Monday May 26, 2008

Wednesday May 21, 2008

Monday May 19, 2008

ChronicleMONDAY

From the publishers of THE CHRONICLE OF CANCER THERAPY, THE CHRONICLE OF CARDIOVASCULAR & INTERNAL MEDICINE, THE CHRONICLE OF NEUROLOGY & PSYCHIATY, THE CHRONICLE OF SKIN & ALLERGY, THE CHRONICLE OF UROLOGY & SEXUAL MEDICINE, PHYSICIANS’ CHRONICLE, THE CHRONICLE OF HEALTHCARE MARKETING, LINACRE’S BOOKS, and chronicl*e group

SKY’S THE LIMIT FOR CHANTIX

FORTY-THOUSAND FEET OVER Kapuska­sing is not where you want to discover that the pilot of the aircraft you happen to be riding in is taking a drug associated with “suicidal thoughts and aggressive and erratic behavior.” With that thought in mind, the US Federal Aviation Administration last week reversed a 10-month-old policy which allowed flyboys to use smoking cessation Tx varenicline (Chantix, Pfizer.) A spokesman for the agency tells Reuters news: “It’s prudent to deem the drug no longer acceptable for use.” Pilots on a Chantix regimen were instructed to discontinue use of the Rx and not to operate an aircraft for 72 hours. Earlier, the US Institute for Safe Medication Practices said nearly 1,000 adverse psychiatric events associated with Chantix were filed with the FDA during Q4 of last year, an extraordinarily high number. Pfizer says the company already urges Chantix users not to operate heavy equipment. A company spokesman says some of the adverse events may be a consequence of nicotine withdrawal not necessarily caused by the Rx: “When you’ve got the nicotine withdrawal along with Chantix, it’s just very difficult to tell what is causing it.”

NEXT: PHARMA’S BEST-DRESSED LIST

IT WAS A BIG WEEK for drugbiz big-wigs, with two separate organizations issuing lists of the industry’s top movers and shakers. The UK group World Pharmaceutical Frontiers presented its list of the 40 most influential people in pharma, while a US website offered a ranking of the industry’s 17 highest-paid CEOs. Perhaps it isn’t surprising that there’s little co-relation between the two lists. For example, Schering-Plough boss Fred Hassan finish­ed in the show position in the paycheque sweep­stakes with an impressive $30.1 million take-home package, but was a distant 32nd in the influ­ence ratings. GlaxoSmithKline’s just-retired Jean-Pierre Garnier’s $6 million compensation was only good enough for 14th place in the run for the riches, but he came in a respectable 22nd in the influence category (well behind his successor, Andrew Witty, who finished 6th.) Stuck near the bottom of the Fabulous Forty, in 38th spot is Merck kingpin Richard T. Clark, but Mr. Clark’s $14.5 million package lands him in 7th place among earners, just behind Novartis supremo Daniel Vasella’s $15.5 million. Sur­prisingly, Vas failed to make it to the ranks of most influential. Also finishing absent from the status rankings, but high atop the money pile were three of Big Pharma’s top four wage-earners for 2007: Abb­ott’s Miles White ($33.4 million), Johnson & John­son’s Bill Weldon ($24.1 million), and Wyeth’s Bob Essner ($24.1 million.) Best value for money: Sanofi-Aventis helmer Jean-François Dehecq, in 28th place on the roll of the powerful, and dead last among his high-paid peers, taking home a scant $3.27 million. As a sign of the times, a US politician placed 7th among the Top Forty: Sen. Charles E. Grassley, chair of the Senate Finance Committee. His pay this year will total $169,300.

