TOP 100 MEDICAL SITES
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| Seattle Genetics Leads the Way in Next Generation Antibody Technologies Jason Chew submits: Monoclonal Antibodies have revolutionized medicine. Since 1986, more than 20 Antibody drugs have been approved, with sales of $26 Billion in 2007 alone and expected to nearly double to $49 Billion in 2013. Sales are highly concentrated, with the top five drugs - Avastin, Rituxin Herceptin, Humira, and Remicade accounting for 78% of 2007 sales. It is rather amazing that Avastin and Herceptin has maintained such strong sales in the face of a deluge of cheaper small molecule competitors for their respective targets: VEGF and HER2.Rituxin and Herceptin look to have patents expire in 2015 and will be vulnerable to generic biosimilars - Teva (TEVA) is currently running clinical trials on a Rituxin biosimilar and is already selling one in India. To that end, Roche has looked to new technologies to extend the life of its multi-billion dollar Anti-CD20 and Anti-HER2 franchises.Complete Story » seekingalpha.com |
Big Biotech: End of an Era Jason Chew submits: In their heyday, big biotech companies rivaled some Big Pharma companies in market capitalization and epitomized innovation in pharmaceutical development. At the time of its acquistion by Roche (RHHBY.PK), Genentech (DNA) was valued at $106 billion. Amgen (AMGN) at one time reached a valuation of over $100 billion, Gilead (GILD) over $50 billion. Excluding Genentech, the top five biotechs- Amgen, Gilead, Celgene (CELG), Genzyme (GENZ), and Biogen Idec (BIIB) have now lost a combined $89 billion in market value from their peak, about 40% of their value. Each of these top biotechs were founded in the 1970s and 1980s, bringing life-changing innovations with them. Their technologies revolutionized healthcare. Once the backwaters of drug development, Genentech built its empire by developing novel cancer therapies; Amgen saw the benefits of cloned EPO, and buit an entire franchise around it; Gilead designed effective and convenient combination anti-viral pills, overtaking all others in the HIV market. These companies were driven by legends in the biotechnology field: Art Levinson, George Rathman, John Martin. A confluence of factors has led to the slow decline of these big biotechs (Genentech is an exception.) The very thing that has driven growth for these biotechs has now become a reason for their drag. Their focus on targeted niches has made each a dominant player in their categories. For instance, Celgene is a leader in multiple myeloma, Genzyme in enzyme replacement therapy, and Biogen Idec in multiple sclerosis. This has given the companies pricing power and allowed for very high margins. With patent expirations looming, investors began to focus on the companies’ product pipelines and realized they were quite empty; years of pouring money on internal research projects has come up dry. Big biotech was in the same predicament as Big Pharma- sales of blockbusters are slowing but there isn’t anything to replace them. On top of that, the companies are facing pricing pressure from government regulation both in the EU and the US. Until last year, Genzyme was looking like the company that would succeed beyond its core enzyme replacement therapies. Although that segment made up about half its sales, its oncology unit was growing well, as was biosurgery. Then in June 2009, a bacterial contamination forced it to cease production of its two leading drugs Cerezyme and Fabrazyme at its main plant. With continued problems, its stock price was cut to a low of $45 in May from its $80 peak. Wounded, Sanofi-Aventis (SNY) approached Genzyme with an informal takeover offer on July 23, instantly putting the company in play. [[GSK]] is said to be interested as well. According to Bloomberg, Genzyme may command a price of $80 per share, a 48% premium to its closing price the day before reports of Sanofi’s interests surfaced. Genzyme’s peers, Amgen, Gilead, Celgene, and Biogen Idec are often the subject of takeover speculation, though even with their now reduced market caps, perhaps only Biogen isn’t so large as to cause indigestion. What happens then as the big biotechs are picked off by Big Pharma or join their ranks as slow growing behemoths? It appears there may be a second generation of biotechs waiting in the wings, on the cusp of greatness. As it so happens, this generation is the 1980s and 1990s set: Vertex (VRTX), Human Genome Sciences (HGSI), Dendreon (DNDN), Alexion, (ALXN) Amylin (AMLN), BioMarin (BMRN). The dynamic biotech industry has produced another batch of companies, each with innovative, life-changing technologies. Let's see if they succeed.Disclosure: Long ALXN, GENZComplete Story » seekingalpha.com |
Medco to Buy Drug Researcher Pharmacy company Medco Health said it will buy closely held drug and device researcher United BioSource for about $730 million. online.wsj.com |
Novartis Halts Development of Two Drugs: Biotech's Latest Tribulations The Burrill Report submits: Novartis (NVS) said that it is discontinuing the development of two investigational compounds and will take charges of $590 million in the third quarter of 2010 as a result. The decision, it said, reflects an enhanced focus on portfolio prioritization and productivity. Novartis and its partner, Human Genome Sciences (HGSI), are stopping development of albinterferon alfa-2b, an investigational compound for the treatment of adults with chronic hepatitis C. Novartis also said it will discontinue development of Mycograb, an antifungal agent being assessed for the treatment of invasive candidiasis in adult patients. The company said the charge will be partially offset by a gain on divestment of Enablex of approximately $390 million to be recognized in fourth quarter 2010. The U.S. Food and Drug Administration has notified Johnson & Johnson (JNJ) that it would not approve the company’s application for the analgesic tapentadol without additional data. The medicine is an oral extended release tabletfor the management of moderate to severe chronic pain in adults. The FDA has not requested any new clinical studies evaluating the efficacy or safety of tapentadol extended release, but is requesting data regarding the conversion of the extended release formulation used in the clinical efficacy and safety trials to a different extended release formulation that is designed to increase mechanical resistance to breaking or crushing. Complete Story » seekingalpha.com |
Amgen, Celgene and Novartis in the Fight Against Pancreatic Cancer Michael Becker submits:Next month [November] marks Pancreatic Cancer Awareness Month. Visibility for the disease is already on the rise due to recent celebrity victims, including Apple’s Steve Jobs and Hollywood actor Patrick Swayze.According to the American Cancer Society, pancreatic cancer is a devastating disease with the worst mortality rate and an overall 5-year survival rate lower than 5%. Although accounting for only 3% of all cancers, this disease is the fourth leading cause of death and represents 6% of all cancer related deaths in the United States.Complete Story » seekingalpha.com |