M&A: Multitudinous and ample
The final outcome of the battle between Israel’s Teva Pharmaceutical Industries and Canada’s Valeant Pharmaceuticals International to buy Cephalon serves as a good illustration of why it helps to have a plan B.
In May, Teva beat out Valeant’s $5.7 billion offer to buy Frazier, Pa.-based Cephalon with a $6.8 billion offer of its own, acquiring Cephalon’s hefty pipeline in the process. And last month, Teva bought Taiyo Pharmaceutical Industry, Japan’s third-largest generics company, for $934 million.
It’s been some time since an acquisition on the scale of Pfizer’s purchase of Wyeth has occurred, but there still are plenty of mergers and acquisitions to go around.
Valeant has gone ahead with other acquisitions in order to position itself as a leading skin care company. At the end of June, it bought the rights to Elidel (pimecrolimus) and Xerese (acyclovir and hydrocortisone), treatments for eczema and cold sores, respectively, from Sweden’s Meda for $76 million up front. Last month, it spent $425 million to buy Dermik, Sanofi’s skin care business. Shortly thereafter, it bought Ortho Dermatologics, Johnson & Johnson’s skin care subsidiary, for $345 million.
In June, Endo Pharmaceuticals bought American Medical Systems, a device manufacturer focused on male and female pelvic health, for $2.9 billion. Then, last month, Bristol-Myers Squibb purchased San Diego-based Amira Pharmaceuticals, which makes drugs for inflammatory and fibrotic diseases, for $325 million up front. Also last month, Perrigo, a manufacturer of generic prescription and OTC drugs, closed its acquisition of Paddock Labs, a company that makes similar products, for $540 million. The Federal Trade Commission required Perrigo to divest a small handful of Paddock’s drugs, which it would sell to Watson Pharmaceuticals.
Pfizer — which earlier this year plunked down $3.6 billion to buy King Pharmaceuticals, a Bristol, Tenn.-based company specializing in pain drugs — announced last month it would buy Icagen, another developer of pain drugs in which Pfizer already owned an 11% stake, for $56 million.
35,000 users networking with Pharmacist Society
Pharmacist Society — which Drug Store News introduced at the National Association of Chain Drug Stores’ 2010 Pharmacy and Technology Conference in San Diego and launched in November 2010 under a partnership with professional networking website developer Skipta — has grown to more than 35,000 members and combines networking, job searching, continuing education and other services in a regulated user environment. Pharmacists, pharmacies and pharmacy schools can create private pages for their employees, while pharmacists can store documents and drug companies can provide members with product education.
“Pharmacist Society is quickly becoming the primary destination where pharmacists collaborate, communicate and connect,” DSN publisher Wayne Bennett said.
Upcoming features include mobile apps that will allow pharmacists to engage and communicate at any time during their day.
“It’s exciting to see the engagement from pharmacists from across all areas of pharmacy, from hospitals to retail to clinics,” Skipta president and CEO Ted Search said. “This site is becoming the true voice of pharmacy.”
And even with the rapid growth in membership, the site has continued to grow.
“We have seen terrific growth in the utilization in Pharmacist Society. Our overall traffic in July was greater than the entire first quarter 2011 period,” Bennett said. “We are seeing more retailers and suppliers coming on board, and Pharmacist Society is quickly becoming the No. 1 destination for pharmacist social networking.”
Back-to-school deals target shoppers looking for low costs
Retailers, expecting thrifty behavior from consumers, are starting the back-to-school season with early promotions. “Retailers are already running door-buster promotions,” said Perry Smith, an analyst with the NPD Group. “The consumer has been holding out for last-minute shopping hoping for the best deals. In some cases, people are shopping after school starts.”
PriceGrabber’s “Back-to-School Shopping Forecast” revealed that 49% of back-to-school shoppers plan to make purchases in August, compared with 38% in 2010. Only 14% said they would begin shopping in June, versus 26% in 2010, and 41% would visit retailer websites to print out coupons.
In an effort to discourage consumers from cherry-picking items on price, some retailers have created loyalty shopping programs. Staples issued a 15%-off pass for the entire season, and Kmart in July launched its “Epic Year, Epic You!” campaign offering customers the ability to reserve purchases by making payments throughout the summer and pick up purchased items at a Kmart store near students’ college campuses. Grocer H-E-B signed celebrity Jennette McCurdy, co-star of Nickelodeon’s “iCarly,” to promote its back-to-school campaign.
Smith said consumers have been sticking to their school lists and that sharp-priced basics are the category stars. Smith also highlighted 3M’s tape dispensers in stiletto heel or apple shapes, and folders and notebooks that can be colored in with markers.
The article above is part of the DSN Category Review Series. For the complete Back To School Buy-In Report, including extensive charts, data and more analysis, click here.