Pharma Mergers and Acquisitions: Who’s Really Winning Here?
(Note: companies that could be impacted by the content of this article are listed at the base of the story (desktop version). This article uses third-party references to provide a bullish, bearish and balanced point of view; sources listed in the “Balanced” section)
The Big Pharma companies in the game including Pfizer Inc., Novartis, and Johnson & Johnson seem to enjoy M&A deals, specifically with small cap biotech stocks. The pharmaceutical giants acquire smaller companies that have patents or technological advancements that they are lacking. Most of these small companies that are acquired do not have sufficient capital to sustain long-term growth. Therefore, mergers and acquisitions deals are important for pharma company growth, but can too many mergers harm the environment in which they operate?