EvaluatePharma, some companies have already moved by selling units and products
Acquisition activities in the pharmaceutical sector are slowing down. Few marriages, therefore, while it seems that there is an increase in divorces on the horizon. Just look at 'trendsetters' like Abbott, Johnson & Johnson and Pfizer, who are starting to think 'small' and moving to divest business units.
This is noted by an analysis by EvaluatePharma. The latest example in this sense came last week, when Bristol-Myers Squibb sold the license for some OTC brands in various Latin American countries to Reckitt Benckiser, with a view to a real sale after three years.
The year then began with Abbott 'split' in two, creating the AbbVie pharmaceutical division. Pfizer, on the other hand, now has a minority stake in its Zoetis animal health unit. In short, according to the experts it is quite clear that the hunger for major mergers is on the wane and even Johnson & Johnson is thinking about what previously would have seemed unthinkable: selling off its diagnostics division.
According to analysts, other companies will also be able to get rid of units such as animal health, diagnostics and over-the-counter products in the short term. With all the risks of the situation: getting rid of the 'frills' and focusing only on drugs could be a positive solution. But if things go wrong then, there will be no more 'buffer' units to limit the damage.
Barbara Di Chiara – February 19, 2013 – PharmaKronos
