As predicted a few weeks ago, IMS Health has sold itself to private equity for $5.2 billion ($4 billion in actual transaction, plus the acquisition of another $1.2 billion in debt). The buyers were private equity firms Texas Pacific Group (TPG) and the Canadian Pension Plan (CPP) Investment Board. The deal works out to $22 a share. I’d look for the new owners to break up the company – slipping the high-profit prescription data business from the consulting organization.
IMS has really struggled since the current CEO, David Carlucci, took over. The company recently lost a very high-profile legal challenge against the State of New Hampshire prohibiting sales of prescription data that identify individual physicians (there’s a little more to it). IMS vigorously defended itself in a costly legal battle that tapped the company of a significant amount of cash and proved to be a considerable distraction with customers.
Already, some law firms are looking into the deal on behalf of shareholders. While the deal represents a nice premium over the last 12 months (IMS’ shares have been in the toilet since long before the recession hit), it is well below the $31.49 of October 2007 – just two short years ago (and the high $20’s where the stock has traded for much of the past 5 years).
This deal is a rather significant windfall for IMS executives who received thousands of shares over the last few years. This deal is also the end of the once-formidable pharmaceutical market research firm. The only remaining question is: which company will take over reins in the industry?
Friday, November 6, 2009
Wednesday, November 4, 2009
A New Look for Pharm Aid
Change is in the air. That holds true for Pharm Aid. We’ve just launched our new logo, both here and on Twitter. Let me know how you like it.
Tuesday, November 3, 2009
Health Reform Fuels Job Losses
Healthcare reform efforts are driving further job cuts in the healthcare, pharmaceutical and medical device industries. What started as a rationalization of sales forces and a response to the global recession has accelerated in response to health finance reform legislation pending before Congress.
As noted in the Wall Street Journal Health Blog, there have been significant cuts. Today, Johnson & Johnson announced 8,000 jobs will be cut. Previous major layoffs include the Pfizer/Wyeth 20,000 cut, Eli Lilly’s decision to cut 5,000 jobs, and AstraZeneca’s 7,000 job elimination. And by adding them up, the Wall Street Journal gets to 40,000 job cuts.
I believe that is underestimated by at least half. And here’s why. These were only the major cuts and the only the ones that caught big headlines. There have been many other more subtle layoffs, including Merck/Schering (16,000) that will materialize soon, Caraco Pharmaceuticals (450), BMS (113 in Indiana), and Charles River (115). Other companies have not quantified their layoffs.
Most bluntly, Boston Scientific CEO Ray Elliott has indicated that Obamacare would cost his company an additional 1,000-2,000 jobs.
Into this fray, countries are stepping in and making a valiant pitch to American and European companies to outsource jobs there. These countries offer compelling financial incentives without any of the entanglements offered by the Obama regime.
One thing is certain, healthcare reform as envisioned by President Obama will accelerate American job losses.
As noted in the Wall Street Journal Health Blog, there have been significant cuts. Today, Johnson & Johnson announced 8,000 jobs will be cut. Previous major layoffs include the Pfizer/Wyeth 20,000 cut, Eli Lilly’s decision to cut 5,000 jobs, and AstraZeneca’s 7,000 job elimination. And by adding them up, the Wall Street Journal gets to 40,000 job cuts.
I believe that is underestimated by at least half. And here’s why. These were only the major cuts and the only the ones that caught big headlines. There have been many other more subtle layoffs, including Merck/Schering (16,000) that will materialize soon, Caraco Pharmaceuticals (450), BMS (113 in Indiana), and Charles River (115). Other companies have not quantified their layoffs.
Most bluntly, Boston Scientific CEO Ray Elliott has indicated that Obamacare would cost his company an additional 1,000-2,000 jobs.
Into this fray, countries are stepping in and making a valiant pitch to American and European companies to outsource jobs there. These countries offer compelling financial incentives without any of the entanglements offered by the Obama regime.
One thing is certain, healthcare reform as envisioned by President Obama will accelerate American job losses.
Obama Promises H1N1 Vaccine - Again
While I previously wrote about the White House Admission of Significant Mistakes on H1N1, things have deteriorated over the last 48 hours. Obama mouthpiece Robert Gibbs noted that President Barack Obama is frustrated with the H1N1 flu vaccine shortage. Gibbs also promised that President Barack Obama is personally tackling this issue “each and every day to fix this.”
That’s terrific, but President Obama needs to take much of the responsibility for the current H1N1 vaccine mess. It’s absolutely negligent that President Obama has waited so long to take H1N1 seriously. While President Obama spent 24 days golfing or taking a lavish vacation on Martha's Vineyard, H1N1 could have been addressed in a meaningful and significant way. Let’s face it – President Obama’s actions have been far too little. Now that Obama has his head out of wherever it was, hopefully it isn’t too late.
