Assignment On Horizon Pharma

Name: Muhammad Rafique Student ID: 20202-26868
DOES HORIZON PHARMA HAVE A FORMAL STRUCTURE

Headquartered in Dublin, Ireland, Horizon Pharma develops and markets medicines, especially ones
for treating arthritis, pain, and inflammatory diseases. Horizon has been on a buying spree. In
September 2014, for a $660 million deal, the company acquired Vidara Therapeutics International;
in October 2014,
under a deal worth $45 million, the company acquired the U.S. sales and marketing rights to the
osteoarthritis drug Pennsaid from Nuvo Research; and in May 2015, Hyperion Therapeutics was
acquired by Horizon Pharma for $1.1 billion, increasing their orphan disease drug portfolio and
increased their product range to seven with RAVICTI and BUPHENYL coming onboard. For a price of
almost $3 billion, Horizon Pharma had hoped to acquire DepoMed (DEPO), which would have
meant a premium of 42 percent of DEPO’s closing price as of July 2015. However, Horizon had to
withdraw their offer after a court ruling on the company’s improper use of confidential information.
Horizon is focused on identifying, developing, acquiring, and commercializing a range of medical
products that are accessible and will address different medical needs. In 2015, the third quarter saw
net sales of $226.5 million, increasing by more than 200 percent in comparison to the previous year,
and 31 percent up from the second quarter in 2015. The net income in 2015, for the third quarter,
was $3.3 million, a 57 percent increase from the same quarter in the previous year.
The profitable growth was mainly due to strong sales growth in the business units— primary care
($56.9 million), orphan ($28.7 million), and specialty ($11.7 million). As part of its strategy for 2015,
Horizon’s orphan and primary care business units were given new medicines in the third quarter.
Horizon received the European Commission’s approval for RAVICTI oral liquid treatment in 2015,
and is expecting to launch this product in 2017. In 2015, the drug RAYOS, under Horizon’s specialty
division, saw sales of $11.7 million, an increase of 106 percent in comparison to the third quarter of
the previous year, while the sales of LODOTRA increased 36 percent. Horizon Pharma’s strategy of
growing through acquisition seems to be the right medicine for the company so far.
Questions
Question No: 1
Visit Horizon’s website and go through the senior management section. The company lists its
top 21 corporate executives and their respective titles. Based on this information, what type of
organizational structure is Horizon using?
Answer
 Based on the company’s top 21 corporate executives and their respective titles which
are mentioned in the website after careful examining the Horizon’s website and
corporate executives and their respective titles the type of organizational structure
which Horizon use is “Functional Organization Structure”.
 Under this structure the positions are divided into their officers and employees that is
highest to lowest ranks. The employees are placed according to the specific skill they
have and the positions in which they best fit in the company.
 The departments are separate, and they are controlled distinctly in the company. It
promotes employees to grow and get a grip on their skills in that way they can focus
more on their positions and give better input to the company.
Question No: 2
Based on the information at the website given above, what are three good and three bad
aspects of Horizon’s organizational structure?
Answer
Good Aspects of Horizon’s Organizational Structure
1. Through Horizon’s organizational structure all executive officers are eligible to obtain
standard employee benefits, Like our 401-K Plan, dental, medical, vision coverage, group life
insurance, long-term disability insurance, short-term disability insurance and the (2014)
Employee Stock Purchase Plan.
2. Horizon’s organizational structure compensate executives, including their named executive

officers, up to $15,000 of personal financial planning services acquired annually and associated
gross tax. It believes that the financial planning by experts decreases the time their executives
use on that topic and helps their executives in creating most of the financial rewards received
from the company.
3. Horizon’s organizational structure also recompense its executives for any travel expenditures
and associated tax gross ups they acquire which are linked with any business related with travel
which does not meet the severe eligibility requirements to be taken as a non-taxable business
expenditure compensation in accordance with appropriate tax procedures.
Bad Aspects of Horizon’s Organizational Structure
1. Horizon’s organizational structure having a mutual organizational purpose which

increases employee performance and morale, but each group of specialists in an
organization is working separately, so It would certainly weaker the common bond
that highlights a single predominant organizational purpose.
2. Horizon have departments occupied by employees specializing in a particular work

area implies that teams become isolated. Employees in various teams would not get
the opportunity to meet and share perspectives and other important information,
which could be harmful for the growth of the business in the long run.
3. As Horizon is functional organization, so each group's tasks would involve no input

from other groups, but this is not the proper way of doing effective work. There would
be a lot of problems which cannot be solved without good communication among
members in the organization.

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Name: Muhammad Rafique Student ID: 20202-26868

DOES HORIZON PHARMA HAVE A FORMAL STRUCTURE

Good Aspects of Horizon’s Organizational Structure

2. Horizon’s organizational structure compensate executives, including their named executive

Bad Aspects of Horizon’s Organizational Structure

1. Horizon’s organizational structure having a mutual organizational purpose which

2. Horizon have departments occupied by employees specializing in a particular work

3. As Horizon is functional organization, so each group's tasks would involve no input

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