Big Pharma’s shift toward specialization is ultimately a response to mounting pressure. Between looming patent cliffs, the IRA shortening the earning life of products, and increasing scientific complexity, many companies are concluding they can’t continue operating the way they have historically and expect the same results.

In an interview with PharmaVoice, Managing Partner Michael Abrams explained that companies like AstraZeneca and Roche are doubling down on areas where deeper expertise can help them move faster, lower development costs, and improve the odds of success.

But Abrams noted that they’re also doubling down on the riskiest part of the business. When companies make fewer bets, they have fewer places to turn if a major asset fails.

If you have a failed trial and the product that you were counting on dies, you have fewer places to turn for revenue to make up the deficit

Read the full story at pharmavoice.com.