M&A will be key focus in pharma updates

After mega-merger between Pfizer and Wyeth shareholders will be clamouring for news on AstraZeneca and GlaxoSmithKline's own plans, and this is likely to overshadow both results and pipeline news at their upcoming results conferences.

With many of the large pharmaceutical companies facing patent expiries, generic competition, and a dearth of new product launches and falling demand from the advanced economies, they are expected to look to biotech companies for innovation and novel technologies.

Goldman Sachs analyst Dani Saurymper said the the value of healthcare related M&A transactions exceeded $100 billion in 2008. With the so-called “patent cliff” of 2011/12 fast approaching and a lack of new product introductions he expects M&A activity to rise, not least given that EU pharmaceutical groups are sitting on cash balances of $51billion.Full article

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