LV Thạc sỹ_Analyzing current competitors of Astrazeneca Pharmaceutical in marketing gastro intestinal product

Aware of the potential market, with the position of a salesman in charge ofone PPI product of AstraZeneca pharmaceutical companies, I want to find out aboutthe market as well as marketin

Business Monitor International

Gastro-esophageal Reflux Disease

Gastro Intestinal

International Monitor System

Proton Pump Inhibitor

LIST OF TABLES

Table 2.1: SWOT Model………

Table 2.2: Some kinds of Product strategy………

Table 2.3: Some kinds of price strategy………

Table 2.4: Method, Channels and Some kinds of Distribution Strategy…………

Table 2.5: Purpose, Some kinds and tools of Promotion strategy………

Table 3.1: Products leading the world in sales from 2009 to 2011………

Table 3.2: Pharmaceutical growth of Asia Pacific countries………

Table 3.3: Ranking of the top pharmaceutical companies in the world…………

Table 3.4: PPIs in the market………

Table 3.5: Hospitals in charged by staffs………

Table 3.6: Price of some PPI products in Hanoi market………

19 22 23 24 25 27 28 32 38 40 45

LIST OF FIGURES

Figure 2.1: Principal actors in the company’s microenvironment

Figure 2.2: competitor analysis components

Figure 2.3: Main steps of Competitor Analysis

Figure 2.4: Marketing Mix

Figure 3.1: Drug sales in the world several years

Figure 3.2: Kinds of imported drugs

Figure 3.3: Ranking growth of foreign companies in VN in 2011

Figure 3.4: Ranking sales of foreign companies in Vietnam in 2011

Figure 3.5: Sales by groups in AZ in 2011

Figure 3.6: Gastrointestinal Diagram

Figure 3.7: Market share PPIs oral and IV by value in 2011

Figure 3.8: Price of some oral PPIs

Figure 3.9: Price of some IV PPIs

Figure 3.10: Distribution channels of some PPI products

Figure 3.11: Sales of some PPIs IV in Hanoi 2011

Figure 3.12: Sales of GI and Pariet in recent years

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EXECUTIVE SUMMARY

Nowadays, in the pharmaceutical industry, the gastrointestinal drug has relatively highproportion of total industry revenue, especially for the group of proton pumpinhibitors Aware of the potential market, with the position of a salesman in charge ofone PPI product of AstraZeneca pharmaceutical companies, I want to find out aboutthe market as well as marketing activities for the same type products (other PPIs) inthe market today to compare the effectiveness of the marketing mix then proposed theright direction for my product to enhance the effectiveness of working With the aboveobjectives, the project has conducted the following studies:

- Identify the competitors of the GI product

- Analyzing marketing mix strategy for the main competitive products in themarket

- Find weaknesses, strengths in marketing strategy of each PPI products

- Proposed solutions to improve the performance of Marketing Mix for GI

Based on the theory of Marketing Mix and the theory of competition, with the primarydata (100 customer surveys, interviews 3 manager of AZ and 2 manager from rivalcompanies) and secondary data such as reports, articles, etc., the author has analyzedthe marketing of PPI products (product, price, place, promotion) and then has foundthe following results:

- GI products are appreciated for quality treatment on the market

- High product prices can only access to the objects patients with economiccondition

- Wide distribution system but rather tight, yet flexible form of payment

- Promotion: due to strong financial resource but limited by the rigor of theglobal pharmaceutical law, the marketing strategy for GI tend to rely onsupplements to meet scientific information for medical physician based onconference activities, workshops, funding for scientific activities withoutcommercial properties in marketing activities (such as discounts, gifts todoctors ) Thus the image of the product, the company's brand is highlyappreciated in the customers mind.

