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Breaking News On Pharmaceutical Technology
Breaking News On Pharmaceutical Technology
Breaking News On Pharmaceutical Technology
With initial industry estimates putting a price tag for the business at around 4bn, Merck appears to have done well in securing almost a billion above this, which will no doubt help in reducing the company's debt following the Serono purchase. The transaction, which is due to be complete in the second half of this year, will now allow Merck to focus more keenly on pushing growth in its pharmaceuticals and chemicals sectors. For Mylan's part, the acquisition can be expected to reinforce its already significant foothold in the generics market, and widen the company's geographic reach - not only key in terms of market access, but also noted by the firm as helping to reduce risks associated with over-reliance on any one region. The deal is perhaps somewhat representative of the current climate within industry, with competition between generic drug manufacturers leading to market consolidation, as both generics manufacturers and other pharma firms snap up producers of 'copy cat' drugs in a bid to expand product portfolios, crowd out smaller competitors and reduce costs. With the generics market forecast to continue growing strongly - by 13 per cent during 2007 alone according to IMS Health - and over 70 major drugs due to come off patent between 2007 and 2011, the sector is ripe for exploitation by pharmaceutical companies able to get in on the game and invest in the generic bubble before it bursts.
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