Industry insiders see biopharma supplier shakeout

Companies that specialize in supplying the world's drug companies may soon be in for a huge shakeout. Several industry insiders tell the Boston Globe that a range of cost-conscious drug companies will start narrowing their lists of suppliers, putting a major squeeze on suppliers and likely forcing many to merge. The Globe sees this as potentially the next big wave of consolidations to shake the life sciences industry. "The industry should consolidate," John L. Sullivan, a financial analyst with Leerink Swann & Co. in Boston, tells the newspaper. Small suppliers would benefit by joining forces with a worldwide supplier while big outfits can expand their portfolio of products.

"I think that the large drug companies are looking for fewer suppliers," says PerkinElmer CEO Robert F. Friel. "I think there is a natural evolution where there is consolidation and that will continue."

 

- read the article from The Boston Globe

Suggested Articles

Novartis unveiled more data showing how its asthma combo QMF149 fared against the standard of care: a combination of the same types of drugs.

Johns Hopkins researchers developed a biodegradable polymer to transport large therapies into cells—including genes and even CRISPR.

UCB’s bispecific antibody recently beat Johnson & Johnson’s Stelara at clearing psoriasis symptoms, and now it has bested AbbVie’s Humira, too.