Avid Bioservices Inc (CDMO)

[biopharm]

Big Pharma changes ... looking for signs, any signs of that deal with Peregrine, since thats all we can do to try and extrapolate durinng our quiet PR days. This post is updating 1) Merck (US)... the rest is there in case you've missed the original post.

Now we have US Merck joining the break up party! What started with Abbott, set in motion for a break up at Pfizer and now moving right along to US Merck. What I ask is.... are these moves strictly due to the patent cliff and better spoil only half the pie when that time comes vs spoiling the entire pie. The motion to split takes many months works and does anyone find it odd that Abbott set this in motion back on Oct 19, 2011 and finally announcing the split in Jan 2013 ? ... which we now know that they would have most likely been partnered with Peregrine at that time! ... so the split due to the patent cliff or strategic reasons due to having PS targeting all partnered up? All I know is... I bet we have more Big Pharma break ups to come.

1) Merck (US)
2) Merck KgaA (German)
3) Novartis
4) Pfizer
5) Abbott
6) Abbvie
7) Roche
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1) Merck (US)

Nov 5, 2013

Merck thinking spin-off in wake of Pfizer breakup

Merck, the second-biggest U.S. drugmaker, may be coming around to the idea of separating its businesses after the breakup of larger rival Pfizer boosted shareholder value by $50 billion.

Merck Chairman and Chief Executive Officer Ken Frazier said last week that he’s evaluating whether the animal-health unit and consumer products would be better off outside the $134 billion company. Slimming down to focus on human medicines would follow in the footsteps of Pfizer, which spun off its animal-health unit and sold its baby formula business. Novartis AG also has identified its animal-health division as a top candidate to sell.

http://24allnews.com/merck-thinking-spin-off-in-wake-of-pfizer-breakup/

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2) Merck KgaA (German Merck)

Oct 14, 2013

German drugs and healthcare group Merck KGaA is in talks with external investors including private equity firms to share the cost of some clinical trials, the Financial Times said, citing a senior manager at the company.

http://www.reuters.com/article/2013/10/14/us-merckkgaa-trials-idUSBRE99D03B20131014


Feb 24, 2012

Merck KGaA to Cut Employment After Drug Failures

“Over the next two years, Merck needs to address unprecedented market shifts, increasing competition in key product areas and existing inefficiencies in its own organization to ensure the long-term success of its business model,” Chief Executive Officer Karl-Ludwig Kley said in the statement.

Merck is 70 percent owned by the Merck family through the parent company E. Merck KG. The roughly 130 family members choose representatives who hire, fire and set compensation for company executives, according to the company’s website.

http://www.bloomberg.com/news/2012-02-24/merck-kgaa-to-cut-employment-after-drug-failures.html

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3) Novartis

Aug 14, 2013

Novartis AG (NOVN) will start a strategic review of its units as early as next week and would consider a $10 billion purchase among options for bolstering the business, Chairman Joerg Reinhardt said.

“We will also start next week to look at our portfolio based on strategic perspectives going forward,” Reinhardt, 57, said in an interview at the company’s Basel, Switzerland, headquarters yesterday. While smaller deals remain attractive, “Novartis would be willing to invest significant money for a very good opportunity. I don’t think a $10 billion acquisition is out of reach.”

http://www.bloomberg.com/news/2013-08-13/novartis-to-review-business-as-reinhardt-becomes-chairman.html
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4) Pfizer

July 29, 2013

Pfizer Inc, in what could be the prelude to spinning off its generics drug business, said it plans to separate its commercial operations into two units, mainly for patent-protected brands and a third for generics.

Pfizer, the largest U.S. drugmaker, said on Monday the changes will take effect by January in countries that do not require a consultation with labor unions.

The other "innovative" business will include vaccines, cancer and consumer healthcare, to be headed by Amy Schulman.

"The vaccines, oncology and consumer operations that will be bundled together seem unlikely bed fellows," Citibank analyst Andrew Baum said in a research note. He speculated that the components, all dependable sources of revenue, were grouped together to provide a "balanced" revenue base.

