Pharmalot… Pharmalittle… Good Morning
1 CommentBy Ed Silverman // March 16th, 2010 // 7:03 am
Rise and shine. Another day is under way. And so, momentarily, we will rouse our short people from their slumber. Meanwhile, we have gathered a few items for your perusal as you steel yourselves for the latest round of meetings and deadlines.
AstraZeneca Will Be Selective About Branded Generics (Reuters)
Canada Will Revamp Pandemic Vaccine Supplies (The Globe & Mail)
Genetic Test Can Cut Warfarin Hospitalizations (Reuters)
Abbott’s CEO Pay Fell On Reduced Stock Options (Associated Press)
pharmavet
The Abbott piece mentions that Humira sales were $5.5 billion in 2009. Notwithstanding the recent acquisition of Solvay, which I and many others questioned, Abbott has usually excelled in two areas, diversification of its business units and its acquisition strategy. I was with Knoll when Humira, then termed D2E7 was under clinical development. Abbott bought Knoll in 2000 for $6.9 billion, largely on the strength of sales of Vicodin and Synthroid. Given that companies are usually valued at 3X most recent earnings, and given the success of Humira, Abbott would have had to pay somewhere between $25-30 billion in today’s dollars for the same acquisition. Hence the Knoll buyout is continuing to reap rewards for Abbott, and will do so for the forseeable future.