A New Chapter Or Same Old Tricks?: Valeant’s CEO Promise Of Change Sparks Skepticism
When Joseph Papa took over the helm as the troubled company's CEO, he said things would be different. But a look at how he ran Perrigo shows similar tactics to the ones that got Valeant in trouble in the first place. In other pharmaceutical news, Bristol-Myers acquires a Swedish firm in an effort to expand into the immunotherapy field, Insys Therapeutics says the Food and Drug Administration approved its oral solution for treating conditions related to AIDS and companies are pursuing drugs to boost sexual interest.
The Wall Street Journal:
Valeant’s New CEO Brings Familiar Prescription
Upon taking the helm of Valeant Pharmaceuticals International Inc., Joseph Papa promised to start a “new chapter” at the struggling company. But Wall Street is questioning whether the man hired to effect change can succeed after drawing from a playbook similar to Valeant’s at his previous company. While piloting Perrigo Co., Mr. Papa took steps akin to those that put Valeant on the hot seat. He raised prices of prescription drugs—by more than many rivals did—including boosting lice treatment permethrin and a steroid called desonide by about 530% apiece. Much of Perrigo’s growth came from deals, rather than organically, including an “inversion” that moved the U.S. company’s legal home abroad to lower its tax rate. (Rockoff and Rapoport, 7/5)
The Wall Street Journal:
Bristol-Myers Buys Swedish Firm With Immunotherapy Treatment
Bristol-Myers Squibb Co. said Tuesday that it had acquired Sweden-based Cormorant Pharmaceuticals for up to $520 million, the drugmaker’s latest deal involving products that harness the immune system to attack cancerous tumors. Under the deal, Bristol-Myers will pay $95 million in upfront and near-term payments to the privately held company, plus up to $425 million in possible additional milestone payments. (Laryea, 7/5)
The Wall Street Journal:
Insys Therapeutics: FDA Approves Treatment For AIDS Symptoms
Insys Therapeutics Inc. said Tuesday that the U.S. Food and Drug Administration approved its Dronabinol oral solution for treating certain conditions related to cancer and AIDS, nearly two years after the regulator rejected an earlier application. ... The drug, Syndros, is approved for treating anorexia associated with weight loss in patients with AIDS as well as nausea and vomiting associated with cancer chemotherapy in patients who haven't responded to conventional treatments. (Jamerson, 7/5)
Milwaukee Journal Sentinel:
Sexual Desire: Risky Drugs With Minimal Benefit Being Used To Treat Dubious Conditions
A diminishing interest in sex naturally occurs as people age. It is not life-threatening. But the treatments created to date carry substantial physical risk with minimal benefit. And for years regulators have allowed them on the market. (Fauber and Fiore, 7/5)
Meanwhile, institutional review boards for drugs and medical devices have been undergoing a revolution —
Stat:
In Clinical Trials, For-Profit Review Boards Are Taking Over For Hospitals. Should They?
Institutional review boards — which review all research that involves human participants — have undergone a quiet revolution in recent years, with many drug companies strongly encouraging researchers to use commercial boards, considered by many more efficient than their nonprofit counterparts. Commercial IRBs now oversee an estimated 70 percent of US clinical trials for drugs and medical devices. The industry has also consolidated, with larger IRBs buying smaller ones, and even private equity firms coming along and buying the companies. Arsenal Capital Partners, for example, now owns WIRB-Copernicus Group. (Kaplan, 7/6)
