Consolidation Revisited Is the Founder of Managing Resources, a Date Received *In Revised Form) 8Th October, 2001 Consultancy Focused on the Life Science Industries
Alan Williams Consolidation revisited is the founder of Managing Resources, a Date received *in revised form) 8th October, 2001 consultancy focused on the life science industries. The Alan Williams company undertakes strategic assignments and also assists public and private sector clients with regulatory affairs, investor Abstract In 1998, the author produced two papers that argued that consolidation was relations and human a necessary activity for biotechnology companies to pay greater attention to. Three resources development. years later a further consideration of the subject seems worthwhile. Examples of Alan has also been an investment manager in successful consolidators are reviewed. a venture capital company, and held Keywords: consolidation, mergers, acquisitions marketing and licensing positions in Fisons. Introduction drink, vaccines and animal health but there is now greater focus on the highest In the early/mid-1970s, the pharmaceutical pro®tability sector, human pharmaceuticals. industry consisted of more than 100 At the time of writing, GSK is rumoured to research-based businesses of some be a possible purchaser of Bayer's signi®cant size, although none of them pharmaceutical business, the future of could convincingly claim a global presence. which has been questioned after the Typically, a leading company had a strong withdrawal of cerivastatin. position in its local market "examples Aventis, the eighth largest pharmaceutical included Merck and P®zer in the USA, company by sales in 2000,1 includes the Bayer in Germany, Beecham in the UK, operations of 1970s companies such as Roussel-Uclaf in France and Fujisawa in Rhone-Poulenc, Rorer, Fisons, Hoechst, Japan) and possibly some other Marion, Richardson Merrell, and some neighbouring countries "US companies in smaller companies.
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