Pharmaceutical companies in mergers and acquisitions in 2009

Super M & A singing melody

In 2009, the pharmaceutical industry mergers and acquisitions wave of mergers start with two super start of the operation: Pfizer acquisition of Wyeth; Merck & Schering right - Plow implementation of the reverse takeover. The third major acquisition was completed Roche full control of Genentech, before that, though Roche holds a majority stake in Genentech, but Genentech will continue to enjoy the right to operate a high degree of autonomy.

Pfizer to buy 62 billion U.S. dollars into the pharmaceutical industry, Wyeth's third-largest acquisition ever, second only to Pfizer in 1999 to 89 billion U.S. dollars acquisition of Warner Lambert Company, and the 2000 Glaxo Wellcome and SmithKline into a 79 billion U.S. dollars combined to form GlaxoSmithKline.

Since Sanofi in 2004 to 54.5 billion euros (or 66.5 billion U.S. dollars) since the acquisition of Aventis, the pharmaceutical industry has not been seen such a large trading operation. "Mega-merger activity does not make the problem go away." 5 years "vacuum period" is a reflection of the pharmaceutical industry on this point.

However, Pfizer and Wyeth merger is clearly in some areas was welcomed, especially since the impact it has crossed the pharmaceutical industry. When the acquisition announced in January 2009, the U.S. and global economy remains bleak, while the credit crunch, the banking sector loans have not yet rebounded.

Pfizer raised from the banking system to the total funding required for the acquisition of 1 / 3, the company Chief Executive Officer Jeffrey Kindler, said: "This is on the U.S. economy and U.S. businesses is a very positive signal, it shows that the banking industry has been resumed business. "

Kindler also the merger of Pfizer and Wyeth made some excuse: its merger with the other actions is different, because the merger did not focus on a single product or simply to cut costs.

Pfizer's flagship product, Lipitor will lose patent protection in 2011, which means that Pfizer will thus suffer huge economic losses. In 2007, Lipitor achieved income of 13.5 billion U.S. dollars, this product accounted for Pfizer's total revenue is almost 1 / 3, accounting for about 40% of their profits. Pfizer said the acquisition of Wyeth will help it get rid of dependence on a single product, to 2012, the combined company's total sales accounted for more than 10% of the medication will be more than one.

Pfizer also hope that through this merger to save about 40 billion dollars in costs, and this goal will be the combined company after the third year of operation to achieve. Cost savings are expected through the reduction of sales, information and administrative functions, and reduce R & D and production fees.

In the Merck Sharp & Dohme and Schering - Plow Company in March 2009 announcing the merger, chief executive of other large pharmaceutical companies have begun to consider issues relating to mergers and acquisitions. When near the end of Sanofi - Aventis hair strength, to 1.9 billion acquisition of Chattem Inc.. Chattem in the United States in view of consumer health care products on the market-leading position and Sanofi - Aventis strong network in the world, the acquisition will allow Sanofi - Aventis largest in the world's fifth-largest consumer health care products companies.

The Eli Lilly CEO John Lechleiter on large M & A action held very strong opposition. Last year, by the end of March, he was "Financial Times" reporter, said: "I think we have seen M & A actions are actually more of a cowardly act by promoting, rather than what I have said a strong strategic fit. It is will enable pharmaceutical companies to improve short-term problem, but it can not answer such long-term R & D productivity problems. "He thus concluded:" In my large-scale mergers and acquisitions from the operation in terms of interpretation to the majority of the information, they are in the pharmaceutical the company's research and development will lead to very damaging. "

Leichleiter Eli Lilly has chosen a different path. In October 2008, Eli Lilly 65 billion acquisition of biotechnology company ImClone company. The move reflects a general trend in the pharmaceutical industry: the acquisition of professional characteristics of those who have a strong medium-sized companies.

Johnson & Johnson lead the medium-sized M & A

The acquisition brought with it promising product acetate Abbitt Long (AA). The drug has been used to treat prostate cancer, is currently in Phase Ⅱ clinical trials. This is a Johnson & Johnson in oncology research and development have one of several drugs.

In 2009, the pharmaceutical industry lack the scale of 10 billion to 4 billion U.S. dollars between the acquisition, which Johnson & Johnson to become leader, it is implemented throughout the year no less than three large-scale investment.

Its first acquisition was in May 2009. At that time, Johnson & Johnson to 970 million U.S. dollars acquisition of Los Angeles, a biotechnology company Cougar Biotechnology Corporation.

The acquisition brought with it was optimistic about the prospects for the product acetic acid Abbitt Long (AA). The drug has been used to treat prostate cancer, is currently in Phase Ⅱ clinical trials. This is a Johnson & Johnson in oncology research and development have one of several drugs. Cougar will become a subsidiary company of Johnson & Johnson's Ortho Biotech Oncology R & D department.

Subsequently, to July, Johnson & Johnson entered into an agreement with Elan to one billion U.S. dollars investment to acquire the latter is all used to treat Alzheimer's disease drug development, 500 million U.S. dollars investment in developing lead compounds bapineuzumab.

At present, every 3 months by intravenous injection once bapineuzumab is in Phase Ⅲ clinical trials; weekly subcutaneous injection once a bapineuzumab preparations are in Phase Ⅱ trials. In addition, a vaccine for Alzheimer's disease ACC-001 is also being developed.

