Collaborations, sell offs and takeovers as pharma starts cost cutting

Collaborations, takeovers and cost cutting

It seemed that everyone was taking to everyone else this week as takeovers, sell offs, collaborations and restructures filled the headlines. Shire boosted its shares after buying up orphan drug company ViroPharma after allegedly fighting off other competitors including Sanofi, while Oncodesign entered into a research collaboration and license option with UCB to focus on neurodegenerative disorders.  Meanwhile cost cutting was the name of the game as Novartis sold off its blood transfusion diagnostics unit to Spain’s Grifols for $1.675 billion in order to focus on its ‘strategic business.’ US biotech firm Dendreon also let slip that it was implementing a restructuring and cost reduction plan, projected to generate more than $125 million in annual savings. It was forced to act after its prostate cancer drug Provenge failed to meet sales expectations. The move means it will cut its workforce to just 820, down 60% from its peak. It seems that the positive financial results seen elsewhere in the sector are in no way the norm as companies everywhere take stock and look at where they can save cash.

Billion dollar pay day at German spin-off