Danish pharmaceutical conglomerate Novo Nordisk is breaking the trend of recent consolidation in the world’s pharmaceutical industry, reports say, as the company instead is focusing on expanding its research and development staff.
According to reports, the firm holds a dominant market position in the diabetes treatment industry and has cash to spend. But the firm said that while it is eyeing some smaller takeovers, Novo Nordisk sees no significant benefit to major acquisitions across the globe.
The company announced earlier this month it will add 3,000 new employees to its research and development staff in Denmark in the next eight years.
In an interview, Novo Nordisk COO Kare Schultz said that small buyouts could be on the horizon, but the company plans to stick to a 25-year plan to avoid major acquisitions.
”Of course, we could merge with another company given our high value, but we do not see any strategic reason to do so,” Schultz said.
The company is bucking a recent trend of multibillion-dollar mergers in the pharmaceutical industry. According to reports, 2014 has already see 14 pharma mergers with a value of over $1 billion announced.
Full content: Wall Street Journal
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