Amgen/Abgenix: All About a Drug
Amgen is using its cash to buy near-term products-the fundamental reason behind its purchase of Abgenix. Indeed, the irony to this transaction is that while the promise of genomics generated the money Abgenix needed to stay alive, the product that ultimately made Abgenix's fortune is an antibody to an entirely pre-genomic target, the fourth in its target class to make it to market, and the second antibody to do so.
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MorphoSys: Accelerating The Long Transformation
Flush with funds from new partnering deals and recent capital injections, German biotech MorphoSys plans to boost its already considerable R&D spending to build value in the pipeline while holding on to promising assets longer.
Bristol's Poker Game: Doubling Down On Research
Medarex acquisition has interesting strategic parallels with the earlier Amgen/Abgenix deal, and demonstrates once again Bristol's distinctive approach of doubling down on research rather than protecting itself through diversification toward slower growth businesses.
Can Amgen Find a New Engine?
Amgen's string of misfortunes has highlighted the group's need to find an alternative growth engine--one which will, necessarily, look very different from the current anemia franchise. The biotech is leaning too heavily on osteoporosis and cancer candidate denosumab.