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As one of the dynamic and fast moving industry, pharma business comes under increasing pricing pressure from governments. The industry is characterized by mega merger and acquisition cases, reduced productivity, challenging generic competition, and the scope for economies of scale on a global basis. The biotechnology segment is the most attractive part of the industry. However, due to global economic crisis, more public expenditures are expected in health sector, but that would be limited by the public budget. Private hospitals and health insurance companies are expected to close to each other. Pharmaceutical companies would expect more tight price cap regulations. We expect radical healthcare reforms and M&A transactions on healthcare, insurance and pharmaceutical sectors.
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