Noven completes JDS purchase, names new board member
MIAMI Noven Pharmaceuticals announced that it has completed the previously-announced acquisition of JDS Pharmaceuticals.
JDS currently markets two branded prescription psychiatry products through a targeted sales force and is advancing a significant pipeline of high-potential products in psychiatry and women’s health.
“We are confident that the acquisition of JDS will significantly increase our growth rate and sales and earnings potential over the longer term, and will greatly improve the visibility of our pipeline and financial goals,” said Robert Strauss, Noven’s president, chief executive officer and chairman. “The acquisition builds upon our existing strengths and capabilities by adding the infrastructure, products and category expertise necessary to market and sell products ourselves.”
The acquisition provides Noven with substantial immediate, mid-term and long-term benefits, including:
- Two high-margin marketed products (Pexeva and Lithobid) and substantial expertise in the psychiatry category
- A next-generation psychiatry pipeline that includes one pending (Stavzor) and one product in Phase 3 trials (Lithium QD)
- A non-hormonal product (Mesafem) entering Phase 3 for vasomotor symptoms (hot flashes/night sweats) associated with menopause
- Substantially greater sales and gross margin potential, and greater control over the success of its products.
The purchase price for the acquisition was $125 million cash paid at closing plus the assumption of approximately $10 million in net non-contingent liabilities. Noven received a $25 million sales milestone payment related to its Daytrana product in August 2007.
Noven also announced that effective upon closing of the transaction, Phillip Satow, JDS’ chief executive officer and co-founder, was appointed to Noven’s Board of Directors. Satow co-founded JDS in August 2004 with his son, Michael Satow, JDS’ president and chief operating officer.
“As a member of the Noven Board of Directors, Phil will be in a position to help guide the combined company toward achievement of its expanded and ambitious goals. Few in the industry have Phil’s expertise and track record of success in the psychiatry category. We are thrilled to have him on the team as we work to build on the business and opportunities that he helped create,” Strauss said.
P&G announces Gorman, 70, to step down from board of directors
CINCINNATI Procter & Gamble has announced that Joseph T. Gorman, in accordance with the company’s customary retirement age for directors, has announced his intention to retire effective October 2007 Gorman, who has been a director since 1993, will turn 70 on Oct. 1.
“Joe Gorman has served P&G’s board with distinction for more than 14 years. Among his many contributions, he has served as chair of the Fnance Committee and a member of the Compensation & Leadership Development Committee,” stated A.G. Lafley, P&G’s chairman and chief executive. “We have benefited greatly from his long experience and seasoned counsel. We will miss him, and wish him continued success.”
Gorman is the retired chairman and chief executive of TRW, an automotive, aerospace and information systems company. He currently serves as chairman and chief executive officer of Moxahela Enterprises LLC, a venture capital firm. He also serves as a director of Alcoa Inc., Imperial Chemical Industries plc, Tonsburg Magnesium Group International AB, and Vector Intersect Security Acquisition Corp.
Eli Lilly looking to new blood-thinner to be best seller
By early November, Eli Lilly hopes to release results of a large patient trial of prasugrel, the most important experimental drug in its pipeline. Prasugrel is a blood-thinning agent designed to prevent recurring heart attacks and strokes in people with cardiovascular disease, The Wall Street Journal reported this week.
Plavix, the current leading blood thinner, generated nearly $6 billion in sales last year for its co-marketers, Sanofi-Aventis and Bristol-Myers Squibb. Lilly and its Japanese development partner, Daiichi Sankyo Co., hope their drug will steal some market share from Plavix—if it receives regulatory approval.
Lilly hopes to submit prasugrel for Food and Drug Administration approval by the end of this year. If the drug gets timely FDA approval, it could hit the market in 2008. Initially, the approved uses for prasugrel would be narrower than those for Plavix, but Lilly and Daiichi might seek additional approvals later.
One reason that Lilly is betting so much on prasugrel is that its current best seller, the antipsychotic Zyprexa, is set to lose U.S. patent protection in 2011. Zyprexa generated more than one-fourth of Lilly’s total revenue last year, or about $4.4 billion. Lilly needs another big seller on the market before much of Zyprexa’s sales are lost to cheaper, generic competition.
Lilly is trying to downplay prasugrel’s importance in their pipeline. “While it’s a very important compound in late-stage development, it’s not the only product in late-stage development,” chief financial officer Derica Rice told the Journal. He said the company is developing an inhaled form of insulin for diabetics, as well as an injectable form of Zyprexa.
In the meantime, Bristol-Myers Squibb is watching as closely as Lilly at the prasugrel study results. Plavix last year accounted for approximately 18 percent of its revenue, according to the Journal.