QDIS Blog

LIlly has announced they are licensing the compound PSN010 from OSI Pharmaceutical’s subsidiary Prosidion for an upfront payment of $25 million and an additional $360 million in development milestones.

PharmaLive: Lilly and OSI Pharmaceuticals Announce Licensing Agreement :

This is an early stage compound (phase I) for diabetes type 2 and it activates oral glucokinase.

Again, I think it is interesting to see some companies going the mergers and acquisitions (M&A) route while others are making deals for compounds. I’ve stated before I personally think the deal making is the better approach since this doesn’t kill the innovations of the small company. I look at mergers as killing the goose to get the golden eggs.

Other Resources

PSN010 - Yahoo! Search Results

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While Medimmune has in the past rejected merger talks, one of its largest shareholders is urging the board to reconsider. David Katz, president of Matrix Asset Advisors think that Medimmune should sell out. Given the current environment, it is likely they could get a great deal for their assets, but this basically says there is no confidence in the current management to build the company further for the future.

A Buyer For MedImmune?

I kind of agree with this assessment, while Medimmune has some good products such as FluMist and Synagis for treatment of infections in infants, they don’t seem to get the respect of the markets. While it may be worth more than the current stock price, I don’t think that David Katz figure of being worth $45 is quite realistic over the current price of $33. Look for Medimmune to investigate potential buyers but that field of large pharma is pretty small with Pfizer and GlaxoSmithKline being the primary players. Johnson and Johnson is less likely in my opinion and I seriously doubt Merck would consider this sort of acquisition now.

Technorati Tags: pharma M&A, pharmaceutical deals, Medimmune

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