Over the past years, we have seen the giants going public see here , which subjects them to the scrutiny of analysts and the public, but also gives them easier access to funding for future expansion, both organic and through acquisitions. This may be true, but this large merger followed a pattern which has emerged over the last five years: CROs establishing services that support Pharma companies beyond clinical trial. CROs determine the commercial rationale for a new product; facilitate market access and health economy assessments; or even perform sales and promotion on behalf of Phama companies.
In our chart here we show a selection of such offerings. With the emergence of publicly traded CROs, that are larger than some of the smaller public Pharma companies and have the internal knowledge to assess, develop, and even commercialize Pharmaceutical products, the question arises whether they could in fact become competitors of their clients. Indeed, Almac, the CRO owned by a foundation, has already moved its first product into clinical trials, and Wuxi has made a full transformation from CRO to drug development company.
Our graph here , shows that they are much less profitable than Pharma companies and hence could not withstand the big risks of drug development. Large CROs have evolved to one-stop-shops, supporting the assessment, development and market access of new drugs. In the mid-term, they may also be industry-wide catalyzers in rolling out new concepts like adaptive clinical trials see here and technology e-clinical tools and electronic patient dossiers , increasing over-all productivity of drug development.
There is still a lot of room for smaller CROs to thrive beside the giants. In the long term, however, to avoid being pushed out of the market or descending to a status of mere subcontractor, smaller CROs need to specialize building niche technologies or focus on geographies or therapeutic areas where relationships with investigators are a key differentiator — they need to follow their own strategic archetype. Pro Farma markets proprietary and in-licensed specialties both prescription and OTC drugs for selected therapeutic areas in Switzerland. The main brands are Lacdigest tilactase , Tretinac isotretinoin and Urocit potassium citrate.
Furthermore, the company offers distribution and promotion services to other pharmaceutical companies in Switzerland and Austria. Recordati, established in , is an international pharmaceutical group with a total staff of around 4,, based in Milan, Italy. KP prepared, initiated and led to conclusion a controlled auction with selected bidders. Each quarter, Kurmann Partners calculates transaction multiples on realized sales of companies over Each quarter, Kurmann Partners calculates transaction multiples on realized sales of companies over the past twelve months.
Click here to get a detailed view. For the period of July to June we observe:. We select company transactions - mergers and acquisitions on a global level - of companies with revenues of USD 10 to million. Multiples are often used for a rough estimate of company values. By multiplying a key figure e. In practice, multiples show a great dispersion around the mean value and also vary over time. Of course, managing and structuring the sales process plays an essential role for the realized price in a transaction.
Furthermore we show the variation over the two middle quartiles as a brightened bar, i.
Manual Next Level Enterprise – Trends der Unternehmensentwicklung (German Edition)
If you are interested to receive more detailed information on the presented multiples, please contact us by email. Kurmann Partners successfully concluded the selling process of Germany based extrakt chemie to Kurmann Partners supported the sellers throughout the entire process up to signing and closing of the transaction. Extrakt chemie was established in and has a long-standing reputation and knowhow in specialty ingredient extracts, primarily for pharma, natural medications, nutritional supplements, foods and cosmetics. The company is a market leader in Germany and serves customers throughout the world.
It maintains an efficient production site with GMP certification for pharmaceutical products in northwest Germany, which also includes a research and development laboratory.
For Frutarom, the acquisition of extrakt chemie is a further step in strengthening its position as a leading global manufacturer of specialty fine ingredients. Kurmann Partners calculates each quarter transaction multiples on realized sales of companies over Kurmann Partners calculates each quarter transaction multiples on realized sales of companies over the past twelve months. The European OTC market is going through a phase of profound change.
Stada and Bristol-Myers Squibb in places nine and ten have almost dropped out of the race. Why has the OTC market begun to move just now? Have the big firms thus created a sufficiently strong platform for future organic growth? How should the medium-size and smaller top 10 firms act? And what options remain for competitors with strong national brands? A declining volume Genuinely innovative products, however, have scarcely been seen; we estimate their contribution at less than half a per cent.
It follows that innovation is the exception, while product variation and competence extension of already established brands are the rule! Strong brands are the winners and strong brands need to be fed. Smaller brands — even if they are nationally strong — feel pressure from the big ones.
