Pharma news

Troubled Pfizer blueprints biotech venture effort

Thu, 02 Aug 2007 06:59:56 -0400

Up to now, Pfizer's use of investment funds has followed a few narrow channels: Diagnostics, software and drug technology outfits that promised to help in their drug commercialization efforts. But now Pfizer plans to take the wraps off the moribund strategy as it moves money into a wider array of startups. Barbara J. Dalton, who has headed GlaxoSmithKline's ambitious investment efforts, is being brought in to run the new venture investment arm of Pfizer with plans for six to eight new investment deals per year. The new venture strategy is being prompted by some big failures in Pfizer's pipeline--with torcetrapib leading that list--and the woeful initial results from sales of Exubera. Pfizer launched a biotech incubator in May as part of a new focus on early-stage companies.

- read the AP report on Pfizer

Related Articles:
Pfizer to invest $50M in biotech start-ups. Report
What's next for Pfizer? Report
WSJ: Pfizer looks at restructuring R&D, new cuts. Report

J&J makes big cuts at Alza and Scios

Wed, 01 Aug 2007 06:59:58 -0400

Two Bay area biotechs, Alza and Scios, are in line for some big layoffs as Johnson & Johnson slims down its pharma operations. Acquired for $12 billion six years ago, J&J says that it is shutting down Alza's Mountain View facility and laying off 600 workers. J&J is largely ending the R&D efforts at Alza, which had been structured to tweak the pharma giant's therapies. The San Jose Mercury News also reported that Scios--which markets Natrecor--has already seen the pink slips fly and more cuts are expected. Two other J&J companies working in medical devices are also expected to undergo significant restructuring.

- read the report from the Wall Street Journal (sub. req.)

Related Articles:
J&J restructures pharma unit, laying off workers. Report
Big Pharma brings home the cash, slices payroll. Report
J&J: Natrecor study failed to reveal two deaths. Report
Feds seek drug data from Scios. Report

Lilly developing biotech drugs the old-fashioned way

Tue, 31 Jul 2007 06:59:57 -0400

Pharma's biotech strategy is pretty clear: Buy companies or license in drugs and technology to get a leg up in the expanding market. But The Wall Street Journal notes that Eli Lilly has taken its own unusual approach--developing new biotech therapies from scratch. That's a slow approach, and one that is likely to take years to prove, or disprove, its utility. Half of Lilly's drugs entering the pipeline this year are biotech drugs, up from 10 percent in 2001. And by 2011, Lilly says it will introduce one new biotech drug each year.

- read The Wall Street Journal's article on Lilly (sub. req.)

Related Articles:
Buyouts a sign of industry's health. Report
The Top 5 Buyouts of 2007. Report
Deals and more deals. Report
Lilly buying Icos in $2.1B deal. Report

J&J restructures pharma unit, laying off workers

Tue, 31 Jul 2007 06:59:56 -0400

Johnson & Johnson is taking the axe to its pharma division as it chops away at up to $750 million in costs. The company says it will continue to invest in new technologies, but faces some significant patent losses among its therapies. Pharma is taking the brunt of the layoffs, which will reduce J&J's overall workforce by four percent, or almost 5,000 employees. Some "consolidation" in the pharma segment is also expected, but details are hard to come by this morning.

- see this release on the cuts
- check out the AP report on J&J

Related Article:
Big Pharma brings home the cash, slices payroll. Report