Printer Friendly

Pharmaceuticals. (Industry Watch).

Pharmaceuticals: Lower company earnings could set off a new wave of mergers and acquisitions in the pharmaceutical industry. Patent expirations, fewer new drugs on the market, and moves to lower or stabilize pricing from government bodies have put pressure on pharmaceutical earnings. Bristol-Myers Squibb, Merck and Eli Lilly are all expected to report disappointing results for this year. Bristol-Myers is widely considered the most likely takeover target. Companies considering the possible acquisition include Novartis, Pharmacia, GlaxoSmithKline and Wyeth. More merger and acquisitions could also be on the way for biotech companies with Celltech topping the list of potential acquisitions. But any merger or acquisition among big pharma will have to overcome a number of potential problems. The deals could face antitrust regulations due to the chances that one company will dominate a certain category of therapeutics. Investor sentiment, concerns about larger research operations, thin product pipelines among possible acquisition targets, and issues involving personnel could also deter such deals.

Source: Financial Times
COPYRIGHT 2002 Strategic Directions International Inc. (SDI)
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Instrument Business Outlook
Article Type:Brief Article
Geographic Code:1USA
Date:May 15, 2002
Previous Article:Environmental. (Industry Watch).
Next Article:Oil & gas. (Industry Watch).

Related Articles
The Outdoor Network.
Litigation packets guide bad-faith, pharmaceutical, and discrimination cases.
Getting the health care we need, instead of the products someone wants to sell.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters |