Why Bayer is Acquiring Monsanto

German health care and chemicals titan Bayer AG,a prominent maker of aspirin,is offering 62 billion dollars for its American peer Monsanto,a seed and agricultural chemicals specialist,or 122.00 a share.It would be the biggest ever acquisition of a foreign company by a German firm.Monsanto rose 4.41% to 106.00 on the news.*
Bayer is afraid of being left out as the space is consolidating around it,said John Oxgaard,chemicals equity analyst at Sanford Bernstein.It's a good time to consolidate the industry.The big force is the end of the ag cycle.When farmers incomes are low,they just don't have the money for their inputs and will negotiate over costs.*
Bayer doesn't have the cash for Monsanto;they will have to issue equity.I am skeptical about the deal.Ultimately,I think there is a gap between what Bayer is willing to pay and Monsanto is willing to accept.*
Monsanto is one of the the most hated companies in the world,being responsible for the development and marketing of Genetically Modified Organisms.It is kind of surprising that a European company is making this bid.If they do succeed,I expect the Monsanto name will probably disappear rather quickly.Although Bayer had been in the GMO business itself before abandoning the effort in the face of withering criticism,it doesn't seem to have been tainted the way Monsanto was,Mr.Oxgaard noted.*
Agricultural chemicals would make up nearly half of Bayer's portfolio,if the deal goes through.*
Monsanto Inc (MON),Bayer AG (Madrid:BAY)

USC Norris Doctors Advance Cancer Research

A number of physician researchers from the USC Norris Comprehensive Cancer Center in Los Angeles were collaborators on more than 70 research projects presented at the 2012 annual meeting of the American Society of Clinical Oncology.About 30,000 oncologists from around the world attend the meeting to review the latest developments in their field.Advances in the treatment of cancer and patient care were set forth in more than 4500 abstracts presented or published at the gathering.Topics of the papers included targeted therapy;clinical trial results for a wide rage of cancers;and patient quality of life.The meeting took place at McCormick Place in Chicago from June 1-5.
One of the more promising studies presented was collaborated on by Heinz-Josef Lenz,associate director for clinical research and co-leader of the gastrointestinal cancers program at the USC Norris CCC.It was an international phase III trial of regorafenib,a candidate drug that has been found to significantly improve overall survival in metastatic colorectal cancer patients who are unresponsive to other approved therapies.It is believed that the drug,pending FDA approval,will raise the standard of care for these patients.
Regorafenib is an oral drug developed by Bayer AG.Its stock trades on the OTC pink sheets in the U.S. under the ticker symbol BAYRY.The company is well known as the maker of Bayer aspirin products.Indeed,Bayer AG was the first producer of aspirin tablets.

Italian Research:Another Benefit of Aspirin

Another benefit of humble aspirin has been suggested by an Italian study at the University of Perugia.Based on its results,the researchers believe aspirin can be considered an alternative to extended treatment with anticoagulant drugs,or blood thinners,such as Warfarin,for secondary prevention of blood clots.Taking aspirin resulted in around 40% less of a chance of developing repeat blood clots in the veins.Warfarin is often prescribed for a period of several months after a blood clot event,but is eventually stopped because of the risk of major bleeding that it poses.In the new study,6.6% per year of the patients on aspirin had a repeat blood clot;while 11.2% per year of those taking a placebo had one.Aspirin reduced clot risk without increasing the risk of major bleeding,the study found.Blood clots in the deep veins of the legs can travel up to the lungs with fatal consequences,a condition known as VTE,or venous thromboembolism.Another,larger study of aspirin prevention of blood clots is already underway.Results of the two studies will be combined to help assess the merits of aspirin as a therapy for VTE.The University of Perugia study was led by Cecilia Becattini,MD,PhD,and published in the New England Journal of Medicine.Aspirin is a known preventer of heart attacks and strokes,and possibly colon cancer as well.Aspirin maker Bayer AG provides funding for such research.Bayer AG ADS(BAYRY)