Question:

Discuss about the Abbott Targets Growth in Emerging Markets.

Answer:

Identification of symptoms

With the development of the area, it has been seen that Bidvest in 203, made an offer to Adcock for the acquiring of 34.5% of the shares of the company. The acquisition was done through the hostile takeover mainly due to the Ingram management and supporting the acquisition, rather preferring and supporting the CFR Pharmaceuticals. As per the case study, the marketing brands and the generic product portfolio is based on establishing the leads with the over-the-counter brands and then handling the expansion with distribution and marketing expertise. (Hastings, 2001). Through this, Africa and India is trying to hold and improve the capabilities for the higher growth to emerge the markets. The symptoms also focus on bringing the sales in America where CFR could check on how Adcock could be set for the product pipeline, filling the production facilities and then setting the products for the export and then enabling the cost synergies as well.

Introduction

With the change in the different acquisitions and the joint venture formation and consolidation, it is seen that CFR Pharmaceuticals is able to cover the high created value through the development, manufacturing, selling the health and the wellness products. CFR has been considered as one of the largest producer that focus on the generic medication with the demonstration about revenue generation and how it reflects the revenue figure for $757 million. (Dias et al., 2016). The CFR focus on the people and fact where the long-term strategy is to maintain and handle the demands with the creation and proper implementation strategy. Through this, the culture driving behaviour could easily be managed with the innovative products that are being sold at an affordable price.

Problem Statement

CFR focus on the planning and acquisition, Adcock checks on how the CFR Pharmaceuticals with the potential synergies in Africa are able to handle and work towards the secured multiple sources of growth. (Jones et al., 2007). The decline in the profitability post the takeover need to focus on the proper assessment where there is a need to make certain about why the decline took place with poor performance. Hence, to assess it, the performance is based on the pre- and post-acquisition which is compared to the other rival competitors. The comparative growth rates of the key financial indicators are then analysed for setting and adding a greater value for the target company. The focus is mainly to expand the impact of the company with acquiring and setting the decisions of how to work with those outcomes and the other relationships.

Problem analysis

The assertive opponent is one of the major issue for the CFR where the other companies are trying to attack Adcock CFR to countersign and sell the shares. The analysis is based on how the shareholders are benefited from the acquisition where there is a major addition to the Bidvest operating performance. (Cartwright, 2014). This comes from the perspectives of the target company with focus on assessing the impact of acquisition on the operating performance, assessing the impact of the acquisition on shareholder wealth creation and assessing the hostile takeover which is mainly to handle and acquire the company.

Considering the SWOT analysis:

1. The strength of the company is measured through the value of the brands, products, agreements and the competency level.
2. The weakness is the value of the shares and issues to optimise the values by facing legal restrictions.
3. The opportunities for the CFR are to focus on the fulfilment of the personal internets with the sense of power, selfless or self-serving with government and stakeholders to build a successful company. (Hughes et al., 2015).
4. The threats are about the shares demand by the competent and take-over the company.

The analysis is based on the share price acquisition, operating performance and the synergy benefits and efficiencies to realise the posts of acquisition.

The performance is based on the production of the negative shareholder return, where the annual growth rate comes from 4 years that precede to the low average inflation. This works on the realising of the inflationary growth with no growth beyond the inflation, with top line performance. Adcock’s overhead is clear with the look on putting a better turnaround strategy for the business. The low turnover and higher cost of sales have been able to put a major pressure for the business.

Identification of alternatives

One need to deal with the creation of value with the development, manufacturing and the sales of pharmaceutical, therapeutic and health, wellness products. The aim is also to focus on valuing the pragmatic leader who focus on the people and facts, with the implementation of the long-term strategy. The company deals with the investments with the marketing operation based in India through the nationwide coverage. (UFDA, 2009) The growth is strengthened by focusing on the acquisitions with the increased aspects of the marketing share in territories that are set out of South Africa like Asia, Australia. Through this, there is a possibility to work on the culture driving behaviour, where CFR has been able to regulate the requirements with operations in market at an affordable price. For this, the leadership, innovation, implementation and passion is important for seeking creativity for new and better horizons and opportunities.

