Horizon Therapeutics Public Limited Company (HZNP): Business Model Canvas

Introduction

The biopharmaceutical industry is one of the fastest-growing industries in the world. According to a report by Grand View Research, Inc., the global biopharmaceutical market size was valued at USD 366.7 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 7.5% from 2021 to 2028. This growth can be attributed to several factors such as the aging population, the increasing prevalence of chronic diseases, and the growing demand for biologics.

Horizon Therapeutics Public Limited Company is a leading player in this industry that operates under a differentiated business model. The company focuses on rare and rheumatic diseases and has a strong research and development program that drives the production of highly innovative and specialized medicines. With its close relationships with physicians and patient advocacy groups, Horizon Therapeutics has successfully built awareness and driven market adoption of its products. Moreover, the company's effective pricing strategy helps it to offer its products at a consistent and affordable price to patients.

In this blog post, we will take a closer look at Horizon Therapeutics' business model canvas and the factors that have led to its success in a highly competitive market.

Key Partnerships

Horizon Therapeutics Public Limited Company (HZNP) relies on key partnerships to enable the organization to deliver on its objectives. The following are the key partnerships that HZNP relies on:

• Distribution Partners: HZNP has distribution partnerships with various pharmaceutical companies to help distribute its products. This partnership allows HZNP's products to reach a broader audience and increase the likelihood of success in the market.
• Clinical Research Organizations: HZNP partners with clinical research organizations to conduct clinical trials and gain in-depth knowledge of its products' safety and efficacy. These partnerships are essential to HZNP's success in the highly regulated pharmaceutical industry.
• Contract Manufacturing Organizations: HZNP partners with a network of contract manufacturing organizations (CMOs) to produce its products. These partnerships provide HZNP with flexibility in the manufacturing process and enable the company to focus on other crucial aspects of the business.
• Academic Institutions: HZNP partners with academic institutions to advance research and development (R&D) initiatives. These partnerships provide HZNP access to new technologies and knowledge, which can enhance its product offerings.
• Healthcare Providers: HZNP partners with healthcare providers to gather data and insights on current medical practices and unmet needs. These partnerships enable HZNP to tailor its product offerings to meet the needs of patients effectively.
• Regulatory Agencies: HZNP partners with regulatory agencies to ensure compliance with evolving regulations in the pharmaceutical industry. These partnerships are essential to HZNP's continued success in the highly regulated environment.

In conclusion, HZNP's success in the pharmaceutical industry relies on its ability to establish and maintain key partnerships. Through these collaborations, HZNP can bring innovative products to market, gain a competitive advantage, and deliver value to its customers.

Key Activities

Horizon Therapeutics Public Limited Company (HZNP) is a biopharmaceutical company that specializes in the development and commercialization of medicines for patients with rare diseases. The key activities of Horizon Therapeutics can be classified into the following categories:

• Research and Development: Horizon Therapeutics invests heavily in research and development to bring innovative medicines to market. The company has a team of scientists and researchers who work on identifying and developing potential drug candidates. Horizon Therapeutics' R&D activities cover all aspects of drug development, including preclinical studies, clinical trials, regulatory submissions, and product launch.
• Manufacturing and Quality Control: Horizon Therapeutics has a state-of-the-art manufacturing facility where it produces its medicines. The company focuses on maintaining high-quality standards and compliance with regulatory requirements. Horizon Therapeutics' Quality Control team ensures that every batch of medicines produced meets the required specifications and is safe for use.
• Sales and Marketing: Horizon Therapeutics has a global sales force that promotes its medicines to healthcare professionals and patients. The company uses a multi-channel approach to reach its target audience, including conferences, medical education events, and digital marketing. Horizon Therapeutics also works with patient advocacy groups to raise awareness of its medicines.
• Regulatory Affairs: Horizon Therapeutics' Regulatory Affairs team is responsible for obtaining regulatory approvals for its medicines. The team works closely with regulatory agencies to ensure that the company's medicines meet the required standards and are safe for use. Horizon Therapeutics' Regulatory Affairs team also monitors changes in regulatory requirements and ensures that the company's processes are aligned with the latest guidelines.
• Corporate Development: Horizon Therapeutics' Corporate Development team is responsible for identifying and evaluating potential acquisition targets and partnerships. The team works closely with other departments to ensure that any acquisition or partnership aligns with the company's overall strategy and goals.

