FDA approves rare skin cancer treatment
ROCKVILLE, Md. The Food and Drug Administration has approved a new drug for treating a skin cancer that affects fewer than 20,000 people in the United States.
Gloucester Pharmaceuticals announced the FDA’s approval of Istodax (romidepsin) for the treatment of cutaneous T-cell lymphoma, a type of non-Hodgkin’s lymphoma also known as CTCL, in patients who have received at least one prior systemic therapy. The cancer affects between 16,000 and 20,000 people in the United States and is most common among men ages 50 years and older, according to the Cutaneous Lymphoma Foundation.
“CTCL is a devastating cancer in which many patients suffer from disfiguring tumors, horribly itchy and infected skin and, in advanced stages, lesions in other organs,” Stanford Cancer Center professor and Istodax clinical trial investigator Youn Kim stated. “Current systemic therapies have proved inadequate, and patients with CTCL desperately need treatment options that can offer sustained relief from their disease so they can live fuller lives.”
Rite Aid under pressure to unload West Coast ops
NEW YORK Divesting itself of its West Coast store base certainly would place Rite Aid in a much more favorable position with regard to its debt load, merchandising and marketing synergies and supply chain efficiencies. So why not divest?
The question really is, can Rite Aid walk away from a baby-boomer-rich market in which it has not only invested heavily in the past few years but also represents 18% of its overall store base and 28.6% of its overall square-footage. And that answer may very well swing “no” unless there are an awful lot of zeros within any offer.
Historically, Rite Aid has suggested that the price has got to be so good that they can’t responsibly walk away. And that’s because Rite Aid is, in poker parlance, pot-committed to its West Coast stake. The chain has invested enough into its Pacific-Coast stores that the valuation would have to be sweet enough that the offer becomes their return on that investment.
Further, the deal would likewise have to more than make up for the smaller buying heft a post-divestiture Rite Aid would wield.
“The West Coast is a very strong contributor to our overall results,” commented Mary Sammons, chairman, then-president and CEO, during a conference call with analysts held around the time the CVS/Longs deal had been announced. “[The West Coast] is also a strong contributor to … scale, our ability to really have greater capacity to buy better and do what we do and leverage expenses,” she said. “We have strong market shares out there. We’ve invested a lot of dollars out there … frankly.”
CVS may be eliminated as a potential suitor given its acquisitions along the West Coast, namely Longs Drug, but Walgreens, Walmart and Tesco have all been identified by analysts as potential suitors — Walgreens in an effort to better combat CVS, Walmart because it’s looking to expand through smaller retail boxes in a real-estate saturated market and Tesco given its desires to expand significantly into the U.S. market.
Morgan Stanley analyst Mark Wiltamuth suggested that the West Coast operations may be a sound divestiture for Rite Aid given the fact that the stores are, in his belief “stronger profit generators” as compared to the chain’s East Coast operations in an April 2009 research note.
Ahold reorganizes U.S., European businesses
NEW YORK Ahold on Thursday announced a series of changes in its European and U.S. businesses to create a strong platform for future growth.
The reorganization in both continents delineates the responsibility for running operations, supporting the operations and business development, the company said in a release.
Dick Boer, the COO for Ahold Europe, member of the corporate executive board and CEO of Ahold Netherlands, continues to be responsible for all European activities and has appointed Sander van der Laan to head Albert Heijn as its new general manager. Van der Laan will return to the Netherlands from his current role at Giant-Carlisle in the United States to start in January 2010.
Lawrence Benjamin, the COO for Ahold USA and member of the corporate executive board, continues to be responsible for all U.S. operations and has appointed Carl Schlicker as CEO of four newly reorganized U.S. divisions, including Stop & Shop New England, Stop & Shop Metro New York, Giant-Landover and Giant-Carlisle.
Commenting on the global reorganization, Ahold’s CEO John Rishton said “The changes we have announced today build a strong platform for future growth. We are further simplifying and streamlining our businesses and will be able to provide even greater focus on our customers. The changes will also allow Dick Boer and Larry Benjamin to devote more time to growth opportunities in existing and new markets.”