(Reuters) - Leading global pharmaceutical companies have started to view their vast portfolios of older, established prescription drugs as vehicles for raising large sums of cash to fuel development of new medicines with far higher profit margins.
France's Sanofi (SASY.PA) and U.S. drugmakers Merck & Co (MRK.N) and Abbott Laboratories (ABT.N) are exploring selling off their mature drugs that have lost patent protection, Reuters reported this week, citing people familiar with the plans. Officials at the three companies declined to comment.
The divestments could bring in more than $7 billion for Sanofi, north of $15 billion for Merck and over $5 billion for Abbott, the sources said, giving them considerable firepower to develop, or buy, promising experimental medicines.
Such a shift would also remove a source of pricing pressure, since many of the older medicines are sold in emerging markets, where governments are increasingly demanding lower prices.
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France's Sanofi (SASY.PA) and U.S. drugmakers Merck & Co (MRK.N) and Abbott Laboratories (ABT.N) are exploring selling off their mature drugs that have lost patent protection, Reuters reported this week, citing people familiar with the plans. Officials at the three companies declined to comment.
The divestments could bring in more than $7 billion for Sanofi, north of $15 billion for Merck and over $5 billion for Abbott, the sources said, giving them considerable firepower to develop, or buy, promising experimental medicines.
Such a shift would also remove a source of pricing pressure, since many of the older medicines are sold in emerging markets, where governments are increasingly demanding lower prices.
continue to read here
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