Overall, Horizon Therapeutics' key activities revolve around developing and bringing innovative medicines to market, ensuring the quality and safety of its products, promoting its medicines to healthcare professionals and patients, obtaining regulatory approval, and identifying potential acquisition targets and partnerships.

Key Resources

Horizon Therapeutics Public Limited Company (HZNP) heavily relies on the following key resources:

• Research and Development: As a biopharmaceutical company, research and development is a crucial element for HZNP. They need a strong and knowledgeable team that can develop and test new drugs effectively. They invest significantly in R&D, which allows them to develop unique products that cater to the specific needs of their patients.
• Intellectual Property: HZNP has valuable patents and proprietary technologies that provide them with exclusive rights to produce and sell their products. Their intellectual property gives them a competitive advantage over their rivals.
• Human Resources: HZNP employs more than 1,200 people worldwide, including scientists, researchers, marketers, and salespeople. The company's success depends on skilled human resources that can bring innovative ideas, deliver high-quality products, and serve customers effectively.
• Manufacturing Facilities: HZNP has several well-equipped manufacturing facilities that enable them to produce products efficiently and in large quantities. They need to have such facilities to satisfy the demand for their products, meet regulatory requirements, and maintain strict quality standards.
• Partnerships and Collaborations: HZNP strategically partners with academic institutions, government bodies, and other pharmaceutical companies to gain access to intellectual property, conduct clinical trials, and expand its product range. Collaborating with these institutions provides valuable resources, knowledge, and skills that HZNP can leverage to their benefit.
• Financial Resources: HZNP requires significant financial resources to fund its research and development, manufacturing, and marketing activities. The company relies on equity financing from the stock market, partnerships, and collaborations. They also generate revenue by selling medicines to patients and healthcare providers.

By leveraging these key resources effectively, HZNP can sustain its growth, compete with other pharmaceutical companies, and fulfill its mission of helping patients cope with rare and rheumatic diseases.

Value Propositions

At Horizon Therapeutics Public Limited Company (HZNP), our main focus is on providing exceptional healthcare and improving the quality of life for our patients. Our unique value propositions lie in the following areas:

• Patient-centricity: We put our patients at the center of everything we do. Our products are designed and developed with a deep understanding of our patients' needs and challenges.
• Innovative treatments: We are committed to developing innovative new treatments for rare and rheumatic diseases that are underserved by the current healthcare system.
• Expertise and experience: Our team consists of experts in rare diseases, rheumatology, and immunology. This allows us to bring a wealth of experience and knowledge to every product and service we offer.
• Partnerships and collaborations: We collaborate with healthcare providers, patient organizations, and other stakeholders to find new ways of addressing the challenges faced by patients with rare diseases.
• Commitment to quality: We are committed to delivering high-quality products and services that meet the highest standards of safety, efficacy, and patient satisfaction.

At Horizon Therapeutics Public Limited Company (HZNP), we strive to make a meaningful difference in the lives of our patients, and we believe that our value propositions are key to achieving this goal.

Customer Relationships

The success of Horizon Therapeutics Public Limited Company (HZNP) is largely dependent on its ability to establish and maintain strong relationships with its customers. The company's customer relationships can be broadly categorized into the following types: 1. Direct Sales and Marketing: Horizon Therapeutics uses direct sales channels to promote its products and services to healthcare professionals such as physicians, pharmacists, and hospitals. The company's trained sales representatives use a consultative approach to understand the unique needs of each customer and offer tailored solutions accordingly. The sales team works in close coordination with the marketing team to develop targeted marketing campaigns that resonate with the specific customer segments. The company also organizes educational seminars, symposia, and webinars to keep its customers informed about the latest developments in the field. 2. Patient Support Programs: Horizon Therapeutics has developed several patient support programs to provide ongoing support to the patients who use its products. The company's support programs are designed to assist patients with accessing their medications, managing their conditions, and connecting them to healthcare professionals. The company relies on technology-enabled solutions to provide personalized support to each patient. The programs not only enhance the patient experience but also improve the company's brand image and reputation. 3. KOL Engagement: Horizon Therapeutics invests in engaging Key Opinion Leaders (KOLs) to maintain its market position and improve its product offerings. The company actively collaborates with leading KOLs to gain insights into the latest research and practices in the field. The company also engages KOLs as advisors and consultants to provide their inputs on crucial decisions related to product development, clinical trials, and market launch strategies. This engagement helps the company to remain at the forefront of innovation and stay ahead of its competitors. In conclusion, customer relationships are a critical aspect of Horizon Therapeutics' business model. The company's multi-faceted approach to engaging with its customers ensures that their evolving needs are addressed and that their expectations are met.

