Company Analysis – Marketing Assignment Acrux Ltd Sammy Gautam U3101305   Table of content Contents Table of content ii Part 2 2 Product Analysis 2 Management 3 Culture 3 Employee Benefits 4 Employee Attributes 4 Financial Analysis 5 Competition 6 Growth Strategy 6 References 8   Acrux Ltd Part 1 Acrux Ltd (Acrux) is a leading pharmaceutical firm that engages in the production, delivery, and marketing of different patient-preferred and patented pharmaceutical products. The products produced by Acrux have been used to treat chronic pain, menopausal symptoms, central nervous system disorders, hormonal deficiencies, dermatological conditions, and contraception. Acrux’s products are fast-drying, unique, and invisible topical liquids and sprays thus enhancing “transdermal mode of delivery” (Acrux, 2016). Following the adoption of the Polled Development Act 1992, Ross Dobinson and Barrie Charles Finnin founded Acrux 1998 and headquartered in West Melbourne (Acrux, 2016). On the global scale, this Australian pharmaceutical company offers both specialty and generic products. Therefore, its pipeline of products is classified under antifungal, oncology, and analgesic categories. Acrux has ensured its impacts are felt around the world by marketing its products through partnership agreements and subsidiaries. In fact, it has collaborated with pharmaceutical companies Europe, Asia-Pacific, Africa, Latin America, and North America. Its most popular products include testosterone, topical solution CIII, Evamist, Lenzetto, Ellavie, and Axiron. This Australian pharmaceutical conglomerate has survived the competition onslaught by using the best technology to develop its drugs (Acrux Limited, 2017). To remain relevant in the market, Acrux has employed various scientists to formulate and research the new drugs and therapies. With the art in-house laboratory, the scientists have managed to commercialize the pharmaceutical products across the world (Morningstar, 2016). Since its inception, Acrux has focused on the production of low-cost attractive pharmaceutical products thus meeting the demand and expectation of patients and physicians. With the Patchless Patch process, the organization has managed to develop drugs. The company acknowledges the Monash University of Australia in the formulation of Patchless Patch. According to Acrux (2016), Acrux produces flexible and effective products with exemplary molecule breadth application. The physicians have used these topical pharmaceutical drugs for clinical trials. In 2010, the Government Victoria recognized its innovation excellence thus awarding it with Victoria Export Award (Bloomberg, 2016). Although the industry experiences a fall in the market value, the Australian company remains the largest producer of the pharmaceutical drugs. Part 2 Product Analysis Acrux has dominated the biotechnology sector. Among its competitors, the organization has the smallest capitalization worth $125 million, but remains a compelling investment as explained by Morningstar (2016). This company uses unique technology to market and administer drugs via the skin. The firm’s most popular brands include Recuvyra, Evamist, Ellavie, and Axiron (CapitalCube, 2016). The company offers the topical solution that is critical in treating testosterone deficiency in male patients. Following the firm’s exclusive contract with Eli Lilly, it has managed to sell the product in various markets, in developed countries including Canada, the U.S, Australia, South Korea, and Germany. Women clients have also benefited from its estadiol spray that encompasses Lenzetto, Evamist, and Ellavie. The estadiol spray is essential in training menopause and related hot flushes. Interestingly, the company has taken into consideration the geographical diversity thus designated the sprays with different names. It has assigned the names based on the vendor’s brand name. Acrux also offers specialty and generic products to help meet the expectations of customers (Acrux, 2016). Management Given the fierce competition experienced in the market, Acrux has put in place a strong and extensively experienced management team who have the capacity to develop and commercialize its pharmaceutical products worldwide. Michael Kotsanis is the CEO and MD of the organization. Based on his profile, Michael Kotsanis holds a BSc and MBus from recognized learning institutions. Kotsanis boasts of 25 experience in the pharmaceutical industry where he has held various senior leadership roles across the world (Acrux Limited, 2017). Previously, Michael Kotsanis served as the Synthon Holding BV’s Chief Commercial Officer. Kotsanis held the Chief Commercial Officer’s position for over four years. Michael Kotsanis works with Tim Bateman who serves as the company’s Chief Financial Officer and the secretary to the organization. Bateman hold various international financial roles within ASX thus affirming his extensive financial experience. Tim Bateman holds CA qualification. Nina Webster also serves as the company’s commercial director and handles its intellectual property portfolio. She also foresees the company R&D and business development functions. Webster has served this company for decades thus understands its culture (Acrux Ltd, 2016). The technical director of firm is Felicia Colagrande who foresees the product development processes. She has served in different companies in the same position thus gives her an edge in developing these products. Charles O’Sullivan is the organization’s portfolio director with exemplary experience in the pharmaceutical industry (Acrux Limited, 2017). Culture Based on its philosophy, Acrux remains committed to commercializing and developing effective and safe pharmaceutical products. In fact, its vision supports the philosophy because it embraces excellence and innovation in all its operations. The firm also values its positive contributions to its client and employees (Acrux