US Generic, Drug Delivery Firms Discuss Strategies

Strategic alliances are one of the keys to Mylan's plans, such as its pact with Vivo Rx on the transplantation of islet cells, company vice president of investor relations Patricia Stewart has told a Dillon Read investment conference on the generic and drug delivery sectors.

Mylan's strategy also involves keeping prices competitive on older products even during periods of slower Food and Drug Administration approval such as at present, she said; this has meant a trailing first quarter and likely a trailing year. Mylan has over 118 Abbreviated New Drug Applications and NDAs pending in its four divisions. Michael Reicher, president of Mylan's newly-acquired UDL unit, said vertical and horizontal integration will continue as the industry tries to take costs out of the system. UDL, which focuses on the institutional market, offers custom packaging and unit dosing.

Pharmaceutical Resources continues to fund R&D in a time of shrinking margins, said president Kenneth Sawyer, and is committed to having 70 projects in its pipeline. Its Par Care managed care division is giving a good return, and the new Nutraceutical Resources unit will produce high-quality nutritional supplements at pharmaceutical grade standards. Supplements are growing, but some wholesalers felt neither they nor their customers needed to pay a premium for NR's first product, melatonin, he said. NR is working on its version of L-carnitine plus different forms of melatonin. The first product from its alliance with Clal of Israel is due in 1997 and major plans are afoot with Broder of Israel for micro-encapsulation. Products with transdermal delivery partner Sano should be announced soon.