PRICE WATERHOUSE: Pharma 2020: Challenging business models Which path will you take? (II) Modelo Diversificado

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The fully diversified model is one in which a company expands from its core business into the provision of related products and services, such as diagnostics and devices, generics, nutraceuticals and health management. Johnson & Johnson is Pharma’s leading exponent of this approach. It is now the world’s largest consumer health company, following the US$16.6 billion acquisition of Pfizer’s over-the-counter business in December 2006.27 It is also the third-largest biologics and sixthlargest pharmaceutical company, has an extensive medical devices and diagnostics operation,28 and recently started building a wellness and prevention platform, with the purchase of HealthMedia, a web-based “health coach”

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