Limited, 2017a). The organization intends to deliver sustainable value for all stakeholders using the commercialization of the products. As part of its culture, the company endeavours to ensure patient’s lives are influenced positively by embracing excellence and innovation. To maintain its market leadership roles, the company has hired qualified and experienced managers to foresee its operations. It further offers the best working and professional environment thus allowing workers to discharge their duties properly. It values integrity and honesty to define its operations thus enhancing the marketing and development of pharmaceutical drugs. Employee Benefits Acrux values it employees and has offered the best working environment to motivate them. It offers the employees various benefits including annual leaves, wages, and salaries. It further ensures that its workforce contributes towards the superannuation funds. Besides, the company treats them workers based on the employment contracts. Nevertheless, the employees are offered annual bonus depending on the performance. To the management, Acrux has not forgotten them because it offers the share options thus create the aspects of ownership (Acrux Ltd, 2016). The share options are part of the incentives the company provides to the management. The incentive has reduced the attrition rates and improved the level of loyalty. For the individuals who might face layoff or contract termination, the organization offers termination benefits based on the employment contracts (Acrux, 2016a). Employee Attributes According to the company, the employees must have relevant experience in the industry for such a person to be considered for an opportunity. The strong domain knowledge is preferred thus to enhance the business understanding. Acrux expects workers to be professional and ethical in their operations to avoid unintentional lapses and fraud (Acrux Limited, 2017). Nevertheless, the employees who meet the expectations and needs of the organization would feel happy working in this environment. Financial Analysis The company’s income statement shows its strong financial position beyond the reproach as indicated below. 2016 2015 $‘000 $‘000 Revenue 28,557 25,368 Employee benefits expense (3,582) (2,769) Directors’ fees (284 (431) Share options expense (275) (760) Share options expense (1,492) (1,425) Depreciation and amortization expenses (417) (406) Occupancy expenses (1,430) (705) External research and development expenses (632) (716) Professional fees (988) (859) Foreign exchange loss (772) - Other expenses (593) (492) (10,465) (8,562) Profit before income tax 18,092 (5,111) 16,806 (5,676) Profit for the year 12,981 11,130 Total Comprehensive Income Attributable to: Members of the present Non-controlling interest 12,981 - 11,130 - 12,981 11,130 Basic earnings per share (cents per share) 7.80 6.70 Based on the 2016 financial statement, the company reported about 12% increase in revenues leading to incraese in the employee benefits thus making the wages and salaries to increase by $750,000. Competition Acrux operates in a competitive landscape where it appears to be an underdog. For instance, the company experience fierce competition from Alchemia Ltd, Vivus Inc., Pfizer Inc., Auxilium Pharmaceuticals LLC, AbbVie Inc., Jurox Pty Ltd, and Allergan Finance LLC (PBR, 2017). These competitors are giving the firm a hard time in expanding its operations. The diagram below shows the market share of Acrux in the market. Growth Strategy The company has defined its growth strategy based on its sustainable business model that encompasses broader portfolio leveraging its topical expertise. The organization uses its core competency to utilize maximize its current technology, capabilities, and skills. The firm’s high experienced formulation team have enhanced its growth potential. The team understands the market trends thus responds to the emerging issues in the pharmaceutical industry. The Australian organization also collaborates with capable and strong licensees to expand its market share. In fact, with the product development, the business has maximized the commercially compelling opportunities (Acrux, 2016a). Without a doubt, Acrux measures its success in the business through sustainable and profitable business. The portfolio offered involves multiple products offered at different developmental stages. Besides, Acrux measures its success based on valuable product commercialized and licensed products. The strong cash inflows seem to facilitate its growth strategy. The topical portfolio includes Lenzetto, Axiron, and Evamist, and the organization executes its territory expansion. The company also continues to invest in supporting its future growth by leveraging the current capabilities. It intensified its focus on the internally developed products as it utilizes technology.   References Acrux Limited. (2017). Management Team. Retrieved 22 April 2017, from http://www.acrux.com.au/about/management-team/ Acrux Limited. (2017a). Our Philosophy. Retrieved 23 April 2017, from http://www.acrux.com.au/about/company-philosophy/ Acrux Ltd. (2016). ACR: ASE Stock Quote. Retrieved 2 October 2016, from . Acrux. (2016). About Acrux. Retrieved 2 October 2016, from Acrux. (2016). Products. Retrieved 24 April 2017, from http://www.acrux.com.au/product/ Acrux. (2016a). Financial Report FY2016. Retrieved 22 April 2017, from http://investors.acrux.com.au/FormBuilder/_Resource/_module/NjepwR2K-EWQX6Fr9BvRNg/file/Acrux-Financial-Report-for-the-year-ended-30June2016.pdf CapitalCube. (2016, Sept 12). Acrux Ltd.: ACR-AU: Earnings Analysis: For the Six Months Ended June 30, 2016: September 12, 2016. Retrieved 21 April 2017, from Morningstar. (2016). Acrux Ltd: ACR, Retrieved 22 April 2017, from http://financials.morningstar.com/ratios/r.html?t=ACR®ion=aus&culture=en-US PBR. (2017). Allergan Finance LLC. 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