AMR Published "Diversification in the Pharmaceutical Industry market "
Pharmaceutical companies face the dual threats of industry specific difficulties driven by the innovation crisis, patent expiries and healthcare reform
Pharmaceutical companies face the dual threats of industry specific difficulties driven by the innovation crisis, patent expiries and healthcare reform, coupled with the more generalized issues caused by the continuing global economic slowdown. The industry remains split on whether diversification or specialization is the key to building a successful business model in the face of these difficulties.
On one hand some companies believe that diversification is necessary to survive and thrive in the current difficult operating environment and that it offers specific advantages going forward.
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Ultimately, it is the nature of the diversification that is the key. Strategic diversification within related industry sectors can be a highly successful strategy, benefiting the overall company through synergies between business units, cross fertilization driven innovation and cost-sharing.
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