Sunday, December 21, 2014

POSTED: Tuesday, December 9, 2014, 11:54 AM
File: Employees walk past a Merck sign in front of the company's building on October 2, 2013 in Summit, New Jersey. (Photo by Kena Betancur/Getty Images)
One 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."

POSTED: Monday, December 8, 2014, 11:10 AM
SUMMIT, NJ - OCTOBER 2: Employees walk past a Merck sign in front of the company's building on October 2, 2013 in Summit, New Jersey. The pharmaceutical company Merck & Co. announced today that it would cut 8,500 jobs and consolidate its real estate in Kenilworth, New Jersey instead of moving its headquarters to Summit as previously planned. (Photo by Kena Betancur/Getty Images)
Merck & 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.

POSTED: Thursday, December 4, 2014, 11:35 AM
Tablets of the anti-depressant drug Paxil are shown in a drugstore in Wilmette, Illinois on Monday, December 30, 2002. (BLOOMBERG NEWS)

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.

POSTED: Wednesday, December 3, 2014, 12:17 PM
Drugmaker 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.

POSTED: Wednesday, December 3, 2014, 11:15 AM
GlaxoSmithKline 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.

POSTED: Thursday, October 30, 2014, 9:27 AM
An unidentified employee enters Teva Headquarters in North Wales. (Photo by (Clem Murray)
Teva 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.

POSTED: Tuesday, October 28, 2014, 8:08 AM
(Photo by Oli Scarff (Getty Images)
With 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.

POSTED: Monday, October 27, 2014, 7:36 AM
Drugmaker Merck & Co., said Monday morning that its total revenue declined four percent in the third quarter of this year compared to the same period a year ago.

Merck's total revenue was $10.557 billion in the third quarter of 2014, compared with $11.032 billion in the same period of 2013.

Merck is based in Whitehouse Station, N.J., but has big operations in the Philadelphia suburbs of Upper Gwynedd and West Point in Montgomery County.

About this blog
David Sell blogs about the region's pharmaceutical industry. Follow him on Facebook.

For Portions of this blog may also be found in the Inquirer's Sunday Health Section.

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