It is a testament to the woes of the pharmaceuticals sector that off-patent drugs have become its sexiest segment. In the US alone, some $60bn of prescription medicines will lose legal protection over the next four years, slowing industry revenue growth to 7-8 per cent per annum. By contrast, generics are winning market share, as cost pressures on healthcare providers increase, and should grow by more than 10 per cent a year.

Novartis is betting on this trend with the acquisition of Hexal, Germany's second biggest generics maker, plus its US offshoot, Eon Labs, for $8.3bn. This turns the Swiss group's in-house generics arm, Sandoz, into the world and European leader and number two in the US. The deal also broadens its portfolio beyond antibiotics and brings added expertise in product development and delivery techniques such as patches and implants.