Abbott

Four companies drop $6 million on lobbying

Christe Bruderlin-Nelson — Wed, 06 Aug 2008 10:16:49 -0400

Four Big Pharma companies spent some serious cash to lobby congress in the second quarter of 2008. A common concern was legislation that would allow FDA to approve less-expensive generic versions of biotech drugs, as was a bill to update the U.S. patent system (the latter remains stalled in the Senate). Likewise, implementation of Medicare drug benefits for seniors was a hot topic.

Bristol-Myers Squibb spent $830,000 lobbying government over various drug and patent issues. In addition to the generic biotech issue and U.S. patent system issues, the New York giant put dollars toward lobbying on a chemical used in children's food packaging called bisphenol-A, which is used to seal food containers. They also lobbied the Commerce Department and the Patent and Trademark Office.
Also in the second quarter, Amgen spent nearly $2.9 million lobbying the federal government. Obviously, Amgen was also putting money toward preventing FDA from approving generic versions of biotech drugs and lobbying on efforts to reform the U.S. patent system. Implementation of the Medicare drug benefit for seniors was also a priority for Amgen.
Abbott Labs, which makes drugs and medical devices, spent more than $1 million. Like BMS and Amgen, Abbott lobbied on the bill to update the U.S. patent system and the generic biotech drug legislation. Abbott also lobbied on funding for the FDA and for AIDS-awareness programs.
Finally yet importantly, the British came. AstraZeneca spent more than $1.3 million lobbying during the second quarter. AstraZeneca had interests in the Medicare prescription drug benefit for senior, but also lobbied Congress on intellectual property and trade issues, on importation of cheaper prescription drugs from foreign countries and on increased funding for FDA. AstraZeneca also lobbied the U.S. Trade Representative's office, as well as the departments of Treasury and Health and Human Services during the period.

- get more on BMS from Forbes
- here's the take on Amgen
- read more about AstraZeneca at Forbes
- get the article on Abbott

Abbott faces more AIDS suits

Tracy Staton — Mon, 04 Aug 2008 10:37:39 -0400

Lawsuits, lawsuits, lawsuits. Two drugmakers' hometown newspapers offer a rundown on the litigation they face over sales tactics: For AstraZeneca, it's allegations of improperly marketing Seroquel, and for Abbott, more claims over its pricing of the AIDS med Norvir.

Yes, Abbott settled one big Norvir suit last week. But the Chicago Tribune calls that deal "likely its cheapest" it will manage in dispatching the constellation of suits it faces. They all accuse Abbott of hiking the price of Norvir to stifle competition from other drugs and drive patients to its combo drug Kaletra, which also contains Norvir. Inconveniently, some internal communications between execs plotting to "thwart their rivals in the lucrative HIV drug cocktail market" have come out in court documents, the newspaper notes.

As for AstraZeneca and Seroquel, the News-Journal offers a comprehensive look at the marketing allegations filed by three state attorneys general and at the thousands of patient lawsuits over the drug's side effects. With $4 billion in sales, Seroquel is AstraZeneca's second-biggest drug; the company says its success is based on the fact that it's effective in a wide range of mental illnesses. But the state lawsuits allege a variety of marketing infractions, including widespread off-label promotions. AstraZeneca denies the charges; we'll have to wait and see how the courts decide.

- read the story in the Chicago Tribune
- check out the News-Journal article

Abbott Labs settles Norvir suit

Tracy Staton — Fri, 01 Aug 2008 09:54:21 -0400

Abbott Laboratories pinched its Norvir legal troubles in the bud, settling antitrust claims for $10 million to $27.5 million. Filed by AIDS patients over a 400 percent price hike, the lawsuit could have led to up to $1 billion in damages if it had gone to trial as scheduled August 18. Of course, the plaintiffs would have had to prove that Abbott raised Norvir's price to stifle competition.

Norvir, as you know, is a key component of several drug cocktails commonly used to treat HIV-positive patients, and it's one component of Abbott's combo pill Kaletra. The plaintiffs alleged that Abbott hiked the standalone price of Norvir to drive patients to Kaletra.

- see the story in the San Jose Mercury-News
- get more from the International Herald Tribune

Abbott, Novartis post double-digit profit hikes

Tracy Staton — Thu, 17 Jul 2008 09:43:08 -0400

Profits are way up at both Abbott Laboratories and Novartis, continuing--so far--pharma's strong showing this quarter. Boosted by strong sales of Humira, its rheumatoid arthritis med, and by international sales and their attendant exchange-rate gains, Abbott saw its net rise to $1.32 billion, or 85 cents per share, on $7.31 billion in sales, compared with a profit of $988.7 million during the same quarter last year. Analysts had expected EPS of 79 cents and revenues of $7.23 billion. Overall, domestic sales rose 5 percent, while international sales leapt by a whopping 24 percent. The company raised its full-year EPS forecast to between $3.24 and $3.28 from $3.20 to $3.25.

Meanwhile, Novartis posted a 17 percent rise in net income on the back of recent acquisitions and strong sales. Profits grew to $2.3 billion, up from $1.9 billion year-over-year, while sales rose 14 percent to $10.7 billion. And that sales growth came in part from stronger-than-expected numbers from the company's pharma division. Vacccines and diagnostics grew at a respectable clip, too, but overall U.S. sales fell by 3 percent because of generic competition and the loss of Zelnorm, which was withdrawn last year.

- read the Abbott news at the Financial Times
- see the Novartis report in the Chicago Tribune

New Jersey loses 800 pharma jobs

Christe Bruderlin-Nelson — Wed, 09 Jul 2008 10:22:01 -0400

Schering-Plough will cut a minimum of 500 jobs starting on August 11^th in New Jersey as part of a much larger plan to layoff 5,500 employees across the globe. At the same time, Johnson & Johnson will send about the same number of employees packing when it cuts nearly 300 jobs nationwide and shifts 260 positions out of New Jersey.

