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Case Analysis:

Valeant Pharmaceuticals is a specialty drug manufactureroperating in the fast-cycle pharmaceutical industry. In thisbusiness, size often matters and Valeant, along with most of themajor players in the industry, has aggressively utilized mergersand acquisitions to acquire R&D capabilities and other keystrategic resources, create synergies, capture market share, anduse acquired legacy products to support future growth. Valeant’s2010 merger with Biovail Corp was designed with all of thesebenefits in mind. To develop an effective strategic position,Valeant must address several important external factors includingthe global economy, advances in technology, population demographicsand sociocultural influences, and shifting political/legal forcesthat affect not only the drug approval process but also thechanging nature of healthcare. To address these considerations,Valeant must develop strategies in the areas of marketing andsales, product innovation, operational speed and efficiency, andM&A to position itself for future success The purpose of thiscase study is to determine if the company’s recent merger withBiovail, other M&A’s and restructuring efforts will yield thebenefits promised to shareholders and enable the firm to competemore effectively in the marketplace.To reasonably determine themerit of its strategic approach, external environmental trends,competitor positions, financial indicators, internal resources, andcompany strategies must be considered.The results of the analysiscan then be used to suggest measures which can improve Valeant’sstrategic position and potential for ongoing success.

Question: Examine trends in the general and industryenvironments that impact Valeant’s pharmaceutical business.Whatconditions are pertinent to the strategic decisions presentlyfacing the company?