Patent Cliff Could Lead To More Generic Pharma Deals

Pharma analysts are predicting more consolidation in the generics industry due to price inflation and the looming patent cliff.  Derek Archila, an Oppenheimer analyst, told TheStreet that he believes major generic players will look at mid-sized and smaller firms. “”In the near term there’s little capacity to a big deal-Teva, Mylan and Perrigo are over-leveraged or don’t have a CEO,” he said. “I don’t think that will stop U.S. and Indian generic manufacturers and private equity firms from looking at small to mid-cap producers.”

Patent lawyers will likely be working with generic firms to prepare for the upcoming patent cliff. Still, pharmacies, hospitals, and other healthcare providers are also consolidating to gain leverage during negotiations, which could compel more consolidation in the generic pharma space as well.

Read the source article at TheStreet