Based on the above analysis, the results found in the research process, the authorpropose some following suggestions:

- Strengthening the scientific activities of the branding strategy, make a deepimpression in the customers mind about the brand and the image of thecompany's products

- Enhance build relationships with customers in more flexible forms ofmarketing such as special occasion gifts, funding for scientific activities

Training and development of human resources, especially the sales team people in direct contact with customers, bringing the message to create productawareness among customers while reflecting the company's image

-The author hopes these suggestions will make AZ more successful in the result ofmarketing GI products in Vietnamese market

CHAPTER 1: INTRODUCTION 1.1 RATIONALE:

Vietnamese pharmaceutical market is increasingly attractive to Foreign as well

as domestic Pharmaceutical companies According to the statistics of the DrugAdministration, the total value of drugs used over $ 1.9 million in 2010 The growthrate of drugs value has an average growth of over 18% / year for 5 years from 2006 to

2010, higher than the global pharmaceutical industry (6.2%) As BMI’s forecast, thedrugs value will use nearly $ 3.4 million in 2015 with an average growth rate of 14.5%/ year in 2011-2015 (excluding the impact of exchange rates), although more slowlythan the 2006-2010 period but still higher than the global average growth forecast byIMS Health is 3-6% / year This is also reflected in the total number of 438 foreignpharmaceutical companies have been licensed business in Vietnam in 2010, anincrease of 68 over 2007 companies (source: Drug Administration Department ofVietnam)

Disease model in Vietnam are the mixture of developed and developing countries withcurrent issues in cardiovascular disease, cancer and digestive diseases Environmentwith the living, eating and preventing diseases habits is not high, the pressures of theworking environment is the cause of GERD (gastro-esophageal reflux disease),duodenal ulcer with Helicobacter pylori infection and gastrointestinal bleeding Inrecent years in Vietnam, the proportion of people suffering from digestive diseases isconstantly increasing The rate of digestive patient is 20% of the total patients (Source:Drug Administration Department of Vietnam) Therefore gastrointestinal drug market(especially drugs to treat GERD, peptic ulcers and gastrointestinal bleeding) is a

market that many companies is towards The drugs treating digestive disease are one

of the top 10 classes of drugs with the largest sales in Vietnam and around the world

With the large and potential market, the competition of the products in the sametype of digestive group is very high In the position of a Sales employee, working atthe pharmaceutical company AstraZeneca, with the desire to learn more about thecompetition and marketing strategy of the same use drugs in the market, I have chosen

the thesis: “Analyzing current competitors of AstraZeneca Pharmaceutical Company

in marketing GI product in Vietnamese market”

Competitor Analysis is an important part of the strategic planning process

 To help management understand their competitive advantages/disadvantagesrelative to competitors

 To generate understanding of competitors’ past, present (and most importantly)future strategies

 To provide an informed basis to develop strategies to achieve competitiveadvantage in the future

 To help forecast the returns that may be made from future investments

1.2 RESEARCH OBJECTIVES

AZ is the foreign pharmaceutical company in Vietnam It has strong capitalsource, good managerial system… but the company has made business in a strictcode of Vietnam and Global This research is carried out to analyze the currentcompetitors of AZVN with the GI product

 Identify AZ’s current competitors of GI product

 Analyze their marketing mix activities of competitors for GI product of

Research process of the thesis is drawn by this following map:

Figure 1.1: Research process

(Source: Author)

1.3.2 Secondary data collection

 Public information: via Internet, newspaper, other people’s research relating

to marketing activities of pharmaceutical firms in Vietnamese market and the

Identify current competitors of GI

Analyze Marketing Mix of Competitors and

information in the field, the author will have information about Vietnamesepharmaceutical industry on the whole and AZ in particular.

 AZ database: the author will collect the information from internal source that

is really useful and serves for the analyzing the competitiveness such as:annual report, government regulation about Vietnamese pharmaceuticalenvironment, the website of other firms The statistic figures in annual reportsand other daily sources are collected, classified, analyzed to become useful forresearching

1.3.3 Primary data collection

 Survey: conducted through questionnaires with customers (doctors describingproducts in some hospitals) with the number of 100 persons.The questionnaires aredesigned to understand further about the customers’ awareness of products andtheir selecting products

 Interview: The qualitative method used in this study is in-depth interview with

3 managers in AZ and 2 managers from other companies to obtain their confirmationabout strengths, weaknesses, opportunities and threats of AZ in particular and otherforeign companies in general

1.3.4 Data analysis

With all the information collected from interviews, survey, Microsoft Excelsoftware was used by author to analyze the information

1.4 RESEARCH SCOPE

Research object: Marketing mix of main current competitors of Gastro-Intestinalproduct to help AZ company distributing in the market.

