Mergers, acquisitions and licensing to continue drive industry growth

Publication Date	October 2006
Publisher	Datamonitor
Product Type	Report
Pages	10
ISBN Number	not applicable
Product Code	DAT04217

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Summary

Introduction

Inorganic growth strategies have played a significant role in the pharmaceutical industry over recent years. While acquisitions and licensing look set to continue to drive growth in the future, increasing competition for the best deal and best partner will require companies to review a broader set of potential targets and search for earlier stage licensing opportunities

Scope

A review of recent "mega-mergers" within the pharmaceutical industry
Analysis of the leading pharmaceutical companies increased reliance on in-licensed drugs
A brief analysis of why companies must consider earlier stage licensing opportunities

Highlights

Large scale "mega-mergers" have shaped the competitive landscape of the leading pharmaceutical players, but analysis suggests that they may not have delivered the expected returns.

In-licensing activity has favored late stage pipeline products in the past, but increasing competition is driving the need for companies to consider early stage deals

Reasons to Purchase

Understand the drivers behind the increasing use of small-scale acquisitions and licensing
Gain insight into the need to focus on earlier stage product licensing to secure the best opportunities

Content

Catalyst
Summary
Methodology
- AnaLYSIS
- M&A activity has shaped the leading players in the pharmaceutical industry
- Competitive pressures and the quest for greater sales and profits have driven mega-merger activity
- Declining R&D productivity is a key challenge
- Is critical mass a key factor in a successful pharmaceutical sales and marketing strategy?
- Has the era of the mega merger ended?
- Smaller-scale acquisitions, licensing and alliances look set to deliver greater returns going forward
- Roche's strong network of alliances and acquisitions is driving rapid sales growth
- Companies need to look to earlier stage licensing to find the best opportunities
- The late-stage licensing arena is highly competitive
- Companies should dedicate greater efforts to licensing products in earlier stages of development
Appendix
- Extended methodology
Further reading
- Datamonitor Consultancy
- Ask the analyst
List of Tables
- Table 1: Top 20 Pharmaceutical Companies 2004
List of Figures
- Figure 1: Recent "mega mergers" in the pharmaceutical industry
- Figure 2: R&D expenditure has increased substantially, however, NCEs approvals by the FDA have decreased
- Figure 3: Analysis of 2004 total sales and S,G&A spend of the top 55 Pharma Companies
- Figure 4: Drug discovery licensing dependence of the top 10 pharma companies
- Figure 5: Selected companies that form part of Roche's alliance network
- Figure 6: Development stage of products licensed by type of deal, 2000-04