Ever since drug-eluting stents became such an overwhelming success, the health care products industry has been trying to wrap its arms around convergence opportunities, in which the combination of drugs and devices is worth more than the sum of the parts and pieces. The ongoing debate has been: which part of combination products is it better to own--the drug or the device? According to one company that would probably define itself as the only "pure play" in convergence, Angiotech Pharmaceuticals Inc., the answer is: both. Angiotech just acquired diversified device manufacturer AMI Holdings.

Bigger generics companies aren't just the generic sector's problem. Giants such as the new Teva will present more formidable challenges to innovators, not just in patent wars but also with proprietary launches, and for a share of drug consumption in developing markets.

Pfizer was heavily invested in immuno-oncology combinations five years ago, but following setbacks, the pipeline has shifted considerably, shaped partly by the acquisition of Array.