Valeant Pharmaceuticals isn't going to break any records in the drug discovery race, and frankly I don't think could care less. Last year Valeant's CEO Michael Pearson succeeded in 11 out 13 take over bids, not a bad batting average. Drug discovery is clearly not their focus with Valeant spending less than 5% of their revenue on R&D. They prefer to concentrate their efforts on M&A, and as Michael Pearson said in an interview with the Wall Street Journal, "our innovation comes from acquiring companies and products that are already approved and in the market." Mr Pearson admits that any company could follow the same mantra, however it takes a different approach to the traditional Pharma business model in order to succeed.
The read the full interview with Michael Pearson click here
To hear more about changing business models in pharma and biotech from industry experts go to BioPharma Australasia