GARN, BUT NOT FORGOTTON

JEAN-PIERRE GARNIER’s last week as Glaxo­Smith­Kline CEO was something less than valedict­ory, according to British newspaper reports. Mr. Garnier, who has endured five years of shareholder criticism over his level of compensation (see pre­vious item) and the company’s lagging share price, bade farewell to investors at the company’s annual general meeting. Attendees of the meeting were not inclined toward nostalgia at the end of Mr. Garnier’s rule, with one shareholder admonishing directors: “This board is a continuing failure. You are not a philanthropic organization; you are here to deliver positive shareholder returns.” Other investors loudly groussed over a $5 million bonus package offered to Chris Viehbacher, boss of the com­pany’s North American Rx unit. Mr. V., who was not selected as Mr. G.’s successor when the top job went to Andrew Witty, was offered the five mil as a retention bonus. u Not content with merely irritat­ing shareholders in his own company, Mr. Garnier took the occasion of the AGM to also provoke AstraZeneca. Asked if he envisioned GSK mounting a takeover bid for their cross-town rivals, he responded: “There would be tremendous destruct­ion of value if we pursued this transaction as we speak now… Why would you trade down?” u Just prior to the AGM, Mr. Garnier stormed away in the middle of an interview on BBC radio, when his interrogator began grilling him about the side-effects of antidepressant paroxetine (Paxil.) Prior to ankling, Mr. Garnier said, “I’m not interested in answering this question. We’ve dealt with this subject.” The Times of London notes the GSK boss may have been goaded when the program’s host introduced him as “Jean-Paul” Garnier.

MERGERS-A-POPPIN’

DAIICHI SANKYO, the Jap­anese drugmaker, last week bought German onco­logy outfit U3 Pharma for around $235 million. U3’s pipeline includes programs focusing on human anti­bodies as Tx candidates for breast, lung and colo­rectal Cas. Said Daiichi prexy Takashi Shoda: “One of our goals for Daiichi Sankyo is to increase our pre­sence in novel therapeutics in the oncology arena.”

GOOGLE’S HEALTH STRATEGY

THE NEWEST BIG REMUDA in healthcare galloped into town last week: Google, the search engine company. Unveiling its highly anticipated “Google Health” service, the company will allow visitors to its website to store and retrieve their health records online, as well as providing the capacity to receive Dx results, refill Rxs, and schedule medical app­oint­ments. The site also provides access to medical in­for­mation services. Google’s founding partners in the venture include the Cleveland Clinic, major national retail pharmacies and health insurers. Microsoft and a company headed by the founder of AOL are developing similar products. These rapidly deployed private sector initiatives stand in stark contrast to the Canada Health Infoway, a ludicrous federal boondoggle which has so far spent seven years burning through public funds in an attempt to provide 50 per cent of Canadians with electronic health records by the end of 2009. Taxpayers have thus far picked up the $1.6 billion tab, in Ottawa’s effort to demonstrate that bureaucracies move more slowly and uncertainly than does the private sector.

PRODUCT PALS

PROCTER & GAMBLE last week inked a pact with New Jersey skincare house Barrier Therapeutics, to market Xolegel Duo, a kit consisting of P&G’s Head & Shoulders shampoo and Barrier’s antifungal ketoconazole (Xolegel.)

IT WAS A BAD WEEK FOR…

HIRED PENS. In settling litigation with 29 states over the marketing of analgesic rofecoxib (Vioxx), Merck last week agreed to avoid the practice of paying professional writers to produce quasi-promotional clinical articles, which are then labeled as having been written by academic physicians and submitted to peer-review journals. Merck, which denies wrong­doing, also agreed to pay plaintiffs $58 million.

IT WAS A GOOD WEEK FOR…

BRITISH ACTRESS JULIA MALLAM, who signed on to represent the face of chlamydia in a new UK public awareness campaign. Says Ms. Mallam, a star of the popular Brit-soap Emmerdale: “I’d urge people to go and get a test; they’re being offered in regular clinics and in places like bars and pubs, so there’s no excuse not to.”

QUOTE OF THE WEEK

“THIS IS AN IMPORTANT and positive result for Biovail and its shareholders, as the agreement eliminates the significant exposure to the corporation related to this matter and should immediately reduce our ongoing legal expenses.”—Biovail CEO Bill Wells, trying to find a glass of lemonade somewhere in a bushel of lemons, in admitting wrongdoing in the company’s marketing of diltiazem (Cardizem LA.) Biovail agreed to pay a $24.6 million fine to the US courts.

