The report, “Mega-mergers: Executing Change in the Pharma Industry” asks why if big mergers boost efficiency did “serial consolidator” Pfizer move for Wyeth within ten years of its acquisition of Warner-Lambert and Pharmacia.
The authors also quote Roche chairman Franz Humer’s contention that mega-mergers and acquisitions “have a tendency to destroy rather than unlock value,” which is somewhat ironic given the Swiss group’s recent successful battle to buy Genentech.
These ideas fit with the conclusion of a Frost & Sullivan (F&S) report released last month. In it the researchers suggested that, while more mega deals are likely, opportunities presented by smaller firms may be better for the industry long-term.
