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Esteve: Aspiring to Innovation

Executive Summary

Changing global dynamics, and increasing price pressures in Spain, are compelling private Esteve to change its strategy and its structure. The company feels a need to be bolder and more efficient than before. The firm continues leveraging its traditional strength, helping Big Pharmas market. But lately it has also allied with US biotechs, paying more for exclusive rights to novel products. It's risky, though: two drug candidates it hoped to get failed recently. Now, making research pay off is a top priority for Esteve, which views itself as having a research-oriented culture, although its only successful drug was launched 20 years ago. The company's new strategy heightens risks and difficulties, but the owners feel they have little choice in the increasingly cost-controlled Spanish market. As a private company, Esteve can afford to place the bet and strive for success.
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