(c) 2008 Chronicle Information Resources Ltd. Not for redistribution.
ChronicleMONDAY is published by Chronicle Information Resources Ltd, 555 Burnhamthorpe Road Ste. 602, Toronto, Ont. M9C 2Y3. Tel 416.916.CHROn (2476); Toll-free 866.63.CHRON (24766); Fax 416.352-6199; E-mail: health@chronicle.org

Wednesday May 14, 2008

Monday May 12, 2008

ChronicleMONDAY

From the publishers of THE CHRONICLE OF CANCER THERAPY, THE CHRONICLE OF CARDIOVASCULAR & INTERNAL MEDICINE, THE CHRONICLE OF NEUROLOGY & PSYCHIATY, THE CHRONICLE OF SKIN & ALLERGY, THE CHRONICLE OF UROLOGY & SEXUAL MEDICINE, PHYSICIANS’ CHRONICLE, THE CHRONICLE OF HEALTHCARE MARKETING, LINACRE’S BOOKS, and chronicl*e group

POETS OF THE PHARMA SALTMINES

USUALLY THE FIRST WRITING YOU DO after you’ve been laid off is to update your resume. However, one recently downsized member of Merck’s shrunken field force (see ChroMo #501) turned instead to the solace of composing poetry, which they last week posted to the CafePharma.com web site. The rhymin’ rep is plainly no competition for Robert W. Service, but it’s so unique to find a literary bag-carrier that we thought we’d share with you our favorite couplets. And here they are: “Oh it was a nice run, Merck once had great style,/But then along came the results of the ENHANCE Trial,/I thought a nice long career was gonna be mine,/Now I’m riding my bike to the unemployment line./Maybe this change will be for the better,/At least I won’t have to hear about the next Unapprovable Letter.”

CLEANUP IN AISLE 12

JUST LIKE ANY ENDURING ENTERTAINER, a good corporation will reinvent itself periodically—so it may be far from an insult to call Biovail the Madonna of drugmakers. Last week the company’s new boss, Bill Wells, announced a plan to focus on niche CNS disorders, seemingly steering away from Biovail’s traditional competency in extended-release delivery systems. Mr. Wells will drop $600 million on R&D through 2012, in an effort to noodle out new Txs for MS and Parkinson’s. That’s barely chump change, compared to most Big Pharma research war-chests, but Mr. Wells just arrived in the drugbiz from the grocery industry, where a coupon for 25 cents off on a bag of Oreos is likely considered a big deal. He also plans to shutter the company’s two manufacturing plants in Puerto Rico. Mr. Wells, again following the Madonna model, arrived with his entourage, in the form of five new board appointees, including Wyeth’s former exec vee-pee of global business, Robert N. Power. This explains why Mr. Wells was overheard singing, “I got the Power,” but the events induced a migraine for company founder Eugene Melnyk, who owns about one-eighth of all Biovail stock. Mr. Melnyk responded to the developments by filing a complaint with US securities regulators, objecting that Mr. Wells was allegedly recruited without a proper search, and complaining about a payment of $3.44 million made to Mr. Wells to lure him over from Loblaw’s, the struggling supermarket chain where he was CFO. Of course, that sum represents only half the annual salary of Mr. Melnyk’s preferred employee, Ottawa Senators defenseman Wade Redden—but, to borrow a common expression from the grocery trade, it’s still a lot of lettuce.

