Weekly Roundup: Oct. 30, 2007
- Merck's Withdrawal From Diabetes Drugs Research May Help Glenmark (India)
- TPG Places a Growth Bet On China's Drug Industry (China)
- Daiichi Sankyo and Eli Lilly Halt Prasugrel Trials (Japan)
- Glenmark Pharma Inks Deal With MeyerZall Labs (India)
- High Rupee Hurts Dr. Reddy Profit; Cipla's Net Rises (India)
- Corporate Watchdog to Fine Pharmaceutical Companies for Unfair Practices (South Korea)
- Analysis: Midsize Drugmakers Stay Independent Via Takeovers By Nondrug Firms (Japan)
- Ranbaxy Launches Anti-Allergic Nasal Spray (India)
- Genesis Technology Group Retains CCG Elite (China)
- Stocks Rise for BioTech Allied With Major Drugmakers (Japan)
- Former Head of Chinese Provincial Food and Drug Agency Sentenced to 15 Years (China)
- Bid to Find New Drugs Against TB Using Genomics (Singapore)
- Chugai Pharmaceutical Announcement Anti-Cancer Agent Tarceva Tablet Approved in Japan (Japan)
- Novo Nordisk Insulin Levemir Gets Approved for Diabetes in Japan (Japan)
Merck's Withdrawal From Diabetes Drugs Research May Help Glenmark (India)
Glenmark Pharmaceuticals is expected to benefit from a recent announcement by Merck KGaA that the international drug-maker is stopping all research and development for diabetes drugs. Currently, Merck and the India-based Glenmark have a E190 million licensing deal for Glenmark's experimental diabetes treatment, GRC 8200. The deal would have given Merck the right to market the drug in Japan, Europe, and the United States while Glenmark retained the Indian rights. Merck already paid Glenmark E25 million for the drug when it was in initial clinical trials, last year. Since that time, GRC 8200 has progressed into later-stage human testing, making it much more attractive to investors. Now, with the return of the licensing rights, Glenmark may be able to sell the molecule for a higher price to a third-party. Despite Merck's withdrawal, development of the drug is expected to continue on schedule. (Click here for more )
"Merck's Withdrawal From Diabetes Drugs Research May Help Glenmark"
livemint.com (10/26/07) Unnikrishnan, C.H.
TPG Places a Growth Bet On China's Drug Industry (China)
TPG, the private-equity firm formerly known as Texas Pacific Group, is investing in Shanghai ChemPartner, one of China's largest pharmaceutical-research outsourcing companies. TPG also will invest in ChemPartner's sister company, ChemExplorer, because the minority stake TPG is taking will actually be in ShangPharma, the recently formed holding company of both. ChemExplorer does most of its work for Eli Lilly & Co., while ChemPartner is an established outsourcer to many global drug firms. Multinational pharmaceutical firms are increasingly using Chinese scientists, and health care is drawing greater interest from venture capitalists and early-stage financiers, who previously avoided China's drug industry. (Click here for more - May Require Paid Subscription)
"TPG Places a Growth Bet On China's Drug Industry"
Asian Wall Street Journal (10/25/07) P. C4; Zamiska, Nicholas; Santini, Laura
Daiichi Sankyo and Eli Lilly Halt Prasugrel Trials (Japan)
Daiichi Sankyo and Eli Lilly have worked together to develop the powerful anti-coagulant prasugrel. However, the results of that study, which included 13,600 patients, have now been thrown into question. On Oct. 24, Daiichi and Lilly announced they were halting two small, related trials. According to company representatives, the two trials were stopped because researchers felt the dosing needed to be tweaked for some populations. The smaller trials were using the same 60 mg initial dose, followed by 10 mg daily doses, as the TRITON trial. Despite this setback, some insiders say there is no need for investor panic. They contend if there was a major safety issue with the drug, trials would have been halted a long time ago. Others argue if there was no need for concern, the companies would not have halted the trials before the TRITON results were announced. If the results do turn out to be negative, it would have a serious impact on the financial projections for both companies. By the time new studies could be conducted, Sanofi-Aventis' Plavix, prasugrel's major competitor, could be available in a generic form, making the drug an extremely tough sell in a market looking to cut drug costs. (Click here for more - May Require Paid Subscription)
"Eli Lilly Halts Two Prasugrel Trials, Leading Physicians to Believe Upcoming Phase III Results Will Be Negative"
Financial Times (10/25/07) Ha, Kimberly; Damouni, Sasha; Iyer, Gayatri
Glenmark Pharma Inks Deal With MeyerZall Labs (India)
Glenmark Pharmaceuticals Ltd, one of India's biggest pharmaceutical companies, is teaming up with the South Africa-based MeyerZall Laboratories. The deal stretches for a period of 10 years. Over that time the two companies will work together to expand drugs in Glenmark's topical dermatology pipeline. These treatments will primarily focus on aiding patients suffering from psoriasis, fungal infections, and inflammation. Thanks to the new partnership, Glenmark and MeyerZall will be able to offer the largest range of topical dermatology products in South Africa. (Click here for more )
