MedImmune

AstraZeneca launches $790M in Euro bonds

Tracy Staton — Tue, 01 Jul 2008 09:44:06 -0400

AstraZeneca is issuing more bonds to pay off its MedImmune debts. This time, it's an 18-month European issue to the tune of about $790 million; the bonds will be sold to institutions outside the U.S. and trade on the London exchange. The proceeds will cancel U.S. commercial paper the drugmaker took on to finance its buyout of the big biotech firm.

You'll recall that last fall AstraZeneca loosed a whopping $6.9 billion in bonds on the market, also to be used to pay off the MedImmune deal. The bond issue was a big success for the drugmaker, oversubscribed in all tranches.

- see the story at iStock Analyst

ALSO NOTED: Canada OKs Lucentis reimbursement; Coated stents better after heart attack;

Mon, 31 Mar 2008 07:59:50 -0400

> In a reversal, Canadian regulators ordered provinces to pay for Lucentis, the Genentech macular degeneration drug that has come under fire for its high price tag. Report

> Among a slew of new stent studies presented to coincide with the American College of Cardiology meeting was one that showed drug-coated stents worked better than bare ones in heart-attack patients. Report

> Sun Pharmaceutical Industries announced it had launched Ethyol, its copycat form of Medimmune's treatment designed to minimize kidney damage from chemotherapy. Medimmune has sued Sun for patent infringement over the drug. Report

> ImClone systems appointed Kenneth Zuerblis as senior vice president and CFO; previously, Zuerblis had been CFO of Enzo Pharmaceuticals. Report

> Sinclair Pharma said its CEO Michale Flynn bought 4,000 shares, boosting his take to 10.2 percent of issued shares; CRO Jerry Randall bought 30,000 shares to increase his stake to .57 percent. Report

> Japan's Takeda has abandoned development of its once-promising cholesterol drug TAK-475. Report

> Further evidence of Texas' growing power in the biotech industry: the Austin Business Journal reports that in recent months, central Texas-based life science outfits have attracted about $500 million in VC. Report

> VaxGen and Raven Biotechnologies are backing out of their proposed merger after "stronger than anticipated opposition" from shareholders. Report

> During a conference call with investors yesterday, Cardiome's President and Chief Business Officer, Doug Janzen, had some interesting thoughts on the slow approval process at the FDA. Report

And Finally... What's the etiology of spring fever? Report

ALSO NOTED: MedImmune appoints new SVP; Merck drug gets HealthCanada nod;

Thu, 03 Jan 2008 06:59:50 -0500

> MedImmune shuffled its management team last week: Andrew Skibo joined the company as senior vice president for engineering, and Dr. JoAnn Suzich was promoted to vice president of R&D-infectious disease. Release

> Health Canada gave the go-ahead to Merck's diabetes drug Januvia as an add-on treatment to metformin therapy. Report

> MGI Pharma is asking the FDA to allow it to sell a capsule form of Aloxi, an injectable drug used to treat nausea and vomiting in cancer patients. Report

> Teva Pharmaceutical Industries got the FDA nod for its generic version of DuoNeb, a bronchodilator marketed by Dey. Report

> The FDA gave its blessing to a new formulation of Sciele Pharma's high blood pressure treatment Sular. Report

And Finally... You've read our trends and predictions for the pharma industry. Now take a look back at the biotech industry in 2007 and find out what to expect in 2008. Report

Pharma goes mad for biotech deals

Fri, 21 Dec 2007 06:59:55 -0500

One word: Biotech. As if acting on some wise elder's tip-off, Pharma got its biotech groove on in 2007. The reasoning is clear. Biologic drugs are among the pharma industry's hottest performers. Pharma badly needs new blockbusters. So, hoping to pump up deflated pipelines, drug makers licensed in-development drugs or simply bought entire companies.

Some of the numbers are eye-popping. AstraZeneca shelled out $15.2 billion for MedImmune. Schering-Plough paid $14.4 billion for Organon BioSciences (FYI, that's a 37 percent premium). By comparison, the $2.65 billion Shire plunked down for New River Pharmaceuticals looks like pocket change. Then there's Merck's $1.1 billion buyout of Sirna Therapeutics; the additional $350 million for NovaCardia look like pocket change. Pfizer snapped up Coley Pharmaceutical Group for $164 million--plus it invested $50 million in biotech startups, and it launched a new bio-oriented research center in California.

Meanwhile, licensing deals are flying. Merck KGaA just made a $421 million deal with Idera for cancer therapies. AstraZeneca inked a $400 million deal with Silence Therapeutics, developer of siRNA technologies for use in respiratory diseases and cancer. GlaxoSmithKline paired up with OncoMed to the tune of $1.4 billion, hoping to turn one of its oncologic candidates into the next big thing. And many, many, many more. In fact, biotech is so big in the industry, the old chemical-based drugs are passé, to the point that career chemists are finding their places at the bench dwindling.