THINK OF US MORE AS FRIENDS-WITH-PILLS

MERCK’s former kingpin, Roy Vagelos, knows exactly why the reputation of the drugbiz has suffered: It stems, he says, from the high prices charged for breakthrough therapies. Referring to an unnamed colorectal Ca Tx which costs $50,000 per regimen (and extends a patient’s survival for four months), Mr. Vagelos last week told a meeting of medical journal executives that such pricing “will bring about [US] government price controls which will be devastating.” He says the real consequence of high drug prices is damage to the industry’s reputation: “In the past, because of [our] enormous contributions, the industry was held in high regard. The drug industry dropped close to the bottom, along with gas companies and the cigarette industry. The high cost of drugs entered into that.” 􀁘 Possibly with that thought in mind, Pfizer’s Canadian unit appears to be encouraging consumers to regard the drugmaker as something, er, other than a drug company. Announcing the results of a new survey of 4,000 Canadians, public affairs vee-pee John Helou says: “In addition to offering innovative medicines, Pfizer believes it’s also our responsibility to help encourage healthy lifestyles and share information that goes beyond medication.” Ninety per cent of those polled said they believe good health “is about more than medication.” The company is launching a TV campaign and web site intended to encourage healthy lifestyles. Hmmm. Wouldn’t a more valid first step toward attaining a healthy lifestyle start with shooting your TV, and then tossing your computer over the balcony?

M&A MAELSTROM (CONT’D)

STIEFEL LABORATORIES, the privately held skincare house, last week bought ABR Invent, a French maker of a line of dermal fillers. CEO Charles Stiefel says the company will apply for regulatory approvals of the Atlean products, which are currently available in France and Italy.

FINGER-POINTING TIME

TWO STATESIDE HEALTH POLICY gadfly groups latched onto a new pair of controversies last week, finding fault with drugmakers on both occasions. The Integrity in Science group said more than half the 20 editors currently working on the next Diagnostic and Statistical Manual of Mental Disorders (DSM-V) compendium are closely associated with manufacturers of CNS Rxs. DSM-V, which will become the standard for diagnosing psychiatric conditions, will be published in 2012. Dr. Carolyn B. Robinowitz, prexy of the American Psychiatric Association, denies charges that the links between the editors and industry are improper: “We have made every effort to ensure that DSM-V will be based on the best and latest scientific research, and to eliminate conflicts of interest in its development.” Elsewhere, the group known as Public Citizen wants the US FDA to halt sales of transdermal contraceptive norelgestromin/estradiol (Ortho Evra, Janssen-Ortho), citing CV side-effects. A spokesman for Ortho responds: “Ortho Evra is a safe and effective hormonal birth control option for women when used according to its label.”

IT WAS A GOOD WEEK FOR…

BRISTOL-MYERS SQUIBB kingpin James Cornelius, who celebrated the divesture of his ConvaTec wound care business (see ChronicleMIDWEEK 05/07/08 ) by treating himself to 100,000 shares of BMS stock, at a cost of $2.3 million. In doing so, Corny followed Schering-Plough helmer Fred Hassan, who loaded up on $2 million worth of his outfit’s shares a couple of weeks back.

IT WAS A BAD WEEK FOR…

MAKERS OF STATINS. Business Week, the stateside economic weekly which has 4.9 million readers, devoted its cover to the question, “Do Cholesterol Drugs Do Any Good?” The magazine’s reporting strongly suggests they often do not. Quoted in the lengthy piece is Dr. Jerome R. Hoffman of UCLA’s medical faculty, who raises an uncomfortable query: “What if you put 250 people in a room and told them they would each pay $1,000 a year for a drug they would have to take every day, that many would get diarrhea and muscle pain, and that 249 would have no benefit? And that they could do just as well by exercising? How many would take that?”

QUOTE OF THE WEEK

“FOR THE FIRST TIME in history, the [pharma] industry will have negative growth in 2011.” —Alexis de Rosnay, head of global healthcare at the Lehman Brothers investment firm

(c) 2008 Chronicle Information Resources Ltd. Not for redistribution.
ChronicleMONDAY is published by Chronicle Information Resources Ltd, 555 Burnhamthorpe Road Ste. 602, Toronto, Ont. M9C 2Y3. Tel 416.916.CHROn (2476); Toll-free 866.63.CHRON (24766); Fax 416.352-6199; E-mail: health@chronicle.org

