Pharma execs expect aggressive M&A strategy to develop products, spur growth: KPMG survey

On the hunt for new therapies and new customers to drive growth, pharmaceutical executives will step up acquisition activity in the coming year, according to a recent survey by KPMG, a US audit, tax and advisory services firm, which surveyed around 100 drug industry execs in the USA.

In the KPMG survey, 83% of executives said it is likely their company will be involved in a merger or acquisition as a buyer or seller in the next two years. Furthermore, 41% of executives surveyed said the largest area of spending in the next year would be for acquisitions, followed by new products and services, at 38%, and research and development, at 38%. Similarly, a strategic acquisition was cited as the highest priority investment area by 41% of executives surveyed, followed by expansion into new markets by 22%.

"Mergers and acquisitions will be exceptional forces over the next two years, as industry executives look to gain access to new products and markets, and new revenue streams," said Ed Giniat, KPMG US chairman of pharmaceuticals, noting that "industry leaders have their work cut out for them to offset the patent losses and regulatory and pricing pressures."