In response to the recent acquisition of Medicis by Valeant, an interesting poll underway asking a seemingly simple question, “Will other pharma companies follow Valeant and abandon R&D in favor of M&A?”
If you’d like to vote in the poll, you can find it here.
As of this writing, nearly 70% or respondents voted “Yes” in favor of abandoning R&D in favor of M&A.
Now this is a very small sample, and the question is understandably complex. After all, how many good M&A opportunities are available? Is there an assumption that M&A is less risky because it immediately adds to Revenue & Cash Flow?
What if the merger/acquisition fails to deliver due to integration issues? Or faulty due diligence?
By the way…where will the innovation come from if we shift towards a M&A-centric industry model?
We’d love to see more votes and comments on this very interesting question. So please, vote and comment!