Acquisitions in the Pharmaceutical Industry - Evidence of a Failure of Imagination?

Is the rash of acquisitions in the pharma industry a way to cover up, or postpose having to face, what would otherwise be evidence of a failure of imagination, a failure to innovate, on the part of the acquiring company?

What other credible explanation is there?

If the design purpose is to boost the share price of the acquiring company then a chat with Jack Welch might be useful. he had something to say on the subject talking to the FT on the future of capitalism. Not one to be timid about expressing his point of view he said, “On the face of it, shareholder value is the dumbest idea in the world”.

If the purpose is to generate layoffs and increase unemployment numbers, I guess that purpose will be realized.

What is the fundamental organizing principle of these acquiring CEO's and their Boards? You have to wonder!