Ranbaxy

Daiichi Sankyo and Ranbaxy - Billion-dollar deals

Maureen Martino — Wed, 23 Jul 2008 08:41:17 -0400

Who: Daiichi Sankyo
With: Ranbaxy
What: $4.6B buyout

Scoop: Takeda wasn't the only Japanese drugmaker to ink a billion-dollar deal. In a $4.6 billion deal, Daiichi Sanyko bought Indian powerhouse Ranbaxy. That move positions Daiichi Sankyo to become a major supplier of low-priced generics to Japan's aging population and accelerates a trend by Japanese pharma companies to enter emerging Asian markets, where they see much of their future growth. Ranbaxy, as part of Daiichi, will get to further expand its efforts to become a research-based drug developer.

Report: Pfizer makes counter-offer for Ranbaxy

Maureen Martino — Fri, 13 Jun 2008 10:06:09 -0400

Pfizer may be crashing Daiichi Sankyo's party. Business Standard is reporting that Pfizer is considering a counter-offer for Ranbaxy, India's largest drugmaker. The rumor comes on the heels of the $4.6 billion offer Daiichi made just two days ago. Sources say Pfizer may "make a bid for 41.3 percent of the company from institutions and another 21.2 percent from individual shareholders." None of the companies involved have confirmed the rumors.

So why would Pfizer be interested in Ranbaxy? It turns out that there are plenty of reasons. An acquisition of Ranbaxy would give the world's largest drugmaker a big slice of the hot generic drug market. The other big reason? Lipitor. Ranbaxy is planning to launch a generic version of the $10.1 billion-a-year earner in 2010, and wouldn't it be nice for Pfizer if it could control that bit of competition? There's no word on what Ranbaxy's thoughts are on the deal. Ranbaxy says the deal is already done and that it's too late for Pfizer to make a bid, but this battle may just be getting started.

- read the WSJ report
- here's a Forbes article for more

Daiichi Sankyo acquires Ranbaxy in $4.6B deal

John Carroll — Wed, 11 Jun 2008 11:12:29 -0400

Ranbaxy's drive to become a research-based drug developer and major manufacturer has led it straight into the welcoming arms of Japan's Daiichi Sankyo, which announced it is buying a majority stake in the Indian pharma company. After Sankyo completes a buyout of the founding Singh family's stake in the company, Ranbaxy will become a subsidiary operation. The deal is valued at $4.6 billion and will create a combined company worth about $30 billion.

That move positions Daiichi Sankyo to become a major supplier of low-priced generics to Japan's aging population and accelerates a trend by Japanese pharma companies to enter emerging Asian markets, where they see much of their future growth. The acquisition stunned investors and analysts alike, who were caught off guard by a bold move from a conservative player in the industry.

- check out this release for more on the deal
- read the report from The Times

Merck turns to Ranbaxy for $100M R&D effort

Mon, 12 May 2008 06:59:58 -0400

India's Ranbaxy has flexed its research muscles once again, this time signing a five-year pact with Merck to develop new anti-infectives. Ranbaxy, which received an undisclosed upfront payment, says it stands to earn more than $100 million from each new therapy developed in the five-year collaboration, which follows a similar deal it signed with GlaxoSmithKline. Ranbaxy researchers will advance therapies into Phase II, at which point Merck will take over the development program. Ranbaxy shares jumped more than five percent on the news.

This new deal signals an ongoing effort by big pharma companies to reduce their expenses by shifting development programs into China and India. Eli Lilly has also aggressively pursued an Asian strategy for its R&D work as well.

"We are going to start work on a minimum of two (drug candidates), and we can then add to it later," Ranbaxy CEO Malvinder Mohan Singh told Dow Jones.

- see this release on the deal
- read the report from Dow Jones

India eyes R&D opportunities

Thu, 17 Apr 2008 06:59:55 -0400

India-based drugs have made a name for themselves as makers of copycat drugs. When a developer's lucrative drug goes off-patent, Indian companies are guaranteed to swoop in and make a less-expensive knock-off of the therapy. It's a strategy that's definitly paid off for the developers.

