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    Home > Medical News > Latest Medical News > Pharmaceutical companies start the "buy, buy, buy" model to ease the "mid-life crisis"

    Pharmaceutical companies start the "buy, buy, buy" model to ease the "mid-life crisis"

    • Last Update: 2022-05-23
    • Source: Internet
    • Author: User
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     It is understood that after the expiration of the drug patent protection period, an endless stream of generic drugs will compete for the market at lower prices, resulting in a decline in both the sales and prices of innovative drugs, and the total sales scale declines off a cliff.
    This is the so-called "patent cliff"
    .
    The industry said that the patent cliff has become a "mid-life crisis" for pharmaceutical companies
    .
    So how to resolve this crisis? Analysts pointed out that among the many problem-solving methods, mergers and acquisitions is one of the commonly used and relatively simple methods
    .
    It is understood that in order to reduce the impact of the patent cliff on the performance of pharmaceutical companies, many pharmaceutical companies have started a "buy, buy, buy" model
    .
    For example, AbbVie acquired the medical beauty company Allergan for US$64.
    1 billion in 2020 in order to solve the problem that its own "pharmaceutical king" Humira is about to expire
    .
    In response to the upcoming patent cliff, Merck acquired three companies in 2020 with a total of nearly $3.
    2 billion; in February 2021, Merck spent another $1.
    85 billion to acquire Pandion to expand its autoimmune disease R&D pipeline; in September 2021, Merck also announced that it will acquire Accleron Pharmaceuticals for $11.
    5 billion to strengthen its cardiovascular pipeline
    .
    Similarly, in order to alleviate the "mid-life crisis", Sanofi has also continued to open the mode of mergers and acquisitions
    .
    For example, in December 2021, Sanofi announced an agreement to acquire Amunix Pharmaceuticals to expand Sanofi's pipeline of T cell conjugates (TCEs) and cytokine therapies
    .
    In the same month, Sanofi entered into an acquisition agreement with Origimm biotechnology GmbH, a privately held Austrian biotechnology company, to integrate ORI-001, a recombinant protein-based therapeutic acne vulgaris vaccine candidate, into Sanofi's early-stage development pipeline
    .
    It is reported that Sanofi's current blockbuster product Dabito was also acquired through mergers and acquisitions
    .
    Industry insiders said that blockbuster products are hard to come by, and it is difficult for even large pharmaceutical companies to continuously produce explosive drugs by relying on their own research and development
    .
    Therefore, through the form of acquisition, it will be able to solve the problem of enterprise product pipeline faster
    .
    It is understood that the large domestic pharmaceutical companies that have worked hard to make money from generic drugs in the past few decades have also opened the double-speed mode of "buy, buy, buy" in recent years
    .
    For example, on the morning of February 28, 2022, Huadong Medicine announced the acquisition of a partial stake in Heidelberg Pharma, a German listed pharmaceutical company, and signed an exclusive license agreement with it
    .
    Regarding the impact of this transaction, Huadong Medicine said that in recent years, the company has been deploying around the ADC field, and has successively invested, held and incubated a number of domestic biotechnology companies with advanced technology
    .
    This cooperation with Heidelberg Pharma will further enrich the company's innovative product pipeline in the field of oncology, and achieve a differentiated in-depth layout in the ADC field
    .
    Another example is Zai Lab, whose license-in (authorized introduction) prepayment fee will reach about 300 million US dollars in 2021
    .
    Among them, a license-in transaction worthy of attention is the introduction of two fourth-generation EGFR inhibitors from Blueprint Medicines (BPMC.
    US), an innovative biopharmaceutical company
    .
    In addition, Hengrui Medicine, which has always been cautious in the introduction of external drug pipelines, also subscribed for 6.
    67% of the shares of Yingli Pharmaceutical with self-raised funds of US$20 million in February 2021, and obtained the latter's PI3kδ inhibitor Linperlisib in Greater China.
    joint development rights and exclusive commercialization rights
    .
    Analysts said that in recent years, the entire pharmaceutical industry has faced the challenge of insufficient original innovation capabilities, and for enterprises, expanding R&D pipelines has become one of the solutions
    .
    Therefore, in the domestic and foreign pharmaceutical markets, mergers and acquisitions or "buy, buy, buy", such as Pfizer, Merck, etc.
    , through license-in or direct acquisition of Biotech or its products are also commonplace
    .
    "Testing and Calibration of Dry Body Temperature Calibrators" is about to be broadcast, welcome to sign up Disclaimer: In any case, the information or opinions expressed in this article do not constitute investment advice to anyone
    .
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