GlaxoSmithKline Reports Rise In Earnings Driven By Vaccine, Health Product Sales
The British drugmaker has also found that ending doctor payments did not undermine drug sales. Meanwhile, Sanofi bids $9.3 billion for cancer biotech Medivation and Vertex's cystic fibrosis drug sees mixed results.
The Associated Press:
GSK Sees Rise In Sales Of Vaccines, Healthcare Products
Pharmaceutical company GlaxoSmithKline says higher sales of vaccines and consumer healthcare products pushed up its earnings from core business by 19 percent in the first quarter. Core operating profit, which excludes taxes, one-time items and restructuring costs, rose to 1.56 billion pounds ($2.28 billion) from 1.31 billion pounds in the same quarter a year earlier. (4/27)
The Wall Street Journal:
GlaxoSmithKline Posts Healthy Profit With Earnings Rise
GlaxoSmithKline PLC said core earnings rose in the first quarter of the year, in an early sign the company is returning to growth after two years of falling profits. The British drugs giant’s transition to a lower-margin business following a $20 billion asset swap with Novartis AG, combined with falling sales of blockbuster respiratory drug Advair, have taken a toll on the company’s earnings growth recently. But now that Glaxo’s integration of the businesses it acquired from Novartis is well under way, its prospects are brightening. (Roland, 4/27)
Reuters:
GSK Finds Axing Doctor Payments Needn't Torpedo Sales
It has been one of the pharmaceutical industry's most closely watched experiments: does ending payments to doctors undermine drug sales GlaxoSmithKline, the British drugmaker, believes it has proved that raising the ethical bar on marketing practices doesn't necessarily reduce competitiveness. Chief Executive Andrew Witty said better-than-expected first quarter results on Wednesday coincided with a period where the entire group had operated under a new policy that bans payments to doctors who speak on behalf of GSK. (Hirschler, 4/27)
Reuters:
Sanofi Offers $9.3 Billion For U.S. Cancer Drug Firm Medivation
French drugmaker Sanofi went public with a $9.3 billion offer to buy Medivation on Thursday after the U.S. cancer drug firm rebuffed its approaches. The decision to target Medivation marks a return to the biotech takeover trail by Sanofi, which is looking to new cancer treatments to bolster its portfolio and help offset declining sales of its mainstay diabetes drug Lantus. (4/28)
The Wall Street Journal:
Sanofi Makes $9.3 Billion Bid For Medivation
Sanofi SA on Thursday said it has made an all-cash offer to acquire Medivation Inc. in a deal valued at $9.3 billion, the French drugmaker’s latest effort to expand its cancer-treatment business. Sanofi decided to go public with its takeover approach after the U.S. company failed to respond to its earlier advances. Sanofi shares fell 1.1% in early trading Thursday. Chief Executive Olivier Brandicourt said the $52.50 a share offer—a 50% premium to Medivation’s average share price for the two months before takeover speculation emerged—was “very attractive.” (Kostov, 4/28)
The Wall Street Journal:
Vertex Pharmaceuticals’ Cystic Fibrosis Drug Disappoints
Sales of Vertex Pharmaceuticals Inc.’s expensive new cystic fibrosis drug Orkambi fell shy of analysts’ expectations in the first quarter, as 15% of patients stopped taking the drug within three months because of its side effects, the company said. Orkambi had sales of $223 million in the quarter, compared with $259.4 million projected by analysts, according to FactSet. On Wednesday, the company projected full-year 2016 Orkambi sales of $1 billion to $1.1 billion, versus $1.23 billion expected by analysts. As recently as Feb. 29, analysts had projected Orkambi first-quarter sales of $278 million. (Walker, 4/27)
The Boston Globe:
Vertex Sees Blockbuster Status For Cystic Fibrosis Treatment In First Year
Vertex Pharmaceuticals Inc. projected Wednesday that its new cystic fibrosis treatment, Orkambi, will ring up sales of at least $1 billion in 2016, making it one of the rare medicines on track for so-called blockbuster status in its first year on the market. But the company’s estimate that Orkambi will generate between $1 billion and $1.1 billion in revenue this year still fell short of estimates by stock analysts. (Weisman, 4/27)
In other pharmaceutical news —
Bloomberg:
UBS Wealth Clients Invest $471 Million For Cancer-Drug Fund
UBS Group AG’s wealth-management unit raised $471 million from clients for an oncology fund that will divert some of its profits to cancer research and health care in emerging markets, the bank said Wednesday in a statement. (Collins, 4/27)
The Associated Press:
Advocates Hold NYC Protest Over Price Of Pneumonia Vaccine
Doctors Without Borders protested the price of pneumonia vaccines Wednesday by leading a march through midtown Manhattan and delivering a crib filled with flowers to a pharmaceutical company. (Blidner, 4/28)