The Schering-Plough layoffs will be mainly be at its Kenilworth facility, but will also affect facilities in Berkeley Heights, Roseland, Springfield, Summit and Union. The shifted J&J positions will move to Pennsylvania and will become part of the company's Centocor subsidiary following a merger of the unit with its Ortho-Biotech unit.

Abbott Labs also announced it would move 83 positions in Parsippany to its research headquarters in Abbott Park, IL, also in August.

- read the full story at Newsday
- get the local news at NJ.com
- here's more at the Pharmalot blog

Abbott's Xience enters tough stent market

Tracy Staton — Thu, 03 Jul 2008 09:33:04 -0400

FDA has given its final blessing to Abbott's Xience stent. Now what? Well, the drug-and-device maker will be entering a tough market, one roiled by debates over safety and questions about whether stents should be used as often has they have been.

The overall stent market has shrunk by almost half: From a high of more than $3 billion, sales are now expected to fall below $1.7 billion next year. And drug-coated stents like Xience account for a smaller proportion of those sales than they once did because of clotting worries. The popular products had made up 85 percent of stent sales; now that fraction is 65 to 70 percent.

But still, the debut of Xience is expected to boost Abbott sales; analysts predict that it could generate more than $500 million annually, more than the current market-leading stent, Boston Scientific's Taxus product.

- see Abbott's release
- read the Chicago Tribune article

Abbott's Miles White - CEO Pay

Tracy Staton — Mon, 19 May 2008 14:36:40 -0400

Miles White - Abbott

Total Compensation: $33.4 million

2007 Revenue: $25.91B
2006 Revenue: $22.47B
Change: 15.3%

Details: White made $33.4 million last year, up 24 percent from 2006. The pay hike was rooted in the value of his stock options: $14.8 million in 2007 versus $8.5 million in 2006. His base salary was virtually the same. White received a little over $1 million in other compensation, which covered $851,678 in pension plan-related payments and $103,292 on personal use of Abbott's aircraft.

Abbott News:
Abbott wins pharma pay prize
Abbott Labs to cut 1,200 jobs

EU commissioner widens pharma probe

Thu, 15 May 2008 06:59:55 -0400

Europe's competition commissioner is casting a wide net in her pharma-market antitrust probe. After questioning some 100 companies--including Pfizer, GlaxoSmithKline, and Sanofi-Aventis--investigators are now scrutinizing medical organizations and associations and government agencies.

At issue: Whether brand-name drugmakers are unfairly blocking generics makers from the market--and now, whether those patent fights are getting in the way of R&D. Generics don't get to market as quickly in Europe as in the U.S., and they make up only 42 percent of Euro pharma sales, compared with 63 percent in the United States.

- check out the item at PharmaGossip
- see the International Herald Tribune article

Where Merck loses, Abbott gains

Wed, 30 Apr 2008 06:59:58 -0400

What's bad for Merck is good for Abbott Labs. When the FDA said "no" to Merck's niacin-based cholesterol treatment Cordaptive, it raised the prospects for Abbott's extended-release form of niacin, Niaspan, and its regular niacin drug Simcor. As long as Merck can't enter that market, Abbott has much more room to grow and solidify its market share.

Already Abbott's niacin meds had gotten a boost from problems at Merck: After the Enhance study results were presented at the American College of Cardiology meeting, the New England Journal of Medicine put niacin drugs higher on the cholesterol-treatment ladder than the Zocor-and-Zetia combo Vytorin.

Investors punished Merck, sinking its stock by 10 percent yesterday, and rewarded Abbott with a 3.6 percent boost to $53.48. Analysts scrambled to boost their sales outlooks for Niaspan and Simcor; some estimated that Cordaptive might now be delayed for two to three years. Given that sales estimates for the med were as high as $2 billion annually, that's a big blow. Analysts cut their stock-price targets accordingly--but reaffirmed their "buy" ratings, saying, just as Merck officials are, that the company is strong enough to weather the setback. But some said they're only recommending Merck to long-term investors.

- read the Houston Chronicle story
- see the item in the Wall Street Journal Health Blog
- check out the Associated Press coverage
- find an FAQ on the Cordaptive rejection at In the Pipeline

Arms twisted, pharma promises disclosure

Fri, 11 Apr 2008 06:59:55 -0400

Pharma knows that self-regulation is the best kind. That's why 12 drug and device makers have promised Sen. Chuck Grassley that they are working on plans to disclose CME grants. You know, the money companies spend to sponsor educational conferences for doctors--conferences where sponsors sometimes influence not only who speaks, but what those speakers say. Some companies are even pledging to disclose their support of patient groups such as the American Heart Association or the American Diabetes Association.

Eli Lilly already discloses its CME funding. In response to Grassley's prodding, Medtronic and AstraZeneca said they'd post payments for professional meetings and patient-advocacy groups on their company websites, beginning May 1 and August 1, respectively. Merck said it's "developing an action plan." Amgen and Abbott Labs have formed working groups to study the subject.

Only Schering-Plough balked. "We do not publish or have plans at the moment to publish a list of charitable contributions or educational grants that medical organizations have received from us," the company wrote Grassley. We'll see if that refusal stands.

- see the Los Angeles Times story
- check out the item in the WSJ Health Blog

ALSO: According to California's Public Interest Research Group, disclosure of doctor payments isn't working to enforce limits on those gifts. A new report on these payment limits concluded that drugmakers don't always count meals as "gifts," that some companies reserve the right to exceed the limits if they choose to, and others say they're following limits, but don't say what their limits are. Some don't even post their policies. Study

Related Articles:
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Australia eyes CME's ties to pharma. CME report