2006 "tumultuous" for pharma
PARIS Cost cutting in government health budgets and the expiry of patent protection hit the global pharmaceuticals industry hard last year for the second time, and worse is to come, a new study says. Corinne Segalen, president of IMS Health, France, said that the industry had had a "tumultuous" year, as it began to feel the impact of developments that would weigh on the industry for the next decade. "The worst is yet to come," Segalen said, noting that the restrictive impact on potential earnings and sales in 2006 had been a record. According to the IMS Health study published in April, the world pharmaceuticals market grew by seven percent over the year to chalk up US$643 billion in sales. While this represents a slight improvement compared with 2005, when the industry grew 6.8 percent, it is lower than the two-digit-growth figures struck in the years up to 2003. After registering 14.5 percent growth in 1999, the industry slowed to 10.4 percent in 2003 before dipping below the 10-percent growth mark in 2004 to eight percent. The loss of patent protection and increased impact of generic medicines constrained earnings to the extent of US$18 billion, after US$14 billion in 2005, she said. Pharmaceutical firms are expected to see a similar dip in their revenues this year, before losing a mighty US$24 billion in 2008, and US$25 billion in 2010 due to the loss of patent protection. Segalen pointed to the example of cardiovascular drugs, which she said would be 80-percent dominated by generic medicines by 2011. "The pharmaceutical industry also has to face up to decisions by governments drastically to cut health spending," she said. The study also pointed to the impact on growth of more in-depth discussion of the benefits and risks of medicines, along with an inexorable development of distribution networks and a growth of restructuring and mergers, particularly for medium-sized companies. Three major mergers took place in 2006 between Merck and Serono, Altana and Nycomed, and UCB and Schwarz Pharma. Over the year, sector growth was driven by the United States, which accounts for half of the world market. However, the market is starting to balance out with 27 percent of the growth taking place in low-revenue countries. The market grew by 8.1 percent in the US, 3.5 percent in France, 4.1 percent in Britain, 11 percent in Brazil, while it declined in Japan by 0.7 percent. A total of 31 new compounds were marketed in 2006, after 30 in 2005. Among them, seven-including Sanofi-Aventis's obesity drug Acomplia and Pfizer's antismoking drug Chantix-have the potential to become "blockbusters," the name given to drugs that generate more than a billion dollars in sales, IMS said. M AFP
In a bid to strengthen its presence in the local pharmaceutical industry, the InnoGen Pharma Group Inc. has brought together under its umbrella nine Filipino companies, each of which specializes in major therapeutic areas. The nine companies that now form the InnoGen Group are: Aldril Pharmaceuticals Inc. (neurology and psychiatry), Eadrix Pharmaceuticals Inc. (dermatology), Metz Pharmaceuticals Inc. (pulmonology), Randril International Co. Inc. (rehabilitation medicine and antiinfections), Solvang Pharmaceuticals Inc. (obstetrics and gynecology), Westfield Pharmaceuticals Inc. (cardiology and gastroenterology), Vamsler Philippines Inc. (internal medicine), Vitalink Health Products Inc. (endocrinology and cardiometabolism), and Dr Zen's Research Inc. (medical devices and obesity). Alexander Carmona, marketing director, said the move was in line with InnoGen's strategy to make reach more Filipinos with its high-quality health and medical products. Said Carmona: "The Filipino-owned company has been around and innovating generic medicines for a number of years; now it has decided that it is time to come out and be counted as one of the top pharmaceutical companies in the Philippines. InnoGen pharmaceutical products have been improved and made into new forms to make them safe and efficient." The groups provides second-to-innovator pharmaceutical products, most of which are off-patent molecules. It has also invested in technology transfer and partnerships with big pharmaceutical companies abroad to avail itself of the latest technologies in the industry. Carmona said the group's battle cries, "Innovating Generics" and "Valuing Life through Innovations," are inspired by their desire to make high-quality medicines and other health products readily available as a service to Filipinos and the nation. M
ZURICH Novartis announced an 11-percent increase in first quarter net profit to US$2.17 billion, exceeding analysts' expectations. Net sales in the first three months of 2007 grew by 18 percent compared with the same period last year, reaching US$9.82 billion. "I am confident of another year of record sales and earnings in 2007," said chief executive Daniel Vasella. Novartis reiterated its prediction of sales growth reaching above five percent for the full year. The group had revised its 2007 sales outlook downwards in April following the suspension of the anticonstipation drug Zelnorm-one of its best-selling products in the United States-by US authorities due to fears of cardiovascular problems among some patients. The outlook takes into account a predicted cut in net sales of US$600 million due to the regulatory suspension, the company said. Approvals of several new drugs "that meet unmet medical needs" were expected to help overcome some of the losses, is added said. M AFP