Location: Hanoi

Secondary data are within 3 years (2008 - 2011)

Primary data were collected from June to September, 2012

CHAPTER 2: THEORETICAL BACKGROUND

2.1 Contents of competitors

2.1.1 Concepts of competitors

 Competitors are individuals or organizations who provide the same type of

products or services

Figure 2.1: Principal actors in the company’s microenvironment

(Source: Philip Kotler, Principle of Marketing, second edition)

Suppliers

Competitors Company

Publics

Marketing intermediaries

Customers

The marketing concept states that, to be successful, a company must providegreater customer value than its competitors do Thus, marketers must do than simplyadapt to the needs of target customers They must also gain strategic advantage bypositioning their offerings strongly against competitors’ offering in the minds ofconsumers.

 The importance of competitor analysis

There are many companies in each industry sector competing to win customersand be the best at what they do How will you know how to be better than yourcompetitors if you don’t know how they are doing what they what they are doing? Inorder to succeed an organization needs to compete in the same channels as itscompetitors and then more

Competitor Analysis is an important part of the strategic planning process

 To help management understand their competitive advantages/disadvantages relative to competitors

 To generate understanding of competitors’ past, present (and most importantly) future strategies

 To provide an informed basis to develop strategies to achieve competitive advantage in the future

 To help forecast the returns that may be made from future investments

2.1.2 Competitor analysis models

2.1.2.1 The components of a Competitor Analysis

Michael Porter developed a framework through which companies can analyzetheir competitors based on what Porter believed were the four key aspects driving abusiness These aspects are the objectives of the business; the assumptions made bythe business; the strategy of the business and the capabilities and resources of thebusiness Of these, the objectives are the factors that determine what the business isaiming for, the strategy and capabilities determine how it will try to get there, and theassumptions drive how the competitor may react to both foreseen and unforeseenevents In order to be useful, a competitor analysis should focus on the most importantexisting competitors and on any potential competitors which may enter the market ormove into the market segments where the company carrying out the analysis isoperating.

Figure 2.2: competitor analysis components

(Source: Michael E Porter (1980), Competitive Strategy)

 Competitor’s Objectives:

It is important to understand what objectives a competitor has, as this willenable a company to predict what the competitor will do in the future, and how theirbehavior can be altered For example, if a company knows that one of its competitors

is pursuing profit margin and rate of return goals, then they may be unwilling torespond if the company undercuts their products, as reducing their price would reducetheir profit margins and rates of return As such, the company may be able toaggressively grab market share from the competitor by taking a cost leadershipstrategy However, if a competitor is looking to pursue market share goals, then theyare more likely to aggressively defend against any attacks on their markets and cutprices to drive the new entrant out Competitor objectives may also focus on attaining

a certain rate of growth or achieving technology leadership The competitor may alsohave different objectives for each business unit, and functional level, hence it can bedifficult to accurately determine what the objectives are

Companies can attempt to determine their competitors’ objectives by analyzingtheir organizational structure For example, a business unit which reports to the chieffinancial officer may have a financial focus, whilst one which reports to the chiefinformation officer may be responsible for attaining technology leadership Examiningthe prior behavior of the competitor can also provide some indication of its objectives,including previous levels of risk tolerance; the management incentive structure; thecomposition of the board of directors; and the stated goals and objectives in the

financial statements In addition, any recent strategic changes by the competitor mayindicate whether or not it is meeting its objectives.