Channels

Horizon Therapeutics Public Limited Company (HZNP) follows a multichannel approach to reach out to its potential customers. The company uses both direct and indirect channels to distribute its relatively niche pharmaceutical products.

The following are some of the channels used by HZNP:

• Direct Sales Force: Horizon Therapeutics employs a direct sales force to visit doctors, hospitals, and clinics to promote their products to physicians, nurses, pharmacists, and other professionals who are authorized to prescribe medication.
• Distribution Partners: The company partners with pharmaceutical and biotech distributors, wholesalers, and specialty pharmacies to efficiently distribute its products to hospitals, pharmacies, and other healthcare providers.
• E-commerce: The use of e-commerce channels to allow customers to buy direct online is proving increasingly popular with telemedicine and online consultations becoming more widespread. HZNP uses e-commerce platforms to sell its products online and enhance the reach of its distribution channels.
• Social Media: HZNP also utilizes social media channels such as LinkedIn, Twitter, and Facebook to engage with customers and create some brand ambiance.
• Trade Shows: HZNP takes part in various trade shows and conferences to showcase its products to healthcare professionals, investors, healthcare organizations, and regulators.

Through the deployment of these various channels, HZNP expands its presence in the relatively narrow and competitive pharmaceutical industry.

Customer Segments

Horizon Therapeutics Public Limited Company (HZNP) targets a wide range of customers in the healthcare industry, including healthcare providers, patients, payers, and institutional investors.

Healthcare Providers: HZNP primarily targets healthcare providers, including physicians, nurse practitioners, and physician assistants. These healthcare providers prescribe HZNP's prescription drugs to patients for the treatment of rare and rheumatic diseases, growth hormone deficiency, and other specialized medical conditions. HZNP has a dedicated sales force that communicates with healthcare providers to educate them about the company's products and their benefits.

Patients: Patients suffering from rare and rheumatic diseases, growth hormone deficiency, and other specialized medical conditions are HZNP's primary customer segment. The company focuses on patients who have limited or no treatment options, aiming to provide a better quality-of-life to such patients. HZNP markets its drugs directly to patients through patient initiatives and educational programs.

Payers: Payers refer to healthcare insurers, government healthcare programs, and pharmacy benefit managers. HZNP targets payers as a customer segment to ensure that its drugs receive optimal coverage through insurance plans and reimbursement policies. The company works with payers to provide less expensive drug alternatives for patients, as rare disease drugs are typically extremely expensive.

Institutional Investors: Another customer segment for HZNP is institutional investors, including hedge funds, venture capitalists, and private equity firms. The company aims to appeal to such investors by showcasing strong financial performance, clinical trial results, and growth potential. Institutional investors represent a key source of funding for HZNP and can help in the expansion of its product portfolio and research and development activities.

