Here's a nice post from Eric Greb at the PharmaTech Talk blog. It contains links to both a new Ernst & Young report entitled, Biotech industry showing resilience despite challenging conditions, and a link to a new white paper from Deloitte called, Global Economic Downturn LIkely to Change Face of Life Sciences Industries for Years to Come.
The crux of the post is that we're seeing tremendous change in the industry. We can expect consolidation amongst pharma and biopharma. Bigger companies will get bigger. Smaller, less capitalized companies, will fail or be acquired.
In other words, as an industry matures it gets more competitive and there is a shake out. Fewer competitors are left standing when the dust settles. Business models change to meet the new competitive stakes in the environment. We can expect there to be a blurring of lines between big pharma, biotech, generics and biosimilars. Likely, the biggest remaining players will have their hands in all those pies. And, there will be global expansion to the Asia Pacific region where we will realize a truly global pharmaceutical industry -- made up of a smaller number of large players from each region.
Then we can begin a new cycle of niche players developing (think microbrews) ..............but let's leave that for another day.
Posted by Bruce Lehr May 11th 2010.