GSK identified as leading deal-maker
GlaxoSmithKline has been more active than any other big pharma company in securing access to potential new products through licensing activity, says leading independent research and consulting group Wood Mackenzie, based in Edinburgh in Scotland. 'There are no other potential deals as attractive as the proposed Pfizer/Pharmacia merger in terms of product fit,' said Iain Clark, a senior consultant at the firm. 'Hence, for the time being, GSK may have ruled out additional m&a deals in favour of licensing activity to complement in-house r&d activities within its core franchise sectors.'
The recent deal with Theravance complements and broadens the company's existing portfolio and is a relatively low-risk undertaking despite the apparent high cost, Wood Mackenzie believes. In addition, the development of lead candidates will defend against the losses arising from the US patent expiry of GSK's existing treatment, Serevent, in 2008. It also improves GSK's position in the COPD sector with regard to Pfizer's competitive products Spiriva and roflumilast.
'A clear therapeutic franchise strategy will enable companies to continue achieving the double-digit sales and earnings growth rates that the market and investors have come to expect,' said Clark. Companies best positioned to succeed through effective therapy franchise strategies include Amgen, Roche and Pfizer/Pharmacia. 'In contrast, current market leaders without clear leadership positions in the key therapy segments will see their market shares eroded rapidly,' the company warns.
The findings originate from Wood Mackenzie's new Corporate Franchise Analysis (CFA) service. Available on-line in PowerPoint format, CFA provides analysis of the development plans of companies' therapeutic franchises and analyses their long-term prospects and strategic options to support future growth. Each CFA report includes: rankings, key strategic moves, leading products (in-line and r&d), franchise gap analysis, SWOT analysis, franchise forecasts (sales and market share) and outlook for future growth.