Claim drugmakers need to merge

New York: Former Schering-Plough chief executive Fred Hassan, who presided over the company’s $41.1 billion (€30.18bn) sale last year, said he expects to see more consolidation in the pharmaceutical industry.

Large drugmakers will need to merge in order to fund expensive, complex areas of research, such as Alzheimer’s disease, Hassan said.

Smaller companies also will be forced to sell themselves as they run out of cash in the tight credit markets, he said.

“One reason deals are necessary is because the innovation investments are becoming larger and larger and it makes it easier when people can combine their resources to make the big, deep bets that you need to make for difficult diseases,” Hassan said.

“That is why you are going to see more of these deals.”