Wednesday May 7, 2008

Monday May 5, 2008

ChronicleMONDAY

From the publishers of THE CHRONICLE OF CANCER THERAPY, THE CHRONICLE OF CARDIOVASCULAR & INTERNAL MEDICINE, THE CHRONICLE OF NEUROLOGY & PSYCHIATY, THE CHRONICLE OF SKIN & ALLERGY, THE CHRONICLE OF UROLOGY & SEXUAL MEDICINE, PHYSICIANS’ CHRONICLE, THE CHRONICLE OF HEALTHCARE MARKETING, LINACRE’S BOOKS, and chronicl*e group

HEALTHCARE MARKETING HALL OF FAME

ORGANIZERS OF THE Canadian Healthcare Marketing Hall of Fame today began accepting nominations for 2008 induction. Since the founding of the program in 2001, 48 honored Members have been inducted, along with six product teams. A nomination form is included with this edition of CHRONICLEMONDAY. For the first time, the individual Awards will be categorized, based on overall career achievement, and achievement of particular merit. Nominations are also being sought for the second Phil Diamond Award for humanitarian or community service, and the IMS Health Awards for Team Excellence in Pharmaceutical Marketing. Deadline for nominations is July 8th.

SALUTATIONS, SEPRACOR; ADIEU, ORYX

ORYX PHARMACEUTICALS, the Mississauga, Ont.-based Rx distributor, was sold last week to Sepracor, the Massachusetts drugmaker best known for insomnia blockbuster eszopiclone (Lunesta.) Price-tag: up to $70 million, if milestones are achieved. Oryx will peddle around $20 million worth of 14 in-licensed Rxs this year, while Sep’s top line last year was $1.2 billion. Says Sep supremo Adrian Adams: “The acquisition of Oryx fulfills a long-standing corporate objective of developing a commercial footprint in the strategically important Canadian pharmaceutical market… [G]iven the growth in our research and development pipeline and the planned submissions of products such as Lunesta, Brovana and eslicarbazepine for marketing approval in Canada.” Mr. Adams was previously helmer at SmithKline Beecham. Adds Oryx prexy Doug Reynolds: “We are very excited to become part of such a growing and dynamic company as Sepracor.” 􀁘 Meanwhile, Sep inked a separate deal with Oryx’s European parent Arrow International, in-licensing technology to potentially use in developing ciclesonide, an inhalable corticosteroid. That transaction is worth up to $40 million.

MERCK GETS PUNK’D BY FDA

IT’S NOT STRICTLY TRUE that if you rearrange the letters in Merck, you can form the words “Kick me.” However, there was little point explaining that to the US FDA last week, as the regulator first turned thumbs down on an application that was widely assumed would gain quick approval, and then warned the company about problems in its principal vaccine facility. The feds rejected antilipemic Tx Cordaptive, a stunning decision given that the active compound is vitamin B-3, or niacin, combined with an ingredient to prevent facial flushing. Comparable products are currently sold OTC, while a prescription version is marketed under the Niaspan brand by Abbott in the US, and Oryx in Canada (see previous item.) No reason was cited for the “not approvable” verdict. The EU recommended approval of Cordaptive earlier last week, which led some analysts to predict eventual revenues of $1.3 billion annually from the product. Merck is also in Phase III trials of a combo Tx incorporating Cordaptive and simvastatin (Zocor.) Investors expressed their disappointment over the verdict, which was merely the latest in a lengthy string of setbacks for Merck, by eviscerating $8.5 billion or so from the company’s market capitalization. Said Merck kingpin Dick Clark: “We support the product and believe from a safety and efficacy standpoint that it is a good product.” 􀁘 Meanwhile, the stateside G-men penned a nine-page letter to Mr. Clark, describing “significant objectionable conditions” it found during recent inspections at the company’s Pennsylvania vaccine plant, which makes cervical Ca vaccine Gardasil. Among the failures found by inspectors were “visual inspection for critical defects.” Merck has 15 days to offer a corrective plan. 􀁘 Word of the latest developments broke while Mr. Clark was on a media tour to counter the publicity negative concerning the ezetimibe/simvastatin (Vytorin) matter (see CHROMO passim.) He confessed to the Wall Street Journal: “We need to do a better job as a company and as an industry. Having been at Merck for 35 years, we take way too much for granted…. There’s a trust deficit around us as an industry, and somewhat as a company. I’ve become much more sensitive to issues around trust and what we can do to improve trust globally.”

