A tale of two sectors

At first glance, few sectors appear more immune to austerity than the drugs business. Growing prosperity and advances in medical science are creating ever-rising demand for healthcare from an expanding global population that is living far longer than before. However, the sheer size of the large companies - the result of past mega-mergers - makes them victims of their own success. "Never in the sector's entire history has there been a period of stagnation, with very little growth likely for the next five or 10 years," says Tim van Biesen, head of the Americas healthcare practice at Bain & Company, the consultancy.

Go to Financial Times

Subscription required