by Jeffrey Clark on May 17, 2012
 Plavix is an anti-clot or blood thinner most prescribed to prevent heart attack or stroke. It is also one of the best selling drugs in the world. More than 50 million people in the U.S. have taken Plavix since it was approved by regulators in 1997. It was discovered by French pharmaceutical company (then) Sanofi-Aventis and co-developed with Bristol-Myers Squibb. In recent years, Plavix has accounted for roughly a third of BMS revenues and much less (7%) of Sanofi revenues.
Both BMS and Sanofi have worked to extend patent protection for the drug, yet time has finally run out as of today. As noted, the loss will be felt much greater by BMS which is also facing a patent cliff with Avapro and an expiration of its deal with Otsuka Pharmaceuticals to market anti-psychotic Abilify.
None of this is news to BMS, who enacted the String of Pearls strategy in 2007 under then CEO Jim Cornelius to offset these predicted losses through their own pipeline and an aggressive yet calculated posture in business development. It calls for the company “to accelerate the discovery and development of new therapies…with a suite of innovative alliances, partnerships and acquisitions with small and large companies”.
Jeremy Levin was the senior vice president of strategy, alliances and transactions, who famously branded & executed the String of Pearls strategy. One problem: he left the company earlier this year to become CEO of Teva Pharmaceuticals. Bristol made 17 acquisitions over four years with Levin, including the 2009 purchase of Medarex, which gained the company the Yervoy skin cancer drug.
Too early to tell what the future looks like for Bristol Myers, yet today is day long dreaded within the company.
by Jeffrey Clark on May 16, 2012
The diabetes market around the world is growing. And, since its latest product approval, Amylin is in the cat bird’s seat.
Amylin has not commented on potential takeover bids since initial reports that Bristol-Myers Squibb made an offer last month. Now, with Goldman Sachs and Credit Suisse dealing the cards, there are more than a handful of Big Pharma suitors edging to get a seat at the table. According to Bloomberg, Pfizer, Astrazeneca, Sanofi, Takeda, Merck and Roche have all formally queued up to make a bid for Amylin. WIth that many companies involved, the process (and the $ price) may get out of control.
With Bydureon as a newly approved GLP-1 diabetes treatment and a market cap hovering around $4B, this is the perfect ‘bolt-on’ acquisition that Big Pharma CEO’s have been pining for the past few years. The fact that ‘first round bids’ are due before the end of May speaks to Amylin’s strategy to have leading contenders bidding against one another in June.
When Amylin parted from its decade-long Lilly partnership and went ‘all in’ late last year prior to Bydureon’s FDA approval, this was exactly the outcome Dan Bradbury was hoping for. In an interview with CNBC in January, Bradbury hinted at the company’s future prospects but not answering Mario Bartiromo’s direct questioning about a potential sale of the company.
Bloomberg
May 15, 2012
Below is a recent, well-written article in Forbes which correctly assumes that patent expiration and fewer drug approvals are driving the pharmaceutical industry to consolidate. The stresses facing leading drug makers have turned the entire industry into a giant Monopoly board. We’ve all witnessed the popularity of collaborations, acquisitions and licensing deals completed over the [...]
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May 15, 2012
After being rebuffed through an earlier offer to acquire Human Genome Sciences in April, GlaxoSmithKline will take its $2.6 billion tender offer directly to HGS shareholders through a hostile bid for the company. “Shareholders should have the opportunity to decide for themselves on the merits of the offer,” according to GSK. The move is designed [...]
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May 14, 2012
Congress will vote on the proposed future for FDA User Fee Agreements sometime this summer, comically referred to by one Congressman as the ‘oofahs’ (re: PDUFA, MDUFMA, BSUFA, etc.). More on that legislative process (which has been ongoing for almost a year) with updates from September, January and February. Now we are learning that buried in [...]
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May 11, 2012
This week is all about fat people for the life sciences industry. As we reported in an earlier post, this week marks a critical point for FDA in their panel review of weight loss drugs which could set the stage for a handful of different manufacturers with pending applications. Also this week, the American Journal [...]
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May 10, 2012
Another diet pill is preparing to step before the FDA for review. And, there’s some conveniently timed PR supporting its approval. According to the American Journal of Preventative Medicine, 42% of Americans are expected to be categorized as obese by 2030. The report also predicts that the number of severely obese Americans (>100 lbs) could [...]
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May 10, 2012
With Stryker CEO Steve MacMillan stepping down, Advamed needed a new chairman for next year. CEO Dave Dvorak from Zimmer stepped up. Now, fresh into the role Dvorak has announced his plan to help address economic and regulatory issues facing the medical technology industry. Some might offer that there has been no more important period [...]
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May 8, 2012
Smith & Nephew has spawned a new kid on the block, by launching a previously announced spinoff with Bioventus, formerly the biologics division of the company. Bioventus is a joint venture with Essex Woodlands that is headquartered in Durham with roughly $250M in revenue. Led by CEO Mark Augusti, much of the management team has [...]
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May 7, 2012
While the biggest of Big Pharma have been toiling with pipelines & patent cliffs, a few have been quietly accelerating their growth in comparison. Allergan reported earnings this morning; and, in a conversation with CEO David Pyott, CNBC discussed Botox, its current and future potential, and the success of the company in an otherwise challenged [...]
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