Flemming Ornskov

For big drugmakers that want to grow their business, acquiring smaller companies with one or two products is often a surefire way to make sure that happens.

But in the past few years, we’ve seen a slowdown in M&A, with acquisitions in the first quarter of 2017 down 35% from the same period two years ago.

Flemming Ornskov, the CEO of $50 billion drugmaker Shire which had one of the biggest pharma mergers in recent history with the $32 billion acquisition of Baxalta at the very start of 2016, said he knows there’s been less M&A than usual.

“I have a few people I’ve worked with in the past that are investment bankers and they moan about the tough times they’re going through,” Ornskov told Business Insider.

Shire, which is headquartered in Dublin, is known for making ADHD medicine, like Adderall and Vyvanse, and its focus on rare diseases like the blood disorder hemophilia. Ornskov said there are a few reasons why things might be quiet now — but that won’t always be the case given the nature of the industry.

“If you look at pharma in a 30-year history, it is a consolidating industry,” he said. That’s because companies …read more


Source:: Businessinsider – Finance

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