CAMELOT survey explores business climate in the pharmaceutical industry
Mannheim, 27 April 2016 The pharmaceutical industry expects an increase in sales and EBIT in the next 12 months. Established markets are seen as the main growth drivers. The industry´s investment plans focus on North America, China and Germany. Increasing cost pressure as well as changing regulations are seen as the greatest business risks. The M&A trend observed in 2015 will further increase in 2016. These are the findings of the current PHARMA Management Radar study by CAMELOT Management Consultants.
The study was conducted among more than 40 executives from globally active pharmaceutical companies in 13 countries in January and February this year. Participants include 70% of the global top 20 pharma companies comprising all top 5. Dr. Josef Packowski, CEO at CAMELOT Management Consultants, summarizes the business climate in the pharma industry: “The pharmaceutical industry is very optimistic about the near future. Due to the increasing significance of high-margin biotech products, sales and EBIT growth is above all expected in established markets such as North America and Germany.“
Lowered expectations for China and Russia
In contrast, growth expectations for boom market China are not as euphoric as in the last PHARMA Management Radar survey conducted six months ago (-26% compared to autumn 2015). The Russian market too, is again viewed with scepticism: While six months ago almost two thirds of participating companies had positive expectations regarding Russia, this share has now fallen to below 40%. Regarding regional investment plans, besides China (48% of participants) established markets such as Germany (55%) and North America (39%) stand out.
Cost pressure rules the industry
Cost pressure (63% of participants) and a changing regulatory framework (47%) are seen as the most important business risks. In contrast, patent expiry, which was rated as the number one business risk six months ago, seems to have lost in significance.
Continuing M&A trend
Two thirds of participating pharma companies believe that mergers and acquisitions will further increase in the next 12 months. Corporate growth is seen as the main motivation for M&As.
The PHARMA Management Radar by CAMELOT Management Consultants, consulting specialist for process industries, is a bi-annual survey which explores global business trends in the pharmaceutical industry. The results of the current 7th survey are available as free download at www.camelot-mc.com.
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