American pharmaceutical companies plan to step up their mergers and acquisitions in an effort to appropriate new therapies. And they have the money to do it, according to a survey conducted overseas by KPMG.
100 US pharmaceutical executives were interviewed and the 83% said their company is likely to be involved in a merger or acquisition as a buyer or seller in the next two years. Furthermore, approximately 41% of respondents believe that the largest area of spending in the coming year will be acquisitions, followed by new products and services, at 38%, and research and development, also at 38%.
A strategic acquisition was cited as the top investment priority by 40% executives, followed by expansion into new markets (22%). The 58% identifies patent expirations and generic competition as the key issues facing your business. This is followed by increasing demands from regulatory authorities (45%) and a lack of new products in the pipeline (34%). More than three-quarters said companies have significant cash availability and half expect an increase over the next year. But how soon will companies fully recover? According to executives 31% by the end of next year, for 27% not before the end of 2013 and for 27% at the end of 2014.
Barbara Di Chiara – 15 July 2011 – Pharmakronos
