The pharmaceutical industry has witnessed major changes in 2009. Performance has been affected by factors like sluggish prescription trends, intensifying generic competition and limited phase III catalysts. The next five years are expected to reflect a significant imbalance between new product introductions and patent losses. According to IMS Health (RX), this is the main reason why global pharmaceutical market growth will be restricted to the mid-single digits through 2013. Over the next five years, products that currently generate about $137 billion in sales are expected to face generic competition, including Lipitor, Plavix and Seretide. At the same time, new products are not expected to generate the same level of sales as the products losing patent protection have. With most of the big pharma companies already facing patent challenges for their blockbuster products or likely to face them going forward, the companies have been looking toward mergers ...

AmerisourceBergen Corp. (ABC) posted fourth quarter earnings of 44 cents per share, beating the Zacks Consensus Estimate by 4 cents. Earnings increased 22% from the year-ago period. For the full year, earnings increased 17% to $1.69 per share, 3 cents above the Zacks Consensus Estimate. Performance was driven by strong revenues, lower operating expenses and share repurchases. Total revenues for the quarter increased 9% to $18.7 billion. This was attributable to a 10% growth in AmerisourceBergen Drug Corp. revenues, which was driven primarily by new business and improved market growth and an 8% rise in specialty group sales. Generic revenues remained strong during the quarter, displaying above-market growth. For fiscal 2009, total revenues increased 2% to $71.8 billion. Gross profit for the fourth quarter was $538.5 million, which reflected a 2% increase over the gross profit in the year-ago period. The improvement was driven by strong ...

Abbott Laboratories (NYSE: ABT) recently announced that the company will purchase the pharmaceutical arm of Belgium’s Solvay Group for $6.5 billion. This deal expands both the company’s product range and the company’s presence in fast-growing emerging countries, helping defer the effect of patent expiries and compensate for sluggish growth in its traditional markets, such as the United States.

We also have the recent $442 million paid by Johnson & Johnson (NYSE: JNJ) for 18% of Crucell ADR (NASDAQ: CRXL). This will give Johnson & Johnson the development rights on a flu vaccine designed to protect against all future strains of the virus. This deal confirms the company’s move into vaccines, alongside drugs and consumer products.

These deals are further confirmation of the consolidation trend that is occurring right now in the global pharmaceutical industry.

One major factor driving the consolidation trend is the slowdown in sales of pharmaceuticals, particularly in the United

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Avis Budget Group, Inc. (NYSE: CAR) announced today that its Avis Budget Rental Car Funding (AESOP) LLC subsidiary has closed its $450 million Series 2009-2 asset-backed term notes. The 5.68% notes were priced to yield 5.75%, have an expected final payment date in February 2013 and are rated Aaa by Moody’s Investors Service.

comScore, Inc. (Nasdaq: SCOR), a leader in measuring the digital world, today released the results of a study of changes in search engine marketing in the

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It seems that the swine flu pandemic has attracted many large pharmaceutical players towards the vaccine business, the latest being Johnson & Johnson (JNJ). Yesterday, J&J acquired an 18% stake in a Netherlands-based biotech company, Crucell NV, for $440 million. The deal will primarily focus on developing a universal vaccine for influenza treatment using Crucell's genetically engineered antibody technology. Additionally, vaccines for other diseases will be developed in due course. Following the deal, J&J’s per-share earnings will be reduced by 2 cents to 4 cents in 2009. Per the deal, Crucell will retain the European marketing right for the vaccine which will be jointly produced by the companies, while Johnson & Johnson will market the vaccine in the rest of the world. Accordingly, Crucell is eligible to receive royalties on global sales. Although the vaccine influenza vaccine is still in an early stage of development, ...

Pacific Biometrics, Inc. today reported to investors its operating results for FY2009. For the twelve months ended June 30, 2009 (FY2009), the company generated a record $10,881,107 in revenues, a 32% increase compared to a year earlier. Operating income improved to $613,430, compared with an operating loss of $566,026. FY2009 net income totaled $1,235,947, or $0.07 per basic and $0.06 per diluted share, compared with a FY2008 net loss of $571,429, or $0.03 per share.

“While the nature of our business is subject to numerous uncertainties surrounding the ongoing consolidation within the pharmaceutical industry, the availability of capital for biotech companies, and a trend towards smaller, more adaptive clinical trials, I am confident that PBI is on the right track with its growing focus upon traditional and novel biomarkers,” stated Ron Helm, Chief Executive Officer of Pacific Biometrics. “We are pleased to report record sales and an impressive earnings turnaround for

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The shape of the global market for pharmaceuticals is undergoing a rapid change. As recently as 2006, more than half of the market growth was in the United States. This data comes from IMS Health, a consultancy which is a leading provider of pharmaceutical trends.

However, the necessity for the pharmaceutical industry to develop new markets is urgent. The latest forecasts from IMS Health suggests that global sales in the industry will grow by just 2.5 – 3.5 percent this year, the smallest expansion it has ever recorded. The United States – which still accounts for two-fifths of all revenues – will decline by 1-2 percent.

The figures from IMS Health did highlight one source of optimism for pharmaceutical companies – the seven countries IMS Health calls the “pharemerging countries” – China, Brazil, India, Russia, Turkey, South Korea and Mexico. The potential for the pharma companies to increase their revenues is enormous

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Emerging Market for Pharma

Tony Daltorio, The Investment U Research Team

The shape of the global market for pharmaceuticals is undergoing a rapid change.

As recently as 2006, more than half of the market growth was in the United States. This data comes from IMS Health, a consultancy that is a leading provider of pharmaceutical trends.

However, the necessity for the pharmaceutical industry to develop new markets is urgent. The latest forecasts from IMS Health suggests that global sales in the industry will grow by just 2.5 – 3.5 percent this year, the smallest expansion it has ever recorded. The United States – which still accounts for two-fifths of all revenues – will decline by 1-2 percent.

Many large pharma companies are now realizing that a lot of future growth is likely to occur outside of what used to be

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Elan Corporation

(Public, NYSE:ELN)

About

Elan Corporation, plc (Elan) is a neuroscience-based biotechnology company. Its principal research and development, manufacturing and marketing facilities are located in Ireland and the United States. Elan’s operations are organized into two business units: Biopharmaceuticals and Elan Drug Technologies (EDT). Biopharmaceuticals engages in research, development and commercial activities primarily in neuroscience, autoimmune and severe chronic pain. EDT focuses on the specialty pharmaceutical industry, including specialized drug delivery and manufacturing.

The following article was written and contributed by a highly regarded investor and member within the StocksHaven Investments community, Nicholas DeCesare:

Any long term holder of Elan can’t be happy with the stock price over the past year. In fact, shares have gone from the mid 30’s in the summer of 2008, to around $7 a share. Since announcing a deal with

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The year 2009, from the very beginning, has witnessed many high profile mega-mergers in the pharmaceutical industry. The primary reasons for these deals being patent expirations, reduced R&D expenses for the merged entity and cheap valuation for many small companies in the current situation.The pharmaceutical industry is not immune to the current recessionary trend. This is evident from the latest IMS Healthcare report. According to this report, the global pharmaceutical industry recorded 4.8% sales growth (in constant dollar terms) in 2008 from 6.6% in the earlier year, and predicts a further decline to 2.5%-3.5% in the current year. Apart from the recessionary trend, patent expirations, price restrictions and slowdown in new drug launches are responsible for the decline.Drugs going off-patent in the coming years:In an effort to boost pipelines and offset some of the revenue loss ...