tag:blogger.com,1999:blog-4241416962008169508.post3368842689886089989..comments2024-03-27T21:03:58.972-04:00Comments on Just A Life Sciences Blog...: CEO Clark -- In London -- On the Rest of Pharma Eschewing Mega-Deals. . . .Unknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4241416962008169508.post-17749920516134377532009-09-18T10:17:14.308-04:002009-09-18T10:17:14.308-04:00Interesting turn of events.
Merck's previous...Interesting turn of events. <br /><br />Merck's previous CEO Ray Gilmartin eschewed Mega-Deals pointing to the big rounds of Pharma mega-deals such as Glaxo-Smith Kline.<br /><br />Gilmartin pointed out that these deals typically worked in the short run to boost stock prices and restore lagging pipelines but in general the costs were never recovered. He would point out that deals of these types should only be made if the resultant growth via the merger would be greater than if the companies were left to themselves. He felt focusing on the science and developing new drugs was the way to go. As I've pointed out I believe companies had grown too large for a single or even a couple of blockbusters to maintain the percentage growth that companies need. I also believe that we are running into problems with basic biology so that it is more difficult to come up with drugs that are taken by large population segments that are improvements. Plus for reasons of basic biology the drugs we do come up with have the same serious toxicities over and over. Lastly as illustrated by benoxaprofen debacle with Lilly in 1982 (and widely accepted at the time) when you widely, rapidly, (and directly) market drugs to large population segments you are going to get burned with toxicities especially in people who are dosed or otherwise treated inappropriately.<br /><br />Getting back to Gilmartin and the current Merck-SP mega deal I think the following article is informative:<br /><br />http://money.cnn.com/magazines/fortune/fortune_archive/2004/02/23/362212/index.htm<br /><br />SalmonAnonymousnoreply@blogger.com