Pfizer-Medivation is just the latest operation. The medicines market has a global business of 1,114 billion dollars. But beyond the 30% it is in the hands of 10 companies. X-ray multinationals.
The fever from mergers and acquisitions in the pharmaceutical sector continues unabated.
The latest blow in chronological order is that of Pfizer which, after the April 2016 halt to the union with the Irish Allergan, announced that it had reached a 14 billion dollar agreement to buy the independent biotech company Medivation, its second largest deal after the purchase of Hospira in 2015 for 17 billion dollars. SEARCH FROM RATIONALIZE. The president of Farmindustria Massimo Scaccabarozzi explains to Letter43.it: «The one achieved by Pfizer is one of many deal that have followed one another in the sector for some time, generally the goal is to become bigger to meet the growing costs for research and development: after all, making a drug requires an average expenditure of 2-2.8 billion euros».
STARTUP HUNT. However, often "large pharmaceutical companies, as Pfizer has now done, aim for smaller companies, sometimes startups, which allow them to acquire know-how in areas of interest to them", continues Scaccabarozzi, "in fact the groups usually focus on five to six therapeutic areas, for example those of oncology or vaccines".
A product of the Irish company in particular appeals to Pfizer: Xtandi, the most sought-after prostate cancer drug on the market and which has so far generated around 2 billion in sales.
According to analysts, it has strong growth potential. By 2020 it should guarantee revenues of 5.7 billion dollars.
THE 30% OF THE MARKET AT 10 COMPANIES. In short, a market made up of large companies that tend to suck smaller companies into their orbit or to seek forms of partnership if not mergers.
According to data reported by Igea, the site specialized in the pharmaceutical world edited by Luca Dezzani, global medical director of Novartis, the global turnover of drugs is approximately 1,114 billion dollars (2015 data). Besides the 30% on the market, however, it is in the hands of just 10 big names. Here's what they are.
(… continue on Letter43 of 26 August 2016 Of Pier Luigi Dear)
Related news: Top 10 Pharmaceutical Companies 2016
