Does R & d lose in succession or become a new target of merger market?

Source: Biovalley 2016-11-21 recently, pharmaceutical giant Gilead company's life was not easy A series of drug R & D activities carried out by the company have failed, which makes the company's R & D ability be questioned by the outside world In addition, with the development of R & D adverse, the company's share price once hit a new low Some analysts pointed out that the company needs to carry out a series of mergers and acquisitions to boost the morale of the company's R & D pipeline, but some people also put forward a more imaginative view, that is, with Geely's share price reaching a new low, is the pharmaceutical company likely to become the target of other pharmaceutical giants in the future? Although harvoni, Gilead's hepatitis C drug, still brought in $5.58 billion in revenue in the first half of 2016, this figure has decreased compared with $7.19 billion in the same period of 2015 What makes the company worse is that last week, the company announced that two clinical phase III studies of momelotinib failed to meet the company's expected objectives Yesterday, it broke out the news that the company terminated the hepatitis B treatment project gs-4774 jointly developed with globeimmune company For a while, the future of Gilead company has generated endless reveries for many industry people Some analysts believe that Geely has become an ideal acquisition target for pharmaceutical giants such as Pfizer and Elgin One of the important reasons is that despite the multiple attacks this year, Geely is still the top leader in the field of hepatitis C drugs Despite the introduction of powerful new products, it is still difficult to shake Geely's position in this field in the short term On the other hand, the company also has an absolute advantage in the HIV market The patent of biocegravir developed by the company will last until 2033 It can be imagined that if there is no breakthrough therapy, the company's position in the field of HIV will not be shaken for a short time On the other hand, for Pfizer, in recent years, the company's ability to independently research and develop heavy-duty products has declined If Gilead can be included in the company's portfolio, it will help to enrich the strength of its own research and development pipeline In fact, Gilead's good fortune seems to have been in antiviral medicine The company has been struggling in the field of non antiviral drug research At present, the only non antiviral drug of the company is zydelig, and the prospect of the drug is not as good as overdue On the other hand, taking gs-4997 (selonsertib) developed by the company as an example, this kind of ask-1 inhibitor was designed to carry out phase II clinical research including pulmonary hypertension, diabetic nephropathy and Nash, but it was proved to be effective only in NASH, and its effect was not satisfactory Therefore, from all aspects, Geely is indeed likely to become a good asset in the eyes of major pharmaceutical giants However, analysts also pointed out a problem, that is, to want to eat gillid, the acquirer needs to have sufficient financial support The company's sales are expected to reach $28 billion in 2017, so if Pfizer wants to acquire Gilead, the company will pay at least five times its annual sales This figure can be said to deter most acquirers Analysts also said that in addition to Pfizer, which has been committed to mergers and acquisitions in recent years, Merck, Elgin, Bristol Squibb and AstraZeneca have the ability to pocket their income However, whether this idea can become a reality depends on how the giants of the biomedical industry plan.