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Boomerang Pharmaceutical Communications
Market Characteristics

2.1. Strong Growth for the Global Pharmaceutical Industry & its Vendors

The pharmaceutical industry has historically been one of the healthiest sectors in the world. Global pharmaceuticals sales increased 7.5% (Source IMS) annually over the last four years. Forecasts of annual growth rates for the next four years continue to show excellent growth rates of 6.75% (Source IMS). The market for vendors to the pharmaceutical industry is therefore expected to share these same strong growth rates.

2.2. Communication Program Externalization by Pharmaceutical Cos.

Large pharmaceutical companies externalize portions of business sectors that do not fit their core competencies of R&D and production, particularly peripheral sectors such as communications. Reasons for this outsourcing include the fact that small product marketing teams cannot hope to handle in-house the marketing/communications needs ofsophisticated, heavily regulated products. In addition, pharmaceutical companies cannot internally master the need for constant review of market trends, government regulations & new technologies.

The externalization rate of communications programs by pharmaceutical companies is accelerating because 1) pharmaceutical companies save money by eliminating expensive internal communications/marketing staffs, 2) price pressure on "me too" drugs is forcing pharmaceutical companies to enrich the pipeline of innovative drugs, placing increased emphasis on R&D which further encourages the subcontracting of non-core competency areas, and 3) corporate reengineering and M&A activities are consolidating the industry and its activities (focus on core competencies), increasing the need for communications service externalization.

The pressure to outsource communications services presents an excellent opportunity for providers of medical communications programs to the European pharmaceutical industry.

2.3. Client Categories

There are two basic client categories of interest to BOOMERANG.

CATEGORY 1: These are the largest global pharmaceutical companies, with headquarters primarily in France, Germany, Switzerland, the UK, and the US. These companies undergo intense pressure to develop rich drug pipelines and therefore typically subcontract communications programs to a large extent. They can afford to finance and expect world-class communications programs. This segment demands quality, creativity, innovation, and on-time delivery of programs; expectations which tend to reduce the importance of cost.

CATEGORY 2: This category contains medium-sized pharmaceutical companies. These are typically nationally-based, have a limited number of affiliates, and market their product to a limited number of countries. These companies do not have the internal competencies to implement high-performance, innovative communications programs and therefore have to fully subcontract these services. The downside is that their external marketing budgets are limited compared to CATEGORY 1. Cost is therefore an important factor in the purchasing decision.

BOOMERANG has chosen initially to target CATEGORY 1 based on its extensive contacts within this category and its desire to provide top-notch communications programs that are insulated from cost priorities. BOOMERANG plans to focus on the following individual targets:

Boomerang Pharmaceutical Company Targets

CompanyLocation1995 World Ranking1995 Sales in Millions of DollarsExisting BOOMERANG Contacts
Novartis (HQ)Basel, Switzerland211,207YES
Hoffinann-La Roche (HQ)Basel, Switzerland77,100YES
Hoechst (affiliate)Paris, France410,000YES
Lipha (HQ)Lyons, France12*578**YES
Bayer Pharma (affiliate)Paris, France164,728YES
SmithKline Beecham (HQ)London, England96,603YES
Rhone-Poulenc Rorer (HQ)Paris, France155,142YES
Pfizer Pharmaceuticals (HQ)New York, USA87,072YES
Glaxo Wellcome (HQ)London, England112,600NO
*Ranked number 12 in France, no world data available.
**Sales converted to dollars from French francs at a rate of 5.7 francs to 1 US $.

Through our extensive research on the structure of the pharmaceutical industry, we have demonstrated that the above categories are the most useful for the following reasons:


Boomerang
Table of ContentsAppendices
0. Executive Summary
1. The Company
2. Market Characteristics
3. Market Analysis
4. Competitive Strategy
5. Company Strategy
6. Marketing Plan
7. Production Plan
8. Management
9. Financial Analysis
The Offer
Resume Highlights
Internet Site Study
Organigram
Letters of Intent
Financial Statements
All information herein is confidential and proprietary to Boomerang.