Japan

Sciele enjoys six-year stock high

Christe Bruderlin-Nelson — Wed, 03 Sep 2008 03:39:41 -0400

After yesterday's news hit that Atlanta-based Sciele Pharma would accept Japan's Shionogi's generous buyout offer, shares of the drug company's stocks jumped nearly 60 percent.

The deal, for $31 per share, will net Sciele $1.4 billion. Shionogi's offer was 61 percent above the stock price at market closure on Friday, but the stock closed at almost the offer price, at $30.68 per share on Tuesday.

Sciele's stocks haven't sold for over $30 since the beginning of 2002.

- see the story at Forbes.com
- find out what Business Week says

Related Article:
Japanese pharma to pay $1.4B for Sciele

Japanese pharma to pay $1.4B for Sciele

Tracy Staton — Tue, 02 Sep 2008 10:17:54 -0400

In yet another Japanese pharma takeover, Shionogi has agreed to pay $1.42 billion for the Atlanta-based drugmaker Sciele Pharma. That's a $31-per-share cash offer, a 61 percent premium over Sciele's closing price Friday of $19.27.

Why is Sciele worth so much to Shionogi? The Japanese pharma is aiming to launch some anti-obesity and HIV meds in the U.S., and it likes Sciele's sales network. According to the Financial Times, 84 percent of Sciele's 970 workers are sales reps. "Establishing additional overseas sales infrastructure has become an urgent priority for Shionogi," the company said in announcing the deal.

Currently, the lion's share of Shionogi's overseas revenue comes from a licensing deal with AstraZeneca on its cholesterol med Crestor. Obviously, the Japanese firm is looking to diversify and enlarge that sales stream.

Shionogi is in good company. Since December, there have been three big Japanese deals in biopharma: Eisai/MGI Pharma ($3.9 billion), Takeda/Millennium ($8.8 billion), and Daiichi Sankyo/Ranbaxy Labs ($4.6 billion).

- check out the Shionogi release
- read the Financial Times piece
- check out the analysis in the Wall Street Journal

Teva seeks venture partner in Japan

Tracy Staton — Tue, 29 Jul 2008 09:42:01 -0400

Fresh off its $7.5 billion deal to buy Barr Pharmaceuticals, Teva is eyeing joint ventures in Japan. CEO Shlomo Yanai told the Financial Times that establishing a beachhead in that country is a top priority for him. Though Japan has historically stuck mostly to brand-name meds, partly because of quality concerns, Yanai believes that Teva's rep can overcome that reticence. "Right now Japan is more ripe for generics," he told the newspaper. "Japan is very important but difficult to break into."

Hence the desire for a joint venture, which would give Teva a foot in the door. That's not the only option, Yanai says, but it's "definitely the preferred option."

- see the Financial Times article

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It's Teva plus Barr in a $7.46B buyout
Teva Pharmaceutical - best Pharma Stocks of 2007
Teva earmarks $1B for India

Roche warns of Tamiflu psych effects

Wed, 05 Mar 2008 06:59:55 -0500

After some arm-twisting from the FDA, Roche has added stronger warnings to its Tamiflu label. In a Dear Healthcare Professional letter, the company cautioned doctors about the sometimes-fatal psychiatric problems seen in a small number of patients. Some have gone delirious and hurt themselves, even killed themselves, by falling from windows or balconies or running into traffic.

An FDA advisory committee discussed the problems at a November meeting, where the agency revealed nearly 600 reports of psychiatric troubles in Tamiflu patients, three-fourths of them in Japan. But because the flu itself can cause delirium and hallucinations, the new Tamiflu label states that the drug hasn't been definitively linked to the behavior problems.

Now, Australian regulators say they're keeping an eye on Tamiflu. They've updated the labeling for the drug, too.

- read the story in Forbes
- check out the Australian reaction in The Age

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Tamiflu resistant to seasonal strains. Report
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Tamiflu's Japanese sales to drop by half. Report
Roche's Tamiflu ads spark criticism. Report
EU approves Tamiflu for children. Report

Japan changes scrips to favor generics

Fri, 09 Nov 2007 06:59:54 -0500

The tidal wave of generics has reached Japan. That country's government has proposed changes to prescription forms that would promote use of cheaper generics. Japanese copycat-drug companies saw their stocks soar on the news. Branded drug makers' shares declined.

It's hardly unexpected for Japan to push generic drug use. Worldwide, governments are steering patients toward the less-expensive alternatives in an effort to save money and stem rising healthcare costs. Japan's new prescription forms would make available generics the default option; doctors would have to specify when they don't want a generic drug substituted for the brand name product.

Right now, only 17 percent of drugs prescribed in Japan are generic. The country would like to boost that to 30 percent. Compare those figures to the 63 percent prescribed in the United States and 59 percent in Britain.

- read the report from The Guardian

Related Articles:
FDA backlog slows generic drug approval. Report
Democrats to push for generic biotech drugs. Report
Generic competition heats up. Report

SPOTLIGHT: Merck KGaA leads team to sell Erbitux in Japan

Wed, 17 Oct 2007 06:59:52 -0400

Merck KGaA leads team to sell Erbitux in Japan
Call it a trifecta: ImClone Systems, Bristol-Myers Squibb and Merck KGaA are joining together to develop and market ImClone's cancer drug Erbitux in Japan, with Merck getting half the proceeds. Report

It's Merck v. Glaxo in vaccine battle

Thu, 04 Oct 2007 06:59:58 -0400

Call it the battle of the HPV vaccines. For the past week, either Merck's Gardasil or GlaxoSmithKline's Cervarix--or both--have captured headlines:

• Glaxo submits Cervarix for approval in Japan
• Merck donates millions of Gardasil doses for use in developing countries
• Glaxo applies for vaccine prequalification from the WHO
• Gardasil wins best new biotech product
• Cervarix approved for sale in Europe
• Merck hires PR firm to advocate for Gardasil
• Sanofi Pasteur files to extend Gardasil treatment

It's no mystery why the drug makers are jostling for ascendancy here. Estimates of the market for these vaccines run to several billions, even if their use was restricted to prevention of cervical cancer.

Now there's evidence that Gardasil may protect against cancers of the vagina and vulva, further bolstering its usefulness for women. Other research shows that HPV may cause throat and neck cancer in men, thus boys may need one of the vaccines, too--creating a whole new, unexpected market. So the stakes are even higher than they first seemed. And they were pretty darn high to start with.

- see GSK's release on WHO prequalification and the release on it's Japan app.
- check out Merck's press release on the Prix Galien
- read the article from PR Week
- see this Medical Marketing & Media article

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GSK prepares to go head-to-head with Merck. Report
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Pfizer plots spinoff of Japanese R&D

Fri, 21 Sep 2007 06:59:54 -0400

Saved by the spinoff. Pfizer is looking to set up its Japanese R&D operation, previously slated for shutdown, as an independent company--with the help of a few investors, of course. The company may retain an equity stake in the lab, which focuses on developing pain relievers and digestive remedies.

Apparently Pfizer's close involvement in the spun-off lab is a sticking point with the potential investors--some want it, and some think the lab would be better off if it's more independent.

- read this piece from CNNMoney

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Pfizer's future rests with biotech. Report
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Troubled Pfizer blueprints biotech venture effort. Report