dispatches from the new world of work

Told You So

I hate arrogant titles like this one, but I have been shouting about the coming implosion of Big Pharma for several years. Well, it's here. Consider these three factoids from, again, Forbes: In the last 3 years big pharma have laid off 70,000 folks. Pfizer, Merck, Bristol-Myers Squibb, and Schering Plough have lost $394 billion in market cap in the last 5 years. And, as biotech adds muscle, Amgen and Genentech are on a trajectory to pass Merck in sales by about 2009.

(More on "told you so." As the industry began to stagger, the defense mounted by most of the "premier" players was ... you guessed it ... major mergers.)

Tom Peters posted this on 03/09/06.

Comments

M & A seems to rule the roost for now skimming massive wealth to elite - Ivan Boesky flashback anyone?

Posted by Sean at March 9, 2006 1:53 PM

Sean, isn't the big issue what the elite then re-invests its windfalls in? (Perhaps those charming private equity funds.)

Posted by tom peters at March 9, 2006 2:53 PM

Might big pharma losses have something to do with smaller online drug pushers offering confidential (certainly in the case of Phizer et al.) generic brands in competition?

Likewise, the required and costly beaurocracy of pharma biz necessitated by over-protective government measures certainly stifles innovation.

Posted by Tom O'Leary at March 9, 2006 8:46 PM

Tom - maybe if I was a benevolent elite giving to the masses ala Bill and Melinda - then that seems cool.

Posted by Sean at March 11, 2006 3:20 PM