fast-cycle pharmaceutical industry. It focuses on the company’s neurology division, providing detailed market, product,

and competitive information, extensive coverage of external environmental conditions, and the strategies employed by

Valeant to deliver long-term value to shareholders.

This case study touched on basic healthcare financing theory and practice. It determines if the company’s recent merger

with Biovail and restructuring efforts will yield the benefits promised to shareholders and enable the firm to compete more

effectively in the marketplace. To reasonably determine the merit of its strategic approach, external environmental trends,

competitor positions, financial indicators, internal resources, and company strategies must be considered. The results of the

analysis can then be used

to suggest measures that can improve Valeant’s strategic position and potential for ongoing success.

For this mid-term exercise.  Please apply what you have learned so far from this course, particular draw references from

the Healthcare Economics Text.

From the following Six questions. Please select THREE questions to respond to (2 pages maximum for each question,

including references):

1.     Are rising drug expenditures necessarily bad? Discuss in the context of pharmaceutical company’s stakeholders

2.     (list three).

2. Is the high price of drugs determined by the high cost of developing a new drug?

3. Within an economic framework, discuss the changing economic outlook for Valeant.

4.How does cost-shifting differ from price discrimination? Discuss using drug prices provided in VAleant’s case as an

example.

5.What is the consequence of the FDA providing the public with greater assurance that a new drug is safe?

6. How does Valeant’s R&D capabilities provide competitive advantage over its competitors? Will this be different story

without the merger operation?

Note: Six pages maximum for the mid-term.

ValeantCaseForAnalysis

Valeant Worksheet