Aug 02, 2011
From the Healthcare & Life Sciences Institute
Pharmaceuticals executives survey: Executives seek M&A to spur growth a new report from KPMG LLP, summarizes the key results of our survey with 100 U.S. executives from the pharmaceuticals and life sciences industry during the first quarter of 2011. All respondents represented companies with annual revenues in excess of $100Million, with the majority (52 percent ) from companies with revenues of $10 Billion or more.
As the title suggests, the survey revealed the fact that 83 percent of respondents expect their company to be involved in merger or acquisition activities over the next two years, with 73 percent anticipating their company will be a buyer. Their top drivers for M&A are access to new products and technologies (70 percent) and new geographic markets (52 percent) as their greatest concerns for the future are patent expiration's and generic competition (58 percent) and the lack of new products in the pipeline (34 percent). Increasing regulation and enforcement is also a widespread concern (45 percent ) and the leading barrier to growth (60 percent).
While these trends are not surprising, the data provide new insight into the size and scope of the changes continuing to shape this sector.