But now some of these companies are shifting gears and developing their own drugs from scratch. Why now? Mainly because the talent pool in India has improved to the point where drugmakers have the resources to do their own R&D. "In the past, anyone interested in fundamental research had to go to the West, but the talent is here and now the barrier is broken," says Ian Cliffe, a senior executive at Ranbaxy. Another factor is India's new patent protection laws, which were a condition of its acceptance into the World Trade Organization.

Ranbaxy recently announced plans to spin off its R&D unit. Sun Pharma, Orchid Research, Wockhardt, Glenmark Pharmaceuticals and Nicholas Piramal all have plans to do the same. India is betting its lower costs and talent pool will give it a leg up in the global pharmaceutical market in the coming years.

- read the Financial Times article for more

Related Articles:
Ranbaxy spins off R&D unit. Ranbaxy report
Ranbaxy touts R&D abilities in new discovery pact. Ranbaxy report
Glenmark to spin off generics business. Glenmark report

Ranbaxy spins off R&D unit

Fri, 19 Oct 2007 06:59:57 -0400

Ranbaxy, one of India's largest drug makers and a dominant force in the generic drugs business, is spinning off its R&D unit that will develop new medicines. The move will allow the drugmaker to expand beyond the generic drug market, and will remove millions of dollars from Ranbaxy's annual expenses. It will also mean Ranbaxy can compete on a global scale by making more profitable, brand-name drugs. And Ranbaxy certainly has a leg up with it comes to R&D costs. Developing new drugs in India is much cheaper, as the country has a large, inexpensive pool of biotech talent.

Ranbaxy already has programs for an original anti-malarial drug and treatments for oncology, respiratory, metabolic and infectious diseases. Details on the new company's structure will be ironed out by the end of this year and it will be listed some time in 2008. The planned spinoff will have an annual budget of $20 million to $25 million.

- see this release for more
- read the Financial Times article

Related Articles:
Ranbaxy touts R&D abilities in new discovery pact. Report
Ranbaxy reportedly near $100M generics deal. Report
Ranbaxy buys new European manufacturing hub. Report
Ranbaxy acquires GSK generic business in Spain. Report

SPOTLIGHT: India focuses on biosimilars

Tue, 25 Sep 2007 06:59:53 -0400

India sees a big future for itself in biogenerics. Wockhardt, Dr Reddy's Lab, Biocon, Sun Pharma, Shanta Biotech, Panacea Biotech and Ranbaxy Lab are all initiating programs to develop biosimilars in anticipating of U.S. approval of a new regulatory pathway--at some point. Exactly what that point is, though, remains a mystery. Report

ALSO NOTED: Knopf tapped to run Acceleron; FDA clears Samaritan IND; Wockhardt in hunt for Par; and much more...

Tue, 18 Sep 2007 06:59:50 -0400

> Chutes & Ladders: Acceleron Pharma has named John L. Knopf, Ph.D., as its new CEO. Dr. Knopf, a founder of Acceleron, has served as the executive vice president of corporate development and recently, as president. Release

> The FDA has cleared Samaritan Pharmaceuticals' IND for SP-6300, a treatment for Cushing's syndrome. Samaritan can proceed with its proposed Phase II clinical study of Cushing's syndrome SP-6300's efficacy in patients experiencing Hypercortisolism. Release

> Rumor Mill: Ranbaxy, Wockhardt, and Sun Pharma are all said to be courting U.S.-based Par Pharmaceuticals. Report

> New York State and New York City have sued Merck to recoup more than $100 million they spent on Vioxx, joining six other states suing on behalf of their Medicaid plans. Report

> The feds will investigate whether ADHD drugs actually increase the risk of heart problems. Report

> Big kudos to the Novartis osteoporosis drug Reclast: A New England Journal of Medicine study showed that patients with broken hips were more likely to survive if they were given a yearly dose of the drug. Report

And Finally... It's not by chance that the lonely tend to get sick and die younger. Researchers say that the lonely are statistically much more likely to suffer from dysfunctional immune systems. Report

