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Loading ...Glaxo, Pfizer create new HIV drug company
04.16.2009 1:35pm EDT
(London) Drug makers GlaxoSmithKline PLC and Pfizer Inc. said Thursday they plan to create a new company to invest in the research and development of HIV treatments.
The deal allows the two companies to merge their strengths in the HIV drugs business – Glaxo is a big seller of HIV treatments but its products are relatively old and its pipeline of future drugs is also relatively weak. Pfizer, on the other hand, has a significant store of drugs in development but few products on the market.London-based Glaxo will initially hold an 85 percent equity interest in the new company, with New York-based Pfizer holding the remaining 15 percent.
The two companies said that the new business “will be more sustainable and broader in scope than either company’s individually,” adding that it will hold a 19 percent share of the growing market.
The new company will have a broad product portfolio of 11 marketed products including market-leading therapies such as Combivir, Kivexa and Selzentry/Celsentri. Based on 2008 results, the combined portfolio generates sales of around 1.6 billion pounds ($2.4 billion).
The companies said revenues at that level will provide the new company with financial stability and support investment in its pipeline.
“By combining Pfizer’s and GlaxoSmithKline’s complementary strengths and capabilities, we are creating a new global leader in HIV and reaffirming our ongoing commitment to the treatment of the disease,” said Pfizer Chief Executive Officer Jeff Kindler in a joint statement issued to the London Stock Exchange.
“With the strength of the companies’ current HIV products, as well as the complementary fit of Pfizer’s HIV pipeline and GSK’s global distribution capabilities, the new company is well positioned to bring new and improved medicines to patients with more speed and efficiency,” Kindler added.
The company will have a pipeline of 6 innovative and targeted medicines, including 4 compounds in phase II development. Altogether, the new company will have 17 molecules at its disposal to develop in fixed-dose combinations as possible new HIV treatments.
The new company will contract research and development services directly from Glaxo and Pfizer to develop new medicines.
People can’t afford these drugs and this move probably won’t help too much…
There is no profit in a cure, only continued treatment brings in the bling.
I know, I know, BIG PHARMA is bad… and I am a retired physician. But I am on this page because I trained admitting… and losing AIDS patients for years before the medicines.
Anything to get better ones out there to more people!
Astonishing how sensible it seems, now they will probably have anti-trust suits thrown against them, because after all what is better than good old American Competition?
Good health, that is what is better.
Did anyone notice that the companies said they want to work on HIV “treatments”?
So sad how a “Cure” or preventative vaccine is not the goal. I suppose lifetime treatment of a chronic disease is much more profitable. I was particularly creeped out by them refering to increasing infection rates as “a growing market”. It’s like they’re cheering it on, seeing infected people as nothing more than customers.
I don’t think the government should grant these private companies anymore research dollars unless they can PROVE that they are working on CURES and VACCINES and not just “treatments” and that goes for everything, NOT just HIV!
We give these companies BILLIONS of tax dollars and they turn around and GOUGE us for what OUR TAX MONEY has helped to develop.
Believe me. Any such merger is NOT motivated by any noble interest in helping those with HIV. It has everything to do with MONEY. When is the last time a merger actually benefitted the consumer?
I’m disgusted by the term treatment. Why aren’t these companies looking into cures? You’re right budbud, there’s no market in cures. I just took a look at Pfizer’s financial statement for 2008, did you know they spent almost as much on advertising as they did on research and development? From what I’m seeing it looks like they spent $413 million on advertising and $433 million on research. They should devote that money to researching CURES! DISGUSTING!!! The health, well-being and ultimately the lives of our moms and dads, brothers and sisters, friends and loved ones should not be a for-profit venture. We need better people running this world. We need leaders. It’s time we got motivated America! Let’s take back our country.
A company focusing exlusively on HIV is a great idea. That way profits from HIV meds fund HIV research and can’t be siphoned off to fund other diseases or used as political fodder for internal company battles. Also, the new company can more accurately predict how many reaserch dollars the drug profits will generate years down the road.