Don’t get me wrong, H1N1 isn’t an issue that the President needs to personally solve. Unfortunately, President Obama nominated Kathleen Sebelius to the job of HHS Secretary and that’s when the trouble started, so now Obama needs to compensate for Sebelius' significant shortcomings. Secretary Sebelius looks great in a St. John’s suit, she’s a staunch supporter of abortion and she's a great fundraiser for the Democratic Party. Unfortunately, that’s where Kathleen Sebelius’ qualifications end. She is woefully ignorant of healthcare issues and is in way over her head on public health issues like disease outbreaks. One has to wonder if we had a competent HHS Secretary whether we’d be in the same pickle we’re in.
Unfortunately, the Obama Administration has had yet another misstep with the H1N1 vaccine. While millions of Americans can’t get access to the vaccine, the Defense Department has announced that terrorist detainees at Guantanamo Bay will receive the H1N1 shots. Obama spokesman Robert Gibbs quickly backtracked saying that terrorist suspects won’t receive the vaccine because: 1) there is no vaccine currently in Guantanamo Bay and 2) there is no H1N1 vaccine currently being shipped to Guantanamo. The Pentagon noted that Gibbs is technically correct at this point in time, but immunization of Guantanamo inmates will commence later this month – long before millions of American citizens have access to the vaccine. That’s a huge political embarrassment for President Obama.
I’m glad Obama is finally taking H1N1 seriously, but I resent that thousands of Americans are dying of flu while President Obama has been distracted by his extracurricular activities – golfing, basketball, finding a dog for his daughters and lavish vacations in Martha’s Vineyard. We’re in the middle of a public health crisis and it’s time for President Obama get in the game.
Source: Reuters
That’s terrific, but President Obama needs to take much of the responsibility for the current H1N1 vaccine mess. It’s absolutely negligent that President Obama has waited so long to take H1N1 seriously. While President Obama spent 24 days golfing or taking a lavish vacation on Martha's Vineyard, H1N1 could have been addressed in a meaningful and significant way. Let’s face it – President Obama’s actions have been far too little. Now that Obama has his head out of wherever it was, hopefully it isn’t too late.
Don’t get me wrong, H1N1 isn’t an issue that the President needs to personally solve. Unfortunately, President Obama nominated Kathleen Sebelius to the job of HHS Secretary and that’s when the trouble started, so now Obama needs to compensate for Sebelius' significant shortcomings. Secretary Sebelius looks great in a St. John’s suit, she’s a staunch supporter of abortion and she's a great fundraiser for the Democratic Party. Unfortunately, that’s where Kathleen Sebelius’ qualifications end. She is woefully ignorant of healthcare issues and is in way over her head on public health issues like disease outbreaks. One has to wonder if we had a competent HHS Secretary whether we’d be in the same pickle we’re in.
Unfortunately, the Obama Administration has had yet another misstep with the H1N1 vaccine. While millions of Americans can’t get access to the vaccine, the Defense Department has announced that terrorist detainees at Guantanamo Bay will receive the H1N1 shots. Obama spokesman Robert Gibbs quickly backtracked saying that terrorist suspects won’t receive the vaccine because: 1) there is no vaccine currently in Guantanamo Bay and 2) there is no H1N1 vaccine currently being shipped to Guantanamo. The Pentagon noted that Gibbs is technically correct at this point in time, but immunization of Guantanamo inmates will commence later this month – long before millions of American citizens have access to the vaccine. That’s a huge political embarrassment for President Obama.
I’m glad Obama is finally taking H1N1 seriously, but I resent that thousands of Americans are dying of flu while President Obama has been distracted by his extracurricular activities – golfing, basketball, finding a dog for his daughters and lavish vacations in Martha’s Vineyard. We’re in the middle of a public health crisis and it’s time for President Obama get in the game.
Source: Reuters
Saturday, October 31, 2009
White House Admits H1N1 Mistakes
In speaking with NPR, senior Obama advisor David Axelrod admitted to serious mistakes in the White House’s handling of H1N1. Namely, it is the White House’s assessment that they overpromised on the country’s flu readiness and vaccine availability for H1N1. While offering a half-hearted apology, Axelrod also attempted to blame the shortage on information that was provided to them (presumably by vaccine manufacturers).
The White Houses’s reaction doesn’t seem be grounded in planet earth. When the CDC gave initial strains to vaccine manufacturers, it didn’t take for nearly all of the manufacturers. So, they needed to do it over again – a delay by the CDC of several weeks. Vaccine manufacturers had been advising the White House on production delays since August while the White House continued its overly optimistic assessments.
Overall, I think the CDC and the Federal Government has done a really good job counseling on flu prevention and basic sanitation. I think the CDC has done a pretty poor job in managing the vaccine distribution process. And I think HHS Secretary Kathleen Sebelius has done a pitiful job in managing the crisis overall and bringing the full resources of the Federal Government to the crisis. It took President Obama over 9 months to recognize the public health crisis and to become personally involved in the issue.
If the White House wants to take ownership for its failures in dealing with H1N1, I’d welcome that honesty. We’re still in the middle of the crisis and, by acknowledging it’s many failures, the Obama Administration could really turn the tide in this crisis. But it takes a humble nature and a willingness to admit mistakes and a the kind of leadership to make changes – all have been lacking from the Obama Administration. It would seem that the White House is destined to make this crisis worse before it gets better.
