3. A midsize shift in strategy

Not all pharmaceutical companies are traditional giants with R&D backgrounds built to drive growth. Some specialty pharmaceutical companies have developed through rapid acquisitions followed by significant price hikes. However, as government scrutiny increases on these aggressive and sometimes dubious pricing strategies and equity value continues to drop, these companies have started changing their M&A strategy. This shift moves towards investing in products that have sustainable volume growth, driving more long-term value from innovative product development, focusing on areas of unmet medical needs and using less aggressive capital structures. Who would’ve ever thought meeting customers’ unmet needs could be the right move?

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