| ERT Agrees to Acquire the Research Services Division of CareFusion (PR Newswire) eResearchTechnology, Inc. , , a global provider of technology and services to the pharmaceutical, biotechnology, and, medical device industries, announced today that it has agreed to acquire the research services division of CareFusion Corporation for $81 million in cash. Â CRS is a leading provider of respiratory diagnostics services and manufacturer of diagnostic devices and also offers cardiac safety and ePRO services. Â All will be integrated into ERT's existing business. Â ERT stated that the transaction is expected to close in June 2010 pending satisfaction of customary closing conditions. us.rd.yahoo.com |
A Look at Big Pharma Business Ratios Derek Lowe submits: Jim Edwards has a good post up about financial efficiency among the big drug companies. If you plot out their revenue versus expenses (S,G&A), you see that all the big outfits are basically the same (here's an enlarged version of the graph). Abbott's (ABT) a bit toward the top end of the narrow range, and AstraZeneca's (AZN) toward the bottom, but there's not much to choose from. This despite several of the companies on the chart having done whalloping huge mergers during the period shown, mergers which were supposed to improve efficiency. As Edwards shows, though, the best that can be said so far is that (in some cases) things have moved from a bit below average all the way up to.. average. It's interesting to compare that ratio to those found at other companies and in other industries. The rule of thumb is that a dollar of SG&A is worth three in revenue. The big drug companies look to have ratios of about 3.2 to 3.5 or so. For apples versus oranges comparisons, Pier 1 (PIR) is at 3, Best Buy (BBY) is at 4.2, and Dollar General (DG) is at 4.4. Tiffany (TIF) is 2.4, and CVS is an impressive 7.1.Complete Story » seekingalpha.com |
The Battle Over Battle Fatigue Soldiers can now claim trauma for events they didn't personally experience. Is the diagnosis losing meaning? online.wsj.com |
Arena's Lorcaserin: Weighed Down by Qnexa and Meridia Joseph Krueger submits: Before the FDA review panel’s of Vivus’s (VVUS) drug Qnexa, I expressed significant doubt that the panel review would be positive based primarily on the safety issues surrounding one of its ingredients topiramate here. The safety issues had to do with contraindications between topiramate itself as well as contraindications with the other ingredient phenteramine. I made the following statements:With so many contraindications and side effects of phentermine and topiramate, who can safely use Qnexa? Given the FDA’s historic stance on the safety of weight loss drugs, and the long list of potential safety issues with phentermine and topiramate, is it likely that the FDA will allow its marketing?I concluded (accurately) that Qnexa efficacy was never in question, and that these safety concerns would be the outstanding issues that would prevent Qnexa approval (PDUFA date is Oct 28, 2010). After the review panel vote, it appears that the only hope for Qnexa approval in October is that the FDA feels the safety risks are worth the clear weight loss benefit.Finally, I finished up this discussion with this statement: Investors should also consider the effects of any VVUS events could have on other companies developing obesity drugs. The outcome of the Qnexa panel review will have an impact on the trading of Orexigen (OREX) and Arena Pharmaceuticals (ARNA) obesity drugs up for review before the end of the year. In this brief analysis, I compared Orexigen's (OREX) Contrave to Arena’s (ARNA) Lorcaserin and hypothesized how the Qnexa panel could affect the share prices of OREX and ARNA. I stated: Between these three drugs, Qnexa is perhaps the most effective but also by far the one facing the most potential safety concerns. A favorable review for Qnexa is logically likely to rally VVUS but also OREX and especially ARNA stocks as it would demonstrate the review panel’s willingness to endorse an effective weight loss drug even in the face of potential side effects. An unfavorable Qnexa review is logically likely to cause a short term gut-response sell off in both of these stocks. However, a little further out I would expect ARNA not to recover (due to the safety concerns) but a rally in OREX could occur (due to its strong efficacy and very safe profile) as it demonstrates a continued concern over safety, and the elimination of its competitors.Complete Story » seekingalpha.com |
J&J's Quality Control Scrutinized Details have emerged in a recall of Johnson & Johnson's Tylenol products that are drawing new scrutiny to the company's handling of quality problems involving its popular over-the-counter medicines. online.wsj.com |