The big question is whether drug makers can cherry-pick enough biotech candidates to fill their new-product baskets. Is the old model of in-house R&D on its last legs? Is Big Pharma just too big to deliver real innovation? Stay tuned in 2008.

- see our report on the top five buyouts of the first half of 2007
- read about Big Pharma's love affair with biotech at CNN Money

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ALSO NOTED: Novo Nordisk, Pfizer settle insulin suit; Perrigo gets OK for generic heartburn drug;

Tue, 11 Dec 2007 06:59:50 -0500

> Now that Pfizer has pulled Exubera off the market, Novo Nordisk has settled a patent lawsuit with the company over the inhaled insulin product. Novo Nordisk had alleged that Exubera was based on its own inhaled insulin treatment, which hasn't yet reached market. Release

> Perrigo says the FDA gave final approval to an over-the-counter, generic heartburn treatment the company will market in partnership with Dexcel Pharma. Report

> Hikma Pharmaceuticals has inked a deal to buy Arab Pharmaceutical Manufacturing for $163.6 million. Report

> Bristol-Myers Squibb hired computer systems giant EDS to manage its IT in the Americas and Asia. Report

> At an R&D day for analysts and investors, AstraZeneca is filling in some of the details on its move to merge two recent biotech purchases--MedImmune and Cambridge Antibody Technology (CAT). Report

> Several big developers will take the stage at the American Society of Hematology meeting to provide updates on a string of new blood thinners that are in the clinic. Report

> Trend spotter alert: GlaxoSmithKline's newly announced $1.4 billion partnership pact with OncoMed delivers fresh evidence of just how hot antibodies and the cancer field are these days. Report

> When it comes to government spending on medical research, the EU is far behind the U.S. And some of the leaders in the field say it's time to catch up--fast. Report

And Finally... Only one plan in the entire U.S. will cover the so-called doughnut hole in Medicare drug coverage this year. Report

ALSO NOTED: Korea fines pharma firms for kickbacks; Medco boosts profits 16 percent;

Thu, 01 Nov 2007 07:59:50 -0400

> Ten Korean drug makers were fined $22 million for illegal rebates to hospitals and wholesalers. Report

> Pharmacy-benefits giant Medco Health Solutions posted a 16 percent hike in third-quarter profits and boosted its year-end earnings outlook again. Report

> Shire boasted a 41 percent increase in sales for the quarter, to $543 million, and raised its prediction for 2007 revenue growth to 30 percent from 25 percent. Release

> Shire also appointed MedImmune CEO David Mott as non-executive director; Mott also is executive vice president of AstraZeneca, which owns MedImmune. Report

> Drugs distributor Amerisource Bergen saw fourth-quarter profits fall 28 percent because of a big writedown on vaccine inventories. Report

> Smith & Nephew reported a 16 percent increase in adjusted earnings per share on a 24 percent increase in revenue to $845 million. Report

> A revolution in genomics and molecular biology has spurred a burst of new development activity in the vaccines business. Report

And Finally... Nematode worms treated with lithium live 46 percent longer. Would humans? Report

SPOTLIGHT: Vaccine panel endorses FluMist for toddlers

Wed, 24 Oct 2007 06:59:52 -0400

MedImmune's FluMist was endorsed for children as young as 2 by the Advisory Committee on Immunization Practices, which advises government health officials. The inhaled flu vaccine was approved for young children by the FDA last month. Report

ALSO NOTED: Layoffs depress J&J profits; Canada OKs Pfizer HIV med;

Tue, 16 Oct 2007 06:59:50 -0400

> Pink slips cost money. Just ask Johnson & Johnson, which saw its third-quarter profits drop by 8 percent because of money spent cutting jobs. Release

> Health Canada gave the thumbs up to Pfizer's maraviroc, a first-in-class remedy that will be marketed there under the brand name Celsentri. Report

> Elan Pharmaceuticals, Biogen Idec's partner in the MS drug Tysabri, says it might buy the other half of that drug when Biogen changes hands. Report

> Some AIDS activists are upset that Merck priced its new HIV drug at $9,855 per year--not cheap, but not the $20,000 that Roche first asked for Fuzeon in 2004. Report

> Indian drug maker Wockhardt is planning to buy Morton Grove Pharmaceuticals for up to $70 million. Report

> Rules-Based Medicine, which is hot in pursuit of new biomarkers, has received a $25 million injection of cash. Report

> Dutch biotech Crucell has inked a joint venture deal with MedImmune to develop its bacterial antibodies to treat hospital-acquired infections. Report

> Schering-Plough: A good company to work for. Report

And Finally... Speaking of cancer drugs, we have them to thank for a swift drop in death rates from the disease. Report

Will Big Pharma buy Biogen Idec?

