Industry experts are divided on the issue. In the long run, however, this trend may reverse, says Hossein Janshekar, pharmaceuticals consultant with SRI Consulting in Zurich. Sources agree alliances and co-marketing agreements will gain in importance, allowing small niche players to coexist with the giants. But there is some doubt that these arrangements can deliver all the benefits and cost savings of a full merger. For now, mergers are the name of the game for most big pharmaceutical companies.
Companies merge for any number of reasons.
The one thing that is rarely cut is marketing and sales. These are so important that most companies use as much marketing force as they can get. Mergers also beget more mergers. The absence of future blockbusters is another powerful incentive to merge. But this strategy may backfire.