Consolidation Activity in the Generic Sector

Consolidation within the generic industry continues to occur at breakneck speed through merger and acquisition activity.

Multiple major players are engaged in not one but several mergers simultaneously, a fact that’s perhaps confusing to some people on their respective supply chains.

Integration activities often spawn their own issues as organizations with quite different cultures are fused together to blend product portfolios. These do not often fit easily and new strategies need to be developed to assume that products will remain available to consumers at the right price.

As producers drop out, monopolies are developed and the Federal Trade Commission is obliged to step in to protect competition and consumer choice.  This involves its own level of management which can also put stress on the company to deliver products to the consumer.

So beneath the economic/business surface news of an acquisition/there’s the underlying practical considerations which may be overlooked by the financial people, which include how we are going to make these products within the new fragmented supply chain.

Inevitably there will be delays under the present strategy, but perhaps there’s a better way to look and plan for the Future State before it arrives unexpectedly in your back yard?

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