The Big Red Biotech Blog

Pfizer Interested in Entering Genzyme Bidding?

Today, Pfizer's CEO Frank D'Amelio said "Nah".  Pfizer has no interest in getting into the Genzyme sweepstakes.

More from the WSJ Health blog.

Bruce Lehr August 3rd 2010.

SAFC's Verona CMO for HPAPI and ADC Manufacturing

 As evidenced by the Seattle Genetics and Genentech deal announced today, high potency active pharmaceutical ingredients (HPAPIs) and antibody drug conjugates (ADCs) are seen as important new technologies within the oncology fields.

The idea of targetting a cancer cell with a potent payload of toxin that hits the mark is a powerful new tool in the cancer fighting battle. It is also a means by which companies can take their naked antibody drugs and create a new drug with lengthened market life and improved effectiveness.

Recognizing the trends in this area for some time, SAFC has been a leader in manufacturing capability for high potent products.  We have had the Madison, WI site for a number of years and have just opened a new facility in Verona, WI that extends our capability for manufacturing HPAPIs or ADCs by using state of the art containment designs.

in-Pharma Technologist.com is hosting a video interview with Dave Bormett, the SAFC Director Operations for its new Verona site. Follow the link for an exclusive look inside the facility. 

Posted by Bruce Lehr August 3rd 2010.

 

 

 

 

 

 

Seattle Genetics lands $900M deal with Genentech

Seattle Genetics announced a potentially lucrative deal with Genentech to create more antibody drug conjugates with the latters targets.  The deal calls for a $12 M payment to Seattle Genetics now with milestones that could possibly reach as high as $900 M in the future.  Seattle Genetics will also be eligible for royalty payments on commercial products in the mid-single digit range.

Genetech was encouraged with the results it had seen with T-DM-1 a combination of Herceptin with a cytotoxin.  Genentech is supposed to have more than 50 other candidates in its pipeline for possible antibody drug conjugation (ADC) in oncology applications.

We believe antibody-drug conjugates will play an important role in the future of cancer therapy. Genentech is committed to exploring the therapeutic potential of ADCs in a variety of hematologic malignancies and solid tumors,” said James Sabry, vice president of partnering at Genentech.

Read more in Xconomy and Fierce Biotech.

Posted by Bruce Lehr August 3rd 2010.

Xconomy Readers Set $20B Pricetag on Genzyme;Is That Too Rich for Sanofi-Aventis?

When the Sanofi rumored bid for Genzyme became public last week, Ryan Mcbride asked Xconomy readers to weigh in with their thoughts on how much Genzyme was worth -- or should be worth. 

Xconomy Readers Set $20B Pricetag on Genzyme;Is That Too Rich for Sanofi-Aventis?.

Readers quickly coalesced at a price approaching $20 B at $76.30 per share.  However, Sanofi reportedly made a formal offer to get negotiations started at a low ball $69 per share.  Reports are also circulating that Sanofi CEO Christopher Viehbacher has only been authorized by his board to go to $70 share - and has been similarly urged not to exceed that figure by Sanofi's two largest institutional investors.

Meanwhile, the Genzyme board is expected to hold out for at least $80 per share or about $21.3 B. Several analysts are said to be in agreement that Genzyme should be worth at least that amount -- and in fact carried a valuation in that ballpark in 2008 before their manufacturing issues with Cerezyme and Fabrazyme.

Icahn is said to be pushing for as high a price as possible in the 80's per share.  There is also speculation that he may want to get a bidding war going with possibly GSK and/or J&J joining the party. It is unclear if either company is truly interested however. 

Genzyme sitting CEO Henry Termeer is supposed to be against any sale -- certainly at the prices offered so far.  So we sit and wait.

Here's several articles commenting on the action to date - from today's WSJ, from Fierce Biotech, from Business Week via PharmaGossip, Fierce Biotech commentary on WSJ story, and Michael Fitzhugh from Seeking Alpha.

Posted by Bruce Lehr August 3rd 2010.

Charles River ends acquisition bid - The Boston Globe

I've been out for the past several days and missed a few stories with regard to merger and acquisition activity.  Here's a now oldie but a goodie.  Charles River has given up on its bid to acquire Wuxi PharmaTech largely due to heavy opposition from its largest investor Jana Partners.

Charles River ends acquisition bid - The Boston Globe.

Wuxi wasn't projecting enough growth to justify the $1.6 billion sales price and the deal collapsed under its own weight.  I've attached several links to various sources for more details.

Derek Lowe's In the Pipeline. Analysis from Seeking Alpha. From Ryan Mcbride at Xconomy. Marie Daghlian at Seeking Alpha.

Posted by Bruce Lehr August 3rd 2010.