Big Pharma M&A Analysis to 2012 - Surveying the growth rate landscape
Description:
Introduction
With sales growth rates expected to fall below their historic levels, Big Pharma must act to bolster its performance out to 2012 if it is to maintain the investment community's valuation of its stocks. One mechanism for plugging the sales growth rate gap and fulfilling investors' 'growth imperative' is M&A activity.
Scope
*Company-by-company evaluation of all Big Pharma-led M&A permutations within the PharmaVitae Rx pharma universe
*Evaluation of permutations from a perspective of the target's uplift of the acquirer's sales growth rate between 2007 and 2012
*Relate this uplift to the target's market capitalization, giving a proxy price per percentage point measure for each M&A permutation
*Assess the strategic implications and risk of forced blockbuster divestments for the optimal permutations identified by the sales growth rate analysis
Highlights
Big Pharma is facing a 'growth gap' between its historical sales performance and its 200712 outlook. If it is to maintain its historic level of valuation in the eyes of the investment community, this must be filled. M&A stands out as a possible mechanism for achieving this.
However, the shear scale of gap means there are limited opportunities available for companies to do this. Indeed, the companies with the bleakest outlook have only a small selection of targets that will lift them to a positive sales growth rate throughout the forecast window.
Despite this, there is a definite grouping of four companies (Gilead, Genzyme, Biogen Idec and Cephalon) that offer universal uplift benefits to potential Big Pharma suitors. Moreover, these companies have companies strategic profiles suggest they could bring further benefits beyond growth.
Reasons to Purchase
*Evaluate Big Pharma companies' opportunities for improving their sales growth rate out to 2012 using M&A activity within the Rx pharma universe
*Assess the benefits that each target company offers to potential suitors in terms of sales growth rate uplift in relation to its market capitalization
*Compare the benefits of large-scale mega mergers, such as Pfizer and Wyeth or GSK and AstraZeneca, to acquisitions of smaller 'hot target' companies
Note:
The report listed above is published by
Datamonitor, a third party not affiliated with The Healthcare Sales & Marketing Network.
Datamonitor is solely responsible for its content.
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