Major Revenue Losses From Patent Expirations Forces Big Pharma Companies to Look to the Biotech Industry for Replacements
http://media.marketwire.com/attachments/201212/107982_FSE_Logo.gifhttp://at.marketwire.com/accesstracking/AccessTrackingLogServlet?PrId=972895&ProfileId=051205&sourceType=1NEW YORK, NY -- (Marketwire) -- 01/10/13 -- Lost revenues from expiring patents has played a major part in the Biotech Industry's success in recent years. A total of 676 takeovers of biotechnology and pharmaceutical companies have occurred in the past three years, with an average premium of 38 percent, according to data collected by Bloomberg. Five Star Equities examines the outlook for companies in the Biotech Industry and provides equity research on MannKind Corporation (NASDAQ: MNKD) and Oncothyreon Inc. (NASDAQ: ONTY).
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At the end of the third quarter five of the biggest drug makers in the U.S. held over $70 billion in cash, near cash and short-term investments. Major revenue losses from patent expirations have forced big pharmaceutical companies to look to biotech companies to help fill the void. Pfizer's Lipitor and Bristol-Myers' Plavix, which lost exclusivity in late 2011, had combined annuals revenues of $17 billion at their peaks.
"We're through many cost-cutting programs, restructurings and portfolio arrangements," said Henry Gosebruch, Managing Director, Mergers & Acquisitions J.P. Morgan. "When you put that together with record levels of cash available and improving, but still moderate R&D productivity, we think there will be more big pharma M&A activity in 2013."
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MannKind focuses on the discovery, development and commercialization of therapeutic products for patients with diseases such as diabetes and cancer. Its lead product candidate, AFREZZA, is in late stage clinical investigation for the treatment of adults with type 1 or type 2 diabetes.
Oncothyreon is a biotechnology company dedicated to the development of oncology products that can improve the lives and outcomes of cancer patients. The company's pipeline includes both synthetic vaccines and small molecules for a variety of cancer indications. Shares of the company have gained over 10 percent in the past week.
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