Market Report, "Pharmaceutical Diversification Trends 2012", published

Aug. 21, 2012 - PRLog -- Pharmaceutical companies are facing unprecedented pressures including revenue loss due to the patent cliff and growing healthcare cost containment measures introduced in most developed markets. As a result, they have been forced to reassess their strategies, with diversification beyond branded small molecule products and branded pharmaceuticals in general representing an obvious route.

Scope
* Analysis of the historical merger, acquisition and divestment trends of the top 10 pharmaceutical companies.
* Insight into the main diversification strategies employed by pharma, as well as analysis of the top 10 sectors pharma is diversifying into.
* Case study analysis comparing and contrasting the diversification strategies of the top 10 pharma companies.

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Full Report Details at
- http://www.fastmr.com/prod/449046_pharmaceutical_diversification_trends_2012.aspx
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Highlights

The branded prescription pharma sector is the most profitable healthcare sector. Provided that profit margins associated with innovative drug development remain high, pharma companies that have been successful in replenishing their pipelines with new drugs that lead to successful launches can do no better than to stick with what they do best.

While the innovation-driven diversification results in greater profitability, companies facing an imminent revenue drop due to weak launch portfolios are turning towards de-risking diversification, which enables them to close the revenue gap by entering low risk sectors such as consumer health and generics.

Divestment deals have been dominated by pharma's strategy to strip out manufacturing in order to become more focused on R&D and marketing, as well as to cut costs, while divestments in other non-pharma sectors have largely involved the sale of certain assets rather than the divestment of an entire unit or exit from a particular sector altogether.

Reasons to Get this Report

* What are the key drivers and resistors driving pharma companies towards becoming increasingly diversified?
* Which healthcare sectors offer the greatest synergies?
* What are the benefits and draw backs of innovation-driven diversification and de-risking diversification?

Partial Table of Contents:

EXECUTIVE SUMMARY

* Introduction
* Strategic scoping and focus
* Key findings

* The pharmaceutical industry is facing a number of challenges driving it towards diversification
* Diversification business models used by the pharmaceutical industry
* Synergies exist between different sectors
* Innovation-driven diversification has the highest profit potential
* De-risking-driven diversification strategy - putting growth before profit
* The level of prescription focus varies greatly among the top 10 pharma companies
* Prescription pharma-focused deals remain the mainstay of M&A
* M&A activity among the top 10 companies is indicative of their overall strategy and sector presence
* Emerging markets account for an increasing proportion of M&A deals
* Emerging market deals focus on generics and consumer health targets
* Divestment deals focus on manufacturing facilities

* Related reports

HISTORICAL M&A AND DIVESTMENT ANALYSIS 2007-11

* Intensity of M&A activity among the top 10 pharma companies peaked in 2009

* Sanofi was the most voracious acquirer during 2007-11

* The level of prescription focus varies greatly among the top 10 pharma companies

* Prescription pharma-focused deals remain the mainstay of M&A
* M&A activity among the top 10 companies is indicative of their overall strategy and sector presence
* Divestment deals focus on manufacturing facilities

* Geographic focus shifts towards emerging markets

* Emerging markets account for an increasing proportion of M&A deals
* Emerging market deals focus on generics and consumer health targets
* Emerging market growth is a key strategic priority for Big Pharma

PHARMACEUTICAL DIVERSIFICATION STRATEGY OVERVIEW AND SECTOR DISCUSSION

* The pharmaceutical industry is facing a number of challenges driving it towards diversification

* Revenue lost due to patent expiries not replenished by core portfolio sales
* Increasing pressure from payers is dampening growth rates

* Diversification business models used by the pharmaceutical industry

* Synergies exist between different sectors
* Significant overlap between diversification strategies is seen
* Integration versus spin-outs

* Innovation-driven diversification has the highest profit potential

* Small molecules sector is contracting, but still holds growth opportunities
* Monoclonal antibodies are the fastest-growing prescription drug segment
* Diversifying into vaccines enables innovative portfolio expansion and de-risking
* Medical device and diagnostics and pharmaceutical tie-ups have created limited synergies to date
* Companion diagnostics enable faster clinical development and favor reimbursement approval
* Emerging therapies offer new opportunities for pharma, but lack of progress reduces interest
* Parallel move into animal health can provide synergies with minimal costs
* Providing disease management solutions rather than simply treatments will become the norm

* De-risking-driven diversification strategy - putting growth before profit

* The generics sector has attracted Big Pharma despite low profitability
* Biosimilars offer a more profitable and higher-risk option compared to generics
* Pharmaceutical - consumer health/over-the-counter tie-ups
* Emerging markets growth a key driver for diversification into prescription and consumer health products

PHARMACEUTICAL DIVERSIFICATION COMPANY CASE STUDIES

* The level of prescription focus varies greatly among the top 10 pharma companies
* Pfizer

* Pfizer is a moderately diversified company, but is increasing its prescription pharmaceutical focus
* Lipitor patent expiry dampens outlook
* Strategy - continued diversification in therapy area and sector

* Novartis

* Novartis is one of the fastest growing Big Pharma companies
* Generic erosion reduces sales growth, but Novartis still outperforms the peer set
* Novartis is following a strategy of focused diversification

* Sanofi

* Sanofi is a moderately diversified pharma company
* Patent expiry of key products reduces sales growth

Full Table of Contents is available at:
-- http://www.fastmr.com/catalog/product.aspx?productid=4490...

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