1. INDUSTRY ANALYSIS.
Pharmaceutical industry is a high money-making industry. It has historically been one of the nation's most profitable industries not only in USA, but all around the world. But in the US industry everything isn't exactly "coming up roses". Those huge gains of the industry were acquired on the expense of consumers. Also one of the main objections on the pharmaceutical industry is that competitive forces do not operate well in the pharmaceutical market, therefore allowing companies to charge excessive prices. Of course pharmaceutical industry has expensive inputs - research, promotion, free trials, personal selling, and development; however that alone isn't a good exc ...view middle of the document...
and UDL Laboratories, Inc. The generic product portfolio covers a variety of dosage forms including immediate and extended-release oral tablets and capsules and transdermal patches, as well as repackaging and marketing multi-source and single-source products in unit dose form for the institutional marketplace. Mylan is committed to remain the premier U.S. generic pharmaceutical company. This commitment to excellence is evident from its cutting edge research and development and state-of-the-art manufacturing expertise, to its unparalleled service and unsurpassed quality.
Mylan markets its branded pharmaceuticals through Bertek Pharmaceuticals Inc. Bertek operate as a stand-alone proprietary pharmaceutical company with independent clinical development, business development and sales and marketing efforts. Bertek is a transitional pharmaceutical company that will enable Mylan to grow from a traditional generic company to a proprietary based company. The Company's strategy is to optimize marketing and sales through a targeted therapeutic focus on neurology, dermatology and cardiology, thereby enabling our field sales representatives to concentrate on a narrow physician call base, as well as developing new products as trading stock for other Bertek products. Bertek's vision is to be a growth oriented, highly profitable pharmaceutical company that efficiently commercializes significant improvements to human healthcare.
Mylan's main competitors consist of Barr Pharmaceuticals Inc., Teva Pharmaceuticals Industries Ltd., and Watson Pharmaceuticals Inc. Teva Pharmaceutical Industries Ltd. is far larger than Mylan, but Mylan still has a good perspective of reaching its size. Teva is a perfect competitor to benchmark. The other two are similar in size and gains.
4. MYLAN vs. KING - OBJECTIVE OF COMPANY MERGER
Generic drug maker Mylan Laboratories Inc. bought branded drug maker King Pharmaceuticals Inc. for about $4 billion in stock. Mylan has pursued a stronger position in the branded-drug market and believes King can accelerate that goal. Bristol, Tenn.-based King and Mylan, based in Pittsburgh, wishes to create a company with combined annual revenue of about $3 billion and a work force of 6,000. On the New York Stock Exchange, King shares climbed $2.52, or 24 percent, to close at $12.89, while Mylan shares fell $3, or 16 percent, to close at $15.51. King's flagship product is Altace, which is used for hypertension and cardiovascular protection. Altace had sales of about $450 million for the 12 months ended Ma...