(PharmaNewsWire.Com, December 01, 2017 ) Strategy Diversification Divested: Productivity measurements, Divestment of non-core assets resulting in healthy Cash position- Will accelerate Next wave of targeted acquisition
In the recent years several new therapies have been approved in the area of diabetes (SGLT-2, GLP-1 agonists), Multiple Sclerosis, HCV, melanoma and breast cancer from major pharmaceutical companies. Many of them are expected to reach multibillion dollars peak sales in the near-term which is likely to compensate the patent expiry loss in top-line revenue. Novel mechanisms like anti-PD1, anti-PCSK9 and CDK inhibitors have also got exclusive attention by large cap Pharma companies. Most companies are in race to acquire assets in these hot therapy areas. Companies who already have these assets are investing heavily in clinical development programs. The interest in pursuing opportunities in Oncology therapy is unhindered for all major Pharma companies. Research investments in oncology likely to continue for several more years due to the significant unmet need exist in this area.
But for a few companies, patent expiry impact continues to haunt the top-line and they are finding it difficult to replace declining sales with Proprietary pipeline products. Beyond 2013, the impact of patent loss will further aggravate the revenue decline. They have chosen strategies of prioritization pipeline assets, cost efficiency measures, divestment of non-core assets which yield poor margins and increase focus on therapy areas where they have already proven its mettle. Increase in dividend payout and share repurchase are some near term measures where they are actively participating. Gain in financial strength through divestment of non-core assets (OTC, Animal Health, Consumer health, Diagnostics) will be utilized in pursuing opportunities in high margin therapy areas. At the same time it has becoming more difficult to find such lucrative assets because they are scarce and if available are trading at very high premium in speculation of getting acquired (ex. Roche-Alexion). Going forward, Economies of Scale will also play a major role in swapping the non-core business among major pharma including Vaccines, OTC and animal health to improve margins.
Global Pharma continues to remain attractive due to management efforts on the restructuring of entire business model, cost efficiency measures, de-consolidation, acquisition of high value targeted assets, share repurchase program and dividend policy.
Table of Content: AstraZeneca: Late Stage Pipeline maturing; Focused development on Respiratory, Psoriasis and anti-PD1 will support long term growth - Late stage development is positive but near term pressure immense - R&D Strategy - Long-term CV study and R&D Updates - Brilinta preferred over Plavix in NSTE-ACS patients in the US - Strengthening Business in Diabetes: Acquisition from BMY - Late Stage Development Program - Selumetinib (PhIII, NSCLC, MEK inhibitor, Array Pharma) - Lesinurad (PhIII, URAT1 inhibitor/Hyperuricemia in Gout): did not reduce gout flares but biomarker uric acid level met the end point for approval - Immunotherapy such as anti CTLA and anti-PD1 will strengthen the franchise long-term - Olaparib (PARP Inh, Ovarian cancer)- FDA approval - AZD9291 (once daily, oral Tyrosine kinase inhibitor, second-line NSCLC) - Inflammation pipeline: Benralizumab (IL-5R antibody, severe asthma and COPD) - Competitive landscape of cytokine targeted therapies (Tralokinumab, Dupilumab, Lebrikizumab, Mepolizumab - Brodalumab (IL-17RA antibody, Psoriasis, Psoriatic arthritis, Ph III) - Outlook of respiratory franchise going forward: Symbicort, Pearl and Almirall - Anti-infective franchise update (AZD0914) - Nexium OTC approved and generic entry in 2015 - The impact of competition on Faslodex - Key milestones continue….
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