In markets with pharmacy chains or efficient forms of marketing cooperation, big international brands have a good chance of driving out smaller competitors. Expensive OTC marketing increases pressure on margins. Those who can, transfer non-strategic production capacities to contract manufacturers, thus allowing CMOs to specialize in production technologies and better meet the specific requirements of OTC products at lower cost.http://test.galenachamber.com/sitemap13.xml
Next Level Enterprise – Trends der Unternehmensentwicklung (German Edition)
Economies of scale become correspondingly important, and small-scale production, as is frequently the case in extensions of national product lines, is no longer profitable. In the same way, portfolio streamlining by big competitors will lead to a long-term improvement in manufacturing costs, and this in turn will enable them to invest more resources in brand management.
We assume that the market leaders GSK, Sanofi, Bayer and Perrigo possess a sufficiently strong platform for organic growth and in Europe will make acquisitions more for reasons of expediency, particularly if it gets them precious pharmacy shelf space. Medium-size international competitors would in theory then seek to create a competitive position via mergers. However, acquisitions of strong national brands are the more likely route. The strong national competitors, which now as before hold a market share of over fifty per cent, should seek to defend themselves against international brands.
They should focus on their own brand competence and strive to hold their positions by cleverly differentiating their products without diluting their brands. Conditions for smaller brands and newcomers to the market are likely to become even more difficult. In conclusion we assume that well managed international and strong national OTC brands can profitably coexist. We find it important to achieve economies of scale in manufacturing, to focus consciously on brand competence and to ensure that retailers pharmacies, drugstores are supported in selling by professional PoS management.
Would you like to know more?
About these proceedings
We are pleased to inform that we have led the selling process of the Switzerland based CAS for their We are pleased to inform that we have led the selling process of the Switzerland based CAS for their shareholders to a successful closing. CAS is a leading specialist for clean room measuring services and certification in the German speaking markets with a particular focus on the pharmaceutical industry and health care institutions.
The public Spectris plc, based in UK, is a leading supplier of productivity-enhancing instrumentation and controls. Kurmann Partners supported the sellers from elaborating the selling documentation, to structuring the transaction, global search of suitable buyers, soliciting offers, organizing and managing the Virtual Data Room, negotiating the Share Purchase Agreement up to signing and closing of the transaction. For further information regarding our services and project references please contact our mandate leading partners.
In what was an exceptional year, these terms describe what moved the industry: merger mania, price pressure in the US and, as a promise, accelerating innovation. Our report is complemented with an overview on the 4 strategic archetypes which emerge for Pharma companies.
- You Cant Run From Love.
- Computer Science Jobs worldwide | ecextoobutde.ml!
- Laryngeal Evaluation: Indirect Laryngoscopy to High-Speed Digital Imaging.
You can download the report's sections here:. The resulting transaction combines a long term supply agreement for a range of ophthalmic products and the sale of the Alcon manufacturing site in Kaysersberg, France, to Recipharm. Find more details on the transaction here. Thus, KP anticipates further streamlining and consolidation of the industry over the next decade, mainly through continuing mergers and acquisitions.
KP's insights demonstrated with its innovative "4 Strategic Archetypes Model" were well received. The model predicts that Pharma companies will be forced to choose between one of four strategies: Originators, generics later biosimilars , point-of-call specialists and OTC marketers. In the model each archetype requires a distinct set of skills, culture and strengths, which to some extent are mutually exclusive. In , Hubert Burda joined the company. After he obtained a Ph. After numerous mergers and acquisitions, the printing and publishing operations evolved into a large corporate group, which was re-organized in and after the death of Franz Burda Sr.
The most lucrative were the shares in the Berlin-based publisher Axel Springer , which distributed dividends in the millions. In order to compensate for the losses incurred, Burda was obliged to sell the headquarters at Arabellapark. With the retirement of Aenne Burda in , Hubert Burda purchased all the shares of the remaining family members and thus became the sole owner of the publishing house.
It was integrated into the Group but remained largely independent. From , Burda increased its investment in digital business models, creating a separate division for the purpose.
Related Next Level Enterprise – Trends der Unternehmensentwicklung (German Edition)
Copyright 2019 - All Right Reserved