Biotech Values

[DewDiligence]

While you were out grilling this weekend, a former surgeon in L.A. made $3 billion…

http://blogs.wsj.com/health/2008/07/07/the-doctor-who-scored-3-billion-on-heparin-deal-this-weekend

›July 8, 2008
by Jacob Goldstein

Fresenius, the big German dialysis chain, said it would buy APP Pharmaceuticals for $3.7 billion, the WSJ reports. The Los Angeles Times points out that one guy — Patrick Soon-Shiong — owns 83% of APP stock.

APP sells a version of the generic the blood thinner heparin — a drug that was in the news this year when another supplier, Baxter, had to recall its version of the drug because of contamination. APP did not have contamination problems, and the company made some gains at the time. Heparin is used widely in patients receiving dialysis — so Fresenius will now own a supply of a drug it uses often.

Soon-Shiong, who founded APP, was #117 on last year’s Forbes 400, which put his net worth at $3 billion.

APP was split off last year from Abraxis BioScience, where Soon-Shiong is chairman and CEO. That company’s main product is Abraxane, a form of the cancer drug paclitaxel.‹