Salix has been a successful pharmaceutical company for 15 years. They have used the “search and develop strategy” in the US GI market for continued growth. The question remains can they continue to be successful with this narrow strategy or do they need to alter their mission? Do they need to revamp their “search and develop” strategy? Key issues Salix encounters are increased use of generics, limited scope of disease treatment, and dependency upon other research companies to initially start and develop chemicals. If Salix wants to expand their strategy scope, they could focus on medications in other areas of the body, they could expand outside of the US market, they could further develop their international partner network, or they could focus on their own research instead acquiring licenses and rights to other chemicals.
Salix is a small pharmaceuticals company started in 1989. Since this time, Salix has acquired the rights to develop and market four major prescription compounds. They have become a successful player in the US gastrointestinal market, while profiting from licensing their products in other countries. Although Salix has been successful, the co owners must make a decision on whether or not their current strategy is sustainable. Can they still “search and develop” acquired compounds and stay successful? Salix needs to determine if their existing prescription drugs’ profitability can last while they find another research companies drugs. Should they expand outside of the GI area of expertise and find other markets? If Salix used their pharmaceutical expertise, they could expand into other disease areas, growing in strategy, and as well sales. They could harness their 15 year business model, and focus on a complimentary system.
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