M&As to push 2014 sales to $381 billion

Article

Pharmaceutical Technology Europe

M&As remain an integral part of Big Pharma's strategy and will contribute almost two-thirds of peer set sales growth up to 2014, according to market analyst Datamonitor.

M&As remain an integral part of Big Pharma's strategy and will contribute almost two-thirds of peer set sales growth up to 2014, according to market analyst Datamonitor. The analyst firm believes that M&As are a long-term feature of the pharma industry and have played a key role in shaping the structure and composition of today's leading companies.

The last decade has seen a wave of major M&A activity, from the creation of AstraZeneca and GlaxoSmithKline to the merger of Pfizer and Wyeth, and Merck and Schering-Plough. To quantify how much sales growth has been driven by M&A versus how much has been self-produced through organic growth, Datamonitor analyzed a 20-year sales dataset comprising 14 years (1995–2008) of company reported sales and 6 years (2009–2014) of forecast data.

Big Pharma's sales were $84 billion in 1995 and, based on organic growth only, are forecast to increase to $195 billion by 2014; however, M&A activity is expected to lift 2014 sales to $381 billion. Therefore, during 1995–2014 M&A activity is expected to account for 63% of absolute growth. Datamonitor also believes that the mergers will help Big Pharma to maintain its share of the total prescription pharma market.

www.datamonitor.com

Newsletter

Get the essential updates shaping the future of pharma manufacturing and compliance—subscribe today to Pharmaceutical Technology and never miss a breakthrough.

Recent Videos
Tore Bergsteiner
Behind the Headlines, Episode 20: CAR-T Milestones, Abbvie and Eli Lilly M&A Moves, and More
DC skyline at night with view of the White House and the Washington Monument | Image Credit: © Jessica - stock.adobe.com
Behind the Headlines, Episode 18