The pharmaceutical industry is constantly evolving, with scientific breakthroughs, upcoming patent cliffs, and political uncertainties shaping the landscape. As we move into 2025, Big Pharma continues to face challenges and opportunities that impact their strategies, particularly in the realm of mergers and acquisitions.
Reported earnings for the fourth quarter and full year reveal that pharmaceutical executives are focusing on smaller, more consistent deals and investing in new medications to replace the losses of previous blockbusters. CEOs of major pharmaceutical companies have shared their insights on the industry and their respective company strategies for the year ahead.
Joaquin Duato, CEO of Johnson & Johnson, highlighted the company’s acquisition strategy, emphasizing a focus on smaller acquisitions rather than larger deals. While J&J recently made a significant acquisition of Intra-Cellular Therapeutics, Duato sees these larger deals as opportunistic and not the core of the company’s business development strategy.
AbbVie, the seller of the blockbuster drug Humira, is facing the challenge of transitioning patients to newer medications like Skyrizi and Rinvoq. CEO Rob Michael expressed confidence in the growth potential of these new drugs, which are expected to surpass the peak revenue of Humira in 2022.
Novartis is navigating a patent cliff for its drug Entresto and is looking to expand its portfolio, particularly in the obesity space. CEO Vasant Narasimhan emphasized the company’s focus on RNA, cell, and gene therapies, with a pipeline that aims to drive sales growth and protect against generic competition through the next decade.
Merck & Co. is facing headwinds in China with the HPV vaccine Gardasil and incoming competition for the cancer drug Keytruda. CEO Robert Davis acknowledged the challenges in the Chinese market but remains optimistic about other aspects of the business carrying the weight, especially in light of Keytruda’s loss of exclusivity.
Pfizer, known for developing the first approved COVID-19 vaccine, is now looking beyond its COVID products to drive future success. CEO Albert Bourla highlighted the company’s focus on oncology and other therapeutic areas, using its cash position to bolster the pipeline for long-term growth.
As the pharmaceutical industry continues to navigate challenges and seize opportunities, these insights from industry leaders provide a glimpse into the strategies and priorities shaping the future of Big Pharma in 2025.
