Pfizer / Wyeth Merger Will Force Big Pharma to Consolidate Says New Report by URCH Publishing
Further M&A Deals within the Year Predicts URCH Publishing
LONDON -- Pfizer's merger with Wyeth will bring significant change to the pharmaceutical industry and may result in more large deals before the end of the year, suggests a new report. "Mergers and Acquisitions in the Pharmaceuticals Sector, 2009 - Critical success factors for competing in a consolidating market" from URCH Publishing, says that a number of major pharmaceutical players will follow in the footsteps of Pfizer and enter into significant M&A transactions.
"2009 is set to redefine the structure and dynamics of the pharmaceutical industry in a way not seen since the year 2000, says Steve Seget, the report's author.
The 111 page report study that it is likely that the ‘mega-M&A' wave started by the three deals agreed in the first quarter of 2009 is not yet finished, with possibly three more mega-deals to go, which will see movement in the top ten pharmaceutical company list.
"The two most likely deals appear to be the acquisitions of Bristol-Myers Squibb and Bayer," commented Mr Seget. "Currently the best placed acquisitors appear to be Sanofi-Aventis and Novartis, but we should not rule out Johnson & Johnson or GlaxoSmithKline, if its acquisition of Allergan does not come to fruition."
The companies under most pressure to enter into a significant M&A are Eli Lilly, GlaxoSmithKline and Takeda. Each company must actively review transformational M&A opportunities in order to satisfy investors and continue to compete with those companies who have already merged
Significant pharmaceutical industry consolidation will lead to a fundamental shift in the market dynamics across all major product categories. Key challenges for all companies include managing the disruption caused by consolidation and exploiting economies of scope and scale. Competing in a consolidated world will require a balance between delivering scale and diversification while generating innovation and flexibility, notes the report.
"Mergers and Acquisitions in the Pharmaceuticals Sector, 2009 - Critical success factors for competing in a consolidating market" is available from URCH Publishing. http://tinyurl.com/dz2v7m
About URCH Publishing Ltd (http://www.urchpublishing.com)
URCH Publishing Ltd is an independent business information publisher dedicated to delivering quality information products to the global pharmaceuticals industry. For more information contact URCH Publishing on +44 (0) 20 7060 1099 or email service[@]urchpublishing.com