Mon, 15 Oct 2007 06:59:57 -0400

So, Big Pharma--you all want to make a deal with biotech. But who's most likely to step up to the plate for Biogen Idec? Analysts put the price tag at $25 billion to $30 billion, so only the cash-rich need apply. Pfizer fits that bill, and just last week said it wants to be a "top-tier company in biotherapeutics," but the FTC might not like the combo. Sanofi-Aventis is actively on the prowl, too, and some experts have said it's a likely Biogen suitor. J&J is a possibility, analysts said. Merck is sitting on a pile of cash, too, and it poached Biogen's CFO a few months ago--might it want the rest of the company?

Other analysts say Eli Lilly and Wyeth are interested, but they're not on anyone's top three list. Some point to GlaxoSmithKline, while others say GSK's priorities don't match Biogen's. Roche is busy pursuing Ventana. Novartis has a competing interest in MS drugs. And count AstraZeneca out; it's still digesting the $15.6 billion MedImmune.

- see Biogen Idec's announcement on the sale
- check out the possible suitors from the Boston Globe
- read analyst speculation
- here's more analyst conjecture from CNBC

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Should Pharma take the M&A cure? Report
Acquisition deals in biotech keep getting richer. Report
M&A activity heats up as biotech IPOs struggle. Report

Read more on: Biogen Idec

CDC: Plenty of flu vaccine to go around

Thu, 20 Sep 2007 06:59:56 -0400

You know flu season's coming up when the media starts chanting about flu vaccines and flu remedies. So break out the tissue and fluids, because three big flu stories hit the news today.

First, good news for soft-hearted parents of toddlers and for MedImmune, the maker of FluMist. The FDA approved the no-needle vaccine for use in kids as young as 2; previously, it could only be used in children 5 years and older. Cited by the FDA in spring for manufacturing problems, MedImmune recently announced that it had ironed out those wrinkles and was ready for the season.
Second, the CDC announced that flu vaccine is in plentiful supply this year. Some 132 million doses are expected to ship this year, about 10 million more than last year. This is big news after a couple of years of shortages that left many patients without their flu shots.
Finally, Roche got the E.U.'s OK for kiddie-sized capsules of its antiviral Tamiflu. Until now, the drug was available only in 75 mg capsules, too much for young kids. Only a powder for oral suspension was marketed for use in children, and that formula doesn't have the extended shelf life of capsules. This is important since governments have been stockpiling Tamiflu in preparation for a potential flu pandemic.

- see Roche's press release on Tamiflu
- check out MedImmune's release about FluMist
- read the Kansas City Star article on vaccine supplies

MedImmune gets green light for FluMist

Mon, 10 Sep 2007 06:59:56 -0400

Head 'em up, move 'em out. MedImmune says it's cleared up its FluMist manufacturing problems, just in time to ship the product for this year's flu season. The FDA had warned the company in May for "significant deviations from current good manufacturing practice" at its U.K. facility, where FluMist is made. At issue were mold and bacteria found in the plant (but not in the vaccine itself).

The manufacturing clearance also opens the way for MedImmune to pursue approval of FluMist in children under five. Just before the manufacturing warning, an FDA advisory panel had said that the company's flu preventive works in that age group, though they were unsure whether it would be safe for kids under two.

- see this release
- and here's the report from The Washington Post

Related Articles:
MedImmune wins backing for expanded FluMist use. Report
MedImmune boosted by new data on FluMist. Report
MedImmune touts new FluMist version. Report
FluMist disappoints MedImmune yet again. Report

AstraZeneca floats $6.9 billion in bonds

Thu, 06 Sep 2007 06:59:55 -0400

AstraZeneca announced it has issued $6.9 billion in bonds on the U.S. market, planning to use the proceeds to retire a chunk of the short-term debt it took on for the $15 billion MedImmune buyout. Its interest rates range from 6.45 percent on 30-year fixed-rate notes to 5.4 percent on 5-year fixed notes.

With a total of $13 billion in commercial paper, the company will still have several billions to convert to long-term debt. Today, the company named three banking advisors--Citigroup, Deutsche Bank, and HSBC--to explore an additional bond issue in Europe.

- read the release
- see the report from CNBC

Related Articles:
AstraZeneca snares MedImmune in $15.6B buyout. Report
MedImmune CEO talks about AZ buyout. Report
AstraZeneca cuts 7,600 jobs. Report