Pfizer’s $100 billion acquisition pitch for AstraZeneca took an interesting turn this week with both companies (AstraZeneca and Pfizer) clarifying their positions in detail for the first time. The companies’ continuing dialogue follows a week in which GlaxoSmithKline and Novartis made a series of targeted deals designed to streamline their businesses, but also build on their strengths in specific areas such as oncology and vaccines.
The most interesting question Pfizer’s move raises, and what Matt Herper illustrates so well in his Forbes articles, is this: Even as Pfizer is expected to break up its business within the next three years, how would an acquisition fit into that plan?
Pfizer has three businesses: one group focused on oncology and consumer health drugs and vaccines with another dedicated to global innovative pharma. The third is an established products unit which seems to be an umbrella for the drugs that don’t fit the first two groups.
With the Rise of AI, What IP Disputes in Healthcare Are Likely to Emerge?
Munck Wilson Mandala Partner Greg Howison shared his perspective on some of the legal ramifications around AI, IP, connected devices and the data they generate, in response to emailed questions.
Like GSK and Novartis, it sees AstraZeneca’s cancer and vaccine pipelines as ways to deepen its own drug portfolios.
In oncology alone, AstraZeneca would double the size of Pfizer’s portfolio from six to 13 as far as late stage or approved drugs are concerned. Cancer meds accounted for 11 percent of sales for AstraZeneca last year. Its lung cancer treatment Iressa generated $647 million last year. Zoladex to treat prostate cancer had sales of nearly $996 million. For experimental oncology drugs, AstraZeneca would add 14, including five that are yet to be approved such as olaparib to trigger cancer cell death in certain cancers.
Another advantage is with AstraZeneca’s diabetes drug portfolio, which was strengthened through an alliance with Bristol Myers-Squibb, until AZN acquired BMS’ share of the business last year. “Pfizer might be able to use this scale to cut better deals with governments and insurance companies,” Herper observed.
It will be interesting to see what the new business will look like as talks continue. But it may see opportunities to scale back through selling off whichever product areas fall short of its goals.
A Personalized Approach to Medication Nonadherence
At the Abarca Forward conference earlier this year, George Van Antwerp, managing director at Deloitte, discussed how social determinants of health and a personalized member experience can improve medication adherence and health outcomes.
