Daiichi Sankyos acquisition of Ranbaxy has enabled her to connect between the innovator drug market

and generic drug market. However, she has been phased with pressing issues from Ranbaxy that has been
impeding her growth. What can Daiichi Sankyo do in strengthening her immune system in moving
forward?
Good morning everyone, My name is Zhe Ming and today I have with me Yu Xin, Toni and Siew Meng.
We are impact consulting and were excited to present to you, the way moving forward for Daiichi
Sankyo.
Lastly, evolving the hybrid business model. In order to achieve this vision, Daiichi has set up a Synergy
office aimed at providing direction to extract maximum future value from business lines for both
companies. The synergy office can help both companies realise greater synergies in 3 main areas, mainly
R&D, QM, and SC.
Lets first take a look at the Research and Development arm. Daiichi Sankyo has already an established
global R&D network of subsidiaries that focus on different medical fields, developing innovative drug
research. What we believe Daiichi can do, would be to consolidate Ranbaxys R&D facilities into the RCI
arm and integrating both generic and innovator drug R&D efforts. The synergy office can support this
consolidation by spearheading collaborations and coordinating R&D efforts and organize an annual
summit to help consolidate our findings.
Next, Quality Management and Assurance. In solving Ranbaxys quality control issues that it has been
entangled in, Ranbaxy can leverage on Daiichi Sankyos Competencies to help improve its own business
processes and workflow. Where Ranbaxy can look into incorporating process analytics to track its
production processes, adopt a business wide Risk Management plan and ensure safety standards is
communicated across to everyone.
Lastly, Supply Chain, Sales and Marketing. Daiichi Sankyo has in place an efficient Medical
Representative Crosswise system to help collect high quality, accurate information from the ground.
Ranbaxy can look into adopting a similar structure to help understand the market and needs of the people
better. The system works with 2 types of sales specialist, the facilities and the domain. The facilities sales
rep communicates with the medical facilities and locals to better understand the mix of products the
market currently needs. Whereas for the Domain, they focus on distribution of drugs through appropriate
channels and provide timely information on the specific types of medicine to customers.
In improving on this structure, Ranbaxys extensive network and local knowledge can be tapped into to
reach out to a greater number of people. This helps delivering high quality service, to a larger number of
people.
How do all these synergies translate into numbers? Were confident that well be able to boost our
offerings via reaping this synergies with an expected base case CAGR of 4.9%.
With our winning formula in place, we believe Daiichi Sankyo will be able to achieve a 6.6% revenue
CAGR in the next 5 years.
In conclusion, Daiichi Sankyo was presented with 3 key issues impeding her growth, but were confident
that with our winning formula in place, Daiichi Sankyo will be able to achieve its targets of sustainable
growth in mature markets, accelerated expansion in emerging markets and a decreased business cost with
its Hybrid Business Model. This, will help Daiichi Sankyo to strengthen its immune system and realise its
true potential in achieving sustainable future growth. We thank you for your time and we now open the
floor to any questions.