Global Big Pharma Diversification Strategies Repor

Dublin, May 11, 2018 (GLOBE NEWSWIRE) -- The "Big Pharma Diversification Strategies" report has been added to ResearchAndMarkets.com's offering. Pressures ranging from continually declining revenues as a result of generics and impending biosimilars launches, to slow R&D productivity and market access restrictions could cause the Big Pharma peer set to evaluate business opportunities beyond pharmaceuticals. A large majority, approximately 77%, of Big Pharma's total annual revenues between 2013 and 2017 were from prescription drugs, and more than half of Big Pharma's M&A activities, as well as its divestments, focused on pharmaceuticals as well. Using a measurement called indicative profit potential (IPP). The author has determined that remaining focused on pharmaceuticals is still the most profitable strategy, although there is no direct correlation between the level of pharmaceutical focus, based on revenue proportion, and operating margin. Still, multiple challenges, including the continuing generic erosion of sales and impending biosimilars launches, could force Big Pharma to evaluate diversified markets as a way to offset losses and grow other businesses. For instance, M&As in the area of diagnostics have been seen to be growing. There are a broad range of diversification, or non-diversification, strategies currently employed by the Big Pharma peer set, ranging from the more focused, as demonstrated by Bristol-Myers Squibb and Pfizer, to intermediately focused companies, including Eli Lilly and GlaxoSmithKline, to extremely diversified firms such as Johnson & Johnson. The best option for diversification might be a mixture of both strategies, including a focus on pharmaceuticals alongside expansions into markets such as devices and diagnostics. Indeed, the devices and diagnostics sector has the second-highest IPP following prescription pharmaceuticals, potentially making it the most attractive option if a diversification strategy were to be pursued. Meanwhile, markets such as pharmaceutical wholesalers and animal health are found to be the least attractive into which the peer set could diversify. Key Topics Covered: OVERVIEW INTRODUCTION Insights and recommendations Bibliography DIVERSIFICATION ANALYSIS BY REVENUE Insights and recommendations Prescription drug revenue makes up the majority of Big Pharma sales Biologics are taking away share from small molecules Bibliography DIVERSIFICATION ANALYSIS BY M&A AND DIVESTMENT ACTIVITY Insights and recommendations Many factors contribute to a decline in M&A and divestments following a two-year increase Deal values followed a similar trajectory to volume More acquisitions and fewer divestments of non-pharma-focused businesses over time Prescription pharma markets are the mainstay in M&As and divestments Roche, Johnson & Johnson, and AstraZeneca: active acquirers in their focused and diversified visions Merck & Co and Novartis divested several diversified assets Developed markets are where Big Pharma does virtually all acquisitions Bibliography DIVERSIFICATION OPTIONS AND PROFITABILITY Insights and recommendations Focused, intermediate, and diversified strategies have each paid off If diversifying, the best option could be devices and diagnostics DIVERSIFICATION CASE STUDIES Pharma-focused case studies Diversified case study Intermediate case studies Bibliography HEALTHCARE LANDSCAPE OVERVIEW Prescription branded pharmaceuticals market Devices and diagnostics market Health insurance market Over-the-counter/consumer health market Generics market Retail pharmacy market Hospitals market Pharmacy benefit management market Pharmaceutical wholesaler market Animal health market Bibliography APPENDIX For more information about this report visit https://www.researchandmarkets.com/research/s...harma?w=12

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