Mega deals for productivity? Maybe not says Decision Resources

- Last updated on GMT

Related tags: Pharmaceutical industry

Mega mergers may not provide the pharmaceutical industry with the productivity gains it desires according to a new report by Decision Resources.

The report, “Mega-mergers: Executing Change in the Pharma Industry” asks why if big mergers boost efficiency did “serial consolidator” Pfizer move for Wyeth within ten years of its acquisition of Warner-Lambert and Pharmacia.

The authors also quote Roche chairman Franz Humer’s contention that mega-mergers and acquisitions “have a tendency to destroy rather than unlock value​,” which is somewhat ironic given the Swiss group’s recent successful battle to buy Genentech.

These ideas fit with the conclusion of a Frost & Sullivan (F&S) report released last month. In it the researchers suggested that, while more mega deals are likely, opportunities presented by smaller firms may be better for the industry long-term.

Related topics: Markets & Regulations

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