AstraZeneca, Pozen start Phase III combo drug trial

Fri, 07 Sep 2007 06:59:55 -0400

AstraZeneca and Pozen are starting Phase III trial of PN400, an experimental drug for arthritis pain that combines AstraZeneca's heartburn drug Nexium with the anti-inflammatory drug naproxen. In addition, the companies have amended their original licensing agreement for the drug. AstraZeneca will now pay Pozen up to $345 million for the achievement of development, regulatory, and sales milestones. Pozen will receive an immediate $30 million payment, which includes recognition of successful proof of concept, $55 million will be paid upon achievement of certain development and regulatory milestones, and $260 million will be paid as sales performance milestones if certain aggregate sales thresholds are achieved. Pozen and AstraZeneca hope to file an NDA by the first half of 2009.

The new pact is good news for Pozen, which just last month was dealt yet another FDA delay for its migraine drug Trexima. For its part, AstraZeneca is facing a generic threat from Ranbaxy, which wants to produce a generic version of Nexium.

- see this press release for more
- read this article

Related Articles:
Pozen shares soar on rich pain med deal. Report
Drug combos not a sure thing. Report
AstraZeneca faces new patent fight over Nexium. Report
Pozen shares sink on latest Trexima delay. Report

ALSO NOTED: Medicines Company gets positive safety data; InterMune gains $10M payday; and much more...

Mon, 08 Jan 2007 19:01:30 -0500

> The Medicines Company announced that three late-stage safety trials of Cleviprex, an experimental drug for severe high blood pressure, met their specified objectives. Release

> InterMune has pocketed a $10 million milestone payment from its pact with Roche on an experimental hepatitis C therapy. Release

> Genentech has agreed to pay an unspecified amount for an entire oncology program for a target run by Amphora. Release

> Australia's pSivida has struck a licensing deal with Faber Research to develop pSivida's drug delivery technologies for infectious diseases and diseases of the ear. Faber receives exclusive rights to pSivida's technologies for diseases of the ear and for five specific infectious diseases. All costs of development will be born by Faber and its operating company Auritec Pharmaceuticals. Release

> Osiris Therapeutics has won the FDA's fast track status for its stem cell treatment for Crohn's Disease. Release

> India's Ranbaxy expressed an interest in bidding for Merck KGaA's generic drug unit. Report (WSJ sub. req.)

And Finally... Japanese scientists have developed a technique to gauge a person's thoughts by changes in the blood flow of his brain. Report

SPOTLIGHT: Ranbaxy plots new buyouts

Tue, 10 Oct 2006 20:01:33 -0400

India's Ranbaxy has been on a buying spree recently, and its CEO insists that there are plenty more global acquisitions ahead. Report

DEALS: Roche, Actelion ink $630M pact

Wed, 19 Jul 2006 20:01:32 -0400

Roche, Actelion ink $630M pact

DEALS
WHO	WITH	WHAT	SCOOP
Roche	Actelion	$630M deal	Roche and Actelion will team up to develop and market S1P1, an autoimmune disorder drug.
Archemix	Elan	$350M deal	Archemix will develop up to three aptamer-based drugs for autoimmune inflammatory disease during the three-year pact.
Johnson & Johnson	MGI Pharma	$80M licensing deal	J&J is licensing Dacogen, which was approved by the FDA last May for patients with myelodysplastic syndromes.
CSL Limited	Zenyth Therapeutics	$108M buyout	CSL will acquire 100 percent of the issued shares in Zenyth.
Johnson & Johnson	Colbar LifeScience	$50M buyout	Colbar LifeScience specializes in reconstructive medicine and tissue engineering.
Dava Pharmaceuticals	Stada Arzneimittel	$40M buyout	Stada Arzneimittel will sell its U.S. generics subsidiary to Dava Pharmaceuticals for $40 million and exit the market entirely.
Procter & Gamble	Aryx Therapeutics	$25M licensing deal	The deal is for Aryx's gastrointestinal disorder drug. A successful commercial launch will add up to $435M to the deal
Ranbaxy Laboratories	GSK's Mundogen	Buyout	The acquisition is part of Ranbaxy's strategy to bolster its presence in the European markets.
Locus Pharmaceuticals	Ono Pharmaceutical	Drug discovery pact	Locus has inked a drug discovery deal to target a protein kinase molecule selected by Ono.
Athenagen	Zapaq	Merger	Athenagen and Zapaq both have drug compounds aimed at Alzheimer's disease in their pipelines.
Cardiome	Astellas	Development deal	Cardiome and Astellas have revised their development pact on RSD 1235, an experimental therapy for atrial fibrillation.
Takeda	Galaxy Biotech	Drug license pact	The licensing pact will allow Takeda to develop, manufacture and sell Galaxy's monoclonal antibody for cancer treatment.
Schering	Avid Radiopharmaceuticals	Development deal	Schering has signed an agreement with Avid Inc to develop new diagnostic imaging agents for Alzheimer's disease.