• Healthcare Providers
• Patients
• Payers
• Institutional Investors

Cost Structure

Horizon Therapeutics Public Limited Company (HZNP) operates in the biopharmaceutical industry and, as such, has significant costs associated with drug development, clinical trials, and regulatory approval. The company's cost structure can be broken down into the following components:

• Research and Development Costs: HZNP invests heavily in researching and developing new medicines, which requires significant resources and expertise. HZNP's research and development costs include salaries for scientists and researchers, lab equipment and supplies, clinical trial expenses, and regulatory filing fees. The company spends a sizable portion of its revenue on research and development to discover, develop and deploy medications that can address unmet medical needs.
• Manufacturing and Supply Chain Costs: HZNP has a global network of manufacturers and supply chain partners who help manufacture, package and distribute their products. The cost of materials, manufacturing, and distribution can vary significantly depending on product complexity, volume, and geographic location.
• Marketing and Sales Costs: Like other pharmaceutical companies, HZNP spends a significant amount of money marketing its products to healthcare professionals, hospitals, and patients. Marketing costs include advertising, sales promotions, and direct-to-consumer marketing. Sales costs include salaries for the sales team, commissions, travel expenses, and marketing materials.
• General and Administrative Costs: HZNP has various general and administrative costs, such as legal and financial expenses, IT infrastructure and other overhead costs such as office space, employee salaries, and other operating costs.
• Regulatory Compliance Costs: The pharmaceutical industry is heavily regulated and requires compliance with stringent regulations. Horizon strives to ensure compliance with regulatory guidelines for clinical trials, product registration, pharmacovigilance, and other regulatory matters. As such, costs associated with regulatory compliance including audits, legal fees and consulting fees can enhance the cost structure of the company.

In conclusion, HZNP has a complex cost structure that incurs significant expenses for developing, marketing and selling life-saving treatments. To maximize profits and deliver value to patients and shareholders, the company must balance these costs with revenue generation and innovation.

Revenue Streams

As a pharmaceutical company, Horizon Therapeutics generates revenue streams from various sources:

• Product Sales: HZNP's main source of revenue is from the sales of its existing drugs. The company produces various drugs related to critical care and rare disease treatment. The drugs that are responsible for the highest sales volumes are Tepezza, Krystexxa, and Procysbi. According to the 2019 annual report, product sales accounted for approximately 98% of total revenue.
• Licensing Revenue: Horizon Therapeutics also generates revenue by licensing its products to other companies. The company has licensed its drugs in some parts of the world where HZNP does not operate or have access to.
• Collaboration and Strategic Partnership: Horizon Therapeutics collaborates with other pharmaceutical companies and engages in strategic partnerships to develop and market new drugs. The company earns a share of revenue generated from the sale of these drugs.
• Research and Development Grants: Horizon Therapeutics receives grants and funding from various organizations like the National Institutes of Health (NIH), and the Biomedical Advanced Research and Development Authority (BARDA) to carry out research and development on rare diseases. This source of revenue accounts for a small percentage of total revenue.
• Contract Manufacturing: HZNP operates a manufacturing facility in Ireland that produces drugs for contract manufacturing. This service helps the company generate a small amount of revenue.

Conclusion

Overall, the Business Model Canvas for Horizon Therapeutics Public Limited Company (HZNP) demonstrates a sustainable and profitable venture. The company's focus on rare diseases and speciality treatments, coupled with its strong relationships with physicians and patients, positions Horizon for long-term success.

• The Value Proposition: Horizon offers unique medicines that target rare diseases and is committed to providing quality care to patients.
• Customer Segments: Horizon's target customers are patients with rare diseases and the physicians who treat them.
• Customer Relationships: Horizon establishes strong relationships with physicians and patients through education and support.
• The Revenue Streams: Horizon generates revenue through the sale of speciality treatments and rare disease medicines.
• Key Resources: Horizon's key resources are its research and development capabilities, partnerships with physicians and patient organizations, and manufacturing facilities.
• Key Activities: Horizon's key activities include researching, developing, and producing rare disease medicines as well as educating and supporting physicians and patients.
• Key Partners: Horizon partners with physicians, patient advocacy organizations, and other pharmaceutical companies to develop and improve treatments for rare diseases.
• Cost Structure: Horizon's cost structure includes research and development, manufacturing, and marketing and sales expenses.

Horizon's unique focus on rare diseases and speciality treatments, paired with its strong commitment to quality care and education, makes it a sustainable and profitable venture. With the potential for continued growth and innovation within the pharmaceutical industry, Horizon is well-positioned to meet the evolving needs of its customers and continue its success in the future.