Major generic U.S. wholesalers look to India for supply
MUMBAI, India With generic drugs rising in sales, American wholesalers have decided to leap into the Indian drug manufacturing market, according to reports.
According to industry sources, wholesalers McKesson, Cardinal Health, and Amerisource Bergen have looked into at least ten pharmaceutical companies. Over the past few months, McKesson and Cardinal Health have sent executives to India to assess the capabilities of these companies, the sources said.
The U.S. is the largest generics market, with 28 percent of global generic sales. This is expected to reach $94 billion by 2010 and drugs that are worth between $65 and $70 billion will go off-patent in the next 4-5 years, according to research reports by Crisil Research and SSKI Investment.
High volumes drive the wholesale drug business in the U.S. on thin profit margins of about one percent of revenue. Supply agreements with new players will help the distributors bargain for products at prices up to almost 20 percent cheaper than what they are getting from existing Indian suppliers.
Celgene to acquire Pharmion for $72/share
SUMMIT, N.J. Celgene and Pharmion have announced a merger agreement, under which Celgene has agreed to acquire Pharmion. Celgene will acquire all of Pharmion’s outstanding shares of common stock for $72 per share payable in cash and share of Celgene common stock.
Under the agreement, Celgene will acquire the rights to three popular Pharmion oncology drugs: Revlimid, Thalomid, and Vidaza. Thalmoid and Revlimid are used to treat patients with multiple myeloma. Vidaza is used to treat myelodysplastic syndromes.
“The acquisition of Pharmion is an exceptional strategic fit that will expand our role as a leader in hematology and oncology,” said Sol Barer, chairman and chief executive officer of Celgene Corporation. “Our combined global infrastructure will leverage the therapeutic and commercial potential of Pharmion’s products, particularly Vidaza, which has the potential to become a major global therapy. By bringing together the talents and resources of both companies, we move closer to our vision of becoming a leading hematology and oncology company in the world, expanding our industry leading programs for safety, access and patient support.”
RxHub introduces Rx 4 Success e-prescribing program
ST. PAUL, Minn. RxHub, a company that keeps track of patient-specific medication history and pharmacy benefit information, has announced a new product for e-prescribing, the Rx 4 Success.
The new program was developed to target four main areas of e-prescribing: utilization of Centers for Medicaid and Medicare Services approved ePrescribing transactions including eligibility, formulary and benefits, and medication history. The program will also integrate true electronic delivery of prescriptions to retail and mail order pharmacies. It will also keep consistent rules-based applications of clinical decision support content and formulate transactional data to support the development of outcomes based on pay-for-performance programs.
“We are extremely proud to be associated with our growing roster of partners which includes many of the healthcare industry’s foremost technology innovators,” stated Doug Johnson, vice president of business development for technology partners at RxHub. “Their collective vision not only helped shape Rx 4 Success but provides the foundation for ongoing market driven performance analysis and improvement.”
Rx 4 Success will become a participation requirement for technology partners connected to the RxHub network as of July 31, 2008.