6_Globalization and the Pharmaceutical Industry Revisited

6_Globalization and the Pharmaceutical Industry Revisited -...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 586 / Busfield Table 1 Leading pharmaceutical companies ranked by global pharmaceutical sales value, 2000 a Sales value, Share of world Company Head office Rank £ millions market, % H Pfizer US. 1 15,266 7.3 GlaxoSmithKline UK. 2 14,533 6.9 Merck & Co. US. 3 10,875 5.2 AstraZeneca UK. 4 9,423 4.5 Novartis Switzerland 5 8,758 4.2 Bristol—Myers Squibb US. 6 8,187 3.9 Johnson & Johnson US. 7 8,152 3.9 Pharmacia US. 8 7,457 3.6 Aventis France 9 6,758 3.2 American Home Products“ US. 10 6,310 3.0 Total 95,721 45.7 H Source: ABPI (2). “Renamed Wyeth in March 2002. Nor is there any sign that the period of consolidation is over. There have been reports in the press that GlaxoSmithKline is considering a further large merger (initially with Bristol-Myers Squibb and then with Eli Lilly)——a strategy the company now claims to have rejected—and it was announced in 2002 that Pfizer, the top ranking company for sales in 2000, had acquired Pharmacia, ranked 8th in the 2000 list. This acquisition, completed in April 2003, strengthens its place at the top of the list, and another company will move into the top ten, possibly Eli Lilly (11th in 2000, though the loss of its patent on Prozac in 2001 has adversely affected sales). The key mergers during the period from 1989 onwards among leading com- panies in the top ten in 2000, along with the location of their headquarters, are given in Table 2. This listing includes only the major mergers and acquisitions and does not give a complete picture of the pattern of mergers and acquisitions that underpin many of the largest companies. It excludes acquisitions of smaller companies, including biotechnology companies (see below). The marked consolidation among leading companies in the last decade has been prompted by a number of factors. First, it needs to be seen in the context of a general move towards mergers and acquisitions among leading international companies in the west during the 1990s, a period when there was a strong emphasis on market success and the importance of strong, powerful corporations. ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern