Replies to post #118089 on Biotech Values
04/13/11 3:08 PM
Two things are important about emerging markets. First, the patents aren’t as important in emerging markets. It’s really the brand name. So it’s more like consumer health in the U.S. – that’s how things work in emerging markets. There’s a much longer tail for products in emerging markets. [I.e. old, off-patent drugs rack up big sales based on the brand name alone.]
And what’s also important about emerging markets is that the growth in income there has been extremely robust. Growth in income is about 80% correlated with drug spending.
So, as incomes continue to grow, there’s going to be a lot more demand for these products that the pharmaceutical firms have already largely developed. Granted, they’re going to be selling them at a little bit lower price in emerging markets, but the demand should be there.
...Abbott Laboratories is one of our top picks. We think this company is in contrast to the rest of the industry, in that it doesn’t face a lot of patent losses over the next five years. Yet it still trades at an industry average multiple of about 10 times 2011 earnings.
We think that the disconnect largely comes from fears of a competitive product emerging from Pfizer that will weigh on Abbott’s most important product, Humira. We think those fears are overblown and that Humira will continue to be a very strong drug for Abbott [#msg-61383188]. As the years go on, the earnings growth rate will likely translate into a higher stock price. We think there’s a strong likelihood of some multiple expansion as well.
04/16/11 10:50 AM
04/20/11 5:28 AM
04/23/11 5:42 PM
04/29/11 5:17 PM
The pharma giant’s consumer business sells products like Coppertone suntan lotion, Dr. Scholl’s shoe inserts and Claritin over-the-counter allergy medicine… Part of the appeal of holding on to consumer health is that the products are attractive in the emerging markets that Merck is targeting for growth. The same customers buying affordable drugs in countries like China and India also buy the consumer products, Frazier said.
05/03/11 2:55 PM
05/06/11 4:56 PM
05/16/11 2:23 PM
The BRIC countries represent a key growth market for the generics industry. Uptake of generics in these markets will be driven by continued population expansion, increased prosperity, and expanding healthcare coverage.
05/20/11 6:55 AM
Proportion of World’s
Pharmaceutical Sales
2005 2015
Emerging markets 12% 28%
U.S. 41% 31%
EU Big-5* 20% 13%
*Germany, France, UK, Italy, Spain.
05/24/11 12:40 PM
05/25/11 11:02 AM
The Specifar group is in the top five in the Greek branded-generic market, with a portfolio of more than 30 products, including internally developed and in-licensed products sold through a sales force of 170 employees. Specifar also markets products in Greece under the Alet Pharmaceuticals brand through a separate 55 representative sales force.
05/26/11 4:58 PM
06/03/11 12:31 AM
Pfizer Inc. and Zhejiang Hisun Pharmaceuticals, a leading pharmaceutical company in China, today jointly announced the signing of a memorandum of understanding (MOU) on their intention to establish a joint venture. This potential partnership would aim to strengthen the ability of both companies to reach more patients with high-quality and low-cost medicines in the branded generics arena.
06/03/11 5:23 PM
06/17/11 5:30 AM
07/21/11 1:29 AM
07/26/11 4:33 PM
[GSK’s CEO, Andrew] Witty is diversifying the group to reduce reliance on "white pills in Western markets", the part of the business most vulnerable to generic competition and price cuts. The result is an increased focus on consumer healthcare and emerging markets.
07/28/11 9:06 AM
08/05/11 12:07 PM
[CEO, Joe] Jimenez said that shifting Diovan’s growth focus to emerging markets in Latin America and parts of Asia, where the blood pressure medicine already competes largely without patent protection, will help keep its blockbuster status.
Diovan sales are rising in those fast-growing parts of the world even though the drug costs more than generic versions. Many patients in markets where drug counterfeiting is widespread are willing to pay more for a brand’s perceived quality [see #msg-50473238]. Jimenez figures he can expand promotion of the drug to doctors in these markets aggressively enough to retain at least $2 billion in Diovan sales worldwide.