Vegetables, the natural source of vitamins and minerals, should be a part of a child's healthy diet. Lack of vegetables in the diet could lead to micronutrient deficiencies, which can greatly affect a child's nutrition and health status, or result in restricted growth, lethargy, susceptibility to illness, and poor mental development. But for most parents, teaching their kids to eat vegetables is a challenge. To help make it easier, Knorr recently launched Makulay ang Buhay sa Sinabawang Gulay, an advocacy program that aims to encourage children to eat vegetables. The multimedia campaign shows children fun and exciting ways of eating vegetables, particularly sinabawang gulay, the newest easy-to-cook vegetable-soup recipe from Knorr. The campaign is undertaken with the support of the Food and Nutrition Research Institute (FNRI), which recommends increased intake vegetable intake for Filipinos to help combat undernutrition, obesity, and a host of lifestyle diseases that are also now beginning to affect children. At the launch of the Knorr campaign, Dr. Mario Capanzana, FNRI director, lamented the declining vegetable consumption of Filipinos that may be gleaned from the results of the recent National Nutrition and Health Survey. "Vegetable consumption accounts for only 4.1 percent of the total daily food intake for children aged six months to six years," Capanzana said. The amount is equivalent to only 23 grams of vegetables, half of the recommended daily intake of 45 grams. Also disturbing, Capanzana said, is that among Filipino children six to 10 years old, one out of four is underweight and one out of three is underheight for their age. With saturated fats, refined sugars, and junk food dominating the Filipino diet, pediatrician Jose Mariano Chuaunsu of the Manila Doctors Hospital said a shift to a diet rich in vegetables should be encouraged. "Micronutrients from vegetables are much better absorbed than anything that a supplement can offer," he stressed. M Mabelle Aban
DARMSTADT, Germany Merck KGaA is selling its generics business to Pennsylvania-based Mylan Laboratories Inc. for US$6.6 billion in a deal expected to be wrapped up in the second half of the year. "We are very pleased with the outcome of this process. A combination with Mylan represented the most convincing strategy for our generics business," said Dr. Karl-Ludwig Kley, chair of the executive board of Merck KGaA. "This transaction will allow Merck to focus its resources on further growth within its pharmaceuticals and chemicals business sectors," he added. "The fit between our two companies is truly outstanding. Mylan is already a leader in the US market, the world's largest, and through Matrix Laboratories controls one of the broadest API platforms in the world. Merck Generics provides us with leading positions in many of the world's other key regions," said Robert Coury, Mylan chief executive. In 2006, Merck's generics division accounted for 29 percent of Merck Group sales, which rose 6.9 percent to US$2.43 billion. Its operating profit rose 29 percent to US$414 million. Merck Generics, which has nearly 5,000 employees, sells products in more than 90 countries and maintains a global network of production and marketing operations. Mylan is a global pharmaceutical company with market-leading positions in generic pharmaceuticals, transdermal technology, and unit-dose-packaged products. Sales in 2006 totaled US$1.26 billion. Mylan focuses on providing an extensive line of affordable, high-quality prescription drugs in traditional and innovative dosage forms, and enjoys a well-deserved reputation for scientific expertise in creating difficult-to-formulate and high-barrier-to-entry generic products. Mylan operates through three principal subsidiaries: Mylan Pharmaceuticals, a world leader in generic pharmaceuticals; Mylan Technologies, the largest producer of generic and branded transdermal patches for the US market; and UDL Laboratories, the top US supplier of unit-dose pharmaceuticals. M
NEW YORK Eye-care giant Bausch & Lomb agreed to be bought out by private equity fund Warburg Pincus for US$4.5 billion. The announcement came as the market of contact lenses and other eye-care products was recovering from a massive recall of lens solutions linked to health problems. "We believe this transaction with Warburg Pincus is good for the company's employees, partners in the eye-care profession, and customers, as well as our shareholders," said Ronald Zarrella, Bausch & Lomb chief executive. "As a private company, Bausch & Lomb will have greater flexibility to focus on our long-term strategic direction to be a global leader in providing innovative and technologically advanced eye-health products to eye-care professionals and consumers." Bausch & Lomb last year announced a worldwide recall of its MoistureLoc cleaning solution that had been linked to a rare eye infection. The announcement came after health authorities in Hong Kong, Singapore, and the United States reported that the MoistureLoc formula was used by many of the contact-lens wearers treated for Fusarium keratitis, a rare eye infection that can lead to blindness. M AFP |
