Biotechnology

Novartis strategy on generics isn’t working

14 Jul 2005

The Swiss pharma s strategy of recycling cash from patented drugs into lowmargin generic treatments is proving costly, as Q2 figures show. Other pharma companies have dropped this strategy. Novartis should too.

Altana hit by Pfizer collaboration snub

1 Jul 2005

Pfizer has dropped rights to sell the German group s potential blockbuster drug for smokers cough bad news indeed for Altana. Worse, the resulting uncertainty may delay or nix Altana s plans to split its chemical and drugs divisions.

Sanofi-aventis loses patent fight for biggest drug

17 Jun 2005

The French pharma s defeat in its Lovenox patent trial may seem like a critical hit it puts more than E1bn of sales at risk. But there is no way the plaintiffs can introduce a generic version of the drug.

EU court ruling is blow for Glaxo

31 May 2005

An EU court has failed to uphold the right of drugs groups to maintain different prices in different markets. That s bad news, not least for people in poor countries. They may eventually find their access to drugs restricted.

Fresenius buys Renal Care for $4bn

4 May 2005

The deal has industrial logic, beefing up the German group s presence in US dialysis. But at 17 times operating profit, it won't come cheap. The alldebt financing may help make the numbers work. But it will leave Fresenius very highly leveraged. The deal has industrial logic,beefing up the German group s presence in US dialysis. But at 16 times operating profits, it won't come cheap. The alldebt financing may help make the numbers work. But it will leave Fresenius very highly leveraged.

Glaxo resolves Puerto Rico snarl-up

28 Apr 2005

Worries about substandard manufacturing at its Puerto Rico plant had temporarily halted the drug group s rerating. But with Puerto Rico largely out of the way and a healthy pipeline of new drugs, Glaxo s rerating should continue.

Serono takes surprise $725m legal charge

22 Apr 2005

The Swiss biotech has set aside 9% of the group s market capitalisation following the indictment of four executives on kickback charges. The unexpected size and suddenness of the charge reflect poorly on management s credibility.

Pfizer’s drug withdrawal hurts Merck

7 Apr 2005

The drugs company's forced withdrawal of Bextra worsens rival Merck s legal position over its closely related painkiller Vioxx. On the basis of the cost of settlements for other pulled drugs, Merck could be facing a final bill of at least $16bn.

Glaxo’s manufacturing probe signals big problem

4 Apr 2005

US regulators could fine the UK drug maker up to $850m and stop the sales of two of its important drugs. That's a hefty blow. And what's worse, the drug maker's manufacturing problems may be symptomatic of deeper ills.

Elan faces tough talks with creditors

31 Mar 2005

The Irish biotech is reeling after a third case of a rare disease has been linked to its lead drug Tysabri. The drug is as good as dead. This makes Elan s onerous debt load a crushing burden.

Solvay scores coup with E1.3bn Fournier buy

24 Mar 2005

Even without costcuts, the purchase will give a good return on investment. Throw in some synergies, and this looks like an excellent deal. The Belgian chemical and drug group is the latest acquirer in the continuing consolidation of Europe s drug makers.

Schering loses high-risk cancer bet

21 Mar 2005

The German drug maker tried to prove its drug worked in tougher conditions than rival drugs. It didn t. This setback may have caused E1.5bn in market capitalisation to be wiped out, but the group s risky approach should be applauded.

Roche’s subsidiary Genentech offers pair trades

16 Mar 2005

Shares in the Swiss drug maker s subsidiary are bubbling over. They have risen more than 20% this week on news of a cancer drug s success. Genentech s frothy valuation opens up attractive pair trades involving the group, the parent company and the sector.

AstraZeneca dodges regulatory bullet

3 Mar 2005

But the damage is done. The public s poor perception of the drug s safety means it will never deliver the growth investors once anticipated. Shares in the pharma group have rallied after US regulators allowed the group s controversial lead drug, Crestor, to stay on the market.

Sanofi-aventis delivers big cost cuts

1 Mar 2005

The merger that created the French pharma giant may have made the markets sick, but it looks surprisingly successful so far. Proposed synergies from combining the two companies always involved vague promises, but the group is ahead of schedule.

Elan slammed by drug withdrawal

28 Feb 2005

The Irish biotech has lost more than twothirds of its market capitalisation after a newly introduced drug was pulled from the market. Unless the drug can be reintroduced, Elan faces a troubled future. But the odds look low.

Novartis places $8.4bn bet on generics

21 Feb 2005

Many investors hoped the Swiss drug maker would dump its copycat drugs division after margins dropped to a lowly 8%. But Novartis is now trying to turn the division around with a pricey acquisition.

Don’t bet on Garnier to end the arms race

10 Feb 2005

But that doesn t mean that Glaxo is about to cut its salesforce regardless of what other drugs companies choose to do. The chief executive of GlaxoSmithKline may lament the pharma "arms race" that has caused sales and marketing expenses to soar.

Lanxess may be the next Rhodia

28 Jan 2005

Bayer s chemicals group spinoff has eerie similarities with its troubled French competitor. Lanxess has mature businesses operating on low margins and under heavy debt. Its future looks bleak if Rhodia is any guide.

Kuwaitis bail out of Sanofi-Aventis

28 Jan 2005

The Kuwaitis were never happy with the hostile takeover of Aventis by fellow French drug maker Sanofi and for good reason. Their stake in Aventis was worth E400m more before Sanofi's initial bid.