At a recent life-sciences conference in Stockholm, execs of several U.S. and foreign biotechs clashed with Big Pharma in a lively debate on the merits of their respective goals and products. The result, however, was a stand-off.
Federal investigators are looking into allegations that major drug companies, including Merck, AstraZeneca, Bristol-Myers Squibb and GlaxoSmithKline, paid bribes overseas to boost sales and accelerate approvals.
Drugmaker Bristol-Myers Squibb plans to buy ZymoGenetics, its partner in developing a hepatitis C treatment, for $885 million. The move is part of a trend of pharmaceutical acquisitions as several big patents face expiration soon.
The FDA denied accelerated approval of Roche's trastuzumab-DM1 (T-DM1) license application. T-DM1 is a potential breast cancer treatment. Roche will continue with its trials and plans a global regulatory submission in mid-2012.
Two federal agencies are investigating whether drugmaker Merck & Co. violated the Foreign Corrupt Practices Act, which bars U.S. companies from bribing foreign officials.
French pharmaceutical giant Sanofi-Aventis sent a letter to major U.S. biotech firm Genzyme proposing a friendly takeover valued at $69 a share, or $18.4 billion. But that's a lot less than $80 a share, or $21.3 billion, that sources say Genzyme is looking for.
On Thursday, Sanofi-Aventis reported its second-quarter net profit rose 7.6% to 2.48 billion euros, beating expectations. But the French drugmaker warned that earnings may fall for the full year, and it remained silent about its rumored plan to make a friendly bid for Genzyme.
Bristol-Myers Squibb reported better-than-expected second-quarter earnings on Thursday, driven in part by higher sales for some of its virology blood-thinner drugs, cost controls and a favorable tax rate.
Its development of novel treatments for hepatitis C is leading Achillion to seek partnerships with major drugmakers. Many analysts see great potential for its drugs and expect it to strike one or more deals soon.
The stock of the world's largest drugmaker has been a laggard lately. But that could be soon changing if analysts who are pointing to a solid lineup of new products are right. They think the giant can easily offset the patent loss for Lipitor.
Like other Big Pharmas, Merck has estimated how much the new law will crimp revenues. Unlike its peers, however, the damage here looks like it'll less. Merck has some advantages, including the Schering acquisition, that should help it thrive in the new era.
Pharmaceutical companies target doctors to boost sales through such information. Since this raises the cost of patients' medications, states are aiming to limit such tactics via the courts.
GSK has made a new alliance to support its new strategy of targeting rare, serious diseases, while Sanofi-Aventis is revamping its plants for a fresh focus. Both are facing a revenue falloff when their drugs go off patent.
Merck's sales jumped 67% to $10.09 billion, clearly benefiting from the $41.1 billion purchase of Schering-Plough. Still, the drugmaker aims to save $12.5 billion by 2012, and that could mean a loss of 17,500 workers.