DIVERSIFICATION ANALYSIS BY REVENUE
- Insights and recommendations
- Prescription drug revenue makes up the majority of Big Pharma sales
- Biologics are taking away share from small molecules
- Bibliography
DIVERSIFICATION ANALYSIS BY M&A AND DIVESTMENT ACTIVITY
- Insights and recommendations
- Many factors contribute to a decline in M&A and divestments following a two-year increase
- Deal values followed a similar trajectory to volume
- More acquisitions and fewer divestments of non-pharma-focused businesses over time
- Prescription pharma markets are the mainstay in M&As and divestments
- Roche, Johnson & Johnson, and AstraZeneca: active acquirers in their focused and diversified visions
- Merck & Co and Novartis divested several diversified assets
- Developed markets are where Big Pharma does virtually all acquisitions
- Bibliography
DIVERSIFICATION OPTIONS AND PROFITABILITY
- Insights and recommendations
- Focused, intermediate, and diversified strategies have each paid off
- If diversifying, the best option could be devices and diagnostics
DIVERSIFICATION CASE STUDIES
- Pharma-focused case studies
- Diversified case study
- Intermediate case studies
- Bibliography
HEALTHCARE LANDSCAPE OVERVIEW
- Prescription branded pharmaceuticals market
- Devices and diagnostics market
- Health insurance market
- Over-the-counter/consumer health market
- Generics market
- Retail pharmacy market
- Hospitals market
- Pharmacy benefit management market
- Pharmaceutical wholesaler market
- Animal health market
- Bibliography
List of Figures
Figure 1: Big Pharma prescription and total revenues are rebounding following decline, 2013-17
Figure 2: In the forecast period, Big Pharma prescription revenues will show growth, 2018-26
Figure 3: Pharma-focus model drives Big Pharma revenues, 2013-17
Figure 4: Pharma revenue proportion forecasted to remain steady, 2018-26
Figure 5: Forecasted biosimilars growth is strong among prescription pharmaceuticals, 2012-16 and 2017-21
Figure 6: Big Pharma total revenues by business area, 2013-17
Figure 7: From focused to diversified: how the Big Pharma peer set ranks, 2017 revenues
Figure 8: The majority of Big Pharma companies stay above the 60% threshold of pharmaceutical revenue to total revenue, 2013-17
Figure 9: Big Pharma M&A and divestment volume, 2013-17
Figure 10: Big Pharma M&A and divestment value, 2013-17
Figure 11: Volume of billion-dollar Big Pharma M&As and divestments, 2013-17
Figure 12: Big Pharma’s annual proportion of prescription pharma versus non-prescription pharma M&As and divestments, 2013-17
Figure 13: Five-year aggregate proportions of Big Pharma M&As and divestments, by business type, 2013-17
Figure 14: Big Pharma M&As by business focus, 2013-17
Figure 15: Big Pharma divestments by business focus, 2013-17
Figure 16: With a few exceptions, most Big Pharma companies made more M&As than divestments, 2013-17
Figure 17: Roche led Big Pharma M&A volume, 2013-17
Figure 18: Teva led in Big Pharma acquisition dollars spent, 2013-17
Figure 19: The majority of the Big Pharma peer set's M&A activity is in pharmaceutical markets, 2013-17
Figure 20: Five-year aggregate Big Pharma M&A volume proportion, by business focus, 2013-17
Figure 21: Merck & Co and Novartis led in Big Pharma divestments, 2013-17
Figure 22: Most Big Pharma divestments are focused on pharmaceuticals, 2013-17
Figure 23: Five-year aggregate Big Pharma divestment volume, by business focus, 2013-17
Figure 24: Developed markets overshadow emerging markets in Big Pharma M&A volume, 2013-17
Figure 25: North America leads Big Pharma M&A by region, 2013-17
Figure 26: The proportion of Big Pharma M&A in emerging markets is decreasing, 2013-17
Figure 27: Big Pharma divestments by geographic region, 2013-17
Figure 28: Few Big Pharma companies are geographically diversified in M&A, 2013-17
