David SellThe healthcare spending landscape shifted again Monday when Express Scripts, the nation's largest pharmacy benefits manager (PBM), said it will provide only one brand of hepatitis C medication to most new patients in its employer-sponsored health plans, effectively choosing sides between competing pharmaceutical companies hoping to make big money in this area.
St. Louis-based Express Scripts said it will only provide AbbVie's Viekira Pak - after negotiating a discount on the list price - to new patients with genotype 1, the most common form of the disease. About three million Americans have hepatitis C, with estimates reaching 200 million worldwide.
The deal is a loss for California-based Gilead and New Jersey-based Johnson & Johnson, which make competing hepatitis C medication. Some patients and doctors are likely to complain about having their choices and prescribing preferences limited by Express Scripts.
David SellOne day after saying it would spend $9.5 billion to acquire Cubist Pharmaceuticals, Merck & Co., announced that an adverse court decision about key patents for Cubist would not deter it from acquiring the smaller antibiotic drugmaker.
Cubist gets about 80 percent of its revenue from Cubicin. The U.S. district court in Delaware ruled in favor of Hospira in a patent dispute, saying that four of five patents related to Cubicin were invalid. The court said the patent that expires on June 15, 2016 is valid. The decision is subject to appeal. If it stands, Hospira would be able to sell a generic version, if approved by the FDA, once the remaining patent expires.
"The company continues to believe the acquisition of Cubist will create strong fundamental value for Merck’s shareholders," Merck said in a statement. "The combined strength of both companies will provide both incremental and long-term value, and Merck expects the transaction to add more than $1 billion of revenue to its 2015 base, with strong growth potential thereafter. The court’s decision does not change Merck’s expectation that the transaction will be neutral to modestly accretive to 2015 non-GAAP EPS. The company also continues to expect that the transaction will contribute mid-single digit accretion on a percentage basis to non-GAAP EPS in 2016, and will continue to be accretive thereafter."
David SellMerck & Co. dove deeper into the antibiotic drug market Monday when it agreed to buy Cubist Pharmaceuticals for $9.5 billion, including debt.
The deal would pay shareholders $102 per share in cash, which Merck calculates is a 35 percent premium to Cubist's average closing price in the preceding five days. The agreement includes $8.4 billion for the shares and assumption of about $1.1 billion in company debt.
Merck is based in Whitehouse Station, N.J., and has large facilities in Upper Gwynedd and West Point, Montgomery County. Cubist is based in the Boston suburb of Lexington.
Drugmaker GlaxoSmithKline said Thursday it will keep several established brand-name products sold in North America and Europe after testing the market to see if they could sold for a sufficient amount of cash.
The "established" products group includes medication that still works and is for sale to patients, but no longer has market exclusivity because patents have expired, and therefore generate less profit than in the past. Examples include the heartburn drugs Tagamet and Zantac, the migraine medicine Imitrex and the antidepressant Paxil.
"The company has evaluated all bids received and has concluded, consistent with its key criteria of maximizing shareholder value, not to pursue divestment of these products," the company said in a statement.
David SellDrugmaker GlaxoSmithKline will move research and development jobs to its existing operations in the Philadelphia region, but also layoff some commercial employees in the area as part of the $1.57 billion restructuring plan that was announced in vague terms in October and explained with some detail Wednesday.
GSK, which is based in London, will significantly reduce its R&D operation in North Carolina's Research Triangle Park, moving some of those jobs to facilities in Upper Merion and Upper Providence, Montgomery County.
In a statement, GSK said the Philadelphia region and facilities in the United Kingdom will become research hubs.
David SellGlaxoSmithKline employees were scheduled to get some news Wednesday about how $1.57 billion in annual costs were to be taken out of the company budget. Layoffs are very likely.
The big number was announced in October, when London-based GSK reported third-quarter financial results. Slowing sales of its established (and top-selling) asthma drug, Advair, and slower-than-hoped immediate use of newer asthma medicines prompted concern.
North American pharmaceutical chief Deirdre Connelly, who works from the company's facility at the Philadelphia Navy Yard, was expected to address U.S. employees.
David SellTeva Pharmaceutical Industries Ltd., said Thursday that its third-quarter profit rose compared to the same period last year in large part because it stopped trying to sell generic medicine in markets where the profit was too small, cut expenses and converted patients to a new version of its multiple sclerosis medication.
Teva's net income rose from $711 million in the third quarter of 2013 to $876 million in the same period this year.
Sales for the third quarter were almost flat, decreasing from $5.059 billion in 2013 to $5.058 billion the third-quarter this year.
David SellWith potential acquisitions hovering in the background, drugmaker Pfizer said Tuesday that its third-quarter revenue declined two percent from the same period a year ago, from $12.643 billion in 2013 to $12.361 billion in 2014.
Pfizer's third-quarter profit increased three percent, from $2.59 billion in 2013 to $2.666 billion in 2014.
Based in Manhattan, Pfizer has a big operation in Collegeville, Montgomery County.