YOU’LL WONDER WHERE THE BILLION WENT

SOMETIMES PHARMACEUTICAL ECONOMICS can be the slightest bit arcane. Take this example: Less than five years ago, Pfizer bought Esperion Therapeutics, then a five-year-old Michigan developer of CV Txs, for $1.3 billion. Last week, the world’s biggest drugmaker divested Esperion, and the only transaction sum mentioned was a $23 million investment from some venture capitalists. Pfizer will retain a presumably small stake, along with many of Esp’s original intellectual properties. Giggling uncontrollably over these occurrences is Roger Newton, the Esp founder who pocketed a good portion of the acquisition dough, hung in as CEO through the brief Pfizer ownership, and now gets to run the once-again independent company.

PUNCH AND JUDY SHOW

DURING THE ONGOING TUSSLE between the drugbiz and the British government, Shire, the third largest UK drugmaker, last week announced a plan to relocate its HQ to Ireland, while the Association of the British Pharmaceutical Industry issued new warnings about the consequences of government policies. The National Health Service earlier said it wants to renegotiate Rx prices in the middle of a five-year agreement which saw prices rolled back and frozen. Said ABPI prexy Nigel Brooksby, who heads Sanofi-Aventis’ UK unit: “The reaction from our global head offices moved the matter beyond the UK, as they began to question the integrity of the UK investment environment.” AstraZeneca, Britain’s number two pharma, is also rumored to be mulling over a move of its corporate HQ. 􀁘 Elsewhere, Eisai and Pfizer won a court challenge against a UK agency that determines whether Rxs offer cost-effective treatment. The Orwellian-sounding National Institute for Clinical Excellence (commonly known by its equally Orwellian acronym, NICE) ruled that the NHS shouldn’t fund donepezil (Aricept) for early-stage Alzheimer’s. An appeals court found that NICE withholds its mechanism for determining cost-efficiency from drugmakers, which the court called “procedurally unfair.” An Alzheimer’s Society spokesman greeted the verdict as a “damning indictment of a fundamentally flawed process.”

LET THE TINKERING BEGIN

GLAXOSMITHKLINE’s CEO-designate doesn’t start work until the 22nd of this month, but couldn’t wait to redraw the org chart. Last week Andrew Witty placed GSK’s Canadian operations into a North American entity under prexy Chris Viehbacher, and realigned other business units. Says Mr. Witty: “Emerging markets, such as Brazil, Russia, India, China and the Middle East, are significant growth drivers of the future. They are already contributing close to 25 per cent of today’s market growth and are forecast to grow even faster in the future, around triple the rate of western countries. It is essential that we have an operating structure that is dynamic and responsive to the opportunities in these markets.”

IT WAS A GOOD WEEK FOR…

TASTEFUL FLORIDIANS. Demonstrating that the phrase isn’t always an oxymoron, Sunshine State officials attempted to enact a ban on an anatomical accessory designed to be attached beneath the bumpers of vehicles, meant to resemble swaying bull testicles. The proposed fine for displaying so-called “Truck Nutz” is $60, roughly the cost of four cases of Bud and a big plug of Red Man, down at the Piggly Wiggly.