"Glenmark Pharma Inks Deal With MeyerZall Labs"
Economic Times of India (10/25/07)
High Rupee Hurts Dr. Reddy Profit; Cipla's Net Rises (India)
Dr. Reddy's Laboratories Ltd. reports fiscal second-quarter net profit fell 4.5 percent, while Cipla Ltd. says its net profit rose 6.1 percent and forecast a difficult fiscal year coming up. Both firms were affected by the rising rupee. Dr. Reddy's consolidated net profit fell to 2.67 billion rupees ($67.4 million) for the period ended Sept. 30 from 2.8 billion rupees a year earlier, which was boosted by high-margin authorized generic drugs and product exclusivity. Besides the rupee, which has increased more than 10 percent against the dollar since January, Dr. Reddy's blamed costs and revenue from its Betapharm unit, which it acquired last year, for its weak performance. Cipla's net profit rose to 1.91 billion rupees from 1.80 billion rupees, with net sales increasing 23 percent to 10.98 billion rupees. "I will not be too optimistic about the next two quarters," said Joint Managing Director Amar Lulla. "Achieving an annual growth rate of 12 percent to 15 percent will be difficult given the way the rupee is appreciating." (Click here for more - May Require Paid Subscription)
"High Rupee Hurts Dr. Reddy Profit; Cipla's Net Rises"
Asian Wall Street Journal (10/25/07) Ahmed, Rumman
Corporate Watchdog to Fine Pharmaceutical Companies for Unfair Practices (South Korea)
South Korea's Fair Trade Commission (FTC) has announced it will be taking action against 10 pharmaceutical companies for allegedly offering financial incentives to hospitals and doctors to give priority to their products. Alleged incentives included cash, rebates, dinners, and covering travel expenses. Several companies are also accused of setting wholesaler prices to keep drug costs up. The FTC has not released the exact amount of the financial penalties it will seek. Insiders speculate the fines for some companies may go as high as $108 million. These accusations are the result of a year-long investigation by the FTC into the trading practices of 11 local companies, six foreign entities, and six wholesalers. (Click here for more )
"Corporate Watchdog to Fine Pharmaceutical Companies for Unfair Practices"
Yonhap News (10/25/07)
Analysis: Midsize Drugmakers Stay Independent Via Takeovers By Nondrug Firms (Japan)
Kyowa Hakko Kogyo Co.'s decision to become part of major brewery group Kirin Holdings Co. is the latest example of a growing trend in Japan's fragmented pharmaceutical industry – midsize pharmaceutical firms being bought out by large corporations outside the sector to stay afloat while retaining their independence. Japanese pharmaceutical firms are having to deal with such issues as increased government scrutiny of drug prices and an effort by the government to promote the use of generic drugs. Meanwhile, foreign-affiliated rivals are introducing blockbuster products developed outside of Japan. "It will be impossible for all of our 70 member (nongeneric) drug companies to stay in business in their present form," said Hatsuo Aoki, president of the Japan Pharmaceutical Manufacturers Association. Analysts expect the focus of consolidation to be on second-tier companies because they will be the hardest hit by sharp drops in drug prices. "Midsize companies will be forced to decide whether to merge with other firms of the same size or ally with big-name companies," said Fumiyoshi Sakai, an analyst at Credit Suisse Securities (Japan) Ltd. Realignment is aimed at securing research and development funds to maintain sales growth and improve overseas operations by going under the umbrella of a major firm in another sector like the Kirin-Kyowa Hakko deal. The pharmaceutical sector will likely see a new wave of realignment led by unions between midsize drug firms seeking ways to stay in business and large corporations with core businesses in other industries, who hope to turn pharmaceutical operations into another major earnings source. (Click here for more - May Require Paid Subscription)
"Analysis: Midsize Drugmakers Stay Independent Via Takeovers By Nondrug Firms"
Nikkei Weekly (10/24/07)
Ranbaxy Launches Anti-Allergic Nasal Spray (India)
Indian pharmaceutical major Ranbaxy Laboratories has launched a new nasal spray in India. The spray, called Osonase (ciclesonide), is designed to treat both seasonal and perennial allergies. Osonase is approved for use in both adults and teenagers. The latest edition joins Ranbaxy's lineup of allergy medications. The company has also recently developed a number of delivery mechanisms for asthma treatments, including dry-powder inhalers, and inhalers that use hydro fluoro alkane as an environmentally conscious propellant. (Click here for more )
"Ranbaxy Launches Anti-Allergic Nasal Spray"
Business Standard (India) (10/24/07)
Genesis Technology Group Retains CCG Elite (China)
