Drug makers may want to strap on their parachutes — another patent cliff lies ahead.
The phrase, of course, refers to the loss of patent protection on big-selling drugs that ravaged the pharmaceutical industry several years ago. As the companies began facing generic competition, many cut jobs and closed plants, refocused research efforts, and scrambled for deals to replenish pipelines.
Since then, investors think many companies have largely recovered, but now the largest players may face another round of turmoil, at least according to Sanford Bernstein analyst Tim Anderson. “Our analysis suggests there is a ‘mini-patent cliff ‘— or Patent Cliff 2.0 — on the industry’s doorstep that will continue to pressure growth,” he wrote in an investor note.