Drug manufacturing industry on an explosive journey, new study notes, highlighting Abbott and Keryx

It is needless to say that the drug manufacturing is a multi-billion dollar industry that is set to experience ongoing growth mid- to long-term, notes South Africa based research group Rothman Research. With this anticipated industry growth and increased competition in the drug market, the number of mergers and acquisitions would be on the rise as major players will strive to become more aggressive in their attempt to boost their market presence by increasing their product-line through new acquisitions.

This trend is not new within the industry, but it is certainly on an uptrend. US health care firm Abbott Laboratories, one of the major players within the pharma industry, has been one busy bee in the M&A front with its strings of broad-based acquisitions. Many experts believe that this sudden interest in M&A was triggered by the fact that Humira (adalimumab; a medication approved for the treatment of rheumatoid arthritis, psoriatic arthritis and ankylosing spondylitis, one of the company's star medications, will lose US patent protection in the next seven years.

The major drug manufacturer, in an effort to broaden its product-line, went on a rampage by acquiring numerous small- to-midsize companies, thus helping the company to steer away from its over-dependence on its performing products.