BCG - The Boston Consulting Group

Situation

A leading and fast-growing pharmaceutical multinational operating in China had achieved significant organic growth in the two years prior to engaging BCG. But its product portfolio was insufficient to realize full market potential. The client wanted to grow its existing core business, expand into new high-growth areas, build its over-the-counter business, and create synergies through the introduction of Western drugs into the Chinese market. To enable it to achieve these goals, the client wanted BCG to recommend suitable targets for acquisition or in-licensing, and to provide due diligence support.

Approach

BCG embarked on an extensive search for suitable candidates—those with broad product lines, high market potential, and the capacity to realize synergies once integrated with the client’s business. Our BCG team worked closely with the client throughout the search and assessment process, and together we identified several possibilities. For the most promising of these, we performed the necessary due diligence to ensure that the client could make its final choice with confidence. Our team looked carefully at each potential target’s technical and manufacturing proficiency, sales and distribution channels, product marketing skills, and management capabilities.

Impact and value created

By identifying and screening suitable candidates, analyzing potential synergies, and conducting rigorous due diligence, BCG enabled the client to successfully in-license one of the recommended target companies.

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