Team Constellation Warner Chilcott DRAFT COPY

 Pharmaceutical products in women's healthcare & dermatology  Perishable in both the physical and intellectual sense  Warner Chilcott generates revenues developing, manufacturing and marketing and selling branded prescription pharmaceutical Integrated Business Model R&D Acquisitions & Joint Ventures Manufacturing Sales & Promotion

The Micro Environment Not Attractive. - Estimated $1.2 billion in new product development costs. - Highly competitive & heavily regulated - Current healthcare debate Attractive. - R&D costs are high but production costs are low - R&D costs create strategic barriers to entry - Patent laws create 20 year market protection The Macro Environment The Macro Environment (opportunities and threats) Threat: Societal back-lash from raising prescription costs Threat: US Healthcare Reform Threat: Religious practices Threat: Taxes

Strengths Strong focus on women’s healthcare and dermatology segment Strategic alliances enhancing company’s business Weaknesses Geographic concentration enhancing business risks Weak presence in acne market may restrict the growth What are its “crown jewels”? Undetermined

Company’s Resources Importance in Achieving Competitive Advantage (High, Medium, Low) Company’s Strength in Resource relative to Competitors (Superior, Comparable, Inferior) PatentsHIGHComparable BrandsHIGHComparable Organization CultureUndetermined Company reputationMEDIUMComparable ……

Addressable target market Women’s therapeutic markets, such as women’s contraceptive & dermatology Company’s strategy within target market …drive organic growth by continuing to develop and market new products and selectively reviewing potential product in-licensing, acquisition and partnership opportunities…streamlined corporate organization and resulting ability to react rapidly to changing market dynamics…

 The strategy is based on a continuous and stable need for high-quality health products  Warner Chilcott is a mid-level player in the pharmaceutical industry More to Follow

Rarity: Undetermined Appropriability: Undetermined Imitability: While a patent is in place competitors cannot legally imitate the product. However, low-price knock-offs can be produced in countries who are not signatories of TRIPS or similar patent laws Durability: TRIPS specifies 20 year pharmaceutical patents for the full scope of research with a potential 5 years limited renewal Substitutability: Once a patent is filed the essential mechanism behind a drug is public knowledge. Therefore, it is highly likely that a competitor can develop a similar or substitute product. The RAIDS Test has been designed by M. Krishna Erramilli. Do not use without his express written permission.

Undetermined

Can Warner Chilcott succeed in the Next Economy? Globalization & Multiculturalism Undetermined Exponential Change Difficult given the large number regulations and laws governing the industry Environmental Concerns Undetermined Bottom of the Pyramid Consumers Unlikely given that Warner Chilcott is a first tier drug company, not a generic manufacturer Hyper-competition Difficult given the large number regulations and laws governing the industry although recent moves to acquire P&G suggest attempts to position for rapid changes