Strategy Diversification Divested: Productivity
measurements, Divestment of non-core assets resulting in 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 dollars 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 by large cap Pharma companies. Most companies are in 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 this area.
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.
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.
Spanning
over 63 pages “Global Pharma US & EU
Outlook 2015 : First –In- Class Innovations and Cost Optimization Plays Major
Role In Shaping Up Business for Large Cap Pharmaceutical Companies” report
covering AstraZeneca: Late Stage Pipeline maturing; Focused development on
Respiratory, Psoriasis and anti-PD1 will support long term growth, Nexium OTC
approved and generic entry in 2015, The impact of competition on Faslodex, Key
milestones. This report Covered These Companies - AstraZeneca, Merck, Merck
KGaA, Novartis, Novo Nordisk, GlaxoSmithKline.
For further information on
this report, please visit- http://mrr.cm/4c4
Find
all Pharma and Healthcare Reports at: http://www.marketresearchreports.com/pharma-healthcare
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