QDIS Blog

A recent Reuters article point out what I have been talking about for quite a while. The merger and activities in the pharmaceutical/bitech are getting bigger in some cases reaching a 100% premium! As far as I’m concerned, this is definitely signs that, the M&A activity has gone beyond intelligent moves and into the area of “I’m doing it because everyone else is doing it”.

Big pharma cash keeps biotech on a roll | Reuters Recommends | Reuters.com

I really don’t think this will help the big pharma companies improve their overall ability to produce medicines in the long run. I personally think that as big corporate company gobbles up smaller companies, they take away the culture that leads to the productivity. I have seen this happen and many times, some of the ket people responsible for the success of the small company end up leaving soon after.

I would much rather see big pharma do partnerships and other deals with smaller biotech. Although even here , if there is only one successful product, it is cheaper for the big pharma company to purchase their smaller partner then to continue paying them royalties or payments. You need look no further than the Eli Lilly Icos merger recently for evidence of this.

Technorati Tags: AstraZeneca, pharma M&A, pharmaceutical deals, Shire Pharmaceuticals

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Seems the FDA won’t be getting a commissioner any time soon and that is really to bad. Rather than exhibiting bipartisanship, everyone seems to have a different agenda and wants to hold up th nomination until their specific point is decided.

Another Republican blocks Bush pick to lead US FDA - washingtonpost.com

It is too bad and in my opinion does more harm than good to see this occur. The FDA now needs a strong leader to put a rudder on an organization that has been without a true course for far too long.

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Pharmion, a company that focuses on the treatment of hematology and oncology will purchase Cabrellis Pharmaceuticals (formerly Conforma Therapeutics) for $59 million in cash. The main product acquired is Amrubicin, an anthracyclin which is used for the treatment of lung cancers. If the product is approved there are other payments involved.

PharmaLive: Pharmion Acquires Cabrellis Pharmaceuticals, Gains Rights to Amrubicin for North America
and the European Union

This merger makes sense on the surface and is one of substance which makes sense for Pharmion. I don’t think they are just going along with the mergers are good mentality. This leads me to believe that the merging activity will continue for the foreseeable future.

Technorati Tags: Cabrellis, Pharmion

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