Over the past decade, major pharmaceutical companies have shifted towards a “pure-play” model by divesting their consumer health divisions, which has heightened their reliance on patent protection and regulatory exclusivity amidst a looming patent cliff that threatens USD300 billion in drug sales. As a result, these companies are feeling pressure to fill their pipelines through acquisitions and licensing, particularly in oncology and metabolic disorder sectors, where recent activity has surged. In contrast, standalone consumer health companies, although enjoying greater cash flow without the R&D costs of their pharma counterparts, must navigate shifting consumer preferences and market pressures without the backing of their parent’s scientific reputation. They are increasingly focusing on Rx-to-OTC switches, wellness products, and digital health solutions to sustain growth and innovation in a competitive landscape.
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Link to original article source: https://www.aoshearman.com/en/insights/what-the-future-holds-for-pharma-companies-and-their-divested-consumer-healthcare-divisions
