CASE STUDY

Rajib Layek (12BM60030) Rohit Joshi (12BM60031) T Vedha (12BM60032) Meghana Vaidya (12BM60035) Prashant Singh (12BM60037) Gaurav Johri (12BM60038)

AstraZeneca Pharmaceuticals
Background Pharmaceutical Industry: Innovation Driven Academic in Tradition Socially Obligated AstraZeneca Company:  A British-Swedish leading pharmaceutical company Innovator and market leader High investments in Research

Introduction
• The major problems of pharmaceutical industries are decision regarding portfolio selection and balancing between short term profit and long term goals • Causes can be attributed to rapid technological advancement, strict legal regulation and shareholders’ aspirations • We suggest that companies should focus on marketing current product effectively and at the same time should invest in future product development to safeguard future interest

External Influences

Regulations by Authority Technological Advancement Investment /Innovation Management High cost of production Pressure to deliver Stockholders Value Lack of Scientific background of industry analysts

SWOT Analysis

S

TRENGTHS

W T

EAKNESSES

O

• AstraZeneca provides medicines for some of the world’s most serious diseases. • World class productivity in R&D • Increased external collaboration

• Substantial time required to develop a new product • Cost of developing new product very high • Evalution by financial experts not trained in biosciences

Internal factors

PPORTUNITIES

HREATS

• Activities that are less capital intensive can be outsourced • Opportunity to explore and use advanced technologies in for new drug development. Positive

• Introduction of new regulatory demands • Shareholders value the short term more than the long term • Traditional pharmaceutical industry culture is being undermined Negative

External factors

Regulations by Authority Intensive Documentation and the Extensive Clinical Testing of Medicines are demanded by authority Authorities wanted to ensure no adverse effect happens because of the new registered medicines

Issue

Cause

Effect

High Capital investment is required to meet the requirement

Technological Advancement

Issue

Necessity to alter the drug development process

Cause

Emergence of new technologies like Automation, Robotics, Genomics, Proteomics, Pharmacogenomics
High Capital investment is required to meet the requirement. Human Resource training and develop

Effect

Innovation/Investment Management

Issue

Necessity to Re-strategize the high investments in research for new drug development

Cause

Pressure to show the financial results to the stockholders

Effect

Portfolio of Innovations- Prioritization of Innovations and optimal investment

Business Analysts Evaluation

Issue

Continuous evaluation of Market Potential of scientific procedures

Cause

Analysts with low scientific knowledge evaluating the business operations.

Effect

Gap between scientific understanding and business deliverables increases

Q1: How is it Possible to align long-term and shortterm goals in Pharma industry?
Mergers/Joint-Ventures Sub-contracts and outsourcing Maintaining as ‘Academic Industry’ Product selection which requires both short term and long term investment.

Q2: How to take advantage of being the ‘Academic Industry’ and to meet the market goals?
Involving Students and researchers from colleges/universities in industrial innovations -innovation becomes cost effective -Portfolio of innovations can be maximized -Social Commitment can be maintained Industries should help giving technological training to students -Skill level of Human Resources can be incresed

Q3: How to make decision under genuine uncertainty?
Horizontal/Organic Organizational Structure Having flexible and backup business plans Maintaining ‘Academic Tradition’

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