Mergers & Acquisitions update:_Changing the strategic paradigm in the global generics market

摘要

The generic pharmaceutical sector has witnessed an unprecedented level of mergers & acquisitions (M&A) activity in recent years. Companies are engaging in merger activity to strengthen their strategic positioning in response to the changing competitive landscape in the industry. In a growing global generic market, having adequate scale and financial strength will be key attributes to manage pressure on pricing and margins, capture growth opportunities globally, establish a competitive cost base, and be able to pursue high value but high investment opportunities in niche generics and biologics. The emergence of a tier of large leading generic companies as well as the renewed interest by big pharma in the generic market are forcing industry participants to determine their strategy and role towards the consolidation trend. In an industry that remains highly fragmented, the changing market environment is expected to lead to continued M&A activity which will change the shape of the industry in the future.