QUOTE OF THE WEEK

“YOUR CHALLENGE, DICK, is to do more than sound contrite. What’s your next move?” —Newark (NJ) Star-Ledger reporter Ed Silverman on Merck CEO Richard Clark’s media tour

(c) 2008 Chronicle Information Resources Ltd. Not for redistribution.
ChronicleMONDAY is published by Chronicle Information Resources Ltd, 555 Burnhamthorpe Road Ste. 602, Toronto, Ont. M9C 2Y3. Tel 416.916.CHROn (2476); Toll-free 866.63.CHRON (24766); Fax 416.352-6199; E-mail: health@chronicle.org

Wednesday April 30, 2008

Monday April 28, 2008

ChronicleMONDAY

From the publishers of THE CHRONICLE OF CANCER THERAPY, THE CHRONICLE OF CARDIOVASCULAR & INTERNAL MEDICINE, THE CHRONICLE OF NEUROLOGY & PSYCHIATY, THE CHRONICLE OF SKIN & ALLERGY, THE CHRONICLE OF UROLOGY & SEXUAL MEDICINE, PHYSICIANS’ CHRONICLE, THE CHRONICLE OF HEALTHCARE MARKETING, LINACRE’S BOOKS, and chronicl*e group

FALLING IN WITH A BAD CROWD

“TORONTO IS VERY CLEAN and has streetcars and nice restaurants, and now it occurs to me that I’ve never been there.” When Bristol-Myers Squibb sent Andrew G. Bodnar up north two years ago to meet with Apotex executives in a reported attempt to clear up their clopidogrel (Plavix) patent misunderstanding, it was unlikely that anyone could foresee where the trip might ultimately end: in the Big House. Last week US authorities indicted Dr. Bodnar on charges that he lied to federal investigators about whether the meetings with the Toronto generics-maker occur-red—which, if they did, would have contravened a consent decree between BMS and the US Federal Trade Commission. Dr. Bodnar, a physician by training, says he’s innocent. He’s looking at a possible $250,000 fine and a five-year locum behind bars. 􀁘 According to a new study, branded drug-makers are concluding that the only way to co-exist with the generics faction is to join them. Noting that the US market for knock-offs is growing at a com-pound annual rate of 12.6 per cent and hit $36.18 billion last year, an analyst for the Kalorama consultancy says: “To defend their turf, companies such as Novartis, Pfizer and Boehringer Ingelheim are seeing the benefit of incorporating a generic unit.”

LONELY AT THE TOP

PFIZER went further to the dogs last week, acquiring Schering-Plough’s European animal health business. Terms weren’t disclosed, but as the Pfizer press release hilariously adds, the products “cover all major animal health species including cattle, swine, equine, and companion animal.” For some reason, that seems to lead us to Pfizer’s annual shareholder meeting, which occurred last week in Memphis, Tenn. Company helmer Jeff Kindler answered the brays and grunts of dissatisfied investors, who have difficulty understanding why Pfizer shares have moved nearly 30 per cent in the wrong direction since Mr. Kindler took over. Side-stepping shareholder resolutions to split his job into separate CEO and chair’s functions, and ducking critic-ism of executive compensation (the boss’s annual paycheck was $12.6 million last year), Mr. Kindler re-assured the gathering: “Of course, we are far from done.” Isn’t that for shareholders to decide?

M&A MACHINATIONS

GLAXOSMITHKLINE last week paid $720 million for Massachusetts-based Sirtris Pharmaceuticals, which is noodling out a diabetes Tx based on resveratrol, derived from red wine. The price-tag was considered generous by analysts, since it represents an 80 per cent premium on Sirtris’ publicly traded shares. GSK R&D boss Patrick Vallance describes the deal to Forbes magazine: “It’s high-risk. It’s an area of science that’s fascinating,” adding the pact provides a “real opportunity for transformational medicines.” 􀁘 Meanwhile, incoming GSK supremo Andrew Witty tells Reuters his first choice is not to acquire companies. Says he: “Where we are able to strike collaborations and partnerships, that tends to be a direction we prefer. Sometimes we have to do an acquisition and other times we are able to do it a different way.”

