LONDON, June 23, 2011 /PRNewswire/ --
Alacrita, which is changing the face of life science consulting, has published an insight into the future development of the global pharmaceutical industry. In the whitepaper, Alacrita sets out a vision of how the industry may look as it evolves in response to the challenges it faces and reflects on the decisions it has made. In particular, Alacrita considers whether the industry will reverse the unparalleled consolidation seen in the past 25 years to produce a diversity of strategically independent participants that operate along an extended pharma value chain. Such a split into distinct innovators, service providers and marketers would represent a wholesale adoption of the biotech model.
The article, written by Alacrita partners Anthony Walker and Rob Johnson, was published in the June issue of Business Development and Licensing Journal (Ref. 1) and is available at http://www.alacritaconsulting.com.
"The pharma industry has undergone significant change over the last decade as it has tried to maintain double digit growth and profitability in the face of decreasing R&D productivity, looming patent cliffs and increased focus on containing healthcare costs," said Dr Walker. "Aggressive M&A strategies haven't solved the problem, and we are seeing heightened activity in franchise management where portfolios are being vigorously reshaped through a combination of acquisition, licensing and partnering on the one hand, and project terminations and divestments on the other."
"Pharma companies are increasingly becoming more focused and
streamlined, with a greater emphasis on building core strengths and
shedding non-core assets. Funds are being shifted to activities or
functions that add the greatest value and if 'greatest value'
requires a function to be carried out by an external party,
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