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=978300&ProfileId=051205&sourceType=1NEW YORK, NY -- (Marketwire) -- 01/25/13 -- 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 Questcor Pharmaceuticals, Inc. (NASDAQ: QCOR) and Sequenom, Inc. (NASDAQ: SQNM).
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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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Questcor Pharmaceuticals is a biopharmaceutical company focused on the treatment of patients with serious, difficult-to-treat autoimmune and inflammatory disorders. Questcor's primary product is H.P. Acthar Gel, an injectable drug that is approved by the FDA for the treatment of 19 indications. The company earlier this month reported it has acquired pharmaceutical supplier BioVectra Inc.
Sequenom is a life sciences company committed to improving healthcare through revolutionary genetic analysis solutions. Sequenom develops innovative technology, products and diagnostic tests that target and serve discovery and clinical research, and molecular diagnostics markets. The company expects revenues $89 million for 2012, a year-over-year increase of 59 percent.
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