There was little surprise when UK-based Shire PLC in May 2004 announced the establishment of its R&D headquarters and US commercial headquarters in Pennsylvania. "We need to address reality: 70% of our revenues come from the US," says CEO Matt Emmens, a US citizen who joined Shire in March 2003 from Merck KGAA . Other European-headquartered groups have made the same decision: Warner Chilcott PLC and Elan Pharmaceuticals recently sold off their UK and European businesses respectively; Galen changed its name to that of its US subsidiary, Warner Chilcott PLC , as a result [See Deal][See Deal].
For marketing-focused groups without the resources to go truly international, a US move makes sense: one approval accesses a population nearly as large as the whole of Europe. Prices are...