More Merger Mania Ahead For Pharma
Businessweek has an article about merger mania in the pharmaceutical industry, something I’ve been talking about for months.
More Merger Mania Ahead For Pharma
It is a good article and comments on several major players including Bristol-Mters Squibb and Wyeth. At a luncheon at a JPMorgan (JPM ) Healthcare conference in San Francisco recently, 60% of responders said BMS will be bought up if it loses its battle concerning Plavix which is a $3 billion year product for them. I mentioned this in a posting earlier before I had read this article.
Also, Wyeth was mentioned as another possible take-over target that I hadn’t considered. They are said to have over 60 compounds in development and the stock price is depressed right now although they have now settled their long-standing fen-phen lawsuits. I’m not sure what will happen.
I do think that merging simply to acquire a pipeline is short-sighted. I’ve stated several times here that I think the most innovative and cutting edge products tend to come from smaller companies willing to take risk. However, when they get purchased by a large pharma, it tends to suppress this innovation and many times key players are lost because they don’t want to be part of a larger slow moving organization. Again, killing the goose that lays the golden egg comes to mind.
Technorati Tags: BMS, Bristol-Myers Squibb, pharma M&A, pharmaceutical companies, pharmaceutical deals, Wyeth
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