Teva Hits Bull's Eye with Cephalon

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in brief Teva hits bull’s eye with Amgen’s Brazilian buying spree Biologic Indian detour adds Cephalon Amgen has set its sights on the lucrative Brazilian value A battle for Frazer, Pennsylvania–based Cephalon pharma market in two recent moves: a $215 million In May, Sanofi inked a $613 million licensing deal ended in early May when Petach Tikva’s Teva takeover of star-performer Bergamo of São Paulo, with Indian drug maker Glenmark over a novel flashed a $6.8 billion tender, trumping Valeant and a separate agreement to buy back rights to anti-inflammatory monoclonal antibody (mAb) GBR Pharmaceuticals’ $5.7 billion unsolicited buyout several of its own drugs licensed previously to 500, which the Mumbai-based pharma had earlier offer. Cephalon and Teva boards unanimously Mantecorp, now a subsidiary of São Paulo–based snapped up from a small Canadian biotech firm. It approved the deal, which is expected to close in Hypermarcas. Bergamo, which supplies Brazil’s is “fascinating” says William Haddad, CEO of New the third quarter, and Mississauga, Ontario–based hospital sector with oncology treatments, has York–based Biogenerics, referring to what appears Valeant withdrew their offer, which was 12% seen 19% growth over the past four years and a neat example of globalization in drug discovery below the Israeli company’s bid. “Teva seems earned $80 million in 2010 alone. The acquisition in which an Indian company sells profitably to a more interested in keeping Cephalon’s pipeline provides the Thousand Oaks, California, biotech Western pharma a drug originally developed in rather than rationalizing the pipeline and divesting with a large portfolio of marketed products, an the West. In 2007, Glenmark reportedly paid less the elements,” says senior research analyst experienced workforce and sales channels for its than $1 million to Chromos Molecular Systems of Eric Schmidt, of New York’s Cowen Group, who own products. In parallel, by buying back rights Vancouver, British Columbia, for two mAbs along believes Valeant would have focused on cost- to its products from Hypermarcas, Amgen regains with Chromos’ proprietary ACE System technology cutting and the laying off of some of Cephalon’s Mimpara (cinacalcet) for hyperparathyroidism and used for manufacturing them. During the next 4,000 worldwide employees. “I do think the Teva Vectibix (panitumumab) for colorectal carcinoma, three years Glenmark invested around $17 million outcome is better than the Valeant transaction.” which are already marketed in Brazil, along with to develop one of them—GBR 500, a VLA-2 (α-2 Cephalon’s pipeline of central nervous system, Nplate (romiplostim), a platelet growth factor for β-1) integrin antagonist—as a potential treatment oncology and pain candidates includes small immune thrombocytopenic purpura approved by for multiple sclerosis. Paris-based Sanofi paid an cell lung cancer drug Obatoclax (GX15-070) a the US Food and Drug Administration and under upfront $50 million to develop the drug for treating pan-B-cell lymphoma 2 inhibitor, in phase 2, and regulatory consideration in Brazil. According to Crohn’s disease and other anti-inflammatory Cinquil (reslizumab) a humanized monoclonal Rolf Hoffman, senior vice president of Amgen’s conditions. “The deal speaks volumes about Indian antibody against interleukin-5 for severe asthma, international commercial operations, the company innovation capabilities,” says Sujay Shetty, of in phase 3. Among Cephalon’s marketed products sees potential for “strong future growth” in Brazil the PricewaterhouseCoopers Mumbai office. The are Provigil (sparlon) for excessive sleepiness, for biopharmaceuticals and biologics, and its recent euphoria should, however, be tempered by the fact which accounted for 41% of 2010 net sales, but deals allow immediate access to the market, in- that Glenmark’s discovery efforts have suffered loses exclusivity next year, and Treanda for non- country capability and a firm foundation on which recent setbacks, including asthma drug oglemilast Hodgkin’s lymphoma and chronic lymphocytic to further build its business. The activity should licensed to New York-based Forest Laboratories leukemia, that loses exclusivity in 2015. Interest complement Amgen’s 2009 establishment of a and a painkiller molecule to Eli Lilly, that failed in Cephalon followed the death of chairman and clinical development hub in São Paulo to conduct in phase 2 trials. Shetty says past failures don’t CEO, Frank Baldino, Jr., who founded the company clinical trials in Latin America. But the firm’s usually deter big pharma from collaborating with in 1987. “Ever since Cephalon lost its CEO to international expansion coincides with shrinkage Indian firms. “It is only a matter of time before illness last December, it’s sort of had a target on closer to home: the laying off of 134 employees in an original biologic from India enters the world its back,” Schmidt says. Karen Carey two Colorado plants. Jennifer Rohn market,” he adds. Killugudi Jayaraman

“We all agree that big comment on the proposed National Center for dark clouds ahead after the sentencing of W. Scott pharma is useless at Advancing Translational Science to an audience Harkonen, former InterMune CEO, to six months in discovering new drugs at the annual meeting of the Pharmaceutical jail for issuing a press release about a retrospective and has to get its Research and Manufacturers of America. (Wall analysis of clinical trial data for Actimmune. (Wall ideas from somewhere Street Journal Health Blog, 15 April 2011) Street Journal, 6 June 2011) else.” Mark Pepys, “You have to become awfully large to be “The future of the National Institute for Health and head of medicine at unaffordable—there’s lots of cash, lots of capital Clinical Excellence is assured.” Soon to be former London’s Royal Free out there for acquisitions.” Medco CEO David chairman of the UK’s NICE, Michael Rawlins, and University College Snow on why he expects a biotech merger and pronounces all will be well despite some changes. Medical School, has his acquisitions foray as pharmas set out to quench In addition to a name change (to the National own way of expressing their appetite for innovative drugs. (Reuters, 10 Institute for Health and Care Excellence), becoming thanks to GlaxoSmithKline for choosing him for a May 2011) a nondepartmental body will remove some of the long-term partnership. (Xconomy, 10 May 2011) “The bottom line is that Washington is attempting political influence, he claims. (The In Vivo Blog, “Biogen has been way too conservative, way to reduce health-care spending by constraining 11 May 2011) too much like big pharma.” George Scangos, the speech of private firms that promote pricey “The nadir has been reached and we’re coming newly appointed Biogen CEO, has been at work drugs while promoting government research that up the other side.” The FDA’s Janet Woodcock’s shaking up the company’s compensation system discourages their use. The advance of medical optimistic view of the year to come at the FDA. to make sure the message comes across loud practice will suffer if Washington can decide the She points out that smaller biotech companies and clear. ( , 10 May 2100) Reuters standards for medical decision-making and control are pushing a jump in approvals this year, with 12 “That is the pathway to destruction, as far as I the flow of scientific information.” Scott Gottlieb, new drugs approved already this year. (Reuters, can see.” Roy Vagelos, former head of Merck, former deputy commissioner of the FDA, sees 11 May 2011)

nature biotechnology volume 29 number 7 JULY 2011 561