Drug Companies Swap Units,Join Forces

Two pharma titans,GlaxoSmithKline and Novartis,are entering into a complex 25 billion dollar transaction.Novartis,based in Geneva,Switzerland,is buying GSK's oncology unit for 14.5 billion dollars;at the same time,Britain's GSK is buying Novartis' vaccine unit.Finally,the two firms are forming a joint venture that combines their over the counter drug businesses.
Today we announced we are focusing on our pharmaceutical,eye care,and generics businesses,said Novartis CEO Joseph Jimenez.We're gonna add probably one billion people on earth,and 50% of them will be over 50.It's gonna take innovation to deal with it.We've got these powerhouses that fit exactly with the demographic changes for the next 20 years-for example,GSK's two drugs for metastatic melanoma.
I believe increased technology is gonna allow new targets in cancer that we've never seen before.We're at the beginning of having new tools to combat this disease like never before.This deal with GSK changes the financial profile of Novartis,increasing our operating margin significantly.The whole portfolio review was to allow us to have great strength in that new world.I'll be able to feed these big engines a lot more.We're generating better leverage than we have in the past,explained Mr.Jiminez,who is an American.*
In addition,Novartis is selling its animal health business to Eli Lilly.Even when the deal with GSK is completed,Novartis will still be open to more bolt-on acquisitions that benefit its three lines of business.*
Novartis(NVS),Eli Lilly&Co(LLY),GlaxoSmithKline(GSK)

Pfizer Leukemia Pill Approved

Pfizer,the world's largest pharmaceutical company,has announced FDA approval of its new oral medication BOSULIF(R) for adults previously treated for chronic myelogenous leukemia,or CML,with the Philadelphia chromosome abnormality.There will be an estimated 5400 cases of CML diagnosed in 2012,resulting in 610 deaths.
Bosulif is described as an important new addition to the CML treatment landscape by a Pfizer lead investigator,Jorge Cortes,MD,professor of medicine at the University of Texas MD Anderson Cancer Care Center in Houston and Chief,CML Section,Department of Leukemia.Bosulif is one of a series of CML drugs called tyrosine kinase inhibitors that inhibit production of the tyrosine kinase enzyme by the bone marrow.They are based on a better understanding of the molecular basis of CML.
In clinical trials,about 55% of patients previously treated with other CML drugs returned to normal blood counts within the first 48 weeks of treatment with Bosulif,with a major response to treatment of at least 18 months.Novartis' GLEEVEC(R) is one of the main first line treatments for CML.
Up to 26,000 Americans are living with CML today.An unmet need remains for many CML patients,Dr.Cortes pointed out.Bosulif offers a distinct adverse event profile and a convenient once-daily dosing regimen,said Marc Rothenberg,MD,Pfizer vice president of Clinical Development and Medical Affairs.
Although it cannot be described as being a cure,Bosulif is indeed another step forward in the treatment of chronic myelogenous leukemia.
Pfizer(PFE),Novartis AG(NVS)

Who Makes Desenex Foot Powder-and is it any good

Desenex(R) is an antifungal agent made by Novartis Consumer Health,a division of Swiss pharmaceutical titan Novartis.It consists of undecylenic acid/zinc undecylenate,as well as talc and fragrance.Undecylenic acid/zinc undecylenate is a clinically validated antifungal agent for the treatment and cure of superficial fungus infections of the skin,including athlete's foot,jock itch and ringworm.It is not for treatment of the nails or hairy areas.
Desenex is not recommended for children under two,pregnant women or diabetics and others with blood vessel problems without first consulting a physician.It is also available in spray powder and cream forms.In my experience,it is a fast-acting,effective over the counter medication when used according to directions.
Other Novartis Consumer Health brands include Bufferin;Theraflu;and Doan's.
Novartis AG(NVS)

Novartis Honored By Fortune Magazine

Swiss health care firm Novartis was honored by Fortune magazine as its Most Admired pharmaceutical company for 2011.It recieved an overall score of 7.02,folowed by Merck at 6.80 and Johnson&Johnson at 6.72.Last year,Novartis came in third.
The rank was decided by a survey of pharmaceutical executives,directors and analysts.They used nine criteria such as investment value and social responsibility.
Novartis is the world's third-largest pharmaceutical firm by sales.
One of its leading products is Gleevec(imatinib),a pill for patients with certain forms of chronic myeloid leukemia(CML) and gastrointestinal stromal tumors(GIST).Gleevec is also approved in the U.S.,EU and Japan for a form of acute lymphoblastic leukemia(ALL) and other blood disorders.It has helped many patients stay in remission for several years.
Novartis also owns the OTC brands Theraflu and Comtrex.The company has an assistance program for uninsured or underinsured patients.
Novartis AG(NVS)

Health Uncle:Vaccination Update

Novartis has reported that its version of the H1N1 vaccine is very effective.It only requires one dose,rather than two as was anticipated.In any event,given the projected initial scarcity of the vaccines,a priority list for vaccination has been established by the Centers for Disease Control.The list is as follows:children 6 months to four years;children 5-18 years;those of any age who are pregnant,live with or care for children younger than 6 months,or are health care or emergency services workers.Once those groups have been vaccinated,everyone age 25-64 should be vaccinated.
Vaccination schedules for regular flu shots are already being posted,so check with your local health department for that information.

Health Uncle:Businesses Asked to Prepare

The U.S. government is asking the business community to prepare now for what could be an autumn resurgence of the H1N1 virus,or swine flu.Businesses are being urged to administer the regular flu shot early this year,and to encourage vaccination of those at risk with the swine flu vaccine as soon as possible.At risk groups include pregnant women,younger workers and those with weakened immune systems.Businesses should also ask those with flu symptoms to stay home.Homeland Security Secretary Janet Napolitano said let's not play wait-and-see.We are asking the business community to be proactive.Should numerous workers fall ill,the economic impact would be substantial.Each business should develop unique contingency plans.
The government expects 45 million doses of swine flu vaccine,produced by GlaxoSmithKline,Novartis and others,to be available by mid-October.The vaccine is currently in clinical trials,some of them for children.One father remarked that his child might as well get the free trial shot now,rather than have to pay for it later.Two injections may be required,in addition to the regular flu vaccine.The pediatric trials are being held at 11 sites in 9 states.Each child gets a 40 dollar gift card for participating.
The World Health Organization is warning that the number of swine flu cases worldwide could double every three days for several months.The total could reach two billion cases.So far,more than 14,000 deaths from swine flu have been reported.

Morningstar's Wide Moats

Paul Larson,equity strategist at Morningstar,says the economy and its indicators are less bad.There's a big difference between less bad and good.We've been having simply a multiple expansion rally-just a rebound.It was not reflecting a meaningful recovery.There is not a whole lot of substance to the green shoots theory.
Morningstar likes companies with wide moats.Their profits are protected from competitors over the long term.Procter and Gamble is one of these.A third of its sales are in the emerging markets.Novartis is another wide moat firm.It is very diverse,being big in vaccines,generic drugs and consumer products.Lowe's is a third wide moat company.It's had negative same-store sales recently,but is very,very cheap right now,Mr.Larson notes.