Pharmaceutical companies are now divesting non-core assets such as medical devices and manufacturing plants in an effort to cut costs and focus on core strategies, primarily drug development.
However, while some Pharma companies are narrowing their focus, targeting specific disease areas for future growth, others are taking a broader approach in an effort to spread risk and return on investment.
Scope:
- Provides an introduction to divestment strategies in the current financial climate, including the drivers and resistors of divesting a company asset
- Offers recommendations on how the best divest to and how to optimize the divestment process
- Examines divesture deal trends and values during Q1 2006 to Q3 2008
- Provides case study analysis of the divesture deal trends during Q1 2006 to Q3 2008
Highlights:
Most divesture decisions are made on a reactive basis when a company has no other choice, rather than proactively divesting a growing asset for a high price. Divesting non-core assets is essential to the survival of a biopharma in the current financial setting as it frees up much needed cash to buy assets that support core business needs.
Preparing a company for a divesture involves establishing a dedicated team to deal with the divesture both internally and externally, and requires specific expertise, in order to ease the transition of asset without reducing its value.
Medical devices are the leading type of asset divested in today's US healthcare market. It is increasingly sought after by healthcare companies due to its high value, with medical device sector estimated to be worth over $300 billion, and due to the lower risk involved compared to drug development.
Reasons to Purchase:
- Understand why in the current financial climate pharma companies are divesting assets, and the drivers and resistors of divesting and acquiring.
- Insight in to how best to divest an asset, prepare a company for de-integration and set up transfer agreements to ensure a smooth asset transition.
- Provides in-depth analysis of the latest divesture deal trends, backed up by case study analysis and opinions.
Table of Contents68 pagesPublication Date : December 2008
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