Figure 29: US-based companies are highly sought-after acquisition targets, 2013-17
Figure 30: Big Pharma M&A volume by region and business focus, 2013-17
Figure 31: Various focused and non-focused strategies pay off: no correlation between Big Pharma’s prescription focus and operating margin, 2017
Figure 32: Healthcare market overview by indicative profit potential
Figure 33: Biologics are increasing as a share of Bristol-Myers Squibb's revenues, 2013-17
Figure 34: Pfizer's vaccines sales are growing, 2013-17
Figure 35: The devices market is important to Johnson & Johnson's revenues, 2013-17
Figure 36: Eli Lilly's total revenues versus pharmaceutical revenues, 2013-17
Figure 37: Eli Lilly's revenue share shifts toward biologics, 2013-17
Figure 38: GlaxoSmithKline sees a drop in both pharma sales and their proportion of total revenues, 2013-17
Figure 39: GlaxoSmithKline's business focus by sales proportion, 2013-17
List of Tables
Table 1: Roche's diagnostics acquisitions, 2013-17
Table 2: Top Big Pharma consumer health/OTC divestments, 2013-17
Table 3: Bristol-Myers Squibb's "string of pearls" externalization (select deals), 2007-12
Table 4: Getting more focused: Pfizer's key divestments and acquisitions, 2013-17
Table 5: Johnson & Johnson's devices deal-making strategy: acquisitions and divestments, 2013-17
Table 6: Eli Lilly/Elanco's growth in animal health through M&A, 2013-17
Table 7: GlaxoSmithKline's vaccines M&As, 2013-17
Table 8: Global branded prescription pharmaceuticals market, 2016
Table 9: Big Pharma revenues, operating profit, and operating margin, 2016
Table 10: Indicative profit potential for the global branded prescription pharmaceuticals market, 2016
Table 11: Global devices and diagnostics market, 2016
Table 12: Total revenues, operating profit, and operating margin of the leading devices and diagnostics companies, 2016
Table 13: Indicative profit potential for the global devices and diagnostics market, 2016
Table 14: US health insurance market, 2016
Table 15: Total revenues, operating profit, and operating margin of the leading health insurance companies, 2016
Table 16: Indicative profit potential for the US health insurance market, 2016
Table 17: Global over-the-counter/consumer health market, 2016
Table 18: Total revenues, operating profit, and operating margin of the leading over-the-counter/consumer health companies, 2016
Table 19: Indicative profit potential for the global OTC/consumer health market, 2016
Table 20: Global generics market, 2016
Table 21: Total revenues, operating profit, and operating margin of the leading generics companies, 2016
Table 22: Indicative profit potential for the global generics market, 2016
Table 23: Global retail pharmacy market, 2016
Table 24: Total revenues, operating profit, and operating margin of the leading retail pharmacy companies, 2016
Table 25: Indicative profit potential for the retail pharmacy market, 2016
Table 26: US hospitals market, 2016
Table 27: Total revenues, operating profit, and operating margin of the leading US hospitals, 2016
Table 28: Indicative profit potential for the US hospitals market, 2016
Table 29: Pharmacy benefit management market, 2016
Table 30: Total revenues, operating profit, and operating margin of the leading PBM companies, 2016
Table 31: Indicative profit potential for the PBM market, 2016
Table 32: Pharmaceutical wholesaler market, 2016
Table 33: Total revenues, operating profit, and operating margin of the leading pharmaceutical wholesaler companies, 2016
Table 34: Indicative profit potential for the pharmaceutical wholesaler market, 2016
Table 35: Global animal health market, 2016
Table 36: Total revenues, operating profit, and operating margin of the leading animal health companies, 2016
Table 37: Indicative profit potential for the global animal health market, 2016
Table 38: Average 2017 exchange rates
