Tag Archive | "value creation"

Biopharmaceuticals: The 2011 Health Care Value Creators Report

Tags: , ,


Written by Michael Ringel, Colm Foley and Olivier Wierzba for Boston Consulting Group (BCG).
The five-year period covered in this report was a stormy time for the bio-pharma sector. While sales growth remained strong, expectations for future growth declined significantly. P/E ratios for large-cap biopharma, a formidable 35x in 2000, plunged to 11x by 2010.
The challenges underlying this decline are well known and include pricing and access pressures, higher scientific hurdles, more-stringent regulatory thresholds, and intensifying competition. The average return on investment (ROI) in R&D for new products—the lifeblood of the sector—is now below the cost of capital, making average R&D value destroying. However, performance on this measure varied widely during our study period, and some companies consistently found ways tobeat the average.

Read the full story

cabannerad300x150new4gif
rauconbadgejpg
e78banner300x150animgif
cpbannerad300x150new2gif
rauconbadgejpg
e78banner300x150animgif