Replies to post #58330 on Biotech Values

[DewDiligence]

>Wyeth didn't wait for the standstill agreement until Jan 31st to end!<

They presumably saw no hope of a settlement in the next 24 hours and figured they might as well get the AG pills into the channel while Teva was wondering what happened.

WYE also knew they couldn’t extend the standstill agreement again: their 4Q07 CC is tomorrow (Thu) at 8am ET.

[DewDiligence]

More Drama Over Generic Protonix

http://blogs.wsj.com/health/2008/05/21/more-drama-over-generic-protonix

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May 21, 2008
by Jacob Goldstein

After Teva launched generic Protonix on Christmas Eve, fought with Wyeth about it, then made a surprise exit, we thought the drama was over.

But this week we get another act, thanks to the the injectable form of the drug Wyeth sells as Protonix I.V.

This act has an Et tu, Brute? vibe, with Wyeth suing a fellow Big Pharma — Novartis, whose generic unit Sandoz has applied to bring a generic version of Protonix I.V. to market. Nycomed, which licenses the drug to Wyeth, is also joining in the suit.

The earlier-than-expected arrival of generic Protonix has driven the price of drugs down for patients. But from Wyeth’s point of view, the story so far has been something of a tragedy: Sales of the drug were off 66% in the first quarter, to $159 million.

In cases over both versions of the drug, Wyeth is arguing that its Protonix patent is still valid. The company is seeking an injunction to keep Novartis’s generic off the market until 2010.
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[DewDiligence]

Nycomed Puts Itself In Play

[Nycomed is best known as the licensor of WYE’s Protonix.]

http://online.wsj.com/article/SB123783034905916063.html

›MARCH 24, 2009
By JEANNE WHALEN and DANA CIMILLUCA

LONDON -- Nycomed, a privately held Swiss drug company, is looking for potential buyers in a deal that could be valued at as much as €10 billion ($13.57 billion), according to people familiar with the matter.

Nycomed has hired Goldman Sachs Group Inc. to initiate talks with pharmaceutical companies that could result in a sale of the whole firm, people familiar with the matter say. Other options include a licensing deal for Nycomed's experimental lung-disease drug, Daxas, and a sale to outside investors through an initial public offering, the people say.

The potential sale comes amid a wave of pharmaceutical deals, including U.S. giant Merck & Co.'s agreement earlier this month to acquire Schering-Plough Corp. for $41 billion. It is too early to tell who may bid for Nycomed, but people with knowledge of the sales process said most major pharmaceutical firms will likely take a look.

Nycomed, based in Zurich, has a large business in Russia and the former Soviet Union, which could be of interest to big pharmaceutical companies looking to expand in emerging markets. Its global sales last year fell 4% to €3.35 billion, largely because one of the company's biggest products -- Protonix for acid reflux -- faced competition in the U.S. from low-cost generics. Daxas, to treat chronic obstructive pulmonary disease, also known as smoker's lung, could be a big seller if it is approved for sale in the U.S. and Europe.

Nycomed is owned by a handful of private-equity firms, including Nordic Capital and CSFB Alternative Capital. Nordic Capital is the lead investor, with roughly 40% of Nycomed, an investment dating back to 2005.

Private-equity firms typically look to sell companies three to five years after buying them. People familiar with the matter say Nycomed's owners would prefer a sale of the whole company, in part because an IPO would be more complicated and turmoil in the financial markets has sharply curtailed demand for shares.

A Nycomed spokeswoman said the company's search for a Daxas deal "is proceeding as planned" and that any decision on a sale or an IPO "will have to be taken by our owners." Nycomed's chief executive, Hakan Björklund, said in November that the company would consider an IPO once markets improved.

Nordic Capital, CSFB Alternative Capital and Goldman Sachs declined to comment.

Nycomed had €4.3 billion of debt and €509 million of cash at the end of last year.‹