It looks like the biggest strategic gulf in the industry: focus or diversify? If the CEO thinks he can't rely on R&D to grow his way out of the industry's revenue hole, get ready to live alongside generics and OTC businesses--though he'll downplay to investors the risks of managing different businesses by stressing the commonalities with the core branded efforts and probably won't move into wholly non-pharma businesses. If he's still committed to R&D--get ready for diversification of other sorts, and some pretty clever financial tactics.
By Roger Longman
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