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.
The author says…
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