Safety related issues are prime concerns for the pharmaceutical companies while negotiating acquisition of biotech companies.
Directions: A passage is given below which is followed by several possible inferences that can be drawn from the facts states in the passage. You have to examine each inference separately in the context of the passage and decide upon its degree of truth or falsity.
Growth through acquisitions and alliances value for pharma and biotech manufacturers and their shareholders. However, companies and their investors may risk value destruction if they acquire rights to a drug that suddenly poses unanticipated safety related compliance violations committed by an acquired company could significantly impair the ultimate value of the translation and there potation of the acquirer. The pace of deal making between pharma and biotech companies continued to accelerate in 2006, increasing 17% to about $18 billion. Pharma companies were typically the buyers, and the premiums they paid increases substantially as competition intensified to secure access to novel drugs and biologic. The stakes increase everyday as competition pushes up prices and drives deal making to earlier development stages with greater uncertainty and less time to complete through due diligence.