Pharmaceuticals

How a bold $60 bln deal went right yet so wrong

6 Dec 2023

Japan’s Takeda has cause to celebrate the fifth anniversary of its landmark acquisition of Irish peer Shire. Boss Christophe Weber achieved many aims, including broader reach and hefty cost savings. As with myriad mega-mergers, however, there’s little for shareholders to cheer.

Purdue mess pits drug victims against due process

5 Dec 2023

The $10 bln settlement ending opioid lawsuits is done and dusted, except for a case being reviewed by the Supreme Court. Justices’ discomfort over bankruptcy protection for the Sackler family has merit. But throwing out a deal means aggrieved parties just have to wait longer.

Capital Calls: Roche, Brookfield/Origin

4 Dec 2023

Concise views on global finance: The $224 bln Swiss drugmaker is splurging $2.7 bln on obesity drug developer Carmot; the Canadian investment firm’s joint $13 bln bid for Origin Energy has failed. The trick now is to show what lessons it’s learned from its 16-month-plus campaign.

Competition will make obesity drugs successful

1 Dec 2023

Medicines like Novo Nordisk’s Wegovy decrease weight and mortality. CEO Jørgensen has suggested a tiered pricing scheme that addresses the long arch of benefits. It makes sense, but competition, rather than innovative pricing schemes, may be faster.

AbbVie clinches the drug patent-cliff dismount

30 Nov 2023

A $10 bln purchase of ImmunoGen is the pharma giant’s latest bid to replace sales from maturing mega-drug Humira. While sometimes the fear of losing patent protection on a star product is justified, AbbVie shows it’s possible to go over the cliff and live to tell the tale.

Insurer mega-deal faces doubly poor prognosis

29 Nov 2023

Cigna and Humana are in talks to create a $135 bln giant. Overcoming near-certain trustbuster opposition likely means hiving off overlaps that would benefit either and enduring a year-plus wait. Judging by investors’ early response, that might cause them to nix the idea first.

Eli Lilly’s M&A trial prints lose-lose outcome

21 Nov 2023

The pharma giant has offered $1.4 bln for Point Biopharma, but if the target’s latest drug comes good it could be worth much more. No wonder Point investors are sitting on their hands. Had Lilly offered them a share of future profit, it could have saved itself the embarrassment.

Bayer drug fail is symptom of growing breakup pain

20 Nov 2023

Shares in the 33 bln euro group fell 20% after it aborted a late-stage trial. Given drugs regularly fail, that’s excessive. Instead, investors’ main concern could be that a grim pharma outlook and litigation risk in Bayer's seeds unit mean a planned split may release less value.

Amazon’s health push is a too-costly prescription

8 Nov 2023

The tech giant is slashing membership prices at its US doctors’ practice, One Medical, to $99 for Prime members. Primary care burns cash, and unlike digital efforts a chase for scale seems unlikely to help. It’s a pricey strategic drift to secure some extra subscriber loyalty.

Drug shortages demand quick and costly action

7 Nov 2023

Chemotherapy and penicillin ran short over the past year amid supply-chain disruptions and regulatory pressure. In this Exchange podcast, Dr. Steffen Denzinger, president of the European Fine Chemicals Group, argues that safeguarding medicines may require patients to pay more.

Sanofi sickness calls for activist tonic

2 Nov 2023

The pharma group lost nearly $27 bln of market value as it announced more investment in drugs. To keep investors happy, CEO Paul Hudson can sell its consumer business, step up dealmaking and buy back shares. Its long-suffering shareholder L’Oréal has reason to back bold action.

Tough dealmaking conditions dull Waystar’s shine

31 Oct 2023

The healthcare technology firm is angling for a stock-market listing on the back of rapid, acquisition-fueled growth. With a sale looking difficult and heavy debt bearing down, an IPO may be its private equity backers’ best option, but a mooted $8 bln valuation looks steep.

Capital Calls: Pfizer pessimism

31 Oct 2023

Concise views on global finance: A glut of vaccines has gutted Pfizer’s valuation, leaving it lower than it was before the pandemic. That’s an over-reaction, even if its Covid-19 therapies prove worthless.

Capital Calls: Big Oil, Intel

27 Oct 2023

Concise views on global finance: Exxon returned $8 bln of cash to investors in the quarter, while Chevron returned some $6 bln. With investment rising and M&A on the table, investors are competing with new priorities; Intel shares jumped 10% after slowing declines in revenue.

Capital Calls: Roche’s $7 bln partial cure

23 Oct 2023

Concise views on global finance: The Swiss pharma giant’s deal for rights to develop a bowel disease treatment in the US and Japan can help diversify its portfolio. But new boss Thomas Schinecker will need more such purchases to fill out his depleted pipeline.

Capital Calls: Merck aims at targeted cancer drugs

20 Oct 2023

Concise views on global finance: Merck’s giant deal for rights to three Daiichi therapies, which could be worth up to $22 bln, illustrates the frenzy around drugs that can deliver toxins directly into cancerous cells. A stampede into the area may lead to lower returns.

Risky biotech M&A therapy will heal more fractures

19 Oct 2023

Bristol Myers is paying $5 bln upfront for Mirati, and will fork out another $1 bln if the target’s lung-cancer drug makes headway. Such contingent value rights often end up worthless, sowing discord. As valuation spats gum up deals, however, the sweeteners hold greater appeal.

Capital Calls: Merck aims at targeted cancer drugs

19 Oct 2023

Concise views on global finance: Merck’s giant deal for rights to three Daiichi therapies, which could be worth up to $22 bln, illustrates the frenzy around drugs that can deliver toxins directly into cancerous cells. A stampede into the area may lead to lower returns.

Rite Aid can do more wrong in bankruptcy

17 Oct 2023

Ill-advised acquisitions, mismanagement, and the growth of more diversified rivals contributed to the drugstore chain’s demise. But its role in the US opioid epidemic was the real killer. Rite Aid wants to restructure, but an eventual sale may be the end game.

Obesity revolution gorges on dialysis maker

11 Oct 2023

Shares of Fresenius Medical Care fell 20% after a trial showed a Novo Nordisk drug reduced the risk of kidney failure. It highlights how fast-growing weight-loss treatments will pummel other areas of medicine. The blow may push Fresenius and its parent into corporate surgery.