 Competitor’s Strategy

Similar to the objectives, it is possible to gain some understanding of acompetitor’s strategy based on its current business performance, as well as anyannouncements made by a competitor For example, the competitor’s annual reportswill often indicate what the company’s current strategy is and how close thecompany is to fulfilling it Similar information can also be obtained from pressreleases and analyst reports However, the stated strategy may be subtly differentfrom the actual strategy being pursued by the competitor, as the competitor may belooking to disguise its actual strategic goals As such, it is necessary to look at thecurrent use of capital and cash flow to determine what the actual strategic goal may

be In addition, the competitor’s current recruitment activity; any mergers andacquisitions; and any marketing activity may indicate what its current strategy is

 Competitor’s Resources and Capabilities

Whilst it is important to understand the objectives and strategy of acompetitor, to understand how it may act in future and may respond to thecompany’s actions, it is also important to determine what its resources are, and whatcapabilities it has to respond effectively to market changes In general, the resources

of a competitor will often be quite well known, as they will be the factors that thefirm is using to generate its current profits It is important for a company to look atthe most important resources that its competitors have, as well as any areas ofweakness that could be exploited

As a result, an analysis of a competitor’s resources is much like a SWOTanalysis, and also analyzing the competitor’s main market strengths can help todefine its capabilities However, the company also needs to consider what actions thecompetitor could take to increase its resources to defend against an attack:something which will likely depend on the company’s financial status and its statedstrategy Indeed, as the competitive environment tends to be dynamic, it is alsoimportant to analyze the ability of the competitor to react quickly to any changes.Some firms will not have the resources to react quickly to an aggressive competitiveattack, and hence the company will be able to target these competitors and gainsignificant market share before they respond Other competitors may be able torespond quickly to any attack on their market, making them unprofitable targets.

 Competitor’s Assumptions

Whilst a competitor’s resources will define the actions that the competitor iscapable of, the competitor’s assumptions about the market and their own businesswill influence the actions that they will tend to make For example, if previousproducts in a market have failed, competitors may assume that any other types ofproduct will fail For example, the failure of electric cars to provide viable substitutes

to petrol driven cars in the past may have slowed the development of future electriccars However, sometimes these assumptions create opportunities; such as Hondabeing able to obtain a significant market-share in the US motorbike market because

US manufacturers did not view Honda’s smaller motorcycles as serious competitivethreats

 Competitor Response Profile

Once the information around a competitor’s objectives, strategy, resourcesand assumptions has been obtained, it can be used by the company to create aresponse profile for the competitor This profile details all the potential moves whichthe competitor may make in response to the company’s strategy, and how effectiveand significant these moves would be The profile can include offensive moves whichthe competitor may make into a new market, as well as defensive moves if acompany attacks one of the competitor’s existing markets This profile can help thecompany to predict its competitors’ behavior, as well as attempting to influence thisbehavior to the company’s advantage.

2.1.2.2 Main steps of Competitor Analysis

The company needs to find out all it can bout its competitors By this way, itcan find the areas of potential competitive advantage and disadvantage It can launchmore effective marketing campaigns against its competitors and prepare strongerdefenses against competitors’ actions

Figure 2.3: Main steps of Competitor Analysis

(Source: Philip Kotler, Principle of Marketing, Second European Edition)

 Identifying the Company’s Competitors:

Identify the company’s

competitors

Determine competitors’

objectives

Identify competitors’ strategies

Assessing competitors’ strengths and weaknesses

Estimating competitors’

reaction patterns Selecting competitors

to attack and avoid

The company can define its product competition as all firms making the sameproduct or class of product According to the industry point of view, many companiesidentify their competitors is a group of firms that offer a product or close substitutesfor each other.

