Page 7 - CIMA SCS Workbook November 2018 - Day 1 Suggested Solutions
P. 7

SUGGESTED SOLUTIONS





                  EXERCISE 3


                  Strengths


                       Listed company, therefore has access to capital markets for raising finance.

                       Global operator meaning lower business risk as not dependent on just 1 market

                       Manufacturing presence in 10 countries, therefore closer to markets/able to benefit from
                         lower costs of production/more likely to gain approval for drugs from host government
                         authorities

                       7th largest operator globally by revenue, therefore a powerful player in the industry

                       History of developing many successful pharmaceutical products which makes the medical
                         profession pay attention to any new products from Novak

                       2 research centres, each with skilled staff and the very latest equipment

                       Stated commitment to the highest standard of ethics; should help gain approval for new
                         products

                       Reputation for being highly innovative which helps attract high-quality research staff


                       Novak has been at the forefront of new technologies such as genetic engineering and new
                         delivery technologies

                       History of expansion through both organic growth and by acquisition; experience in
                         purchasing other companies reduces risk of future such strategies failing

                       Confidence that 3 new products will be launched shortly, each of which will potentially
                         generate significant revenues and profits

                       One of the company’s most successful antibiotics, Mintac, has 8 years of patent protection
                         still remaining

                       High profit margins e.g. Mintac has margin of 98.5%

                       Executive Directors are all well-qualified in the pharmaceuticals industry or associated areas
                         (e.g. Director of Legal Affairs has specialised in intellectual property disputes)

                       Novak patented 98 new compounds during the year to 31.12.2017, suggesting good R&D
                         pipeline

                       Novak gives formal training to health workers in developing countries, resulting in patients
                         receiving access to care and advice and improving Novak’s reputation as a responsible
                         pharmaceutical company

                       Extensive support is given to healthcare workers in a number of ways, thereby increasing
                         the company’s brand recognition in the medical profession

                  KAPLAN PUBLISHING                                                                    47
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