Zocor feeling the heat from generics

Sun, 16 Jul 2006 20:01:36 -0400

Late last month Merck's blockbuster cholesterol-lowering drug Zocor came off patent, and generic copycats are already cutting into its market share. The generic version of Zocor, known as simvastatin, represented 49 percent of new prescriptions. Israel-based Teva led the way with about a third of the new scripts, followed by Dr. Reddy's Laboratories and Ranbaxy, both of which are based in India. The generics also impacted another best-selling statin, Lipitor. Pfizer has seen Lipitor's market share slide in recent as insurance companies encourage patients to switch to generic versions of Zocor.

- see this The Wall Street Journal article for more on generic drugs (sub. req.)

PLUS: In the next five years, 103 drugs will come off patent, representing $73 billion in annual sales. Generic drug makers in India such as Dr. Reddy's and Ranbaxy are positioning themselves to take advantage of the opportunity. Article

ALSO NOTED: BioMarin gets Orapred approval; FDA rejects Organon app; and much more...

Thu, 01 Jun 2006 20:00:50 -0400

> The FDA has approved BioMarin Pharmaceutical's disintegrating tablet form of Orapred for pediatric acute asthma. Report

> The FDA has rejected a bid by Akzo Nobel's Organon to market tibolone to women with menopausal symptoms. Report

> India's national strategy for biotechnology has, so far, failed to get past a draft version. Report

> Genentech says that a Phase IIIb trial of Lucentis met its primary endpoint of preventing vision loss. Report

> Generex Biotechnology has raised $13.5 million in a private placement. Release

> OSI Pharmaceuticals announced yesterday that data from a mid-stage trial showed that Macugen prevented a type of vision loss better than a placebo. Report

> The FDA has approved Ranbaxy's application to produce a generic version of Bioglan's Adoxa. Report

> The FDA has given final approval to Watson Pharmaceuticals' generic version of the birth control medicine Levlite. Report

And Finally… Japan's birth rate continues to decline, presenting a series of challenges as the population shrinks. Article

ALSO NOTED: Aphton files for bankruptcy; Akorn wins FDA OK; and much more...

Tue, 23 May 2006 20:00:50 -0400

> Philadelphia-based Aphton has filed for bankruptcy. The company is looking for offers to buy its assets. Report

> Akorn shares were on the rise after reporting FDA approval of an ANDA for Orphenadrine Citrate Injection. Report

> Wyeth has developed a new contraceptive from traditional therapies that eliminates a woman's monthly periods. Report (WSJ sub. req.)

