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Simulation Success

 

MEGA-MERGERS

2009 has been labelled by some commentators as the year of the megamerger, with pharmaceutical companies looking for broader portfolios, market collaborations and greater economies of scale, which they hope will bring stability in what are challenging times. Indeed, with pharmaceutical companies currently under various pressures, not least due to the economic downturn, we have already seen a host of significant mergers this year; Pfizer and Wyeth; Merck and ScheringPlough; and Roche’s plans to buy the remaining 44 per cent of shares in US biotech giant Genentech.

Such collaborations offer real economies of scale for companies who are looking to make considerable cost savings. Yet, though the practice makes sense, there are considerations that merged companies would be wise to take on board.

To truly set off on the right footing, the merged companies need to identify the best route to driving efficiencies and exploiting operational synergies from day one. After all, it is pointless for two companies to merge but to then simply retain the same scale and cost base. Any collaboration must be well thought out, and the planning needs to take place ideally before the new merged business officially sets sail, or at the very least in the early throes of trading.

It is important to remember that even if two companies are well aligned in their strategy and goals, and share similar business process models, there are still bound to be a plethora of different methods to their working processes. Whether these differentiators are large or small, for successful cohesion to take place, such variations must be tackled head on from the outset.


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Steve Hemsley is Vice President of Sales and Proposition Manager for Px-SIM at Lanner Group Ltd. He joined Lanner in 2003 and heads UK and US commercial activities for Lanner’s business process improvement services and software solutions. He has over 20 years’ experience in business process planning, optimisation and simulation in the US, Europe and the UK in various industries, such as pharmaceutical, automotive, government, food, outsourced services, internet services, retail and logistics.
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