AstraZeneca to purchase Shire? Another Potential Merger
A recent Reuters article point out what I have been talking about for quite a while. The merger and activities in the pharmaceutical/bitech are getting bigger in some cases reaching a 100% premium! As far as I’m concerned, this is definitely signs that, the M&A activity has gone beyond intelligent moves and into the area of “I’m doing it because everyone else is doing it”.
Big pharma cash keeps biotech on a roll | Reuters Recommends | Reuters.com
I really don’t think this will help the big pharma companies improve their overall ability to produce medicines in the long run. I personally think that as big corporate company gobbles up smaller companies, they take away the culture that leads to the productivity. I have seen this happen and many times, some of the ket people responsible for the success of the small company end up leaving soon after.
I would much rather see big pharma do partnerships and other deals with smaller biotech. Although even here , if there is only one successful product, it is cheaper for the big pharma company to purchase their smaller partner then to continue paying them royalties or payments. You need look no further than the Eli Lilly Icos merger recently for evidence of this.
Technorati Tags: AstraZeneca, pharma M&A, pharmaceutical deals, Shire Pharmaceuticals
Related Posts:
Bookmark it with:
| 
del.icio.us
| 
Digg it
| 
Furl
| 
Simpy
| 
Spurl
| 
My Yahoo!
|
