The high costs of drug discovery and commercialization, looming patent cliffs, and increasing regulatory pressure on drug pricing have created a perfect storm of margin and growth pressures on the pharma sector. In an apparent response to these pressures, M&A activity in pharma is back. This month, Bristol Myers Squibb’s announced its $74 Billion acquisition of Celgene, and Eli Lilly did the same with its $8 Billion acquisition of Loxo. (At the recently concluded JP Morgan Healthcare Conference (JPM), the pharma/biotech sector’s biggest event of the year, Eli Lilly’s CEO indicated that conditions are ripe for an M & A uptick in 2019)
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Source: IT Strategy