Salix

Overview of Salix Pharmaceuticals

Employees (130)

68 Sales Representatives

32 Marketers

30 Executive and Administrative Staff

CEO

Carolyn Logan

Leadership

Transformational and Transactional leadership are equally important; Aspects of Western Leadership are present

Sales (in 2005)

$100 million

Founders

Randy Hamilton
Lorin Johnson

For-Profit

On the NYSE

Mission Statement

Vision Statement

Salix is committed to being the leading US specialty pharmaceutical company licensing, developing, and marketing innovative products to healthcare professionals to treat gastrointestinal disorders in patients.

Salix has no clear vision statement but a possible statement could be:

Our vision is to continue to discover new drugs that will change the way we look at medicine. We will strive to increase our impact on the medical community by expanding the network of patients we reach.

Value Chain

Strengths

Strength	Value Chain	Competitive Relevance
Acquiring new drugs from outside research companies	Pre-Service; Structure	HYDN
Niche Market of GI Drugs	Structure	HYDN
Co-Founders Still Actively Involved	Structure; Culture	LNEY
Highly Skilled Sales Force	Resource; Structure; Point-Of-Service	HNEY
Chemical makeup of COLAZAL sets its apart from the competition	Pre-Service	HYDN
Product is present internationally	Pre-Service; Structure	HNEY
AZASAN has more convienent options than competitors	Pre-Service	LYDN
Assets have increased every year	Resource	HNDY
Giving coupons instead of free samples	Pre-Service	LYEY
Not responsible for expensive research	Pre-Service; Structure	HYDN

Weaknesses

Weakness	Value Chain	Competitive Relevance
Rely on other companies to find new drugs	Structure; Resource	HNDY
Small niche market	Structure	HNDY
XIFAXAN does not set itself apart from the competition	Resource; Pre-Service	LYDY
Does not do direct to consumer advertising	Pre-Service	LNEN
Salix is relatively small in the pharmaceutical industry	Structure; Resource	HNDY
Negative net income 3 years in a row	Resource; Pre-Service	HNDY
Only market to GI specialists and not to general practitioners	Pre-Service; Point-of-Service	LNEN

Conclusions

Expansion is the main goal
- More GI drugs
- Drugs outside of Salix's niche market
Possible New Strategy: Salix could research their own drugs instead of acquiring them through outside organizations
These conclusions come from Salix's HYDN strengths and HNDY weaknesses:
- Because our HYDN strengths are not sustainable, we need to find ways to either make them sustainable, or we need to change our strategy
- Because our HNDY weaknesses are of high value and can be sustained by our competitors, it is extremely important that we focus on improving them

Salix Pharmaceuticals

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