Large, European drugmakers have been buying out smaller ones particularly in the biotechnology sector in order to secure profitability, improve their pipelines of drugs under development or testing and fight back competition from generic drug makers when their patents expire.
Arithmetically, a low-price position (cheaper before better) could drive sufficient volume to keep asset utilization high enough to secure superior profitability (revenue before cost), but we never saw this, either.
It is not only the pharmaceutical industry that needs to be addressed but the continued and ruthless lobbying by western politicians to secure the profitability of their own industries.
In a 1991 document entitled Summary of Group Marketing Strategies, the third strategy on the list is to "implement regular price increases, on an industry basis wherever possible, which at least cover inflation to secure adequate profitability... ......Nor do the documents refer merely to straightforward price collusion.
Big European drug makers have been buying out smaller ones particularly in the biotechnology sector in order to secure their profitability, improve their pipelines of drugs under development or testing and fight back competition from generic drug makers when their patents expire.
Even if venture capital is secured, future profitability is real a question for any business endeavour.
In many industries, process innovations play a major role in securing long term profitability.
There are calls on companies to respond to the needs of societies within which they operate, beyond securing short-term profitability and complying with regulations.
My company, AerisWeather, tracks global weather for Fortune 500 companies trying to optimize supply chains, increase profitability, secure facilities, and ensure the safety of their employees and customers.
They announced profitability, secured $465 million in government loans to build their next car plant and raised another $50 million in equity from Daimler that valued the company at $550 million.
The previous YC funding cycle, winter 2010, had 27 startups, with 20 of the companies hitting profitability or securing commitments for further funding.
