Biotechnology

Companies hold off eating R&D seed corn

16 Dec 2010

Hard times hurt. One danger of a sharp recession is that companies cut back spending on innovation, as they did during the Great Depression. Luckily, only truly hard up industries did so during the last crisis. That's good news for future growth.

Novartis throws in towel on Alcon minorities fight

15 Dec 2010

The Swiss drugmaker has upped its offer to Alcon's minority shareholders to $168 a share the same it is paying Nestle for its 77 pct stake. Alcon's independent directors have won their spirited fight. Now Novartis can extract the synergies it needs from the $52 bln deal.

Pfizer non-turnaround claims boss as victim

6 Dec 2010

The drug giant's boss Jeffrey Kindler has quit, saying he is tired perhaps of impatient investors calling for him to step down. Kindler made one sensible big deal and some mistakes, but had nothing to show for it in the share price. Yet it's far too early to judge his tenure.

Stevie Cohen scores a Biovail win for all shorts

4 Nov 2010

Blaming the bears is a tempting, diversionary tactic for companies under pressure. But Biovail s frivolous suit against fund heavyweight SAC backfired. Companies that use the courts to attack skeptics deserve a caning. If anything, Biovail s $10 mln penalty may even be too light.

The American Avon lady may be a poison pill

13 Oct 2010

Takeover talk has lifted shares of the doortodoor cosmetics firm. Strong demand in emerging markets may make Avon a tempting target for L Oreal or others. But the Avon ladies in Brazil and China come with American sisters whose business model might turn off erstwhile suitors.

Pfizer tackles revenue pain with $3.6 bln purchase

12 Oct 2010

The drug group faces a big top line hit when its biggest seller goes offpatent next year. Buying pain specialist King Pharmaceuticals should offset some of the lost sales. Better yet, the value of promised synergies should more than cover the $1 bln premium Pfizer is paying.

Sanofi-Genzyme battle descends into farce

8 Oct 2010

The U.S. biotech says the French pharma group last month indicated it might be willing to bid up to $80 a share. Sanofi denies ever mentioning a price range, and is sticking with its hostile, $69ashare cash offer. But it can afford to pay more, and probably will.

Sanofi pushes ahead with spurned Genzyme bid

4 Oct 2010

The French pharma group is taking its rebuffed $69ashare offer directly to the U.S. biotech's shareholders. This shows Sanofi's confidence that it can clinch a deal, and worry that waiting will make its target more expensive. But a sweeter offer is still more than likely.

J&J pays up for last big seat at vaccine table

17 Sep 2010

The U.S. healthcare group may buy the remaining 82 percent of Crucell it doesn t own for $2.3 bln. Big Pharma has realized the value of vaccines, and Crucell is the last big independent player. The price is stiff, but it allows J&J to deploy cash stranded overseas.

Genzyme shows how it can pressure Sanofi

13 Sep 2010

The U.S. takeover target cleaned house a bit by unloading its genetictesting arm. The more Genzyme can do to fix itself up, the more likely it can squeeze the French Sanofi to sweeten its $18.5 bln bid. Biotechs, once in play, almost always sell. A higher bid seems likely.

Goldman-to-Glaxo move may be sign of M&A splurge

8 Sep 2010

The pharma giant has picked Simon Dingemans as its new CFO. The move gives the Goldman dealmaker an escape from the antibanker backlash, and his expertise will be useful as the drugs industry consolidates. But bankersturnedcorporate executives have a mixed track record.

Genzyme opens door to Sanofi’s advances

1 Sep 2010

The CEO of the U.S. biotech company says he'd be willing to sell to Sanofi, if the French pharma group raises its $69ashare offer before talks start in earnest. That's sensible, but there's still risk that Sanofi turns away once it takes a closer look at its target's problems.

Sanofi, Genzyme play chicken over price

30 Aug 2010

The U.S. biotech wants a bigger offer before talking. The French pharma group, meanwhile, has gone public with its lowball $69ashare offer, hoping to pressure its target into talks that might yield a higher price. But Sanofi's threat of a hostile bid looks hollow for now.

Sanofi can’t risk hostile Genzyme bid

27 Aug 2010

The French pharma group is understandably cautious in its approach to Genzyme. It needs access the books to get a full understanding of industrial problems that have plagued the U.S. biotech. Only with that cooperation could Sanofi improve its $18 bln offer within limits.

Sanofi kick-starts Genzyme bid with lowball offer

3 Aug 2010

The French pharmaceutical group has approached the US biotech company with a $18 billion offer, according to Reuters. That's less than what Genzyme is trading at, and is unlikely to be accepted. But Sanofi needs Genzyme's pipeline and growth, and it can afford to sweeten its bid.

Big dose of vitamins may not boost Carlyle

15 Jul 2010

The private equity firm's $3.8 bln purchase of supplementsmaker NBTY is its biggest in ages. But it's not immediately clear what extra juice Carlyle can add to the business to generate outsized returns. Without that, it could just be a deal for a deal's sake.

Sanofi considers 15 billion dollar question

2 Jul 2010

The French drug maker faces a wall of patent expirations so though the company isn t saying, news that it may shell out for a U.S. biotech to replenish its pipeline makes sense. Among potential targets, Allergan or Genzyme would make a good fit, but Biogen Idec has more warts.

Biotech billionaire’s deal lab scores again

30 Jun 2010

Patrick SoonShiong has had runins with minority shareholders in the past yet made them rich too. The sale of his Abraxis for more than $2.9 billion looks another happy ending for SoonShiong, and his backers. Even at the rich price, buyer Celgene may end up benefiting.

Biovail sale oddly leaves its owners in control

21 Jun 2010

Specialty U.S. drug group Valeant is paying a 15 percent premium for Canadian rival Biovail yet the latter's shareholders end up with a majority of the merged group. Strategy and tax considerations may explain the deal. But Biovail s checkered past invites questions.

Outsourced opposition crashes risky pharma deal

17 Jun 2010

When Charles River Labs holders grew skeptical of the company s $1.6 bln deal to buy China's WuXi, hedge fund JANA Partners stepped in and bought a stake to lead the dissenters. The gamble could prove profitable. But copycats should be careful the ploy doesn t always work.