There is pressure in every industry to cut costs and build sales as markets mature and sales plateau. Devolution of pharmaceutical and health-care markets, exacerbated by increased competition from globalization and patent cliffs, has companies scrambling for ways to increase return on investment (ROI) from every department. R&D and marketing budgets are being slashed and replaced by cost-savings platforms.
Many large companies are outsourcing R&D to biomedical and hi-tech start-ups and then buying them out. It’s cheaper to buy assets than build them. Continue reading