“Cushioning the Patent Impact and Preparing for Growth: Analysis of Big Pharma’s Diversification Strategies to Overcome Industry Challenges”

“Diversification is a key strategy that many pharma companies now employ to overcome the industry’s challenges, which include the genericization of key brands, a challenging payer environment and stagnate research and development (R&D) productivity,” said Marcus Bain, Ph.D., managing director of Wescadia Group. By diversifying their portfolios into markets, such as the emerging markets, consumer and animal healthcare and vaccines, companies will potentially grow their portfolios, but they will also reduce the contribution to total company sales from key pharmaceutical brands that will be genericized in the future.

“There is the general perception among industry stakeholders that pharma companies are significantly diversifying outside of branded pharmaceuticals into other markets such as consumer and animal healthcare. However, our analysis shows that most of the leading companies have not significantly diversified outside of branded pharmaceuticals (including vaccines) between 2005 and 2010,” said Bain. “We believe this shows that companies have not made substantial changes to their business model by diversifying their portfolios outside of branded pharmaceuticals during this period.”

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About Wescadia Group

Wescadia Group is a healthcare consultancy firm that works with life science organizations to help them achieve sustainable growth, bring innovative treatments to market and maximize the value of their assets.