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Individor Invest in the Phillipines

Autor:   •  May 9, 2019  •  Case Study  •  1,500 Words (6 Pages)  •  3 Views

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  1. Company introduction

INDIVIOR Plc (Indivior) is a pharmaceutical company which designs, manufactures, and provide buprenorphine-based treatment for opioid dependence. Their key products target at patients who are opioid use disorder, alcohol use disorder, and mental ill such as schizophrenia (Figure 1).

      Figure 1: Indivior’s products overview

[pic 1]

   Source: Marketline(2018). INDIVIOR Plc company profile.

  1. SWOT analysis

Indivior has the market layout in more than 40 countries (Figure 2), the US accounted for almost 80% revenue of the company, other countries are with 20%. In order to satisfy the unmet patient demand, they invest Research and Development resource continuously and opened a new R&D centre in Hull for their strategic initiatives, made their product and technology stronger.

However, they rely on the limited number of customers would be the weakness, for instance, 70% of the total revenue gained from the top three customers. The markets have characteristics of great competition include main drug discovery in the internal department, and external competitors which have more significant resources. Intense competition could cause price pressure and lead negative impact in operating performance. Similarly, the price of product and sales are affected by the third party include care organisations, pharmacy or insurers.

Moreover, the company has to abide by the regulations of various markets in their business process, ensure necessary permits licenses of product to avoid having uncertainty threat (Figure 3).  

Figure 2: Indivior’s global presence

[pic 2]

Source: Indivior Plc annual report.

Figure 3: Indivior’s SWOT analysis

[pic 3]

Source: Marketline(2018). Indivior Plc company profile.

  1.  Value Chain

Indivior has a good opportunity to address the global addiction crisis and enlarge the market. United Nations Office on Drugs and Crime (2018) reports more than 30 million drug user disorders in 2016 with 3% increase compared with 2015. However, global addiction crisis is not only from drug dependence but also from alcohol addiction. The Philippines have more than 4.7million population of drug user disorders and be the second largest alcohol consumption in south-east Asia. It is probably a possible chance for Indivior to invest their business in the Philippines. The value chain of Indivior could provide one of useful perspective before the end user (Figure 4).

To measure possible success elements for Indivior’s business environment, the ability of raw material acquisition, R&D resources, the clinical process, manufacture plant, obtainable patent, type of medicine, distribution channel, pricing problem, government regulation and local health system would enhance their growth.

Figure 4: Indivior Value Chain

[pic 4]

             Source: Indivior Plc annual report (2017); IMS institute (2014)

2. The economic environment in the Philippines

The Philippines is a developing country were has enlarged economy by years and be a talented player in Asia although in lower-middle income category position. The annual GDP is around 313.6 billion USD in 2017, with 6.69% growth than last year. The country shows a steady increase with average 6.67% for the next five years (Figure 5). Service is the largest proportion sector of the economy with 59.78% of GDP in 2017; the second is the industry with 30.57 % and the third is agriculture with 30.57%. The data shows its potential for investment (Figure 5; Table 1).

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