Escolar Documentos
Profissional Documentos
Cultura Documentos
1.0
Based in
Animal Health
Monheim, Germany
Pharmaceuticals
Dieter Weinand
Berlin, Germany
Consumer Care
Erica L. Mann
Medical Care
Alan Main
Bayer Healthcare currently having about 60,700 employees working worldwide. Bayer
Healthcare had a 19,975 Euro millions of sales for year 2014 with a 3581 Euro millions of
operating profit. Diagram below showed a rose of 7.5% of sales at year 2014. (Bayer
Healthcare, 2015)
2014
Change
million
million
Fx(&p) adj %
Bayer HealthCare
18,924
19,975
5.6
7.5
3,904
4,245
8.7
5.3
2,526
2,360
-6.6
-3.7
1,306
1,318
0.9
4.0
- Division Pharmaceuticals
11.188
12.052
7,7
11,2
Weaknesses :
2. Product recall
Opportunity :
Threats :
2.1.1 Strengths
Bayer Healthcare owns a wide range of products. The chart below showed the top 20 most
selling products in year 2014. As per the chart, Xarelto as the top selling item owns 1,679
Euro millions of sales per year. The wide range of the products manage to help the company
to gain most of the profits. (Bayer Healthcare, 2015)
Bayar Healthcare 10 best-selling products in 2014
Product
Division
Sales
million
Xarelto
Pharmaceuticals
1,679
Kogenate
Pharmaceuticals
1,109
Betaferon / Betaseron
Pharmaceuticals
819
Mirena - Produktfamilie
Pharmaceuticals
819
Nexavar
Pharmaceuticals
773
Pharmaceuticals
768
Eylea
Pharmaceuticals
759
Contour
Medical Care
658
Adalat
Pharmaceuticals
588
Advantage - Produktfamilie
Animal Health
495
Besides that, Bayer Healthcare also owns a very strong market position in the healthcare line.
Aspirin had become the trademark of Bayer by generating 766 Euro millions of sales in 2010.
(Strowel, 2011) Aspirin also helped Bayer to stand firm in the industry even when the patent
is over.
2.1.2 Weaknesses
Bayer is well-known in the industry and can be trusted most of the time yet theres still some
problematic products produced. Xarelto is one of the bestselling item of Bayer Healthcare in
the year 2014 which had helped Bayer to gain an almost 1,700 Euro millions of profits.
Xarelto is also known as rivaroxaban which is a type of anti-clotting medicine which mostly
used to help prevent stroke and serious blood clots. Xarelto owns a lot of benefits but at the
same time just like all the anti-clotting medicine, the major side-effect of Xarelto is bleeding
which could be life threatening. (NPS Medicinewise, 2015) The sad news is the amount of
cases reported regarding the side effects of Bayers Xarelto is still increasing and there were
968 cases reported at year 2013 which including 72 of them were deaths. (Staton, 2013) As
per now, Xarelto still do not come with a good antidote that is efficient in case of emergency.
Not only that, Bayer Healthcare also facing some products recalled issues over the years such
as the Medrad Continuum MR Infusion System (Continuum). It was a voluntary decision
by Bayer to recall that particular product in April 2014. (Radiology Solutions, 2014) The
recalls of product had definitely affected the reputation of the company.
2.1.3 Opportunity
Bayer Healthcare seem to be like having a lot of opportunities for its future. For example,
Bayer owned a lot of high potential drugs like Xarelto, Stivarga, Eylea, Xofigo and
Riociguat. All these high potential drugs will definitely be able to help Bayer to earn a
considerable profits for years.
Not only that, Bayer also will be able to increase its market presence by jointing ventures and
acquisitions. The collaboration between Bayer and Merck & Co., Inc. was one of the good
example. Bayer managed to receive up to 2.1 USD billions for that collaboration in order to
strengthen Bayers development in the cardiology business with global co-development.
(Bayer Healthcare, 2014)
2.1.4 Threats
The implementation of intellectual property rights had a strong impact towards the physical
investment and the research and development spending which will directly affects the raised
growth performance. The intellectual property rights is to promote investments in knowledge
creation and business innovation, whereby, in economic terms, a weak intellectual property
rights create a negative dynamic externality which failed to overcome the issue of uncertainty
in R&D and the risks they facing. (Maskus, 2000) The weak global economy has totally
affected Bayer Healthcares growth as well.
