Where are the pharma and biotech sectors heading in 2004and beyond...?
The management report ' Future Growth Strategies: Drivers of sustainable
development within the biotech, specialty and major pharma sectors' , provides
the timely analysis senior executives need to maximize business opportunities in
2004. This report assesses favored growth strategies for pharma and biotechs and
offers productive solutions to assure long-term success.
This report examines
the feasibility of blockbuster drug development as a foundation of major pharma
growth and proposes alternatives to expansion through M&A, expounding the
benefits of in-licensing and then networked growth. It also focuses on the group
of small ethical, generics, drug delivery and certain biotech firms that
together constitute the specialty pharma sector.
Fundamentally this report
will provide you with the analysis you need to; grow in your own sector
successfully, understand other sectors' growth strategies, take advantage
of new market opportunities and prepare counter strategies for threats presented
by new entrants.
Top 5 reasons to order your copy today...
- Identify the growth potential of blockbuster market and its impact on big
pharma, generics, and drug delivery companies.
- Assess strategies to overcome declining profit margins in R&D, sales
and marketing, such as in-licensing and networked growth.
- Evaluate the drivers and resistors of specialty pharma sector growth to
2012 and prepare to exploit new opportunities.
- Understand the rise in intra-biotech deals and how this affects strategy
formulation for both pharma and biotechs.
- Review the changing balance of power in the relationship between pharmas
and biotechs and understand how pharmas need to focus more on becoming a
partner of choice in win-win deals.
The answers to your questions
- What effect will slower growth in the blockbuster market have on major
pharma companies wider growth prospects?
- What are the relative benefits of in-licensing versus M&A for major
pharmas, specialty companies and biotechs?
- What implications does increasing competition for attractive in-licensing
candidates have for deal terms and values?
- How can specialty pharmas improve their product/franchise/corporate search
strategies?
- How can biotechs reduce their reliance on pharma companies for growth
opportunities?
- How can platform technology companies protect themselves from larger
companies moving directly upstream
Key findings of the report
- M&A is an unsustainable growth strategy. After one-off cost savings, a
lack of scale economies in R&D and sales activities means that while
higher investment will generate higher revenues, it will not increase
returns.
- Major pharma's core competency is sales and marketing. Thus, in the
medium-term, networked growth will focus on expanding alliances with
biotechs to source new products and technologies. Increasing competition for
biotech's services will require greater consideration of non-financial
aspects in licensing negotiations.
- Patent expiries on major products will expose around $80bn to generic
competition, fueling rapid growth of generics companies to at least 2007.
This will provide many with the funds needed to move towards fully
integrated pharmaceutical company status.
- Poor returns from in-house R&D are prompting fully integrated biotechs
to merge or acquire to grow. This strategy is particularly favored as a
means of securing access to late-stage products. However, over the longer
term, in-licensing may be more sustainable.
- To optimize their revenue potential, biotechs are increasingly targeting
high value therapy areas, such as oncology and inflammatory disease,
bringing them into direct competition with major pharmas and undermining the
viability of establishing an in-house sales force.