Biotech Sidesteps Consolidation

Executive Summary

With top-tier biotechs uncertain where their follow-on products will come from, some industry executives are predicting a coming wave of consolidation. But for a variety of structural and managerial reasons, significant consolidation is unlikely. In particular, top-tier biotechs prefer in-licensing to the valuation and managerial headaches of mergers, while discovery companies question the logic of fully-integrated services.