AstraZeneca to buy Arrow Therapeutics
Although they have announced major layoffs, AstraZeneca is also in a buying mode having said they will pay $150 million for Arrow Therapeutics a privately owned biotech that focuses on anit-virals.
AstraZeneca to buy Arrow Therapeutics - Yahoo! Finance:
Arrows most advanced product is a phase II compound known as RSV604 which targets Respiratory Syncytial Virus which primarily affects infants and those who are immune-compromised. What is interesting is Arrow signed a deal with Novartis for development of this compound back in the summer of 2005 so evidently AstraZeneca is likely more interested in their other earlier stage products. At least in this case, they are acquiring the company to concentrate their efforts on a given therapeutic area rather than just to add any old drug to the pipeline.
Two thoughts come to mind in regard to this story. First, I think companies need to have a focus and concentrate their efforts on certain therapeutic areas where they have expertise. The days of having a vast array of widely differing therapeutics I think are gone.
Second, especially for anti-infectives, I think many smaller companies working in this area will become prime targets for larger pharma. As bacteria become more resistant to commonly used drugs, there will be a growing need for new antibiotics. Also, many big pharma companies have gotten rid of their anti-infectives groups and the expertise seems to me to be more concentrated in smaller up and coming companies. Once it gets to the point were anti-infectives are seen as profitable again, you will see more acquisitions of this sort. However, I don’t see the markets reaching the point anytime soon.
Other Resources
AstraZeneca Acquires Arrow Therapeutics To Broaden Anti-Infective Capabilities (press release)
Technorati Tags: antibiotics, AstraZeneca, Arrow Therapeutics
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