Dallas, Texas (PRWEB) February 05, 2014
Strategy Diversification Divested: Productivity measurements, Divestment of non-core assets resulting in a healthy Cash position- Will accelerate Next wave of targeted acquisition.
In the recent years, several new therapies have been approved in the area of diabetes (SGLT-2, GLP-1 agonists), Multiple Sclerosis, HCV, melanoma and breast cancer from major pharmaceutical companies. Many of them are expected to reach multibillion dollar peak sales in the near-term which is likely to compensate the patent expiry loss in top-line revenue. Novel mechanisms like anti-PD1, anti-PCSK9 and CDK inhibitors have also got exclusive attention from large cap Pharma companies. Most companies are in a race to acquire assets in these hot therapy areas. Companies who already have these assets are investing heavily in clinical development programs. The interest in pursuing opportunities in Oncology therapy is unhindered for all major Pharma companies. Research investments in oncology likely to continue for several more years due to the significant unmet need exist in Pharmaceutical & Biotechnology area (http://www.reportsnreports.com/reports/274520-global-pharmaceutical-biotechnology-outlook-2014-major-us-and-eu.html).
But for a few companies, patent expiry impact continues to haunt the top-line and they are finding it difficult to replace declining sales with Proprietary pipeline products. Beyond 2013, the impact of patent loss will further aggravate the revenue decline. They have chosen strategies of prioritization pipeline assets, cost efficiency measures, divestment of non-core assets which yield poor margins and increase focus on therapy areas where they have already proven its mettle. Increase in dividend payout and share repurchase are some near term measures where they are actively participating. Gain in financial strength through divestment of non-core assets (OTC, Animal Health, Consumer health, Diagnostics) will be utilized in pursuing opportunities in high margin therapy areas. At the same time it has becoming more difficult to find such lucrative assets because they are scarce and if available are trading at very high premium in speculation of getting acquired (ex. Roche-Alexion). Going forward, Economies of Scale will also play a major role in swapping the non-core business among major pharma including Vaccines, OTC and animal health to improve margins.
Purchase Report: http://www.reportsnreports.com/purchase.aspx?name=274520.
Global Pharma continues to remain attractive due to management efforts on the restructuring of entire business model, cost efficiency measures, de-consolidation, acquisition of high value targeted assets, share repurchase program and dividend policy.
Global Biopharmaceutical Outlook 2014-Global Pharma, released provides analyses of individual large cap companies, promising drug candidates in their late stage pipelines, competitive landscape, and important therapy areas where new innovation will create leadership, forecast for major marketed drugs where competition/ regulatory scenario will change the dynamics, and the potential impact of several important upcoming milestones on the industry.
Major Points from Table of Contents:
Macro Analysis: Strategy Diversification Divested: Productivity measurements, Divestment of non-core assets resulting in healthy cash position- Will accelerate Next wave of Targeted Acquisitions
1. AstraZeneca: Early Stage Pipeline Strong; Bold Initiatives Offer Some Relief But Are Not Enough To Hold Pressure
2. Bristol-Myers Squibb: Specialty Biopharma with Oncology Focus Can Give Returns: Nivolumab and Eliquis Success Important
3. Eli Lilly: Patent Pressures Aggravated With Undifferentiated Pipeline Assets but Supporting Diabetes Market Offers a sigh of Relief
4. GlaxoSmithKline: Base Business Provides Sustainability; Several Block Buster’s Will Offer Growth!
5. Merck: Restructuring Impact And Targeted Focus On Oncology And HCV Will Drive Growth!!
6. Pfizer: Dependent on Palbociclib and Prevnar-13 in Adults to Sustain Business!
7. Novartis: Pipeline Strengthening : De-consolidation Will Provide Targeted Focus
8. Novo Nordisk: GLP-1 and Insulin Market Becoming Too Competitive; Relief Should Come From Victoza in Obesity
9. Roche: Pricing Power With Strong Foot Hold In Oncology Will Drive Growth
10. Sano: Sustainable Business but Innovative Pipeline Not Impressive
Other Relate Report:
Global Pharmaceutical and Biotechnology Outlook 2014 - Japan Pharma (http://www.reportsnreports.com/reports/274519-global-pharmaceutical-and-biotechnology-outlook-2014-japan-pharma.html): The 138 pages report contains the detailed discussion of Japan biopharmaceutical market – which includes- Our view on the impact of 2014 price cuts on generic companies and innovator companies and detailed discussion on key attributes (consolidation activities, potential of R & D pipeline candidates, generic threat in domestic Japan market etc…) of leading Japanese innovator companies- Astellas, Chugai, Daiichi Sankyo, Dainippon Sumitomo, Eisai, Kyorin, Kyowa hakko Kirin, Mitsubishi Tanabe, Shionogi, Takeda and leading Japanese generic companies- Nippon Chemiphar, Sawai and Towa.
Explore other Reports by MP Advisors: http://www.reportsnreports.com/publisher/mp-advisors/.
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