Finally, to September, Johnson & Johnson acquired Crucell's vaccine manufacturers, 18% of the shares, the two companies will jointly develop for the flu and other diseases, monoclonal antibodies and vaccines.

Johnson & Johnson for this equity investment has paid 302 million euros in capital, one of the aims is to continue the development of vaccines in the place.

Vaccines business of buying

The Swiss company said the acquisition will help it in the market size of up to 10 billion Chinese vaccine market to expand its current "limited operations." Chinese vaccine market is growing at double-digit rate.

Crucell agreement is reached in 2009 vaccine industry in a number of agreements. Among them, the largest one course ought to Abbott in September to 6.6 billion acquisition of Solvay, the operation not only the American company Abbott acquired Solvay's vaccine business, but also won the Solvay in emerging markets business.

For the acquisition of Abbott Laboratories have some strategic significance, as it already has Solvay's fenofibrate product marketing rights in the U.S. market, which is Solvay's best-selling products, including the two companies jointly launched by the end of 2008 next-generation fenofibrate product TriLipix. In some high-growth emerging markets (including Eastern Europe and Asia), Solvay has built a solid business and production facilities. In 2008, the company achieved sales of drugs, emerging markets accounted for about 20% of the share.

In June 2009, GlaxoSmithKline (GSK) invested 34 million U.S. dollars (40% stake) and the Chinese company in Shenzhen Neptunus has established a new joint venture, that the burgeoning Chinese market development and production of influenza vaccines. This is a GSK and Asian companies have reached agreements on three large-scale first.

Sanofi - Aventis has also followed its acquisition of operations on the Indian vaccine manufacturers, the company's controlling stake in Shantha Biotechnics, thus also received the company's product development lines, including rotavirus vaccines, conjugate typhoid vaccine and a human papillomavirus (HPV) vaccine.

The acquisition by Sanofi - Aventis vaccine division of Sanofi subsidiary - Pasteur realized, it 550 million euros acquisition of Mérieux Alliance, a subsidiary of the French ShanH, while the ShanH company has Shantha Biotechnics a majority stake.

Followed in November, Novartis acquired 125 million U.S. dollars to vaccine manufacturers in China, Zhejiang Tianyuan's 85% stake. The Swiss company said the acquisition will help it in the market size of up to 10 billion Chinese vaccine market to expand its current "limited operations." Chinese vaccine market is growing at double-digit rate.

Diversification extension

While many pharmaceutical companies to implement diversified, however, a prescription drug operation with the traditional companies have been moving from this area have come out alive.

Several of the pharmaceutical industry's largest companies, to expand the field of generic drugs is another one of their goals.

In March 2009, Pfizer Aurobindo and Indian generic drug companies signed a new agreement, the same month, Sanofi - Aventis for 2.6 billion U.S. dollars the company completed the acquisition of Zentiva. May, Novartis generics unit Sandoz under the company announced that it will acquire Austrian EBEWE Pharma company to get the other side of the injectable generics business.

The agreement will allow Sandoz cost 925 million euros, it was attractive, because this would be EBEWE Sandoz anti-tumor products. The next eight years, the global market size of anti-tumor products, is expected to double to 60 billion U.S. dollars.

Novartis chairman Daniel Vasella, said: "It is in line with our development strategy allows us to cancer patients around the world to provide more help."

GSK is also active in this field action. In December 2008, it acquired 19% of South Africa's Aspen's shares. Followed in April 2009, GSK announced a 3.6 billion acquisition of Stiefel company, Stiefel is the world's largest pharmaceutical companies operating independently of the skin.

GSK hopes to continue to retain the independence of Stiefel and small-scale management system, for which, it announced that it would its existing dermatology products into Stiefel. New professional products in the global business within the GSK group in the framework of the operation in the name of Stiefel. Stiefel, said Charles Stiefel, CEO, Stiefel, and the combination of GSK will establish a global leader in the field of dermatology company, the company will be prescription drugs, consumer and skin beauty care markets occupy an important position.

In the meantime, Roche Innovatis through the acquisition of German company, to further consolidate its therapeutic products and diagnostic products for the organic integration of the business model.

Roche has been Innovatis one of the company's key customers, which has developed for the biotechnology industry, the use of cell analysis techniques. In order to purchase Innovatis company, Roche paid 15 million euros of funds. Jürgen Schwiezer, CEO of Roche Diagnostics, said the company's development strategy is to in-cell analysis of the marketplace as a complete solution provider, and the acquisition Innovatis to another step in this direction.

While many pharmaceutical companies to implement diversified, however, a prescription drug operation with the traditional companies have been moving from this area, get out.

Procter & Gamble is a large enterprise group with annual sales reached 83.5 billion U.S. dollars, the product mix from food to toiletries, beauty products and medical health care products. In the pharmaceutical field, the most well known is that its "blockbuster" class of osteoporosis treatment Actonel. Expected to 2013, Actonel owned by the United States will lose its patent. Procter & Gamble is not lost their desire to invest in order to maintain its R & D-intensive in the pharmaceutical industry in this area status. Warner Chilcott operator specialty pharmaceutical companies behind them will take, to 3.1 billion acquisition of P & G's pharmaceuticals division, and immediately formed a new medium-sized enterprises. Procter & Gamble, the company will take over the entire drug R & D capabilities, P & G's pharmaceutical sector, 2300 Most of the employees will remain in office.