Merger and Acquisition Strategy
Big Pharma faces challenges to ensure profitability as a top priority function on its strategy agenda. The tasks faced by Big Pharma are uphill and some of them include maintaining sales of their existing products, some of the products going off patent face patent litigations from generic drug makers and lastly to "focus" or refocus on their clinical development pipeline.
The companies look at the merger and acquisition strategy with a dimension of a increasing stake in the acquired company preferably a generic drug company in an emerging market like India. The latest example of this is Pfizer. Even generic subsectors like injectables are getting crowded.