WATCHING THE FUTURE GO BY

SLOW, HESITANT and largely ineffective. That’s how the Datamonitor consultancy describes Big Pharma’s uptake of online marketing in a new re-port. While other sectors, such as travel and retail, have emerged from a 10-year transformation to Internet-driven methods, pharmaceutical marketers appear to remain clueless, depending on the failing models of over-detailing and blind sampling, the re-port says. The inherent conservatism of the drugbiz threatens the industry’s future, since physicians, payers and stakeholders have left drugmakers behind in embracing the interactive world, according to Datamonitor analyst Sandra Reynolds. Says she: “The ever-growing popularity of social media could also be better utilized by pharma, including live video detailing and social network sites.” 􀁘 And when we finally decide to use online marketing, look what happens. The US FDA last week told Pfizer to remove its “Viva Viagra” campaign for ED Tx sildenafil from the Internet, noting that the whim-sical videos didn’t carry any disclosures or information about contraindications. Merely a technical glitch, explained Pfizer, pressing the delete key on the ads.

WHY CAN’T WE ALL JUST GET ALONG?

HE WON’T START HIS CORNER-OFFICE job until Thursday (05/01,) but Biovail’s incoming CEO Bill Wells knows what’s wrong with the biggest Canadian Rx outfit: too many lawsuits. He tells Reuters news agency: “We have an extraordinary amount of legal fees. As we resolve those, our legal fees will go down and our cash base will improve.” 􀁘 In a rare bit of good news, Biovail last week got thumbs up from the stateside FDA for an o.d. formulation of antidepressant bupropion (Aplenzin.) The company, which wound down its US marketing operations, is hunting for a sales partner.

FROM OUR WEST AFRICAN CORRESPONDENT

ALL THE TALK LAST WEEK in the Democratic Republic of the Congo was genito-urological. Specifically, citizens in the capital of Kishasa (Pop.: 8 million) were agog over a spate of so-called penis snatchings, as 14 victims charged their organs had been removed or shrunken by sorcerers. “I’m tempt-ed to say it’s one huge joke,” police chief Jean-Dieudonne Oleko tells Reuters news agency. Not funny for 13 accused perpetrators, who were placed in police custody for their own protection, according to reports. During similar circumstances in nearby Ghana during the 1990s, alarmed mobs killed a dozen suspected penis-snatchers.

IT WAS A BAD WEEK FOR…

SENATOR JOHN MCCAIN, the US presidential candidate, who was defeated by Sen. Barack Obama as stateside drugbiz employees cast ballots in a mock election staged last week. Voting took place during the annual DTC National Conference in Washing-ton, DC, where the Illinois Democrat bested the Arizona Republican by a seven per cent margin. Said a spokesman for the event: “Given the Republican leanings of the drug industry, it is somewhat surprising to see Barack Obama so handily defeat John McCain. Of course, that could be an indication that McCain’s frequent anti-industry comments have made him unpopular with drug company marketers. Or, it could reflect that drug industry marketers do not vote with their employer interests as their primary concern.”

IT WAS A GOOD WEEK FOR…

CHRONICLEMONDAY, which today publishes its 500th edition. Since its inception in 1995, this news-letter has risen to its recognized position as North America’s leading supplier of vital industry news and unnecessarily sarcastic insights, as proudly de-fined by its mission statement: “Authoritative. Informed. Say, which one of you thieves took my diet Pepsi?” Contacted in their secure compound some-where in the 416 calling area, the ChroMo team acknowledged congratulations from readers and well-wishers upon the achievement of this milestone, and threatened to continue producing one newsletter every week until the authorities agree to take all their demands seriously.

QUOTE OF THE WEEK

“I SHARE YOUR PAIN.” —Merck CEO Richard Clark, at the company’s annual meeting last week, answering a shareholder’s question about why Merck stock has fallen more than 30 per cent since January.

(c) 2008 Chronicle Information Resources Ltd. Not for redistribution.
ChronicleMONDAY is published by Chronicle Information Resources Ltd, 555 Burnhamthorpe Road Ste. 602, Toronto, Ont. M9C 2Y3. Tel 416.916.CHROn (2476); Toll-free 866.63.CHRON (24766); Fax 416.352-6199; E-mail: health@chronicle.org

Wednesday April 23, 2008