Schulman's group, "innovative core #2," will require far fewer sales representatives and likely have the highest value, the analyst said.

http://www.reuters.com/article/2013/07/29/pfizer-units-idUSL1N0FZ0DJ20130729
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5) Abbott

Jan 2, 2013

Abbott Laboratories announced its plan to spin off the drug division in October 2011, earning a boost from investors who saw the move as benefiting Abbott by separating its device, nutrition and generic-drugs businesses from the higher-risk pharmaceutical unit.

Drug maker AbbVie began life on its own Wednesday, 14 months after Abbott Laboratories ABT +6.05% said it would spin off its medicines unit, leaving it to face the challenges of the pharmaceutical business without the shelter of its corporate parent.

Like other drug makers, AbbVie hopes its pipeline of potential new medicines will offset a string of patent expirations that will wipe out more than $1 billion in cholesterol-drug sales next year alone. The company also faces pricing pressure from health plans and government programs. Its biggest blow could come in 2017, when competing versions of its $9-billion-per-year arthritis treatment Humira may enter the market.

http://online.wsj.com/news/articles/SB10001424127887323689604578217910185609792
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6) Abbvie -

Plaintiff states Abbott Labs as Peregrine Pharmaceuticals expected partner back in Sept. 2012 on amended class action complaint and Abbvie was already planned to be split off from Abbott "before" the coding discrepancies -- way back on Oct 19, 2011 but didn't officially split into two companies until 2013

Oct 19, 2011

Abbott Splits in Two

Under the plan announced today, Abbott will create a company focused on diversified medical products consisting of medical devices, established generic pharmaceuticals, diagnostic and nutritional businesses. This company, which will retain the Abbott name, will have sales of approximately $22 billion and be led by current Abbott CEO Miles White.

The second company, as yet unnamed but with current sales of around $18 billion, will take over Abbott's research-based drug business an pipeline focused on specialty markets such as multiple sclerosis, immunology and hepatitis C. The research company's drug roster will include Abbott's biologic, or biotech drugs, including the rheumatoid arthritis blockbuster Humira.

Existing Abbott shareholders will receive equity in each of the two new companies. Abbott says both companies will pay a divided that when combined, will equal the current Abbott dividend.

http://www.thestreet.com/story/11281818/1/abbott-splits-in-two.html
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Dec 28, 2012

The proprietary drug business of Abbott Laboratories (ABT) officially split off into AbbVie, a company that makes its debut with $18 billion in annual sales and a market capitalization of about $55 billion. AbbVie began trading on the New York Stock Exchange with a nearly 1 percent jump in its share price early this afternoon up 28 cents to $34.45.
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Unlike other drug makers that succumb to acquisitions as their pipelines dry up, AbbVie plans to be around for the long haul. That is what 35-year Abbott veteran Rick Gonzalez who is AbbVie’s CEO and his team are telling Wall Street analysts and investors leading up to the split.

http://www.forbes.com/sites/brucejapsen/2012/12/28/abbvie-wants-to-be-hunter-not-hunted-post-abbott-split/

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7) Roche --- lots of hiring ... signs of a Peregrine deal?

Oct 14, 2013

To invest 800 mln Swiss francs in manufacturing of biologic drugs

Swiss drugmaker Roche is to invest 800 million Swiss francs ($880 million) in its global manufacturing facilities over the next five years, creating 500 jobs, as it prepares for growing demand for its biologic medicines.

http://www.reuters.com/article/2013/10/14/roche-manufacturing-idUSL6N0I404U20131014


Feb 22, 2013

Roche Holding AG (ROG), the Basel, Switzerland-based drugmaker that manufactures the world’s best- selling cancer treatment and reached a five-year high this week, has minted at least 12 Swiss and German billionaires. Seven have never appeared individually on an international wealth ranking.

http://www.bloomberg.com/news/2013-02-21/seven-cancer-drug-billionaires-unmasked-as-roche-surges.html
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