Drugmaker Pfizer, Inc., said Tuesday that its profit fell 19 percent in the third quarter of 2013 compared with the same period in 2012.
Based in Manhattan with a big operation in Collegeville, Pfizer cited generic competition as the main cause of declines in revenue and profit. A link to Pfizer's press release and numbers is here.
Pfizer has been re-organizing in hopes of improving efficiency. Part of that was spinning off its animal health unit, Zoetis, which was completed in June.
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Lawyers for Johnson & Johnson's Janssen Pharmaceuticals subsidiary were defending the company and the drug Topamax in trial that began Tuesday in Philadelphia Court of Common Pleas.
In the Bloomberg News story (link here), the attorney for a Virginia woman said J&J had put the woman and her child at risk because of the side effects related to the drug that was prescribed to treat the woman's migraine headaches. In the story, April Czimmer blamed Topomax and Janssen for her son’s cleft palate and lip and claimed Janssen negligently failed to inform patients about its risks until the U.S. Food and Drug Administration ordered stronger warnings in 2011. The attorney said this was among the first of 134 Topomax suits in Philadelphia.
Like most big drug companies, J&J faces thousands of lawsuits in state and federal courts filed by people who say they or their children were harmed by the company's drugs.
The shifting landscape of American health care - for good or bad, depending on your opinion, status, employer, and particular changes - was evident Tuesday when one of the Philadelphia region's larger private employers, Johnson & Johnson, reported financial results for the third quarter of 2013.
The health-care giant had increased sales and profits, but also greatly increased the money set aside to pay pending legal bills, and warned of possible layoffs in a local division because people are postponing elective surgery to repair knees, hips, and backs.
J&J's sales of $17.6 billion and profits of $3 billion for the quarter ending Sept. 30 were higher than the same period of 2012. The figures were boosted by the introduction of patent-protected and profitable prescription drugs. The company's stock, $89.92 at Tuesday's close, has risen more than $20 in the last 12 months. That helps many people, including those who don't know that the stock is in their pension or 401(k) plan. Like drugmakers Pfizer and Merck, J&J is among the 30 companies used to calculate the Dow Jones Industrial Average.
Healthcare giant Johnson & Johnson reported increases in sales and profit in the third quarter of 2013, but also said it increased the money it set aside to deal with legal bills.
Indications are that J&J and the Justice Department are getting closer to finalizing an agreement related to allegations of improper marketing of its antipsychotic drug Risperdal. J&J also faces patient lawsuits related to multiple products.
J&J is headquartered in New Brunswick, N.J., and has multiple operations around Philadelphia.
Drugmaker AstraZeneca said Tuesday that it has bought Spirogen, a privately-held biotech company that focuses on so-called "antibody-drug conjugate" technology that is used in oncology. AstraZeneca will pay $200 million up front and then $240 more if Spirogen products reach development and commericial milestones.
AstraZeneca is based in London, with a planned move to Cambridge, but has a big operation in Wilmington and Newark, Del.
AstraZeneca made the purchase through its subsidiary MedImmune, its global biologics research and development arm.
Bernstein Research analyst Tim Anderson, who has graduate degrees in medicine and business, has long told clients of the great history of Merck research and development and even upgraded his outlook on the stock as late as 2009, after it bought Schering-Plough.
But on Monday, he told clients he has downgraded the outlook from "outperform" to "market-perform."
Merck is based in Whitehouse Station, N.J. On Oct. 1, the drugmaker announced 8,500 more layoffs by the end of 2014 and a narrowing of focus of R&D. MRK is Merck's ticker symbol.
Teva Pharmaceutical Industries, Ltd., said Thursday morning that it will cut 5,000 jobs, roughly 10 percent of its global workforce, by the end of 2014.
Teva is based in Israel, but its Americas headquarters is in North Wales and it has other operations in the Philadelphia region.
Here is the Teva statement:
- $2.0 billion in annual cost savings by the end of 2017 including $1.0 billion by the end of 2014
- Approximately 10% reduction in global workforce in 2014
- Will invest in R&D and Sales and Marketing for high potential programs