Navigation Links
Deloitte Report: Pharmaceutical Companies' Patent Cliff Could Bolster Mergers and Acquisitions
Date:10/27/2009

NEW YORK, Oct. 27 /PRNewswire/ --

What:

"Acquisitions versus Product Development: An Emerging Trend in Life Sciences"

Who:

Phil Pfrang, partner, Deloitte & Touche LLP

When:

Available immediately

Where:

www.deloitte.com/us/acqusitionsvsproductdevelopment

Details:

Recent pharmaceutical mergers and acquisitions indicate a trend of consolidation in the industry. Companies are looking for ways to bolster their research and development pipelines and reduce costs by rationalizing their combined sales and reducing other corporate overhead. The specter of possible healthcare reforms and the fact that drugs representing more than $74 billion in sales will lose patent protection by 2012 are also driving a new trend of later-stage mergers.

Deloitte's report, "Acquisitions versus Product Development: An Emerging Trend in Life Sciences," indicates an increasing preference for deals involving companies with compounds in the later stages of development.

"With so many rapidly changing dynamics -- the patent cliff, healthcare reform and still-dry capital markets -- the trends in life sciences industry consolidation are almost certain to continue with a growing emphasis on those deals with companies involved with late stage developed compounds," said Pfrang. "Healthy companies have good cause to pursue deals that promise faster revenue streams and profits. Likewise, cash-strapped companies -- particularly firms with rich research and development pipelines -- are likely to seek deals rather than face other alternatives."

Pfrang noted that acquirers or licensees have the opportunity to cut costs while leveraging their clinical development capabilities to accelerate the filing and launch of deals with a higher likelihood of demonstrating approvable drug efficacy profiles.

"However while late-stage deals may have lower overall risk, later-stage deals and associated higher deal valuations can pose greater financial risk," Pfrang added. "This is because executing and integrating later-stage deals often presents a unique set of challenges and missteps that can have a high cost, including delaying product launch, or worse, compromising the entire program."

To download a copy of the paper, please visit: www.deloitte.com/us/acqusitionsvsproductdevelopment.

To speak with Deloitte about the paper and related issues, please contact John La Place at 212-492-4267, or jlaplace@deloitte.com and Peter Poulos at 212-885-0588, or peter.poulos@hillandknowlton.com.

About Deloitte

As used in this document, "Deloitte" means Deloitte & Touche LLP and Deloitte Services LP, which are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

SOURCE Deloitte


'/>"/>
SOURCE Deloitte
Copyright©2009 PR Newswire.
All rights reserved

Related medicine technology :

1. Advanced Health Media Named to Deloittes 2009 Technology Fast 500(TM)
2. Accuray Ranked 155th Fastest Growing Company in North America on Deloittes 2009 Technology Fast 500(TM)
3. Deloitte and Nonprofit Roundtable Host Real-World Disaster Exercise as Next Step in Developing Preparedness Plan for Greater Washington Region
4. American Heart Association Journal Report: Miniaturized Heart Pumps May Be Effective for Children Awaiting Transplant
5. American Heart Association Journal Report: Surgical Residents Perform Heart Surgery as Effectively as Staff Surgeons
6. American Heart Association Journal Report: Reducing Kids Salt Intake May Lower Soft Drink Consumption, Reducing Obesity, High Blood Pressure and Later Health Risks
7. Hopkins Report: Focusing on Family Planning Lessens HIV Impact
8. Cumberland Pharmaceuticals to Announce Third Quarter 2009 Financial Results on November 10, 2009
9. Intercept Pharmaceuticals Announces Positive Phase II Results for INT-747 as a Treatment for Primary Biliary Cirrhosis
10. Bellicum Pharmaceuticals Announces $4.5 Million in New Funding
11. BioMarin Acquires Huxley Pharmaceuticals, Inc.
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/24/2016)... -- Research and Markets has announced the addition ... report to their offering. ... The World Market for Companion Diagnostics covers the world ... in the report includes the following: , ... by Region (N. America, EU, ROW), 2015-2020 , World ...
(Date:6/24/2016)... , Belgium , June 24, ... VNRX), today announced the appointment of Dr. ... Directors as a Non-Executive Director, effective June 23, ... Audit, Compensation and Nominations and Governance Committees.  As ... Futcher will provide independent expertise and strategic counsel ...
(Date:6/23/2016)... , June 23, 2016 Research ... Devices Global Market - Forecast to 2022" report to ... the treatment method for the patients with kidney failure, it ... excess fluid from the patient,s blood and thus the treatment ... potassium and chloride in balance. Increasing number ...
Breaking Medicine Technology:
(Date:6/25/2016)... (PRWEB) , ... June 25, 2016 , ... Conventional wisdom ... of success. In terms of the latter, setting the bar too high can result ... more than just slow progress toward their goal. , Research from PsychTests.com ...
(Date:6/24/2016)... ... June 24, 2016 , ... Marcy was in a crisis. Her son James, eight, was ... his family verbally and physically. , “When something upset him, he couldn’t control his emotions,” ... He would throw rocks at my other children and say he was going to kill ...
(Date:6/24/2016)... (PRWEB) , ... June 24, 2016 , ... Comfort Keepers® ... American Cancer Society and the Road To Recovery® program to drive cancer patients to ... and other adults to ensure the highest quality of life and ongoing independence. ...
(Date:6/24/2016)... ... June 24, 2016 , ... ... to recognize Dr. Barry M. Weintraub as a prominent plastic surgeon and the ... in the world, and the most handsome men, look naturally attractive. Plastic surgery ...
(Date:6/24/2016)... , ... June 24, 2016 , ... Venture Construction ... Classic Tournament held on June 20th at the Woodmont Country Club at 1201 ... Wings, an organization dedicated to helping service members that have been wounded in battle ...
Breaking Medicine News(10 mins):