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European Pharmaceutical Contractor
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Contrary to the opinion of many industry analysts, the pharmaceutical industry is likely to see a slowdown in major merger and acquisition (M&A) activity in the near future. For growth, companies should look to other opportunities, such as more ambitious developments in the large, challenging markets of Japan, China and Brazil.
The Need for Action
The pharmaceutical industry has performed extremely well for many years, with high rates of profit and sales growth. The sector is very highly rated by investors and stock analysts. However, pressures which impact on revenues and profits are steadily growing for global pharmaceutical companies. For example, companies in the USA are suffering from problems of escalating sales and marketing costs. At the same time, they are facing product price pressures by insurers trying to contain private sector health costs. Europe is beset by R&D productivity problems, growing generic competition and the need to contain health costs in the public sector
(seeTable 1).
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