Growth Strategy of Pharmanet Group Limited
Growth Strategy
Darweesh Al Qubaisi – 21250995 Ms. Yen Nguyen
Corporate Treasury Management AFF5250
10/11/2011
Pharmanet Group Limited
Letter of Transmittal
11th October 2011
Ms. Yen Nguyen
Room 4.27, Building H
Monash University
900 Dandenong Road
Caulfield East, VIC 3145, Australia
Dear Yen Nguyen,
Please find attached the report as you requested on the growth strategy for Pharmanet Group Limited.
This report provides a summary of research and findings on the company, as well as a proposed strategy to enable Pharmanet Group Limited to grow via acquisition by Blackmores Limited.
The recommendation was provided after extensive internal and external analysis, which proved to be highly useful in determining the basis for the proposal.
Please don’t hesitate to contact me should you have any questions.
Yours Sincerely,
Darweesh Al Qubaisi
ID: 21250995
Contact Number 0423211190
Table of Contents Letter of Transmittal 2 Executive Summary 5 1. Introduction 6 1.1 Objective: 6 1.2 Scope: 6 1.3 Assumptions and Limitations: 6 2. Summary Of Findings 7 2.1 Business Description 7 2.2 Corporate Governance 7 2.3 External Environment Analysis 8 Major Competitors 8 PEST Analysis 8 Porter’s 5 Forces 9 2.4 Company Financial Analysis 10 Time Series Analysis 10 Cross Sectional Analysis 14 2.6 SWOT Analysis 15 3. Growth Strategy Options 16 3.1 Scenario A 16 Strategy 16 Cost of Capital 18 Funding Strategy 18 Project Evaluation 19 3.2 Scenario B 20 Strategy 20 Capital Structure 21 Valuation 22 3.3 Recommendation 22 References: 23 Appendix 1.1- Company Profile 25 Appendix 1.2 – Product Reviews 26 Appendix 1.3 Target Market 27 Appendix 1.4 - Corporate Governance Analysis: 31 Appendix 2.1 - Competitor Analysis: 35 Appendix 2.2 - PEST Analysis 37 Political Factors: 37 Economic Forces 38 Social Forces 38 Technological Forces 38 Appendix 2.3 - Porter’s 5 Forces: 38
Darweesh Al Qubaisi – 21250995 Ms. Yen Nguyen
Corporate Treasury Management AFF5250
10/11/2011
Pharmanet Group Limited
Letter of Transmittal
11th October 2011
Ms. Yen Nguyen
Room 4.27, Building H
Monash University
900 Dandenong Road
Caulfield East, VIC 3145, Australia
Dear Yen Nguyen,
Please find attached the report as you requested on the growth strategy for Pharmanet Group Limited.
This report provides a summary of research and findings on the company, as well as a proposed strategy to enable Pharmanet Group Limited to grow via acquisition by Blackmores Limited.
The recommendation was provided after extensive internal and external analysis, which proved to be highly useful in determining the basis for the proposal.
Please don’t hesitate to contact me should you have any questions.
