And so the M&A dance begins. Auxilium Pharmaceuticals today turned its back on a $2.2 billion buyout offer it received last week from Endo Pharmaceutical and said it would stick instead with its plan to merge with Canadian eye-drug maker QLT.
Endo's got a deal for Auxilium Pharmaceuticals in mind. CEO Rajiv De Silva thinks it could be a home run, and analysts seem to agree. Auxilium, however, needs some time to think it over, and it's swallowed a poison pill to make sure it gets just that.
Endo, in a world of financial hurt, has been turning to M&A lately to ease the pain. Its latest move: a deal for New Jersey generics maker DAVA Pharmaceuticals worth up to $600 million.
In the wake of a lawsuit brought by two California counties against five manufacturers of prescription painkillers, the city of Chicago has filed a suit of its own. Chicago is suing the same five pharma companies--alleging, much like California does, that they overstated the benefits of opioid painkillers while deceiving the public about the risks.
Earnings were kind to many of pharma's midsize players between Wednesday and Thursday, with several drugmakers--Endo excluded--posting growth. But not all of those companies reaped the sales they expected to, with Novo Nordisk and Teva falling into that category. Big changes may be in store, however, at least for a few of them--Shire and Mylan, for two, may soon find themselves in the middle of pharma's recent M&A storm.
Zogenix is selling its Sumavel DosePro Needle-free Delivery System for migraines to Endo International, but don't be fooled--it is maintaining ownership of the delivery technology upon which the product is based.
For Endo's testosterone therapy Aveed, the third time wasn't the charm with the FDA--but the fourth time was. After a trio of rejections, the FDA has given the thumbs up to the Low-T drug, and the Malvern, PA-based company expects to launch it this month. But amid the safety questions surrounding testosterone drugs, doing so may not be so easy.
For former Endo sales rep Peggy Ryan, the pivotal moment came about three years into her employment with the Malvern, PA-based company. She was at a national meeting, where the topic of discussion was how to distribute off-label studies in an unsolicited way, she says.
Valeant Pharmaceuticals has added another $250 million deal to its buyout tally, with a $250 million bid to buy Solta Medical, a maker of dermatological treatment devices. And Endo Health Solutions has agreed to pay up to $220 million for NuPathe and its brand-new migraine treatment Zecuity.
New pay-for-delay lawsuits are popping up around the country. Endo Pharma and Actavis have been named, as has AstraZeneca, Teva, Ranbaxy and Dr. Reddy's. And with the U.S. Supreme Court having defined its position this year, the pay-for-delay legal issue is being litigated under a whole new set of rules.