Case Study: Valeant Pharmaceuticals

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Valeant pharmaceutical’s main problem is they are acquiring smaller corporations rapidly for current growth, but they are not planning for future impacts to the company. Valeant has also shut down many research and development departments because of acquisitions. This is a problem because it would be hard to conduct research in the future if they want to go back to making more of their own products. A lesser but still prevalent problem is Valeant’s need to keep up with growing technology so they can have the latest and best product in the market. The main problem is Valeant is executing too many quick acquisitions and not planning for future difficulties. One alternative that would help the problem would be to restore some of the R&D programs…show more content…
The disadvantage would be that Valeant would be getting away from what is providing them revenue and what they are good at, which is acquisitions of drugs and companies. Next, an advantage of stopping some of the acquisitions would be providing more stability for Valeant. Valeant would be able to focus more on current acquisitions and how they affect the future of the company. A disadvantage of reducing acquisitions is having the risk of not picking the right acquisition since there will not be as many and ending up with an unsuccessful company or product. Lastly, the advantage of one established acquisition is it would include many drugs and one company to focus on so all of the attention goes to that. The disadvantage of this is Valeant would stop doing what they are good at for an extended period of time and could lose a lot of potential…show more content…
To start, an action that Valeant will be taking is reducing how many acquisitions that they are currently performing. A positive consequence of reducing the rapid acquisitions is Valeant being able to focus more on a few companies rather than have too many companies and miss opportunities or potential problems. Another positive is Valeant would have more resources to put forth other possible projects they want to achieve. Since pharmaceuticals is always growing they will need to put resources in new technology. A negative consequence is slowing down what Valeant is good at. This strategy could backfire and Valeant could be left with less companies and opportunities for revenue. The ever-growing market also can be a negative effect of this action because Valeant could miss out on a company with a new ground breaking drug. A positive consequence of funding more R&D and creating some generic drugs would be Valeant being able to compete with companies they couldn’t before. With a generic drug Valeant could sell it at a lower price. Making a product that is not innovative would be a negative consequence. Valeant’s revenues might not be as significant if they are trying to make a generic version of a drug already out on the market instead of creating a new innovative one. Another negative consequence is that refunding the R&D department could cost Valeant more

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