One of the largest industries in the world currently experiencing consolidation through mergers is that of the biotech and pharmaceutical industry. Industry news on mergers is released on an ongoing basis, with biotech taking the lead as one of the most popular among acquisitions. 2018 could be what is named as an “explosive year for biotech mergers” according to Investor’s Business Daily. Biotech companies are often times buying up several brands at once, making for mergers that include multiple entities as opposed to a single-company acquisition.
With companies experiencing rapid growth within the pharmaceutical industry, it can be assumed that operational hiccups and complications may arise. However, with the rise in importance for Business Process Management (BPM), many brands undergoing mergers can more efficiently and effectively streamline two operations into one while ensuring proper documentation for compliance remains in order.
Consolidation strategies are used quite frequently in the biotechnology sector, and can be necessary to compete more effectively against new entrants in the marketplace. The development of biotechnology has not only resulted in the advancement and treatment of disease, but has increased the competition between pharmaceutical labs and researchers. With an increase in competition, there is also an associated risk that merging pharmaceutical brands may not be adequately prepared for growth and thus results in monetary losses for biotechnology investors. With any merger, it’s important for companies to consider how to make the transition while still maintaining production and meeting deadlines. Standardization will help to eliminate any “waste” and thus increase profits without damaging the underlying organizations.