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Bristol Myers Squibb Analysis

An avenue that Bristol Myers Squibb can and may be forced to consider as a remedy for its pipeline problems is a Merger & Acquisition strategy. With the economic downturn in full force the pharmaceutical industry stands out as an exception to the wait-and see mood of the markets. Mergers and Acquisitions in pharmaceuticals and biotechnology sector have actually sped up as companies try to survive in a market that demands high returns to offset skyrocketing R&D expenses and lost revenues as high revenue drugs come off of patent.

In addition to soaring R&D costs, pharmaceuticals are facing unprecedented competition, and the need to come up with new products to fuel their pipelines in greater than ever. Pharmaceuticals are also coming to the realization that the products they launch tomorrow will not come from internal research any longer, but more likely will come from the biotechnology sector. Consequently, M&A activity is increasing as Big Pharma attempts to secure intellectual c...

Posted by: William Katz

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