 Determine competitors’ objectives:

Having identified the main competitors, we now ask: what does eachcompetitor seek in the market? What drives each competitor’s behavior? At first, weassume that all competitors would want to maximize their profits and choose theiraction accordingly However, companies differ in emphasis they put on short-termversus long-term profits, and some competitors are oriented toward “satisfying”rather than “maximizing” profits Knowing a competitor’s objectives reveals if it issatisfied with its current situation and how it might react to competitive actions

 Identify competitors’ strategies:

A group affirms in an industry following the same or a similar strategy in agiven target market The more that one firm’s strategy resembles another firm’sstrategy, the more the firms compete The company needs to look at all thedimensions that identify strategic group within the industry It needs to know eachcompetitor’s product quality, features, customer services, pricing policy, distributioncoverage, sales force strategy, advertizing and promotion programs It must study thedetails of each competitor’s R&D, manufacturing, buying, financial and otherstrategies

 Assess competitors’ strengths and weaknesses:

Gathering key data on each competitor’s business over the last few years canmake us know about competitors’ goals, strategies and performance From thesesearching, we can identify accurately each competitor’s strengths and weaknesses

 Estimating competitors’ reaction patterns:

Each competitors react differently These are types of competitors’ reaction:

- Imperturbable competitors: some don’t react quickly or strongly to a

competitors’ move They may feel that their customers are loyal, they may be slow innoticing the move, they may lack the fund to react The company must assess thereasons why they have imperturbable actions

- Fastidious competitors: some react only to certain type of assault and

not to others They might always respond strongly to price cuts in order to signal thatthese will never succeed But they might not respond at all to advertising increases,believing these to be less threatening

- Furious competitors: these react swiftly and strongly to any assault.

- Wise competitors: they so no predictable reaction pattern They might

or might not react on a given occasion and there is no way to foresee what they will

do base on their economic, history or anything else

Knowing how key competitors react give the company clues on how best toattack competitors or how best to depend the company’s current positions

 Selecting competitors to attack and avoid:

Management has already largely determined its main competitors throughprior decisions on customer targets, distribution channels and marketing-mixstrategy Management must decide which competitors to compete against mostvigorously The company can focus its attack on one of several classes of competitors

- Strong or weak competitors: most companies prefer to aim their shots

at their weak competitors This requires less resources and time Conversely, the firmmay gain little Alternatively, the firm should also compete with strong competitors tosharpen its abilities Furthermore, even strong competitors have some weaknesses

and succeeding against them often provide greater returns A useful tool forassessing competitor strengths and weaknesses is customer value analysis – askingcustomers what benefits they value and how they rate the company versuscompetitors on important attributes Customer value analysis also points out areas inwhich company is vulnerable to competitors’ actions.

- Close or distant competitors: most companies will compete with those

competitors who resemble them the most

2.1.3 Factors impacting to competitor analysis – SWOT model

SWOT stands for Strengths, Weaknesses, Opportunities and Threats It is a way ofsummarizing the current state of a company and helping to devise plan for the future, onethat employs the existing strengths, redresses existing weaknesses, exploits opportunitiesand defends against threats

- External environment (opportunities and threat) analysis: a business unit has to monitorkey macro-environment forces (demographic-economic, technological, political-legal andsocial-cultural) and micro-environment actors (customers, competitors, distributors andsuppliers) that affect its ability to earn profits

- Internal environment (strengths and weaknesses) analysis: a business needs to evaluate itsstrengths and weaknesses in marketing, finance manufacturing and organizationalcapabilities

Table 2.1: SWOT Model

INTERNAL ANALYSIS

 Identify skills and capabilities that  What do rivals do better than

 What do you do poorly?

 What generates the mostcustomer dissatisfaction andcomplaints?

 What generates the mostemployee dissatisfaction andcomplaints?

 What processes and activitiescan you improve?

 Where can you apply your strengths?

 How are your customers and theirneeds changing?

s  Are customers able to meet their

needs with alternative products?

