OK, here's the thought.
Pfizer now needs to do somthing to offset the billions wiped off their value by the loss of torcetrapib.
Could this now be the stimulus for another round of Big Pharma mergers?
Outgoing GSK CEO JP Garnier has predicted they're coming.
Incoming Pfizer CEO Jeff Kindler has said there are no "sacred cows".
Does that include M&A's Jeff?
1 comment:
Last merger mania of the 90's that made the big pahrma the today's BIG PHARMA was done in such a way that mergered companies reduced some operations by streamlinenig, but kept the sales forces of both companies and some, by massive hiring of new reps. That was the multiple sales forces business model, never seen before in any business.
Now if mergers do happen, it will be the reverse. There will be a massive contraction of many operations but especially sales forces. The big pharma companies will become bigger by getting smaller. Last time 2+2 was 5, this time 2+2 will be 3.
Will they ever learn. They allweys keep saying the changes are needed, the changes are needed,when in fact they are never able to find a "normal" business model that would do. Why, because they are always looking for that gold at the end of the rainbow, the excessive profits that can only be made with using every means possible, be it legal or illegal. How sweet it was.
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