> Progenics announced positive results from a Phase III trial of a subcutaneous form of the investigational drug methylnaltrexone for treatment of opioid-induced constipation in cancer and cardio vascular disease patients. Report

> In a clear signal of a looming drug price war, Novartis reportedly has plans to slash the cost of a range of generics in Germany and Switzerland. Report

> Actelion announced that new data provides solid grounds to explore Tracleer as a therapy for idiopathic pulmonary fibrosis. Report

> Wyeth has received final judicial clearance for its revised fen-phen settlement agreement. Report

> Roche expects the UK to issue a license for the early use of Herceptin in breast cancer. Report

> Ranbaxy says three of its AIDS drugs have been added to the WHO list of approved pharmaceuticals for developing countries. Report

> Chimerix has acquired Dr. Leroy Townsend's lifetime library of chemical lead compounds from the University of Michigan. Release

And Finally… A large new cancer trial sponsored by the National Cancer Institute will use genetic profiling to determine which women are likely to benefit from chemotherapy. Article

Court OK's two copycat Zocors

Mon, 01 May 2006 20:01:35 -0400

A court ruling has cleared the way for two generic versions of the blockbuster cholesterol drug Zocor--from Teva and Ranbaxy--to be sold this year. A third "authorized" generic will be sold by another manufacturer in a pact with Merck. Analysts had expected up to 10 copycat Zocors on the market, which would have triggered a sudden plunge in the price of the drug. One analyst said the discount price would be about half of current retail with only three versions for sale. More competition could have dropped the price by 95 percent.

- read the Boston Globe report

Ranbaxy buys new European manufacturing hub

Tue, 28 Mar 2006 19:01:36 -0500

Continuing its invasion of the European market, Ranbaxy has agreed to buy Romania's Terapia for $324 million. Terapia is Romania's largest generic drug maker. Ranbaxy plans to designate Terapia as its central manufacturing operation in Europe once the deal is complete. Ranbaxy's expansionist program has been driven by falling margins in the U.S., where the pressure on generic drug prices is intense.

- read the report from Rediff

GSK heralds biotech drug development model

Mon, 27 Mar 2006 19:01:38 -0500

The Wall Street Journal explores GlaxoSmithKline's decision five years ago to let its front-line scientists pick drug development candidates. GSK had relied on a more bureaucratic approach to lead selection. Drug discovery groups were also broken into smaller units. And with the drug majors embarrassed by a paucity of new drug targets after spending record amounts on R&D, this kind of experimentation has become all the rage. The goal is to develop the kind of focus and flexibility of a small biotech company. GSK says it's working.

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

PLUS: India's Ranbaxy is buying the generic drug business of Allen SpA, a division of GSK in Italy. Report

Dr. Reddy's to buy Betapharm in $570M deal

Wed, 15 Feb 2006 19:01:36 -0500

Dr. Reddy's has inked a deal to buy Germany's Betapharm for $570 million. News of the pact immediately sent Dr. Reddy's shares up about 10 percent as investors cheered the news of the buyout. Betapharm is Germany's fourth-largest generics drug manufacturer and a plum acquisition for an Indian player like Dr. Reddy's. Ranbaxy was reportedly an aggressive bidder for the European company.

- read this Red Herring article

ALSO NOTED: Allergan extends exchange offer; Mylan gets OK for new generic; and much more...

Sun, 05 Feb 2006 19:00:50 -0500

> Still awaiting federal approval, botox-maker Allergan has extended its exchange offer for Inamed shares from tomorrow to February 22. Report

> Mylan Pharmaceuticals has received an FDA nod to make a generic version of McNeil PPC's Flexeril muscle relaxant. Report

> India's Biocon has made a $3.5 million bid for the intellectual property of Nobex IP. Nobex, which is in bankruptcy, plans to auction its assets March 16. Report

> Chutes & Ladders: GlaxoSmithKline has named Moncef Slaoui as its new R&D chief. Report

> India's Sun Pharmaceuticals plans to spin off its R&D division into a new company. Report

> India's Ranbaxy has set up a joint venture with a South African company to market its generic AIDS drug. Report

> San Diego-based Metabasis Therapeutics has filed a shelf registration to sell up to $75 million in common shares. Release

> AnGes and Seikagaku jointly announced on February 3 that they have agreed to dissolve their agreement on joint development of NF-kappa B decoy oligodeoxynucleotide. Release

> MediciNova has completed enrollment of 297 patients with relapsing MS in its Phase II trial of MN-166. Release

And Finally...Two aging brothers demonstrate that discipline and diet can play a major role in fighting diabetes. Article