Genesis Technology Group Inc., one of China's top drug-makers, has retained the services of CCG Elite. Genesis hopes CCG will help it expand investor interest in the company. Genesis works with its subsidiary Lauyang Jiangbo Biotech Technologies Co. to develop and produce a number of drugs. Currently, its pipeline includes both Western drugs and traditional Chinese medicines. This year Genesis has seen total sales of $76.2 million, up a staggering 55 percent from 2006. As one of the largest non-state-owned pharmaceutical companies in China, Genesis is in an excellent position to access the country's fast-growing drug market. Experts expect the market to grow by over 13 percent in the next few years, reaching $51 billion by 2010. (Click here for more )
"Genesis Technology Group Retains CCG Elite"
Earthtimes (10/24/2007)
Stocks Rise for BioTech Allied With Major Drugmakers (Japan)
Several Japanese biotech companies have gotten a major investment boost of late. The financial windfall comes from a mixture of promising experimental treatments and partnerships with pharmaceutical heavyweights. First off the mark was Japan Tissue Engineering Co. The company got a major break on Oct. 3 when the Japanese Health Ministry gave it the green light to sell cultured skin samples to treat burn wounds. On the same day, Onccotherapy Science Inc. saw heightened investor interest thanks to speculation of a promising new cancer vaccine in development. AnGes MG Inc. and Sosei Group Corp. also saw massive spikes in their earnings between September and October. Experts say their fortunes were helped largely by partnerships with major drug makers. AnGes works with top Japanese firm Daiichi Sankyo, while Sosei partners with Swiss-based international giant Novartis AG. (Click here for more - May Require Paid Subscription)
"Stocks Rise for BioTech Allied With Major Drugmakers"
Nikkei Weekly (10/24/07)
Former Head of Chinese Provincial Food and Drug Agency Sentenced to 15 Years (China)
Former head of the Liaoning province food and drug agency, Zhang Shusen, received a 15 year prison sentence for embezzling 300,000 Yuan ($40,000) from the agency. He claimed the money was used to purchase equipment for the agency. Shusen also accepted payments from pharmaceutical firms totaling 100,000 Yuan ($13,000) in exchange for light punishments when firms were accused of selling counterfeit medications in the province. Analysts expect the strong sentence to become symbolic of the changes the Chinese government expects to make in its regulatory frameworks to bolster food and drug safety in the nation. (Click here for more - May Require Free Registration)
"Former Head of Chinese Provincial Food and Drug Agency Sentenced to 15 Years"
International Herald Tribune (10/23/07)
Bid to Find New Drugs Against TB Using Genomics (Singapore)
Forty representatives from some of the world's top research institutions met in Singapore for a conference called Grand Challenges in Global Health: Drugs for Latent Tuberculosis. As its name suggests, Grand Challenges was designed to discuss new solutions for combating tuberculosis around the world. The two-day conference began on Oct. 24 in Singapore's Biopolis, located in the city-state's North Buona Vista area. Participants included researchers from the United States, Britain, Mexico, South Korea, and the Novartis Institute of Tropical Diseases in Singapore. The major focus of Grand Challenges was the possible use of genomics to develop a more effective tuberculosis treatment. Theoretically, scientists would disable different molecules of a drug to better analyze how each one operates to fight the disease. The goal of the group is to develop a treatment that would eliminate tuberculosis in under two-weeks. The current treatment time is nine months, however, a new drug with a two-month treatment window is already in Phase III trials. (Click here for more - May Require Paid Subscription)
"Bid to Find New Drugs Against TB Using Genomics"
Straits Times (10/23/07) Wy-Chin, Liaw
Chugai Pharmaceutical Announcement Anti-Cancer Agent Tarceva Tablet Approved in Japan (Japan)
Chugai Pharmaceutical Co. announced Oct. 22 that the Japanese Ministry of Health Labour and Welfare has granted approval to Tarceva. The drug has been approved for use in patients with certain types of lung-cancer that can be aggravated by chemotherapy. The Ministry of Health's decision comes on the heels of several successful clinical trials which revealed Tarceva was safe and effective and had a low incidence of side effects. The drug has been approved for marketing in doses of 25 mg, 100 mg, and 150 mg. (Click here for more )
"Chugai Pharmaceutical Announcement Anti-Cancer Agent Tarceva Tablet Approved in Japan"
Japan Corporate News Network (10/22/07)
Novo Nordisk Insulin Levemir Gets Approved for Diabetes in Japan (Japan)
Levemir, a drug produced by Danish pharmaceutical company, Novo Nordisk, has been approved in Japan. Following the approval, Novo announced its plans to begin marketing the drug for type one and type two diabetes in Japan before the end of 2007. (Click here for more )
"Novo Nordisk Insulin Levemir Gets Approved for Diabetes in Japan"
Hemscott Online (10/21/07)