 Are customer needs changing away

(Source: Author)

2.2 Contents of Marketing Mix (4P)

The major marketing management decisions can be classified in one of the following four categories:

 Product

 Price

 Place (distribution)

 Promotion

These variables are known as the marketing mix or the 4 P's of marketing They are

the variables that marketing managers can control in order to best satisfy customers in the target market The marketing mix is portrayed in the following diagram:

Figure 2.4: Marketing Mix

(Source: Author)

2.2.1 Product strategy

Product strategy plays an extremely important role in marketing mix, it helpsbusinesses to determine the direction of investment, design suit product with themarket tastes and limit risk, failure, directly lead to implement the other Ps

Table 2.2: Some kinds of Product strategy

• Width: group of Products

• Length: number of products

product life cycle

Product life cycle is theperiod of existing products

on the market approved bythe customer

Positioning the objectives,indicators consistent with thedevelopment of products in themarket

(Source: author)

2.2.2 Price Strategy:

 Concept: price strategy for each product is the regulations price in

specific situations according to the type of customer, the size of purchase, each period

of the year

 Objective of Price Strategy:

- Maximize profits

- Protect occupied Market area

- Tools for the product to penetrate and expand the market

Table 2.3: Some kinds of price strategy

Kinds of Price

One Price Strategy - In the same basic conditions and the same volume of

customers, the price is the same with all customers.Flexible Price

Strategy

- Provide different prices to different customers in basic

conditions and the same mass

- Based on the factors to make the maximum price for the

product since launching to earn high profits

Promotional

pricing strategy

- Is a form of temporary price adjustment to support

promotional activities and business

- It is the strategy of higher prices than sale price (usually

between 20% -25%) and then combined with thedistribution policy, promotion to promote the sale ofproducts with the "real price" lower to stimulateconsumers

(Source: Author)

2.2.3 Place Strategy:

Table 2.4: Method, Channels and Some kinds of Distribution Strategy

method

• Direct distribution: directly distribute from business to consumers

• Distribution indirectly: distribute via middleware system

Selective distribution strategy

Exclusive distribution strategy

Businesses distributewidely their products

in each market area

Just select onlyintermediate in each

exclusivelydistributingenterprise products

(Source: Author)

2.2.4 Promotion Strategy

Table 2.5: Purpose, Some kinds and tools of Promotion strategy

Purpose

 Enhancing the sale

 Create a competitive advantage

 Communicate information about the company's and products’image to customers

 Competitive weapon in the market

CHAPTER 3: ANALYZING MARKETING MIX OF COMPETITORS FOR GI

Figure 3.1: Drug sales in the world several years

( Source: IMS health market prognosis , March 2011)

In the list of 10 leading product sales in the world in consecutive 3 years, the

product of AZVN – GI are gradually up in the ranking

Table 3.1: Products leading the world in sales from 2009 to 2011

Sales in 2011(billion USD)

2 Vastarel Zinnat Zinnat 9,3

(Source: IMS health, Feb 2012)

That shows the need of using digestive drugs is increasing, especially in recentyears, with the habit of living as well as eating

3.1.2 In Vietnam

In recent years, Vietnamese pharmaceutical industry develop with high speedand it is one of three “emerging pharmaceutical markets”, gain 60% of market share inthe Asia Pacific with $60.9 billion in 2008

Table 3.2: Pharmaceutical growth of Asia Pacific countries Country

(Sep 2008 MAT)

sales (60,9 tỉ $)

Growth (16%)

(Source: Vietnam Drug Administration)

Healthcare is being emphasized

day by day Drug payment is

predicted to double in 2014

Growth of drug payment per capita is also increasing each year.

compared to 2009.

(Source: IMS health, Feb 2012)

Vietnam’s health sector has witnessed some dynamic changes during the last 20 years

In the late 1980s, the government launched its reform efforts, which was highlysuccessful at rejuvenating the economy The transition from a centrally plannedeconomy in the 1980s and the implementation of a series of neoliberal health policyreform measures in 1989 affected the delivery and financing of Vietnam's health careservices More specifically, legalization of private medical practice, liberalization of thepharmaceutical industry, and introduction of user charges at public health facilitieshave effectively transformed Vietnam's near universal, publicly funded and providedhealth services into a highly unregulated private-public mix system, with seriousconsequences for Vietnam's health care system

