Acquisition Target for Merck & Co.

Acquisition Target for Merck & Co. Paper
Student Name
Institutional Affiliation
Date
Acquisition Target for Merck & Co. Paper
Supernus Pharmaceuticals Inc. is a biopharmaceutical corporation that develops and commercializes products to manage central nervous system (CNS) illnesses. Accordingly, Merk & Co., Inc. is a global health care firm offering innovative health solutions via biologic therapies, animal health products, vaccines, and prescription medicines. As indicated in the case, Merk & Co. seeks to acquire Supernus Pharmaceuticals. In this context, it is crucial to base the acquisition decision on a sound analysis of Supernus Pharmaceuticals to establish its authenticity as an acquisition target for Merck & Co. This report analyzes Supernus Pharmaceuticals Inc. as an acquisition target for Merck by examining the target’s resources, culture, and location.
Supernus Pharmaceuticals Inc. currently has two drugs on the market: Trokendi XR, which treats migraines and epilepsy, and Oxtellar XR, which treats epilepsy. Three prospective drugs pose a significant probability of entering the market: (a) SPN-812—Phase III, ADHD, (b) SPN-810—Phase III, impulsive aggression, and (c) SPN-604— Phase III ready, bipolar disorder (Supernus Pharmaceuticals, Inc., 2021a). That said, Supernus’ sales revenues were $520.4 million, a 32 percent increase compared to 2019 results (Supernus Pharmaceuticals, Inc., 2021b). The global revenues for Merck & Co. in 2020 indicate that it is a significantly huge company compared to Supernus as its sales amounted to 48.0 billion - a 2 percent rise from 2019 (Merck, 2021). Supernus’ outstanding revenues are attributed to diverse resources, including a strong distribution network, highly skilled workforce, strong dealer communities, among other strengths. Although Supernus’ resource capability is promising, such performance comes with potential risks. There is the risk of expiring patents as Supernus’ drugs currently on the market would lose exclusively in the future. This created a significant sell-off during quarter one of fiscal 2019. The drug candidates’ competitive edge is problematic as they could fail to significantly differentiate themselves from existing generic drugs.
Apart from its promising financial performance, Supernus&rs...