For decades, biopharma companies have relentlessly pursued growth, counting on pure scale and M&A cost synergies to create value. This strategy is reaching its limits and becoming counterproductive, according to Bain & Co. analysis. Megamergers that don’t produce category leaders also don’t create portfolios that are likely to deliver attractive shareholder returns over time.

Recently launched drugs aren't meeting sales expectations and that's bad news for an industry whose revenues come from new products. Bain & Company surveyed senior launch executives to find the factors that lead to a successful launch.

Bain found that the US prescription market breaks down into at least 22 different customer-based categories that differ significantly from traditional therapeutic and disease areas.