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Monday November 16, 2009

DrStockPick.com Stock Report!

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SNBP, Sinobiopharma Inc., SNBP.OB

SNBP is a fully integrated and highly innovative specialty biopharmaceutical company engaged in the research and development, manufacture and marketing of biopharmaceutical products in China, the world’s fastest growing pharmaceutical market. Known as Dong Ying (Jiangsu) Pharmaceutical Co., Ltd. in China, SNBP’s current therapeutic focus is on anesthesia-assisted agents and cardiovascular drugs.

SNBP reported that 23 generic drugs for which the Company has production rights are listed in China’s National Essential Drugs

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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 ...

McKesson Corp. (MCK) reported its fiscal second-quarter earnings of $1.07 per share, beating the Zacks Consensus Estimate of $1.01. However, earnings declined from the year-ago profit of $1.17. Meanwhile, revenues increased 1.9% to $27.1 billion.   The Distribution Solutions segment grew 2% with the U.S. pharmaceutical distribution business recording a 2% increase in revenues. The loss of two customer buying groups in the U.S. continued to impact the performance of this segment. We believe the performance of the Distribution Solutions segment will continue to be impacted by the lost business through the remainder of the year.   Canadian revenues grew 9% as the Canadian pharmaceutical market remained slightly stronger than the U.S. market. Medical-Surgical distribution revenues also increased (up 5%), benefiting from small acquisitions made by the company in late fiscal 2009. The Specialty Care Solutions business performed well, benefiting from the launch of generic versions of Oxaliplatin....

Today, Dainippon Sumitomo and Sepracor (SEPR) have announced the successful completion of the initial share offering period, where almost 78.2% of Sepracor’s shares were tendered. The offer period has been extended to Oct 19, 2009, to enable other shareholders to tender their shares as well.  As a reminder, in September, the Japanese pharmaceutical company Dainippon Sumitomo Pharma Co had announced a deal to acquire Sepracor at $23 per share or $2.6 billion. However, soon after the announcement, shareholders of Sepracor filed a suit in a Delaware court against the company, citing the offered price as inadequate. They were seeking the court’s intervention to stop the deal and pay damages.  Additionally, certain aspects of the deal were against the interest of Sepracor’s shareholders. The deal included a $77.4 million termination fee and a “no solicitation" provision. Apart from restricting the possibility of any superior proposal, these provisions ...

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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Dr Stock Pick HOT News & Alerts!

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My Picks for Monday September 28, 2009, are:

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PWRM, Power 3 Medical Products Inc, PWRM.OB

PWRM is a leading bio-medical company engaged in the commercialization of neurodegenerative disease and cancer biomarkers, pathways, and mechanisms of diseases through the development of diagnostic tests and drug targets.

PWRM’s NuroPro PD test was developed to help clinicians distinguish patients with Parkinson’s disease from “normal” individuals and patients with other neurological disorders. The NuroPro PD test, developed by Power3, utilizes a panel of blood serum protein biomarkers evaluated by biostatistical analysis to predict the probability that a

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Today morning, Japanese pharmaceutical company Dainippon Sumitomo Pharma Co., Ltd. confirmed that it signed a definitive agreement to buy U.S. pharmaceutical company Sepracor Inc. (SEPR). The deal has been valued at $23 per share or $2.6 billion.

The market was abuzz with rumors yesterday regarding the potential takeover. The rumors led to a 26.46% increase in Sepracor’s stock price. Trading was halted in the afternoon with Sepracor shares closing at $22.80.

This acquisition is the latest in a series of deals conducted by Japanese companies that are looking to tap the U.S. pharmaceutical market – the biggest in the world. Last year, we saw four such deals take place including Eisai’s acquisition of MGI Pharma, Takeda’s acquisition of Millennium Pharma and Shionogi’s acquisition of Sciele. Finally, Daiichi-Sankyo acquired a stake in India’s Ranbaxy Labs.

Following the completion of the acquisition, Sepracor will become a wholly owned subsidiary of Dainippon Sumitomo Pharma America

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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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Last week, Japan approved the first ever generic version of biotech drug industry, thus increasing the affordability of the expensive biotech drugs. This is a great opportunity for the generic players. One fallout of the approval is greater competition - a blessing for customers. However, the market is large enough to accommodate many players. Estimates put the global biotech market (growing at 12% a year) value in the range of $80-90 billion.

Leading players in the biotech space to be affected from the move are Amgen (AMGN), Gilead Sciences (GILD), and Genzyme (GENZ) among others.

The issue of data exclusivity is yet to be decided in the US. The period of protection for branded companies is the most debatable point, where they are asking for 12-14 years' exclusivity. The US law-makers are aware of this delay. Henry Waxman, chairman of the House of Representatives Energy

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