Although the pharmaceutical market is continuing to witness global growth, pharmaceutical and biotechnology companies are facing challenges due to disruptive events in the healthcare market, such as increasing costs of production and R&D, shifts in patent laws, and challenges in the economy. Companies are considering various strategies to overcome these challenges, with deal making being foremost among these as a means of boosting revenues over a short period of time.
Small companies that primarily carry out early-stage research, development and production activities are entering into agreements with key industry leaders to out-license the rights to their products, utilizing the strengths of the larger companies in terms of commercialization expertise, manufacturing, distribution and marketing capabilities and global presence. Additionally, many companies have successfully implemented deal-making strategies to secure extended protection for their products from generic competitors. Deal activity can help pharma companies to enhance their research and regulatory approaches, and can aid portfolio expansion and diversification, geographic expansion, entry into niche markets, commercialization, and sales.
This report analyzes the importance of deal making in the pharmaceutical and healthcare market. It covers key factors that encourage deal activity in the pharmaceutical industry, and the key strategies being implemented when companies strike deals. An overview of recent deal activity from 2010 to May 2017 is also included.