30. January 2012 15:36
Deal-making activity fell by nearly a fifth last year as pharmaceutical companies reduced R&D expenditure and streamlined their activities, research has shown.
PharmaVentures found that overall deals were down by 18% in 2011 and licensing arrangements fell by 16%. However, M&A activity increased by 30% as companies sought to secure their futures.
Fintan Walton, Chief Executive of PharmaVentures, said the industry is “undergoing a rapid and major transformation” but there was still “significant opportunity for great deals to be done”.
Research focused on PharmaVentures’ database, records and working relationships from within the pharmaceutical industry. It revealed that although merger deals were on the rise, so too were the contingency payments included in recent deals.
Oncology was the most popular therapeutic area to dominate the landscape with Roche being the most prolific deal-maker.
Unsurprisingly, pharmaceutical companies turned to Emerging Markets – particularly China and India – to conduct the majority of their deals. AstraZeneca recently completed a deal to acquire Guangdong BeiKang Pharmaceutical, a manufacturer of generic injectable antibiotics, to strengthen its position in the region. Bayer HealthCare also increased its presence in India last year when it partnered with Zydus Cadila after Merck had created a similar venture with Sun Pharmaceutical Industries.
PharmaVentures is an international healthcare advisory group.
9. December 2011 11:07
AstraZeneca will reduce its US sales force by nearly a quarter (24%) as part of new plans to operate its business more efficiently.
Approximately 1,150 leadership and sales representative positions will be axed in the plans which the company claims will cost between $50 and $100 million.
Rich Fante, President, AstraZeneca US, says the job cuts are “difficult decisions that impact valued employees”.
The reduction to the US sales force is incremental to the company’s second phase of its restructuring programme first revealed at the start of the year.
“The changes we are making, however, will help us deliver better results for our business and, most importantly, continue delivering on our mission of patient health,” said Mr Fante.
Employees will have the option of voluntary redundancy with all decision finalised by early February 2012.
Despite streamlining its US operations, AstraZeneca has revealed plans to expand its presence in emerging markets after agreeing to buy Chinese generics maker Guangdong BeiKang Pharmaceutical.
The deal is AZ’s second generic acquisition in the country after its partnership with Aurobindo Pharma. A $200 million manufacturing facility in China is also planned.