Challenging times require bold moves if pharma is to surive immediate storm

Even the largest pharmaceutical companies will soon need to step outside their sector and collaborate with other organizations, according to new  research by PricewaterhouseCoopers. Recently announced activity such as  between the world's two largest drugmakers, GlaxoSmithKline and Pfizer,  in a new HIV-focused venture, confirms that pharmaceutical companies are  exploring new ways to collaborate (Marketletter April 27).

At the same time, a flurry of merger and acquisition deals have been  triggered - Roche/Genentech, Pfizer/Wyeth, GSK/Stiefel and  Merck/Schering Plough (Marketletters passim). While M&A will continue  there are alternatives, such as collaboration, that PwC believes will  actually be more flexible and value-enhancing in the long term.