08/25/11 10:35 PM
09/01/11 5:48 PM
09/06/11 12:05 PM
12/08/11 6:40 AM
01/24/12 6:00 AM
As a result of the acquisition, Watson becomes the fifth largest generic pharmaceutical company in Australia based on revenue, and the combined company will be the second largest in terms of total molecules. Watson also becomes the largest generics company in Singapore and gains an established commercial base in Malaysia, Hong Kong, Vietnam and Thailand.
02/15/12 10:30 AM
04/17/12 10:37 AM
The statement named the 13 drugs under suspension, including 11 Chinese traditional herbal remedies and two antibiotics. All were made by Chinese pharmaceutical companies that purchased the capsules from small manufacturers in China's coastal Zhejiang province.
Pfizer Inc., one of the numerous pharmaceutical companies that produces drugs in China, hasn't been affected, according to a company spokeswoman. Pfizer sources its capsules from a supplier in another province.
06/08/12 3:53 PM
China has overhauled parts of its intellectual property laws to allow its drugmakers to make cheap copies of medicines still under patent protection in a move likely to unnerve foreign pharmaceutical companies.
…The amended Chinese patent law allows Beijing to issue compulsory licenses to eligible companies to produce generic versions of patented drugs during state emergencies, or unusual circumstances, or in the interests of the public.
06/12/12 9:27 AM
06/13/12 12:28 PM
06/18/12 12:35 PM
09/13/12 6:20 AM
Pfizer Inc., the world’s largest research-based pharmaceutical company, and Zhejiang Hisun Pharmaceuticals, a leading Chinese pharmaceutical company, today announced the launch of Hisun-Pfizer Pharmaceuticals Co., Ltd. (hereafter referred to as Hisun-Pfizer), a joint venture formed between the two companies to develop, manufacture and commercialize off-patent pharmaceutical products in China and global markets. The creation of the joint venture marks an important milestone in strengthening the ability of both companies to reach more patients with high-quality and low-cost medicines in the branded generics arena.
…Off-patent medicines, including branded generics, represent one of the fastest-growing segments in the global pharmaceutical market. This is especially true in emerging markets, where cost and access are primary drivers of off-patent medicine growth. In China, branded generics account for 70% of the domestic pharmaceutical market.
.. Hisun-Pfizer has an aggregate investment of USD 295 million and a registered capital of USD 250 million. Hisun holds 51% of the share and Pfizer holds 49%. The registration facilities and production plants of the joint venture will be located in Fuyang, Zhejiang province, while the Management Center and R&D Center will be located in Shanghai and Hangzhou, respectively.
The parties will contribute select existing products to the joint venture, which will have a broad portfolio covering cardiovascular disease, infectious disease, oncology, mental health, and other therapeutic areas. The parties will also contribute manufacturing sites, cash and other relevant assets. The joint venture aims to build a robust sales network that covers most areas and hospitals in China and to enter the international market by leveraging on Pfizer’s global business networks.
10/26/12 9:18 PM
11/01/12 1:16 PM
Through this innovative partnership, Baxter will be the exclusive provider of Brazil’s recombinant FVIII treatment over the next 10 years while the companies work together on the technology transfer to support development of local manufacturing capacity by Hemobrás.
11/27/12 6:00 PM
10/14/14 1:29 PM
GlaxoSmithKline is seeking binding bids by next month for a range of older drugs worth more than $3 billion, which it is likely to sell by geographical region, according to people with direct knowledge of the process.
Potential bidders include private equity firm KKR, India's Lupin and Denmark's Lundbeck, all of which are interested in acquiring rights to products in certain regions.
…The GSK brands up for sale include antidepressant Paxil, migraine treatment Imitrex, Zantac for stomach acid and Zofran for nausea. The company intends to retain the rights to such products in emerging markets, where they are still growing.
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