Evaluation of alternatives

The evaluation is based on offering Adcock shareholders with the support that is considered as an important alternative bid by Chilean company. With this, the company has also focus on the investment in the facility to manufacture in India for offering the alternative source of supply for the market set in South Africa mainly. (US Food and Drug Administration, 2014). The major focus is to make sure of the undistorted shareholders with the choice that has been implemented depending upon the board of the target companies that should not be allowed to block the offers for acquisition and the for the longer time period which is important as an alternative offer. The number of bidders and the competition amongst the bidders generally include the zero or the negative present value. Hence, it is important to check with the alternative outcomes for the takeovers.

Summary

The innovation, leadership, implementation and passion in company are for seeking towards the new horizons with better opportunities and solutions. The research is about the pharmaceutical company in South Africa where Adcock has been working on acquiring CFR with the growth in the recent times. The brand and the generic product portfolio is established with the leads on the brands. The production facilities are mainly for the export and to enable the cost synergies.

Recommendations

It is recommended that there is a need to undertake the position of the companies with the post-acquisition for evaluating the extent of how the shareholder wealth will be created by the takeover. Through this, there is a possibility to conduct the hostile takeovers with the forms that result in the wealth effects. There are different studies about the reviewing of the mergers and the acquisitions defined in the generals and they are also limited to the large sample research which comes under the hostile takeover targets. This results in better wealth effects. The noticeable factor is about the synergy opportunities which need to be evaluated depending upon the market demands. The focus should be on bringing the consolidation strategy where CFR could work on the sustained value of the stock for Adcock. They are set about with the leadership, strategy decisions and the value. Through this, one is not blinded by any form of the short-term success or the victory. Hence, the success comes with the leaders like Adcock that is seen to be built with the better decisions and the motives. The focus can be on synergy value that can help in minimising the manufacturing cost with the expansion and setting the complimentary product portfolio. The unique patterns are for the emerging footprint where the distinctive product and the regulatory challenges are for the pharma industry to handle the face value with appreciating the strategic growth as well. From the research, there is a possibility to create the sense of power, with selfless or the self-serving forms. This is developed through the relationship with government and the stakeholders who in the research helps in acquisition, industry knowledge and the experience to be built up for the successful companies. The shareholders could work on the use of power with the believe that it holds the greatest forms of the shareholder value. The problem is also for the player where there are different views of how the value could help in benefitting.

Reference

Cartwright, H., (2014). Abbott Targets Growth in Emerging Markets with CFR Pharmaceuticals Acquisition. PharmaDeals Review, 2014(6).

Dias, M. I., Caleja, C., Ferreira, I. C., & Barreiro, M. F. (2016). The use of encapsulation to guarantee the stability of phenolic compounds. New Polymers for Encapsulation of Nutraceutical Compounds, 121-143.

Hastings, K. L. (2001). Pre-clinical methods for detecting the hypersensitivity potential of pharmaceuticals: regulatory considerations. Toxicology, 158(1), 85-89.

Hughes, M., & Ghosh, T. (2015). Pharmaceuticals for Oral Mucosal Drug Delivery: Regulatory Considerations. In Oral Mucosal Drug Delivery and Therapy (pp. 247-274). Springer US.

Jones-Lepp, T. L., & Stevens, R. (2007). Pharmaceuticals and personal care products in biosolids/sewage sludge: the interface between analytical chemistry and regulation. Analytical and Bioanalytical Chemistry, 387(4), 1173-1183.

UFDA, F. (2009). CFR Part 211: Current Good Manufacturing Practice for Finished Pharmaceuticals.

US Food and Drug Administration. (2014). CFR-code of federal regulations title 21. Current good manufacturing practice for finished pharmaceuticals Part, 211.