Summary Box: Tough times ahead for drugmakers

AP News
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Posted: Feb 02, 2012 5:32 PM
Summary Box: Tough times ahead for drugmakers

NEW NORMAL: Big drugmakers can no longer churn out drugs for the masses and double-digit profit increases. Now, they're having to develop drugs for smaller patient groups and hold up the bottom line with relentless cost-cutting.

NEW VOCABULARY: Buzzwords such as "blockbuster" are passe, with "headwinds," "austerity" and "efficiency" now in vogue.

NEW MANTRA: Pharmaceutical executives are stressing how "shareholder friendly" they are, soothing investors with large dividends and more share buybacks, meant to raise both share prices and earnings per share.