In summary
The author says…
|
It is likely that a new round of mergers and acquisitions are set to take place in the pharmaceutical industry. Although such
tie-ups can improve pipelines in the short-term and improve marketing potential, many of the mergers are also influenced by
pressure from outside parties who believe bigger organisations will provide better financial return to investors. The financial
effort required for the next round of mergers among the top ten companies will need to be huge. As has already been seen,
targeted companies tend to hold out for improved offers rather than accept an initial approach. Takeovers will have to be
planned meticulously since companies will need to determine how they borrow the billions of dollars required, absorb the costs
involved and yet still deliver on their promises to investors.
References
1. KPMG, "Global M&A: Outlook for Pharmaceuticals" (2009).
http://www.kpmgeuropellp.eu/
2. Chemistry World, "Pharma's year of merger mania" (2009).
http://www.rsc.org/
3. A. Pollack, "Roche Agrees to Buy Genentech for $46.8 Billion" (2009).
http://www.nytimes.com/
4. Drug, Discovery & Development, "Roche Leaves PhRMA" (2009).
http://www.dddmag.com/
5. Wall Street Journal, "Pharmaceutical Merger Bonanza: $500 Million of Fees in 3 Months" (2009).
http://blogs.wsj.com/
6. R. Breitman, "Pharma Mergers Boom Despite Global Credit Woes" (2008).
http://www.law.com/
7. Anon, "King Completes Acquisition of Alpharma. King Pharmaceuticals" (2008).
http://www.kingpharm.com/
8. A. Pollack, "Genentech Urges a Rebuff to Roche" (2009).
http://www.nytimes.com/
9. S. Cage, "Roche seen upping $42 billion Genentech bid after rebuff" (2009).
http://www.reuters.com/
10. Anon, "Roche and Genentech reach a friendly agreement to combine the two organizations and create a leader in healthcare
innovation" (2009).
http://www.roche.com/
11. T. Staton, "Merger costs weigh on Pfizer, Roche" (2010).
http://www.fiercepharma.com/
12. L. Johnson, "Pfizer CEO: Wyeth Merger Will Bring What's Needed" (2010).
http://www.dddmag.com/
13. Wall Street Journal, "Checking the Math on Job Cuts at Pfizer and Wyeth" (2009).
http://blogs.wsj.com/
14. E. Silverman, "Merck And Pfizer Plan 900 Job Cuts" (2010).
http://www.pharmalot.com/
15. R. Waters, "Genentech culture intact after Roche takeover" (2010).
http://articles.sfgate.com/
16. T. Staton, "Sanofi isn't alone in eyeing Genzyme deal" (2010).
http://www.fiercepharma.com/
|
