Skip to Main Content
Access your saved content
The biopharmaceutical industry is evolving from a blockbuster-focused business model to one of focused growth. Companies are experimenting with a number of new business models in order to find the right mix of businesses and competencies to fuel sustainable growth and, ultimately, high performance.
In line with these developments, a new breed of M&A activity is emerging. Accenture expects there to be further consolidation in this market during the next two to three years, with the biopharmaceutical M&A landscape driven by three trends:
Each year, Accenture’s M&A practice conducts empirical research on the biopharmaceutical industry, among others. The research indicated the likelihood of further consolidation, and identified the following three trends in pharmaceuticals:
Within biotech, two main issues stood out:
The biopharmaceutical industry has long been known for high growth. To maintain it under today’s changed circumstances, focused M&A activity is likely. Current programs to reduce costs, outsource business processes and strong cash reserves provide large pharmaceutical companies with the strategic option to grow through targeted acquisitions.
Accenture has a long history of helping companies derive the expected business benefits from M&As on the road to achieving high performance. Contact us to find out how we can help your company.
Tom Herd is a senior executive in Accenture’s Strategy service line. He has 16 years of management consulting experience in M&A, merger integration, and strategy consulting with Fortune 1000 and entrepreneurial clients. Prior to joining Accenture, Herd worked with another leading consulting firm’s North American Strategy and Organization practice. He has also worked for Procter & Gamble in multiple countries and with the U.S. Army in Germany. He is based in Chicago.
David A. Sheehy is a senior executive in Accenture’s Strategy service line and is the global lead for its Life Sciences Strategy practice. He has 20 years of management consulting experience working with leading Health & Life Sciences companies, with a focus on corporate and commercial strategies. Sheehy has recently co-authored Accenture’s “Achieving Future High Performance in the Biopharmaceutical Industry,” a point-of-view which addresses approaches to sustainable growth and profitability. He is based in Washington, D.C.
Arda Ural is an experienced senior manager in Accenture’s Life Sciences Strategy practice. Prior to joining the firm, he was a vice president of strategic marketing at Becton Dickinson (BD) and served as the senior vice president of marketing and sales for a start-up biotechnology company Eyetech (later part of OSI/ Astellas). Ural started his career with Pfizer and over 10 years he had responsibilities including the US Team Leader for Celebrex and worldwide marketing director for the Viagra launch. He holds Bachelor of Science and Master of Science degrees in Mechanical Engineering from the Bosphorus University and a Master of Business Administration from the Marmara University in Istanbul, Turkey. He also completed the Pfizer Executive Development Program at Harvard Business School. He is based in New Jersey.
March 1, 2011
Skip Footer Links