distribution
considerations.
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4.1 Market Segmentation
The potential customers of the company are both domestic and foreign. Domestic customers
include managed care groups, hospital buying groups, physician groups, independent
physicians, and other (catalogues) and medical supply houses. Managed care groups
dominate the market. These groups make more than 50% of all purchases of medical
products and that is forecast to reach 75% by the year 2008.
The following chart illustrates the approximate total number of these buying groups that
exist. But initial concentration may be more defined by targeting the largest 50 customers in
each segment. This data is clearly definable and available.
Market Analysis (Pie)
Distribution patterns in the health care industry are such that the large buying groups dictate
what products are used for certain procedures throughout their sphere of influence. Thus, our
products could be mandated or forced out for thousands of patients due to their health plan or
hospital group. Others recommend several alternatives, which require doctor’s education and
intervention, similar to pharmaceuticals. Distributors are key for foreign markets.
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Large companies with established brand names and distribution patterns have a distinct
advantage in the medical product arena. But new small companies are succeeding on a
regular basis dependent on their technology and its over-all cost-of-treatment advantages.
Product cost in and of it self is not paramount but education and training are. The product
must deliver performance as promised in order to do a procedure more effectively with the
fewest complications.
Time saving and effectiveness are the key economic parameters. The company will succeed
based upon the capability of its products. They are already competitively priced...except they
are more effective. After initial market resistance to any new product, the company’s
products can grow to dominate a market segment.
The most important competitor to be considered is Paracetamol 500 Mg. Its strengths are its
reputation, current market position, and its entrenched loyalty among doctors using its
products. Its weakness is that it is not particularly innovative. This makes it vulnerable to a
new, improved entry.
The company will pursue specific, definable, market segments with a multi-tiered, multi-
channel approach. We will leverage our technologies with a licensing agreement in one key
area and a direct sales and distribution strategy in the other using established distributors.
We will look to foreign markets first with established distributors for initial revenue.
Domestic revenue will follow. Large groups and plans will be targeted first.
Marketing will follow from industry and trade and doctors awareness campaigns to specific
executions directed at specific customer segments. The top tier of 20 to 30 customers in each
segment will be attacked first. Only a few sales hits in these top tiers will enable achievement
of targeted forecasts. The company will achieve its initial sales goals from direct and
distributed sales of the Acamol Tablets. This product is targeted first since it is an existing,
well-defined market.
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5.1.1 Pricing Strategy
1 unit of Acamol Caplets Tablets contains 21 Tablet, unit cost at factory 2.27$
1 unit of Optalgin Caplets Tablets contains 42 Tablet, unit cost at factory 2.40$
1 unit of Acamoly syrup, contain 150 Mg. Unit cost at factory 3.45$
Adding 25% of regulated expenses to initial price and 20% profit margin, will result in 45%
over factory price.
Public relations, industry media, will help in over-all industry awareness plans. Feature
articles and product reviews will help launch awareness. Direct mail to buying groups and
ads in trade publications will help with buyer impressions. Finally, all will be integrated with
doctor’s materials and T.V promotion once approval has been obtained to increase point-of-
sale usage.
Sales programs include direct wholesale sales to distributors. Sales materials, T.V
promotions, and support materials will be produced. Doctor’s materials will be included.
Direct sales will be by personal contact, direct mail, public relations, and media directed at
key industry segments. In addition electronic marketing will be deployed whenever it fits
with the buying patterns of a key group.
A website and electronic commerce site will be utilized to cultivate direct sales to key
industry groups.
This sales forecast includes the sales of the Acamol, Optalgin and Acamoly to the Georgian
market.
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The Pain reliever and fever reducer tablets market in Georgia today circle a 20$ million in a
year. The company main target is to penetrate between 5%-10% market shares in the first
year, with the increase of 3% -5% in every year.
6. Organizational Structure
C.E.O
Secretary
C.E.O 2500$
Designer 250%
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Transport manager 350$
Secretary 120$
Total 7560$
7. Important Assumptions
The following are the key financial assumptions for this plan. However, it's important to note
that several of the assumptions could be considerably less than those indicated if the business
is located in Georgia. The personnel burden could go from 22% to 12%. The short-term
interest rate could go from 22% to 15% or less. The tax rate could go from 22% to less than
18%. The import tax could go from 15% to less than 5%. So, all of the bottom line
projections in this plan could improve appreciably.
The company has calculated a break-even maintenance point for sales once full management staffing
and facility costs are reached. Included are payroll and rent considerations.
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The break-even unit target of 5450 units per month or $24,560 can sustain the company.
We began the year with $300,000 in cash from initial sales of shares to investors. This
provided our start-up capital.
Thus, our cash flow will be sufficient in year one even if we can't conclude all product sales
and full market potential. Since the company will hold 181,500$ in beck up capital. Which
was shown in paragraph 2.1.
Second round financing will include venture, mezzanine, or shares options. If sales and
profits hit targets then further investment needs will be limited to higher value options to roll-
up a national level.
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