Global pharma saw three big mergers in 2009, driven by the high cost of drug development. Fifteen years later, the strategy is to hive off allied businesses to focus on pure-play innovative medicines
The year 2009 saw three large mergers and acquisitions between a few of the world’s largest pharmaceutical companies.
Pfizer acquired Wyeth in a deal worth $68 billion with an aim to expand its product portfolio, gain access to Wyeth’s expertise in biotech and vaccines, and increase its presence in emerging markets. Pharma giants Merck and Schering-Plough came together to form a new entity with a strong presence in cardiovascular and respiratory markets, as well as in biologics and vaccines. The deal was worth $41.1 billion. Lastly, in a $47 billion deal, Roche acquired Genentech, known for its innovative work in biotech research. Roche was already a leader in cancer treatments, and with access to Genentech’s portfolio, it developed ground-breaking therapies for cancer. All these mergers and acquisitions were driven by one key factor: High cost of drug development.