Lilly could be next for a takeover, some suggest

Lilly could be the next pharmaceutical firm to be part of an acquisition, it has been claimed.

Earlier this week, Merck acquired Schering-Plough for $41.1 billion (30 billion pounds). Now analysts are predicting which companies will follow suit, explained John Russell writing for the Indiana Star.

He explained the industry is under a number of pressures including a slower economy, lower pricing and a decrease in exclusive medication patent exclusivity.

Linda Bannister, an analyst at Edward Jones, told the newspaper many firms believe one way to survive is by getting bigger.

She named Lilly, Bristol-Myers Squibb and AstraZeneca as the names that keep coming up.

Les Funtleyder, from Miller Tabak, also named Lilly, noting it had been struggling to launch new medicines and boost revenue.

When faced with large competitors, the company would “have to do something about it”, he added.

However, Mark Taylor from Lilly asserted the company’s philosophy on such takeovers had not changed.

“We still believe that large-scale mergers and acquisitions do not create long-term value for shareholders,” he remarked.

Lilly was founded in 1876.