GW Deal for Cannabis Drug

GW Pharmaceuticals has agreed to a deal for Spain's Almirall to market its cannabis-based medicine Sativex in European countries other than the UK. Almirall is Spain's largest pharmaceutical company, with 2005 sales approaching EUR 1bn.

Canada was the first country to approve Sativex for sale in April 2005 as a treatment for neuropathic pain in multiple sclerosis patients. It has not yet been approved in Britain.

Cannabis has long been used for medicinal purposes though not popular because a of a lack of standard preparations and the development of synthetic painkillers. GW Pharma says it has got round the standardization problems by using a spray technology which also avoids the damaging effects of smoking the drug.

Source: The Independent, December 13, 2005.

Panacea Biotec Financing

Panacea Biotec Ltd has launched and priced a USD $100 million FCCB offering through two structures with conversion premiums based on future price of the underlying equity shares.

The bonds have a tenure of five years and one day. The Yield to Maturity (YTM) on both structures is set at 4.5% and 7.25% p.a. respectively. The company has applied for the bonds to be listed at the Singapore Stock Exchange. The offering was launched after market trading hours on February 7, 2006.

Source: Pharmabiz, February 6, 2006.

China Biopharmaceuticals & Tianyin

China Biopharmaceuticals will acquire 51% ownership of Chinese company Chengdu Tianyin Pharmaceutical and will immediately assume operational control of the company.

According to China Biopharmaceuticals Chairman & CEO Chris Mao, "this acquisition will strengthen China Biopharmaceuticals' market position, as we increase our manufacturing capacity to supplement our continued expansion in our marketing and distribution channels."

Tianyin specializes in R&D, production and sales of pharmaceutical products and Chinese traditional medicine products.

Source: Datamonitor, January 6, 2006.

Novartis Drops Berna, Eyes Serono

Novartis dropped out of the race for Swiss vaccines maker Berna Biotech AG fueling speculation that it could make an offer for Serono SA, which would be a larger acquisition. The move by Novartis may clear the way for a merger between Berna Biotech and fellow Dutch company Crucell NV, in a share-swap offer tabled in December. That bid has the backing of Berna Biotech's board.

A Serono acquisition would allow Novartis to build a leadership position in neurology.

However, Novartis' future revenue growth from Serono could be limited, as its key drug Rebif, for multiple sclerosis, goes off-patent in 2009 and Serono's pipeline does not appear strong.

GSK & Pfizer are also considering a Serono buy-out.

Source: Marketwatch.

Strides Arcolab Partners with Clinton Foundation

Strides Arcolab has partnered with the Clinton Foundation to provide affordable anti-retroviral drugs for treatment of HIV/AIDS.

Arun Kumar, Group CEO and Managing Director of Strides Arcolab, said that this move would expand and strengthen Strides' partnership philosophy.

Former US President Bill Clinton noted, “Strides Arcolab ( India) will offer ARV efavirenz for $240 per patient per year. This price represents savings of more than 30 percent from current market rates. Following today's agreement, Strides will also supply first-line ARVs under Clinton Foundation agreements...Treatment, once started, is a lifelong commitment, and over time patients move from low-price first-line drugs to second-line combinations that are at least 10 times more expensive.”

Source: Express Pharma Pulse, February 2006.

Roche Pulls Fortovase in US

Roche will discontinue US sales and distribution of Fortovase, its HIV protease inhibitor saquinavir, due to the continued availability of the Invirase 500 mg tablet formulation, effective from February 15, 2006. The move is a result of significant decline in demand for Fortovase and updated HIV treatment guidelines which no longer recommend Fortovase as a component of a preferred or alternative initial treatment regimen. Invirase in combination with ritonavir and other antiretroviral agents is indicated for the treatment of HIV infection. Ritonavir is manufactured by Abbott Laboratories. 

Source” Pharmabiz, February 7, 2006.