Recent reports of a potential $400 billion megamerger between AstraZeneca and Bristol Myers Squibb sent shockwaves through the biopharma sector. While the deal appears off, the underlying driver remains clear: Big Pharma’s urgent need to counter looming loss of exclusivity (LOE).

In an interview with PharmaVoice, Managing Partner Michael Abrams explained that with a potential $38 billion growth gap as patent cliffs hit blockbusters, companies are evaluating bold ways to reinforce pipeline depth – particularly across oncology.

BMS has not done a great job of planning out its portfolio so that they have products in the pipeline to replace the products that are [losing exclusivity] when they need them. That puts them at a bit of a disadvantage.

But Abrams noted that massive portfolio overlaps and strict FTC antitrust scrutiny mean combining pharma giants comes with immense execution risk. Instead of megamergers, targeted bolt-on acquisitions will likely remain the primary path for strategic growth.

Read the full story at pharmavoice.com.