KPMG: Pharma Execs Look For Growth Opportunities

By Rob Starr, Content Manager, Big4.com

In the 2012 KPMG Pharmaceutical Outlook Survey, conducted in May 2012, 60 percent of executives said regulatory and legislative pressures are the most significant barrier to their company’s growth over the next year.  KPMG’s research reports that 52 percent of executives said new therapies from their own research would be the biggest driver of growth, followed by therapies from a current/potential alliance partner (36 percent). Growth from non US markets was seen as a third source of growth (34 percent). Additionally, 25 percent cited repeal of the healthcare reform law as a potential growth driver, up from 16 percent a year ago.

Pharmaceutical executives do expect moderate revenue and sector growth, though less than a year ago. Thirty-nine percent of pharmaceutical executives surveyed said their company’s revenue was moderately higher compared to this time last year. Additionally, 50 percent of pharmaceutical executives said they expected moderately higher revenue one year from now.

They also signaled a shift in expectations around mergers and acquisitions. A year ago, 37 percent of executives said a potential merger or acquisition would be one of the biggest drivers of revenue growth. Today, only 27 percent see M&A as a growth strategy. Similarly, when asked what the likelihood of their company being involved in a merger  or acquisition in the next two years, 36 percent of executives said somewhat likely, down from 41 percent a year ago, while 21 percent said very likely, down from 32 percent a year ago.