Yours Sincerely,
Darweesh Al Qubaisi
ID: 21250995
Contact Number 0423211190
Table of Contents Letter of Transmittal 2 Executive Summary 5 1. Introduction 6 1.1 Objective: 6 1.2 Scope: 6 1.3 Assumptions and Limitations: 6 2. Summary Of Findings 7 2.1 Business Description 7 2.2 Corporate Governance 7 2.3 External Environment Analysis 8 Major Competitors 8 PEST Analysis 8 Porter’s 5 Forces 9 2.4 Company Financial Analysis 10 Time Series Analysis 10 Cross Sectional Analysis 14 2.6 SWOT Analysis 15 3. Growth Strategy Options 16 3.1 Scenario A 16 Strategy 16 Cost of Capital 18 Funding Strategy 18 Project Evaluation 19 3.2 Scenario B 20 Strategy 20 Capital Structure 21 Valuation 22 3.3 Recommendation 22 References: 23 Appendix 1.1- Company Profile 25 Appendix 1.2 – Product Reviews 26 Appendix 1.3 Target Market 27 Appendix 1.4 - Corporate Governance Analysis: 31 Appendix 2.1 - Competitor Analysis: 35 Appendix 2.2 - PEST Analysis 37 Political Factors: 37 Economic Forces 38 Social Forces 38 Technological Forces 38 Appendix 2.3 - Porter’s 5 Forces: 38
References: Apollo Consolidated Limited. (2010). Half Year Report 2010. Retrieved from http://www.apolloconsolidated.com.au/docs/2011/AOP20110228.pdf Aspect Huntley. (2010, September 28). Annual report: Pharmanet Group Limited. Retrieved from FinAnalysis database. Aspect Huntley. (2009, September 28). Annual report: Pharmanet Group Limited. Retrieved from FinAnalysis database. Aspect Huntley. (2008, September 28). Annual report: Pharmanet Group Limited. Retrieved from FinAnalysis database. Aspect Huntley. (2007, September 28). Annual report: Pharmanet Group Limited. Retrieved from FinAnalysis database. Australian Bureau of Statistics. (2006, December 8). Musculoskeletal conditions in Australia: A Snapshot, 2004-2005. Retrieved September 20, 2011 from: http://www.abs.gov.au/ausstats/abs@.nsf/mf/4823.0.55.001/ Australian Government (2011) Australian Government (2011, September 7). Patents. Retrieved September 14, 2011 from: http://www.ipaustralia.gov.au/get-the-right-ip/patents/ Australian Government (2011) Australian Institute of Health and Welfare. (2011). Arthritis and Musculoskeletal Conditions. Retrieved September 20, 2011 from: http://www.aihw.gov.au/arthritis-and-musculoskeletal-conditions-health-priority-area/ Blackmores Limited Bloomberg (2011). Australia Government Bonds. Retrieved September 18, 2011 from: http://www.bloomberg.com/markets/rates-bonds/government-bonds/australia/ CAGR of the Stock Market (2011, January 21) Centers for Disease Control and Prevention. (2010, October 20). Arthritis. Retrieved September 21, 2011 from: http://www.cdc.gov/arthritis/data_statistics/arthritis_related_stats.htm Chemist Direct (2011) Damodaran, A. Acquisition Valuation. Retrieved October 5, 2011 from: http://people.stern.nyu.edu/adamodar/pdfiles/eqnotes/AcqValn.pdf Damodaran, A Holista Colltech Limited. (2010). Half Year Report 2010. Retrieved from http://www.asx.com.au/asxpdf/20110228/pdf/41x2v3qqfmsdt7.pdf Pharmanet Group Limited and controlled entities. (2010). Half Year Information 2010. Retrieved from https://www.macquarie.com.au/edge/static/eclipse/Hidden/Company%20Announcements/PERIODIC%20REPORTS/2011-02/011550160.pdf Probiotec Limited. (2010). Interim Report 2010. Retrieved from http://www.bourseinvestor.com/bi4/pdfnews/default.asp?d=01153600&f=20110222 ROI (2007, October 11). TV advertising v’s Internet Advertising. Retrieved September 20, 2011 from: http://www.roi.com.au/archive/tv-advertising-vs-internet-advertising/ RBA (2011) RBA (2010, November). Statement of Monetary Policy – Economic Outlook. Retrieved September 15, 2011 from: http://www.rba.gov.au/publications/smp/2010/nov/pdf/eco-outlook.pdf Thermalife (2011) U.S. Department of Health and Human Services. (2011). U.S. Food and Drug Administration. Retrieved September 14, 2011 from: http://www.fda.gov/ Appendix 1.1- Company Profile Source: Chemist Direct, 2011 Appendix 1.3 Target Market Further information on the three conditions: Source: Australia’s national agency for health and welfare statistics and information, 2011 Further Statistical Data: Source: Australia’s national agency for health and welfare statistics and information, 2011 Source: Australian Bureau of Statistics, 2006 United States Segment Data: Source: Centers for Disease Control and Prevention, 2010 Appendix 1.4 - Corporate Governance Analysis: