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Pharmaceutical Industry

Working Capital Management is Critical for Pharma Companies

| Editor: Sonja Beyer

Latest findings by Ernst & Young reveal an overall deterioration in working capital (WC) performance compared with 2008 in the pharmaceutical industry.

London/UK – The WC gains achieved between 2000 and 2005 have been fully reversed in the last four years. Out of the 14 companies in the survey, only six reported improved performance since 2000. Much of the deterioration in WC performance between 2005 and 2009 came as a result of higher receivables and inventories.

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