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Former Schering CEO Hassan Sees More Consolidation Deals Among Drugmakers
By Shannon Pettypiece
Feb. 12 (Bloomberg) -- Former Schering-Plough Corp. Chief Executive Officer Fred Hassan, who presided over the company's $41.1 billion sale last year, said he expects to see more consolidation in the pharmaceutical industry.
Large drugmakers will need to merge in order to fund expensive, complex areas of research, such as Alzheimer's disease, Hassan said today in an interview on Bloomberg TV. Smaller companies also will be forced to sell themselves as they run out of cash in the tight credit markets, he said.
"One reason deals are necessary is because the innovation investments are becoming larger and larger and it makes it easier when people can combine their resources to make the big, deep bets that you need to make for difficult diseases," Hassan said. "That is why you are going to see more of these deals."
Hassan spoke from Ft. Lauderdale, Florida, where he is attending a meeting of the Business Council, an association of CEOS. Hassan said CEOs at the conference were focused on job creation and not talking much about the health care overhaul.
Schering-Plough was bought by Whitehouse Station, New Jersey-based Merck & Co. in November. Hassan is working as an advisor to private equity firm Warburg Pincus LLC. Since leaving Schering-Plough he has been named to be boards of Time Warner Inc. and Bausch & Lomb Inc.
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