• Industry: Healthcare & Life Sciences
  • Type: Survey report
  • Date: 8/12/2011

Pharma Execs Set Aggressive M&A Strategy To Develop Products, Spur Growth 

On the hunt for new therapies and new customers to drive growth, pharmaceutical executives will step up acquisition activity in the coming year, according to a recent survey by KPMG LLP.
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Among the survey's key findings:
  • 83 percent of executives said it is likely their company will be involved in a merger or acquisition as a buyer or seller in the next two years
  • 58 percent identified patent expirations of key therapies and generic competition as the top issue facing their company, followed by increasing regulation and enforcement (45 percent) and lack of new products in the pipeline (34 percent)
  • More than three quarters of executives said their organizations had significant cash on hand, and half of them said they expect to increase capital spending over the next year
  • Asked what single initiative their company’s management would spend the most energy on in the next two years, 23 percent said investing in organic growth, followed by cost reduction initiatives (16 percent), and improving operation processes and related technology (16 percent)
  • Asked about the timing of a full recovery, 31 percent said by the end of next year, 27 percent said not until the end of 2013, and 27 percent said not until the end of 2014