Another significant threat will be the regulatory controls on pharmaceutical product prices.
Bayers revenue growth might be negatively impacted by this regulatory controls. The
regulatory controls of product prices control the price at which medicines may be sold often
which is in a wide range of sectors. This changes involved not only the manufacturer and
final consumer of the new medicine but also some third parties like government and
wholesalers.
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3.0 Objectives
1. To achieve 30% of growth in revenue.
2. To become the top brand used in Malaysia.
3. To develop more high potential drugs.
5.2 Price
Bayer should set their price to be at least affordable for the middle income consumers
because most of the Malaysians are middle income consumers. They wouldnt be able to
afford high price medicine. Bayer should also consider about the exchange rate of currency as
well as the new implemented GST in Malaysia.
5.3 Place
Bayer should distribute their product all over Malaysia whether at the urban areas or the
outskirt areas to cover as much as customers they could. Bayer should make themselves
available at all the major pharmacies retail outlets in Malaysia such as, Watsons, Guardians
and Carings. Not only that, they should also sell their products at most of the private
pharmacies outlets.
5.4 Promotion
Bayer should consider to advertise in the related magazine or newspaper in various language
in considerate of Malaysia is a multi-races country. Not only that, Bayer can also set up booth
at hospital to create brand awareness and to catch patients attentions. Flyers can be given
around clinic and pharmacies too.
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11
Solutions
Create an anti-dote for all medicines
Make a product recalls and a total refund
8.0 Conclusion
In conclusion, it is important for Bayer to analyst the SWOT analysis of their company in
Malaysia and to discover their target market. By realizing their target market will help to
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make a more efficiency marketing mix planning which will help to reduce the cost of
promoting their company. Next, a complete contingency plan will helps them to reduce the
reckless decisions made during emergency and to avoid more losses too.
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9.0 References
Bayer Healthcare, 2014. Bayer closes acquisition of consumer care business of Merck & Co.,
Inc.,
United
States,
for
USD
14.2
billion.
[Online]
Available at: http://www.press.bayer.com/baynews/baynews.nsf/id/Bayer-closes-acquisitionconsumer-business-Merck-Co-Inc-United-States-USD-billion
[Accessed 10 July 2015].
Bayer Healthcare, 2015. BayerHealthCare: Science For A Better Life. [Online]
Available
at:
http://healthcare.bayer.com/scripts/pages/en/company/corporate_profile/index.php
[Accessed 10 July 2015].
Business
Dictionary,
2015.
Contigency
Plan.
[Online]
Available
at:
http://www.businessdictionary.com/definition/contingency-plan.html
[Accessed 10 July 2015].
Maskus, K. E., 2000. Intellectual Property Rights And Economic Development. Beyond the
Treaties: A Symposium on Compliance with International Intellectual Property Law, 1(1), pp.
1-32.
NPS
Medicinewise,
2015.
What
is
rivaroxaban
(Xarelto)?.
[Online]
Available at: http://www.nps.org.au/medicines/heart-blood-and-blood-vessels/anti-clottingmedicines/for-individuals/anticoagulant-medicines/for-individuals/activeingredients/rivaroxaban/for-individuals/what-it-is
[Accessed 10 July 2015].
Radiology Solutions, 2014. The Medrad Continuum MR Infusion System (Continuum) is
no
longer
available
for
purchase.
[Online]
Available
at:
https://www.radiologysolutions.bayer.com/products/mr/mraccessories/continuum/
[Accessed 10 July 2015].
Staton, T., 2013. Bayer's Xarelto faces stepped-up reports of side effects, deaths, German:
Fierce Pharma.
Strowel, A., 2011. Bayer's Aspirin. A Lasting Success Without Patent and Strong Trademark
Protection, 1(1), p. 1.
The Malaysian Insider, 2013. Budget 2014 announced, 6% GST from April 1, 2015, Kuala
Lumpur: Edge Insider Sdn Bhd..
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