Big Pharma's Diverging Views on How to Overcome the Industry's Challenges

ADELAIDE, Australia, Sept. 25, 2012 /PRNewswire/ --

  • Wescadia Group provides in-depth analysis on pharma companies' diversification strategies in response to industry challenges
  • Wescadia Group's diversification index shows that Pfizer and Merck & Co. have had the largest increase of the companies in the study in the level of diversification of their pharmaceutical portfolio
  • A diversification strategy reduces the impact of the patent cliff and other industry challenges in multiple ways

Wescadia Group, a life science consultancy firm, announces the release of its latest research report entitled "Big Pharma's Strategy for Growth: Diversification is the New Mantra but its Mix Varies Between the Leading Companies". The report provides in-depth analysis on how big pharma companies are diversifying away from their antecedent small molecule blockbuster business model.

The research finds that leading pharma companies have their own beliefs in how to deal with the industry's challenges. "Our research shows that despite leading companies pursuing a diversification strategy, each company has their own beliefs in how to overcome the industry's challenges," said Marcus Bain, Ph.D., managing director of Wescadia Group. "For instance, some companies have been bolstering their presence in consumer healthcare over the last five years whereas other companies are focusing on biopharmaceuticals and have exited consumer healthcare and diagnostic businesses."

"The research also provides evidence on how large-scale M&A activity has been used by companies to reduce their reliance on key blockbuster brands and thereby minimize the impact of the patent cliff," said Bain. The analysis by Wescadia Group shows that Merck & Co. and Pfizer have had the greatest increase in the level of diversification of their pharmaceutical portfolio between 2005 and 2010 of the companies included in the study. The findings suggest that the mergers and acquisitions by Merck & Co. with Schering-Plough and Pfizer of Wyeth in 2009 are likely to have a pivotal role in reducing their company's reliance on key brands to minimize the impact of the patent cliff.

The report focuses on AstraZeneca, Bayer, Bristol-Myers Squibb, Eli Lilly and Company, GlaxoSmithKline, Johnson & Johnson, Merck & Co., Novartis, Pfizer, Roche and Sanofi Aventis, but also includes other companies in the analysis where appropriate.

For more information on the report or to order a copy, please visit us at

About Wescadia Group

Wescadia Group is a healthcare consultancy firm that works with life science organizations to help them achieve sustainable growth, bring innovative treatments to market and maximize the value of their assets.



Wescadia Group Pty Ltd (ABN 26.156.459.504)
Marcus Bain
Phone: +61-8-8125-5820
Email: [email protected]

SOURCE Wescadia Group Pty Ltd