Pharma's prospects

If the wall street journal (USA edition) is anything to go by, pharma is doomed.

Week after week, analysts forecast for the industry is anything but rosy. In fact, it is downright depressing. Comparing the industry its early predecessor, the chemical industry, it seems that it is heading in similar directions.

With pipelines that are fast drying up, threats from generics and increased pressure from governing authorities, pharma needs to find solutions quickly or risk major upheavals. in the short term, profits will suffer, mid term will see more mergers and acquistions and long term outlook without adequate hedging of the business, will probably see many companies fading into oblivion.

Is there hope? Most analysts have placed their bets on biotechnology and increased focus on generic developments. The arcane way of creating new chemical entities are unable to keep up with the evolution of human diseases and medical needs. Its a classic case of innovate or sublimate.

My take on the future? Im contemplating leaving the industry.. for good. Not trying to be a doomsayer but rather, as a passionate marketer, i have long found local pharma too restrictive to creativitity. Growth is a tedious pursuit as the market size remains numerally challenged. The additional impetus comes from not being able to assess a positive forseeable future in the industry.

I envision that the next few years will bring about alot of structural changes, if not more M&As, in view of companies trying to reaccess their competitive positions and job cuts are inevitable. Following the major layoffs in the US and Europe, it is unlikely that our local environment will escape unscathed. Job security is a quintessential requirement of any career minded person. On top of that, why expose yourself to an office where low morale looms everyday while major changes are being laid out consecutively?