Pharma execs expect fines, M&A and easier credit

A new survey takes the temperature of pharmaceutical executives, and the results are a decidedly mixed bag. Although they say the economy has improved and so has access to capital, they're not so confident about their own companies' ability to innovate. They're expecting regulatory trouble in the EU, but they're pretty sanguine about U.S. healthcare reform. Here are the details, thanks to Pharmalot.

  • More than three-fourths of the executives surveyed by UK patent law firm Marks & Clerk say they're worried about the European Commission's ongoing investigation into patent settlements between branded drugmakers and generics firms. The probe into so-called "pay for delay" deals will result in "serious fines," say 59 percent of the executives.

  • Some 65 percent are confident that the reduction in drug margins imposed by U.S. healthcare reform will end up being offset by increased sales. And 89 percent believe that the reforms will end up bringing capital back into the U.S. market for investment.

  • The good news on innovation: If companies can't replenish their pipelines internally--as 82 percent predict--they can jump on the M&A bandwagon. Some 68 percent are expecting lots of dealmaking over the next two years, and 63 percent say improved economic conditions will make funding those deals easier.

There's more in the report, including expectations about follow-on drugs and European policy about them. Check it out.

- read the Pharmalot post
- see the release from Marks & Clerk