The biggest concern of the Vietnamese government is to make healthcareuniversal affordable to its populace, and this is particularly true for pharmaceuticalprices, which account for a significant portion of annual expenditure on health, but as

of 2009, the country is still struggling to keep prices down, even though various newmeasures have been introduced While the government has focused on developing itsdomestic production capability which it now claims supplies just over 50% of themarket; it is now faced with another problem with no immediate solution in sight: therising price of raw materials, of which 90% are imported from abroad

It has been recently reported that just three multinational distributors - ZuelligPharma, Mega Product and Diethelm - dominate the Vietnamese pharmaceuticalmarket through a complex network which enables them to control the volume, andultimately the prices of drugs distributed in the country The government reportcriticized both foreign suppliers and local importers for adopting strategies such aspredatory pricing, boycotts, exclusive deals and patent pooling to block competitionfrom new suppliers and importers.

Vietnam pharmaceutical market with dense population and low domesticproduction capacity is a very attractive market for foreign pharmaceutical companiesWell-known pharmaceutical corporations such as Sanofi – Aventis, GSK, Servier,Pfizer, Novatis Group, etc have made their presence in Vietnam and completelycaptured the domestic market of prescription drugs as well as expanded the marketshare of generic drugs

Most of foreign pharmaceutical corporations operate in Vietnam in the form ofrepresentative offices and authorized representatives being domestic pharmaceuticalcompanies These units will on behalf of these corporations import drugs and haveforeign distributors distribute to retail drugstores

Foreign pharmaceutical corporations acquire the market shares in Vietnamthanks to advantages of financial capabilities and products:

 Strong financial resources enable these corporations to make highcommissions to hospitals and distributors as well as to sponsor medicaland pharmaceutical schools and scientific conferences

 Foreign imported products are high in value and various in categories,ranging from common drugs to specialty drugs, meanwhile domesticdrugs are mainly “common”

Figure 3.2: Kinds of imported drugs

(Source: Ministry of Health, Pharmaceutical report - 2011)

3.2 OVERVIEW OF ASTRAZENECA COMPANY

AstraZeneca is a global, innovation-driven biopharmaceutical business

They are focused on the discovery, development and commercialization ofprescription medicines for six important areas of healthcare They have a broadproduct range that includes many leaders in the treatment of the world’s most seriousillnesses They have 10 medicines with sales of more than $1 billion each in 2010.They use the scientific and commercial skills to develop a pipeline of innovative newproducts to meet medical need

According to data from IMS Health in May 2010, AZ is one of the top 10 largestpharmaceutical companies in the world

Table 3.3: Ranking of the top pharmaceutical companies in the world

(Billions of USD)

Research and development spend

Top-selling Drugs

(Millions of USD) (Billions of

USD)

1 Pfizer

Lipitor Lyrica Celebrex

2 Sanofi – Aventis

LantusLovenoxPlavix

3 Novatis

DiovanGleevec

Zomecta

SeretideValtrexPandemic

AvastinRituxan

6 AstraZeneca

GI (5.0) Seroquel (4.9) Crestor (4.5)

(Source: IMS health, 2010)

AZ on sales at 35 millions U.S dollars contributed and the highest growth

compared with other countries in Asia Pacific

In Vietnam, AZ had the highest growth rate in foreign companies growth ranking

in 2011

Figure 3.3: Ranking growth of foreign companies in VN in 2011

(Source : AZ database, 2011)

In ranking of sales, AZ is also in top 10 highest sales companies.

Figure 3.4: Ranking sales of foreign companies in VN in 2011

GI (for acid reflux)

Oncology

Respiratory & Inflammation

Seroquel (for schizophrenia, bipolar disorderand major depressive disorder)

Arimidex (for breast cancer)Symbicort (for asthma and chronic obstructive pulmonary disease)

Figure 3.5: Sales by groups in AZ in 2011

(Source : AZ database, 2011)

3.3 OVERVIEW OF PPI PRODUCT LINE AND IDENTIFY GI’S

COMPETITORS

3.3.1 Overview of PPI product line

Proton pump inhibitors work to inhibit acid secretion in the stomach, reducing the symptoms of the disease In the world, PPIs are divided into 5 main groups: