Monthly Update

This month has been quite hectic month for me, at the initial week of the month I had been to Kumbh Mela (A festival which is celebrated after every 12 years in Hindu religion) and then had been to Kolkata (City of Joy) for my birthday and Bengali happy new year celebrations, then came back and had to finish my client project and now I have got time to blog something and I am feeling good about it.



This month there were many updates Abbott billion dollar acquisition and day before yesterday the news was Charles river laboratories is planning to acquire Wuxiapptech, this collaboration will help Charles river penetrate more into the emerging markets thus helping it to develop capabilities in both preclinical and clinical stage services for varied industries which will range from diagnostics, markers, devices, biologics, chemicals and small molecules…..and sometime back while I was analyzing the list of fast developing CRO’s in Asia, Wuxi was contending in the Top 3 slot…………

Pharmaceitical M&A Report- Last 10 years

Today morning was reading a report on Mergers and Acquisitions and in the report it was mentioned that during these last 10 years there were 1, 717 M&A in pharma sector with the disclosed amount of $295 Billion and the biggest players includes

Roche - $46.8 Billion acquisition of Genentech

Astra Zeneca- $15.2 Billion deal for Med Immune

And also included in the list were GlaxoSmithKline, Amgen, Eli lily and company, Genzyme Corporation but the big fish which was missing from the list was our old patron in M&A Pfizer which last year went for the highest M&A deal ever.

Among Top 25 Biotechnology M&A four companies announced multiple acquisitions which includes Glaxo Smith Kline, Amgen Inc., Eli Lilly & Co and Genzyme Corporation and the report stated that most of the acquisitions were from publically traded sellers and buyers

Biotechnology Mergers and Acquisitions, 2000 to 2009

Year Dollars Committed Number Of Deals

2009 $47,523,349,040 193

2008 $93,879,257,347 148

2007 $42,105,127,700 145

2006 $36,407,170,500 115

2005 $23,196,902,050 113

2004 $6,764,873,000 96

2003 $16,681,231,200 128

2002 $3,274,727,708 96

2001 $20,150,840,000 85

2000 $5,076,797,094 52

Totals $295,060,275,639 1,171

In this report they mentioned that only about 18% of the biotechnology companies which were targeted in mergers and acquisitions announced in the span of 10 years ended December 31, 2009 were disclosing their revenues at the time of the M&A announcements.

Out of the top 25 largest biotechnology M&A announced during the 10-year period ended December 31, 2009 most of them were United States-based concern and some were European companies. In Year 2008 -2009 major M&A activity happened in United States preceded by Europe, Canada and Japan

This report also gave information related to Top states in United states with largest M&A activity they include California, New York, Massachusetts, New Jersey, Maryland, Pennsylvania, North Carolina, Washington and Texas.

Outside the U.S., the countries included in the list were Switzerland, Germany, England, Netherlands, Japan, Canada, France, Australia and Denmark.

Seller side point of view it gave additional information about various states with United states having highest number of M&A they include California, Massachusetts, Maryland, New York, New Jersey, Washington, Pennsylvania, North Carolina and Texas.

Link:http://www.kerentech.com/?p=4504

Biosimilar Market

Some days back I received an email from some lady and she asked me some question related to biosimilars so I thought of jotting them down in my blog

I. What is some of the current challenges you are experiencing in your industry?
•Manufacturing part: Large investment required due to expensive and sensitive manufacturing process with difficulty in reproducibility of results.
•Huge clinical trial development cost
•Regulatory process till now not clearly defined in regulatory market Europe (EMEA) and United states (FDA)

II. What are the top 3 things that should improve?
According to me the following things should improve for dissimilar in Indian scenario they include
•Better clinical studies prioritization and development with expertise in filing in regulated market
•Comprehensive competitive intelligence or due diligence for the product portfolio with establishment of state of the art manufacturing process
•Consistent portfolio strategy with effective branding and marketing skills.

III.What is upcoming future opportunities that you see in the field of biosimilars?
In accordance to indian scenario the oppurtunities associated with biosimilars include
•Cost saving
•Higher margins and better profitability structure as blockbuster drugs are coming off patent.

PS: The 12 years exclusivity for biopharmaceutical drug in United States I don’t see a good market potential of bio similar in United States in the coming decade as compared to European bio similar approvals.

India Way

Last week I was reading an article “India way” in Harvard business review, as per the book western companies the primary concern is to satisfy their share holder’s need which is very true and the same I feel this also applies to majority of the companies operating in the Indian service sector which are just focusing on short term revenues.

The best thing about the article is it has made me think about the core Indian company’s value proposition and how Indian companies have been different from the capitalist America. Professor Peter of Wharton, your article has helped me in evaluating the attributes required for starting and then sustaining a company as next generation entrepreneur :)

India Inc Update

Today after coming from office I was reading some paper on Harvard business review the India way, there they have mentioned about Dr Reddy's.....good article indeed and then was checking my regular updates in Gmail account and then one news caught my attention...Most of the generic Indian pharma's till date have been doing merger and acquisition in European and emerging markets such as Latin America mostly for research colloboration or buying the whole manufacturing unit as whole, but our own Dr Reddy's has established its own mPEG plant in Mexico thus now it will able to supply in cheaper rates raw materials to Northh America with huge profit margin, I feel this time Reddy's has taken a very right approach :)

Made in China...........

I have never been to Wal-Mart but what ever I have heard from my family members and friends is that in Wal-Mart stores what you get in cheap and affordable price is Made in China stuff. After some years time will come that our daily drugs will be made in china as Chinese government recently announced that it would like to be No 1 in terms of Biotechnology and Pharma research and development by year 2015 and today I read some IMS report stating that China is going to be third largest drug market by year 2011 and thus will contribute to around 48% to global pharmaceutical growth

last Week Updates.........................

Last week was a very busy week for me with lot of good work in terms of my close pharma industry interaction so was not able to give me time to my favorite past time intellectual driver.......Last week there were follwing updates........

1.Ratiopharm (With Market cap of more than  approximate $ 2-2.5 Billion) - Europe one of the largest generic maker is up for sale, three contendors are there for this deal, one is the largest pharma (Pfizer) and the other two are big names in the generic scenario are Teva (No1 -generic maker) and Activis (Iceland largest generic maker)

2. Merck and Sanofi aventis are going to expand big time in the animal health segment to attain the market leader position.

3. Abbott labs which last year had been expanding its opthalmology portfoilio

Pharma Updates.........

Last week was a very busy week for me with lot of good work in terms of my close pharma industry interaction so was not able to give me time to my favourite past time intellectual driver.......Last week there were following updates........

1.Ratiopharm (With Market cap of more than approximate $ 2-2.5 Billion) - Europe one of the largest generic maker is up for sale, three contenders are there for this deal, one is the largest pharma (Pfizer) and the other two are big names in the generic scenario are Teva (No1 -generic maker) and Activis (Iceland largest generic maker)

2. Merck and Sanofi aventis are going to expand big time in the animal health segment to attain the market leader position.

3. Abbott labs which last year had been expanding its ophthalmology portfolio by rapid M&A activity is this point of time expanding its oncology portfolio by acquiring California based Facet Lab for $722 million.
More updates coming this week :)