Monday, December 26, 2005
Big Pharma in 2006 - survival of the fittest
How will Big Pharma fare in 2006? The markets have been trying to drum up some positive sentiment for the sector.
But, as Insider has pointed out previously, it's not going great for the drug company dinosaurs at the moment. A LOT of blockbusters are approaching patent expiry and there just aren't the molecules in the pipeline to take their place!
So. What will happen?
1. A lot of activity in biotech and "small to medium Pharma" as these minnows are gobbled up by Big Pharma for their hopeful molecules in development.
2. A lot of "stealth layoffs" in Big Pharma salesforces. These will be kept as quiet as possible.
3. More public downsizing of Big Pharma production and research staff and facilities.
4. A few mergers - but not frantic activity. That's unless another "Vioxx issue" rears its head.
Merck seem to be on the comeback trail and AZ have recently tried to bolster their pipeline. Let's see if that is enough.
Should be a great year for PharmaGossip!!