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Pharmaceutical Key Trends 2011 - Pharmaceutical Industry Infrastructure Overview: Pharma innovates, diversifies and contains cost in order to grow profits
Datamonitor, March 2011, Pages: 81
Introduction
Pharma companies face a number of resistors to profit growth including the looming patent cliff causing a significant slowing in branded sales, coupled with ongoing R&D challenges. Pharma companies are therefore taking by boosting performance through enhancing operating profit through a combination of operating margin and sales growth.
Features and benefits
- Examines the drivers and resistors facing branded pharmaceutical companies
- Analyzes M&A deals by the leading pharmaceutical companies between 2008 and 2010
- Examines the ongoing challenges in R&D and different strategies to overcome these hurdles
- Provides an overview of various cost cutting strategies and how these are being implemented by Big Pharma
Highlights
- With the era of the traditional blockbuster growth model coming to an end, pharma companies are moving towards innovative, often biologic therapies for niche indications with a high unmet need, in order to gain market superiority and drive future sales growth. However, such strategies are often long-term and carry significant risk.
- Pharma companies are increasingly looking to expand beyond branded pharmaceuticals in the developed markets, towards generics and biosimilars, entry into the emerging markets, as well as looking outside pharmaceuticals altogether. While this can mitigate a company’s risk, margins can be diluted.
- M&A offer the opportunity to grow scale and cut costs through elimination of duplicate operations, while externalization of R&D enables low-risk access to innovative pipeline products. Ultimately, such strategies can be used to increase profitability, although M&A at least in the long term is not a sustainable strategy.
Your key questions answered
- Assess the evolving R&D sector and how this is being impacted by on-going cost cutting strategies.
- Case study analysis of various restructuring and cost saving measures.
- Evaluate how M&A deals are being utilized to cut costs, drive innovation and diversify.
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