Biogen Idec: External Environment/Industry Analysis and Company Assessment
Authors:Gavin Carden, Justine Cerboneschi, Philip Chyrsiliou, Esteban Galvez, Cayla Kondo, Alexander Llompart, Alexandra Meliones, Jordan Nason, Tara Panu, Candace Tse, Nsikan Udeobong, Rebecca Wang
Mentor:Venkatachalam Seshan, Professor of Management, Pepperdine University
The goal of this Undergraduate Research project is to provide a comprehensive analysis of Biogen Idec’s functionality, resulting in parameters for strategic application to increase Biogen Idec’s Share of Market (SOM). Biogen Idec has fermented its spot as a top five Biotechnology company with a total revenue for 2011 of $5,048.6 million, up 7% from 2010. The top ten Biotechnology companies account for $38,551.6 million of global sales. In 2011 Biogen Idec’s net income was $1,234.4 million, an increase of 23% from 2010.
The top competitors for Biogen Idec are Amgen Inc, Gilead Sciences Inc., Celgene Corp, Vertex Pharmaceuticals Inc, Alexion Pharmaceuticals Inc, Cubist Pharmaceuticals Inc, and United Therapeutics Corp. Biogen Idec is a smaller company, but is able to compete with the larger Biotechnology companies due to its unique offerings in the Central Nervous System segment. BIogen Idec offers Tysabri, Avonex, and Fampyra, all treating Multiple Sclerosis. Avonex attributes 55% of Biogen Idec’s product revenue with $4,831 million.
Biogen Idec has one of the largest biologic material producing facilities in the world with over 500 employees. Biogen Idec’s mission is to use cutting-edge science and medicine to discover, develop and deliver innovative therapies for neurodegenerative diseases worldwide. Biogen Idec strives to provide meaningful benefits for patients and exceptional value to shareholders.
Currently Biogen Idec only operates in the Central Nervous System segment, but for the company to continue to experience growth, Biogen Idec will need to award research and development funds to advance drugs in the Oncology and Cardiovascular segments. It will also be imperative that Biogen Idec acquires a smaller company that is already specialized in one of the other segments to ensure Biogen Idec’s competitive edge and commitment to excellence