ELI LILLY ENDS DRUG DEVELOPMENT, SENDING STOCK PLUMMETING

Original Story: freep.com

Pharmaceutical giant Eli Lilly's stock tumbled 8% Monday after the company said it will discontinue development of a key cholesterol drug.

Lilly said it has ended late-stage development of evacetrapib, which was part of a costly study involving 12,095 patients at 540 sites in 37 countries. The therapy was in Phase 3 development — the final stage before a drug can be submitted to the Food and Drug Administration for approval. Warren elder care providers offer assistance to seniors living at home.

The failure to bring the drug to the market reflects a significant setback for Lilly, which saw shares fall more than 10% to $77 in pre-market trading before regaining some ground.

An independent data monitoring committee "suggested there was a low probability the study would achieve its primary endpoint based on results to date," Lilly said in a statement.

The drug, which was supposed to treat people at a high-risk of atherosclerotic cardiovascular disease, displayed "insufficient efficacy" the company said. Private duty nurses in Clinton Township are ready to serve even the most advanced medical needs.

The company emphasized that the study was not halted because of safety problems.

"We're obviously disappointed in this outcome, as we hoped that evacetrapib would offer an advance in treatment for people with high-risk cardiovascular disease. We'll be working with investigators to appropriately conclude these trials," David Ricks, Lilly senior vice president and president of Lilly Bio-Medicines said in the company statement. "We remain confident in our pipeline as we prepare for launches in other therapeutic areas with significant unmet needs."

The company expects to take a $90 million pre-tax charge to account for the drug's discontinuation.

Just days before Lilly discontinued the drug, Credit Suisse analyst Vamil Divan told investors that he was "cautiously optimistic" about the drug, saying that "much of the investor focus" was on evacetrapib and another therapy. Citing the company's diverse portfolio, Divan had upgraded his target price on Credit Suisse shares from $89 to $105. A Delaware securities lawyer is following this story closely.

But after Monday's news, Divan lowered his target to $99. He said that Lilly is still well-positioned with a diverse lineup of drug candidates despite the setback.

“They have a number of attractive products in their late-stage portfolio,” Divan said in an interview. “I don’t think it fundamentally changes the company or their overall story.”

In the past, pharmaceutical companies have shed jobs and cut other costs in the wake of a major disappointment in the lab. Divan said he’s not expecting big cuts at Lilly, although he noted that the industry is always seeking to make its operations more efficient.

ALLERGAN SELLS GENERIC DRUG UNIT TO ISRAEL'S TEVA FOR $40.5 BILLION

Original Story: latimes.com

Pharmaceutical company Allergan has agreed to sell its generic drug unit to Teva Pharmaceutical Industries of Israel for $40.5 billion, a move that will enable Allergan to focus on branded drugs, including blockbuster wrinkle treatment Botox.

The acquisition is the latest in a series of pharmaceutical industry mergers and acquisitions, and the latest reconfiguration of Actavis, the Irish drug company that bought Allergan in November and took over its name. An Amarillo M&A lawyer is knowledgeable in all areas of M&A and general acquisitions law, including but not limited to leveraged buyouts, company reorganizations, and mergers and acquisitions.

On Monday, the new Allergan agreed to sell its generic brand division to Teva. Allergan will receive $33.75 billion in cash and $6.75 billion in Teva stock. Analysts said it was the largest acquisition ever by an Israeli company.

Teva is the world's largest maker of generic drugs. The company said the acquisition would provide patients with more access to affordable medicines.

"Our acquisition of Allergan Generics ... will accelerate our ability to build an exceptional portfolio of products, both in generics and specialty as well as the intersection of the two," Teva Chief Executive Erez Vigodman said in a statement. An Aiken M&A lawyer is following this story closely.

Brent Saunders, chief executive of Allergan, said in a statement that the sale would help his company enhance its "global-branded pharmaceutical business and strengthen our financial position."

"While we were not actively seeking a buyer for our generics business, Teva presented an offer at a very compelling valuation that reflects and recognizes the significant value that our global generics team has generated in creating and managing a world-class generics business," Saunders said.

In addition to Botox, Allergan retains Restasis, a treatment for chronic dry eye that generated $1.1 billion of sales last year, as well as Juvederm, another wrinkle treatment, and a host of other branded medicines.

In November, Actavis agreed to pay $66 billion to acquire Allergan, the Irvine-based maker of Botox and a line of ophthalmic medicines. The companies combined under the Allergan name and retained Actavis' headquarters in Dublin, Ireland.

The new Allergan has U.S. headquarters in New Jersey and continues to have a presence in Irvine. A Roseland M&A lawyer is reviewing the details of this case.

Teva's leadership has been saying for months that it believes some of the biggest generic drug companies should combine to save money and become more efficient.

A big deal like this would enable Teva to improve its profitability by cutting jobs and other overlapping costs from the combined businesses. The deal also would increase its leverage in negotiating drug prices in key markets like the United States, where insurers, employers and other payers are pushing to hold down rising healthcare costs that have outpaced inflation for years.