The crisis at Bayer definitely has “grave consequences for the reputation of the company and the management, however they could possibly drive the group into a split: pharmaceuticals and agriculture. If the company is financially weakened, activist investors could appear and press for a sale of the profitable parts. This is how it has often happened in the world of large corporations.”
John Rountree was asked to comment on the recent share price fall of Bayer in the light of litigation issues with its now subsidiary Monsanto. Bayer made an unsolicited bid for Monsanto in May 2016, then took more than two years to close the deal, a period in which its share price remained broadly flat. Since closing the deal in June 2018 its share price has now fallen by a staggering 40%.
Now with the benefit of additional hindsight it’s even clearer that this type of mega-merger is not suited to pharmaceutical companies. Pharma leaders are increasingly recognising the more powerful benefit of focus and collaboration, and in turn investors have become increasingly wary of mega-mergers. We will be exploring this theme in more depth in our inaugural Global 100 report to be published next month.
Great brand planning allows time to pause and really think about a product’s future. They should make informed decisions that will benefit patients and deliver revenue for the company, but too often templates are rigidly followed rather than being seen as the tools to enable the right conversations and ensure key decisions are taken.
In a recent Pharmaceutical Market Europe (PME) article, Ed Corbett discusses how Commercial leaders have a critical role to play in the strategic planning process and the three questions they need to ask to realise the full potential of their brands.
To view the article click here or download it via the yellow button above.
Medical Affairs is in the midst of an exciting metamorphosis. The global shift towards evidence-based care is creating new opportunities for the function to play a more strategic role within pharmaceutical companies.
As medicines become more targeted and the evidence base more nuanced, Medical Affairs has the potential to become one of the key influencers of the future….