Boyne Pharmaceuticals PLC is a leading global mid-size pharmaceutical company, with a focus on transformative medicines in
Question:
Boyne Pharmaceuticals PLC is a leading global mid-size pharmaceutical company, with a focus on transformative medicines in four key therapeutic areas: vaccinees, oncology, rare disease and neuroscience. Their products are tested actively in scientific research and to date, more than 300 scientific studies involving Boyne Pharmaceuticals products have been published. With its production facilities and company headquarters located in Birmingham, UK, Boyne Pharmaceuticals PLC has a large operational field. Boyne Pharmaceuticals products are represented in Europe, the Middle East and in the rapidly expanding markets of Asia and the United States, through 25 daughter companies and 20 business partners. Over the years, Boyne Pharmaceuticals has earned a reputation as an innovative and visionary player on the pharmaceutical market on several occasions. Boyne Pharmaceutical was one of the first companies to introduce a Covid 19 vaccine to the European market.
Global Pharmaceuticals and Medicine Manufacturing Industry landscape:
The Pharmaceutical industry has never been brighter. Every cloud has a silver lining and the Pharma sector has benefitted hugely from the COVID pandemic. This benefit is not in the form of vaccine sales, it more of a reputational upsurge. Recent times (pre covid) there was an air of suspicion around the power, motives and objectives of big pharma companies. Now that air of suspicion has been replaced with a more collaborative sentiment and pharma is helping but more so needed to cope with the contemporary issue faced with the mass movement of goods and people because of the globalised world, we live in. Covid has offered the pharma industry a mechanism to create a paradigm shift in reputation and public perception.
Over the five years to 2021, pharmaceutical manufacturers have benefited from an aging population in developed economies and a growing middle class in emerging economies, which has provided a larger customer base for operators in the Global Pharmaceuticals and Medicine Manufacturing industry. Many manufacturers have also tapped into regional demand for pharmaceuticals that may differ from developed markets and have expanded their global presence to tap into regional market needs and develop relationships with government entities that can accelerate drug approval or implement high reimbursement rates. To this end, the global spread of COVID-19 (coronavirus) offers pharmaceutical and medicine manufacturers an opportunity for growth moving forward should operators successfully develop medications and vaccines to treat the virus, which several companies have successfully done.
Patent cliffs have continued to hamper industry revenue during the current period. When blockbuster drugs loose patent exclusivity, the market is inundated with low-cost generic drugs. As manufacturers contend with more price-based competition from generics, many operators respond by lowering their research and development (R&D) expenditures, limiting manufacturers' drug pipelines. Further exacerbating this, many governments and health insurance organizations have reduced their drug reimbursements to control healthcare costs, such as implementing incentives for patients to use generic drugs, which reduces demand for some brand-name drugs. Nevertheless, industry revenue is anticipated to grow at an annualized 1.2% to $1.0 trillion over the five years to 2021, including an increase of 3.6% in 2021 alone. However, patent cliffs and continued generics competition are expected to pressure profitability.
Moving forward, revenue (across the industry) is forecast to grow an annualized 3.2% to $1.2 trillion over the five years to 2026 (See Figure 1) amid an anticipated persistence of global demand for industry products. Furthermore, more pharmaceutical manufacturers will likely tailor their R&D and product portfolio to meet emerging markets' healthcare needs. New innovations are expected to lengthen patients' lifespans and promote a higher quality of life, bolstering revenue
Figure 1: Industry Performance 2013 -2026. (Source: IBISWorld)
Financial landscape:
At a recent AGM of Boyne Pharmaceuticals PLC the Chief Financial Officer (CFO) summarised the financial outlook as uncertain. Interest rates can still be described, as low however there is a worrying trend of rates in the upward trajectory. Also, the rise in consumer prices, which can be translated as the decline of purchasing power over time, is causing uncertainty in the national and indeed global financial world. This higher level of inflation may hinder investor confidence.
Fitch Ratings has lowered its UK GDP forecast for 2023 since the publication of the latest Global Economic Outlook (GEO) in September following extreme volatility in UK financial markets and the prospect of sharply higher interest rates. We now expect UK GDP to decline by 1% in 2023 compared with -0.2% in the September.
Board of directors:
The board of directors (BofD) is the governing body for Boyne Pharmaceuticals PLC. They are elected by the shareholders and they make decisions as a fiduciary on behalf of the company and its shareholders. Issues that fall under a board's purview include the hiring and firing of senior executives and their compensation, dividends, major investments, and merger and acquisitions. In addition, this board is responsible for helping to set broad goals aligned with the company strategy, supporting senior management in pursuit of those goals, and ensuring the company has adequate, well-managed resources at its disposal.
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta