Emerging Business Models in the Pharmaceutical Industries ...
Emerging Business Models in the Pharmaceutical Industries ...
Emerging Business Models in the Pharmaceutical Industries ...
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Strategic Direction<br />
JnJ has been focuss<strong>in</strong>g on mergers and<br />
acquisitions.<br />
The recent acquisition of ALZA gives it access to<br />
drug delivery technology, that allows extension of<br />
<strong>the</strong> patent life of new and exist<strong>in</strong>g products by up<br />
to 30 months. This gives JnJ a competitive<br />
advantage aga<strong>in</strong>st generic <strong>in</strong>trusion throughout<br />
<strong>the</strong> <strong>in</strong>dustry.<br />
The company is consider<strong>in</strong>g a $24 billion<br />
acquisition of cardiovascular device maker<br />
Guidant, which will bolster its cardiovascular<br />
device bus<strong>in</strong>ess, extend<strong>in</strong>g it <strong>in</strong>to <strong>the</strong> fastgrow<strong>in</strong>g<br />
market for defibrillators, high-tech<br />
pacemakers and bioabsorbable vascular stents.<br />
JnJ has improved its cardio portfolio through<br />
acquisitions of stent maker Cordis Corp., drug<br />
delivery <strong>in</strong>novator Alza Corp., and biotech drug<br />
makers Centocor Inc. and Scios Inc.<br />
Johnson & Johnson<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
0<br />
36%<br />
JNJ Revenues by Geography (<strong>in</strong> billion US$)<br />
United States International<br />
Source: Company’s Annual Reports<br />
Revenue by Segment<br />
Strategic Analysis of <strong>the</strong> Pharma Market, Future Revenue <strong>Models</strong> and Key Players 70<br />
18%<br />
46%<br />
Source: Company’s Annual Reports<br />
Consumer Healthcare<br />
<strong>Pharmaceutical</strong><br />
Medical Device &<br />
Diagnostics<br />
2001<br />
2002<br />
2003
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