- As I have said before, I enjoy the format at the $GS conference, so I listen to many more presentations than I would typically.
- I have posted notes separately for a number of companies including $PFE, $SNY, $NVS, $MNTA, $BIIB, and $CBST (links from Past Events page). Check back soon for my $TEVA notes as well.
- I wanted to listen to $BMS and $ONXX presentations but these webcasts were no longer available.
- See below the jump for my quick notes from Abbott, Baxter, Merck, and Watson
- Abbott Labs
- ABT recently set up separate "established pharma division". This section is not dependent on patented products, is not driven by single product, and is largely driven by emergin markets. This is purely an ex-US business, set up with new management - 40% of employees based in EM. Cost management is much more important (lower margins)
- Humira and potential generic challenge - still undefined set of regulatory requirements for biosimilars. US process is moving rather slowly. likely that large scale trials required. potential competition is pretty far out (due to this and length of patent life remaining)
- EU - biosimilars have generally had only modest impact on innovators
- -oops left the mic's on for banter between speaker and GS analyst after session ended!
- Baxter
- No mention of IV clopidorel (same active ingredient as Plavix) product recently in-licensed from Ligand $LGND (via Cydex subsidiary - click for details on LGND page)
- Merck
- would like to build HCV, HIV, CV, diabetes, and/or respiratory portfolios thru value-creating M&A
- Roche and MRK are competitors in IFN space (PEG Intron vs Pegasys), but game is changing, Roche needed access to a triple therapy candidate - the broad/generous label received from FDA was a big factor in this deal coming together. This deal hasn't affected MRK's economics. The two companies will still compete on Interferons. MRK gets a contracted # of details for Victrelis from Roche reps.
- Watson
- Note: Watson currently has a OAB gel product that would compete with AIS's anturol gel (details on Antares page). Watson is a premier potential partner for that product IMO, as well as for Libigel from BPAX/AIS (details on BPAX page)
- $4.2-4.3b revenue this year
- Breakdown of revenue: 70% international generics business, 10% branded - expect good things/exciting activity this yr, 20% distribution business
- Generic division - think they are very solid in US, don't need to seek acquisition. 20% of generic sales are international, have said they would like to increase this to 50% w/in 3 yrs (but "don't want to be held to a specific time")
- Branded - want to see stronger presence. 1/2011 - goal is $1b rev in 5 yrs. We are on our way with recent launch and pipeline assets.
- Plenty of room in debt ratio to go out and do deals
- What's next on m&a front? "lots going on" build out internationally, license in additional branded opportunites, occasional acquisition possible. keep brand focus in americas/australia - outlicense for EU, this is somewhat to do with current product mix. "could do another tranaction tomorrow"