Schering Benefits from Big Biotech Mergers
Amgen's and Immunex's eagerness to marry is likely why Germany's Schering picked up the Leukine business--complete with sales force and development team--for such a reasonable price. The deal also seems to vindicate the decision of Schering's management to relocate the company's Specialized Therapeutics Strategic Business Unit to the US in order to improve the groups ability to go after late-stage deals.
You may also be interested in...
The market success of Zevalin, Idec Pharmaceutical's second product will largely depend on how well the company has built the requisite commercial infrastructure prior to launch. Idec benefited from having watched how Genentech handled the launch of Idec's first drug, Rituxan. But Zevalin raises unique issues including the need to establish a logistical framework for this first-of-its-kind regimen, in which radiation oncologists play a significant role in the therapy. A disappointment would heighten the uncertainty around the launch of other kinds of innovative products--Idec's certainly, and also those of other companies. The industry will be watching this as a barometer of potential for whether other highly complex therapies whose delivery entails the use of several types of specialists can succeed.
Germany's Schering AG is betting it can crack the US market using a franchise of smaller products, rather than relying on a single blockbuster. It reckons this strategy--which few have used before--is best suited to its size and strengths.
The COVID-19 pandemic has triggered extraordinary levels of collaboration. But competition remains, and many newly created coalitions have yet to be stress tested.