Background: NPR
The White Houses’s reaction doesn’t seem be grounded in planet earth. When the CDC gave initial strains to vaccine manufacturers, it didn’t take for nearly all of the manufacturers. So, they needed to do it over again – a delay by the CDC of several weeks. Vaccine manufacturers had been advising the White House on production delays since August while the White House continued its overly optimistic assessments.
Overall, I think the CDC and the Federal Government has done a really good job counseling on flu prevention and basic sanitation. I think the CDC has done a pretty poor job in managing the vaccine distribution process. And I think HHS Secretary Kathleen Sebelius has done a pitiful job in managing the crisis overall and bringing the full resources of the Federal Government to the crisis. It took President Obama over 9 months to recognize the public health crisis and to become personally involved in the issue.
If the White House wants to take ownership for its failures in dealing with H1N1, I’d welcome that honesty. We’re still in the middle of the crisis and, by acknowledging it’s many failures, the Obama Administration could really turn the tide in this crisis. But it takes a humble nature and a willingness to admit mistakes and a the kind of leadership to make changes – all have been lacking from the Obama Administration. It would seem that the White House is destined to make this crisis worse before it gets better.
Background: NPR
Monday, October 26, 2009
GSK Scores FDA Approval for Arzerra
GlaxoSmithKline secured approval from the U.S. FDA for Arzerra (ofatumumab) for patients with a cancer of the blood and bone marrow called chronic lymphocytic leukemia (CLL) that is not controlled with traditional forms of chemotherapy. GSK’s development partner is Genmab A/S of Denmark. Arzerra is clinically similar to Rituxan, from Roche and Biogen Idec (BIIB).
Arzerra is a win for GSK from an agency that is becoming increasing more conservative and has had a tendency of changing protocols mid-trial on companies. The product was approved under the FDA’s special approval process that allows accelerated approval of drugs that have an unmet clinical need. Approval is based on a surrogate endpoint, but the company intends to submit additional data.
Arzerra is a win for GSK from an agency that is becoming increasing more conservative and has had a tendency of changing protocols mid-trial on companies. The product was approved under the FDA’s special approval process that allows accelerated approval of drugs that have an unmet clinical need. Approval is based on a surrogate endpoint, but the company intends to submit additional data.
Healthcare System Wastes $800 billion; $200 billion in Fraud
Here’s a riddle – what kind of healthcare reform is it when it doesn’t actually reform? It’s the kind being advocated by President Barack Obama and Senator Harry Reid.
Today, Reuters released a new report finding over $800 billion in waste in the U.S. healthcare system. Much of that waste President Obama hopes to cure with electronic medical records (EMRs). Surely health IT and EMRs will help here.
However, President Obama’s unwillingness to actually address the medical malpractice system is dooming all of his efforts to squeeze defensive medicine from the system (i.e., defensive medicine when physicians order unnecessary tests to evade malpractice claims). This is the real tragedy of healthcare reform. We have the opportunity to enact real, meaningful reform, but we won’t – the lobbyists for the trial lawyers are too deep in bed with Obama to allow for real change. (Remember that word – CHANGE?)
Even more concerning is the revelation that 1 dollar in 5 is outright fraud - $200 billion in criminal fraud. When was the last time you heard President Obama talk about going after dirty doctors that are committing criminal fraud? NEVER.
Here’s the real problem with healthcare reform – too many things are off the table. We can’t have meaningful healthcare reform while our President and Congress are too busy protecting their trial lawyer lobbyist friends and physicians who commit fraud.
We need real healthcare reform and that means putting everything on the table – including Obama’s trial lawyer friends. If Obama and Harry Reid aren’t willing to step up on meaningful reform, maybe we should be their legislation on the back burner until such time as they are willing to tackle fraud and malpractice.
Source: Reuters
Today, Reuters released a new report finding over $800 billion in waste in the U.S. healthcare system. Much of that waste President Obama hopes to cure with electronic medical records (EMRs). Surely health IT and EMRs will help here.
However, President Obama’s unwillingness to actually address the medical malpractice system is dooming all of his efforts to squeeze defensive medicine from the system (i.e., defensive medicine when physicians order unnecessary tests to evade malpractice claims). This is the real tragedy of healthcare reform. We have the opportunity to enact real, meaningful reform, but we won’t – the lobbyists for the trial lawyers are too deep in bed with Obama to allow for real change. (Remember that word – CHANGE?)
Even more concerning is the revelation that 1 dollar in 5 is outright fraud - $200 billion in criminal fraud. When was the last time you heard President Obama talk about going after dirty doctors that are committing criminal fraud? NEVER.
Here’s the real problem with healthcare reform – too many things are off the table. We can’t have meaningful healthcare reform while our President and Congress are too busy protecting their trial lawyer lobbyist friends and physicians who commit fraud.
We need real healthcare reform and that means putting everything on the table – including Obama’s trial lawyer friends. If Obama and Harry Reid aren’t willing to step up on meaningful reform, maybe we should be their legislation on the back burner until such time as they are willing to tackle fraud and malpractice.
Source: Reuters
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