Archive for the 'Deals and Mergers' Category
September 29th, 2010 by admin
Genzyme Corp., a takeover target of Sanofi-Aventis SA, expects to complete sales of its diagnostics and pharmaceutical-ingredients units by the end of the year. Genzyme has six bidders for the drug business, Chief Financial Officer Michael Wyzga said today at an investor conference. Sale of the units will make Genzyme more appealing to potential buyers, said Michael Yee, with RBC Capital Markets.
Continue reading ‘Sanofi Target Genzyme More Attractive to Buyers With Unit Sales’
September 28th, 2010 by admin
Takeda Pharmaceutical Industries is just the latest major drugmaker to announce its aims for big growth in China. But this time, the company isn’t looking for triple or even quadruple its current sales in the country. It’s looking to boost its Chinese revenues tenfold. President Yasuchika Hasegawa freely admits that the company’s been trying for years to increase its annual Chinese sales past $40 million, Bloomberg reports. That’s because 50 percent to 60 percent of its local sales force was bailing out every year. That’s a huge rate of attrition, even compared with the 10 percent to 20 percent seen at other Chinese companies.
Continue reading ‘Takeda Hopes to Boost Chinese Ops’
August 20th, 2010 by admin
In a bid to break out of its dependence on manufacturing and cheap labor, the Chinese government is planning to invest $1.5 billion into new drug development between 2011 and 2016. And biotechnology is one of seven emerging industries that the Asian powerhouse will use to spearhead the next big step in its economic development, according to a report in China’s 21st Century Business Herald.
Continue reading ‘China Plans to Bolster Biotech’
August 18th, 2010 by admin
With Genzyme in the news, we’ve all been hearing plenty about the wave of M&A deals that’s been rolling through the world’s life sciences industry. Last year, Thomson Reuters tracked more than 1,400 such deals worth $206 billion worldwide, giving the Boston Globe the hard numbers it needs to assert that this is one trend that has yet to crest.
Continue reading ‘Biotech M&A Frenzy Shows no Sign of Slowing’
August 5th, 2010 by admin
Think Pfizer (NYSE: PFE) has had enough of buyouts for awhile, now that it’s partially digested the $68 billion Wyeth acquisition? Think again. CFO Frank D’Amelio told the German newspaper Handelsblatt that the company is scouting for potential buys in several specific areas, including emerging markets.
Continue reading ‘Pfizer Eyes M&A in Emerging Markets’
August 4th, 2010 by admin
The bidding on Genzyme has begun, with Sanofi putting down a hard offer of $69 a share, according to the Wall Street Journal. But Reuters and others have their own sources who say that Genzyme’s board wants to hold out for at least $80 a share, and possibly wait to see if another bidder steps up to drive up the price even higher.
Continue reading ‘Sanofi, Genzyme Far Apart on Buyout Price’
August 3rd, 2010 by admin
Merck (NYSE: MRK) has agreed to purchase bankrupt Hawaii Biotech’s dengue fever vaccine unit for an undisclosed sum. It’s a critical move for Hawaii, which filed for Chapter 11 bankruptcy protection last year and will deplete a $2 million credit line by the end of this month. The sale leaves Hawaii with a West Nile virus vaccine in development.
Continue reading ‘Merck Buys Vax Unit from Bankrupt Hawaii Biotech’
July 29th, 2010 by admin
Milestone payments are becoming an increasingly familiar aspect of many biotech deals, as buyers try to mitigate the risks inherent with big purchases. Take Celgene’s $2.9 billion buyout of Abraxis; the biotech giant set aside $650 million in milestone payments if Abraxis’ key drug Abraxane hit certain goals. “These structures are a great way for buyer and seller to share the risk that’s related to drug development,” says analyst Brett Skolnik. Milestones also encourage buyer and seller to look beyond the merger, making it more likely the deal will be beneficial to both sides in the long term.
Continue reading ‘Milestones Mitigate Risk in Biotech Deals’
July 26th, 2010 by admin
Eli Lilly (NYSE: LLY) is looking to its pipeline to fill the gaps left by a number of high-profile drugs coming off patent. In October 2011, blockbuster Zyprexa will fall to generic competition; additionally, about three-quarters of Lilly’s current revenue comes from eight drugs that will lose patent protection between now and 2017. ”We have the challenge of replenishing our product portfolio from our pipeline,” says CEO John Lechleiter in a USA Today interview. “Fortunately, we have the most exciting pipeline today in our history.”
Continue reading ‘Pipeline to Soften Lilly Patent Losses’
July 21st, 2010 by admin
Welcome to the annual look at the biggest CEO paychecks in the pharma industry. The major trend in 2009 was the mega-merger, which helped propel former Schering-Plough CEO Fred Hassan to the top of this year’s list. With the help of a $33 million golden handshake, Hassan bypassed perennial top dogs Bill Weldon (Johnson & Johnson) and Miles White (Abbott) as the highest-paid CEO in Pharma.
Continue reading ‘Top 10 Pharma CEO Salaries of 2009′
