'Fight or flight?" - Roland Berger study identifies diversification as one of the most prominent trends in the pharma industry, but not for Roche

Big pharmaceutical companies are facing more and more challenges. The study, "Fight or flight?" by Germany-based Roland Berger Strategy Consultants, identifies diversification as one of the most prominent trends across the pharmaceutical industry. The participating companies include seven of the global Top 10 and represent over 40% of global pharmaceutical revenues.

The Roland Berger experts also conducted interviews with top executives to validate the findings and derive strategic implications. The study identified three dimensions of diversification: innovate, integrate and de-risk. At the moment, the most important area for diversification is the generics business. With innovative medicines coming under increased cost pressure and more and more R&D investments yielding a negative return, pharma is embracing the diversified business model as a potential way out of the crisis. In a break with the past, the financial community supports this move.