Competitive Profile Matrix

Alexion Pfizer Eli Lilly

Success Weight Rating Score Rating Score Rating Score
Factors
Market .15 2 .3 4 .6 3 .45
Share
R&D .25 4 1 3 .75 4 1
Spending
# of .15 1 .15 4 .6 3 .45
Employees
# of .25 1 .25 4 1 2 .5
Products
Product .2 1 .2 4 .8 3 .6
Variety
Totals 1 1.9 3.75 3

These three companies were chosen because they all fall into an Orphan Drug category.
Market share was determined from the information contained in the BCG matrix.
Currently Alexion has a market share of 7%, Pfizer is currently topping the market as the biggest
pharmaceutical company while Eli Lilly is at 37%.
Pharmaceutical companies spend an average of 18% of their revenues toward research and
development. Pfizer spent 14.8%, Eli Lilly spent 24.7% and Alexion spent 24.6%.
As of December 31, 2016 Alexion employed 3,121 people, Pfizer employed 96,500
people, and Eli Lilly employed 41,975. This is a significant number because every employee a
company has is a knowledge asset and should be seen as a potential for ideas and innovations.
Alexion currently has three products. Pfizer currently has over one hundred products. Eli
Lilly currently has 33 products.
Currently Alexion specializes in Orphan drugs prescribed by a doctor, they have not
branched out past that currently. Pfizer has a variety of different types of drugs and is also into
the over-the-counter market. Eli Lilly also has a variety of drugs for the body but is not in the
over-the-counter market.
Competitive Analysis
This CPM reveals that Alexion is a weak competitor in the Pharmaceutical industry. It is
important to note that Alexion does specialize in the Orphan Drug sections and that should be
considered. They currently have two one of a kind drugs on the market so that makes them
valuable. Alexion is very strong in their research and development which will be a strength when
they are trying to come up with their next one-of-a-kind medicine to treat rare disorders. Based
on the matrix Alexion should not be discredited as it is a small company it should be considered
for its exclusiveness of product that will be rare and difficult to replicate by another competitor.

BCG Matrix and explanation

Company Net Product Sales Growth Rate from Relative Market

2016 2015 to 2016 Share
 (Millions)
Pfizer 45,906 .06 1
Allergan 18,597 .01 .41
Bristol-Myers Squibb 18,163 .25 .40
Eli Lilly 17,173 .09 .37
Celgene 11,114 .23 .24
Mylan 10,839 .17 .24
Biogen 9,818 .07 .21
Abbott Laboratories 3,859 .04 .08
Regeneron 3,338 .24 .07
Pharmaceuticals
Alexion 3,082 .18 .07
Pharmaceuticals

For the BCG matrix, U.S. based pharmaceutical companies that fell around Alexion in
the list of top 50 companies for 2017 were used. To calculate the growth rate, the same
companies were found on the list of top 50 companies for 2016 and there 2017 product sales
were subtracted from their 2016 sales and then divided by their 2016 sales ((2016-2015)/2015).
To calculate the relative market shares each company’s 2016 product sales were divided by
Pfizer’s product sales since they were the leading pharmaceutical company in 2016. According
to [ CITATION Pat17 \l 1033 ] the average annual growth rate for the pharmacy industry is 4%
to 7% so the market growth rate median will be 5% for the y-axis.

BCG Matrix

0.25
0.24
0.23
Relative Market Share

0.18
0.17

0.09
0.07
0.06
0.04
0.01
Growth Rate from 2015-2016

This matrix shows that Alexion is currently in the question mark section which
means if they are growing fine as a company but they will need to increase their market share if
they want to get into the stars category with Pfizer. They will do this with market penetration,
market development, product, development, or divestiture.