After this summer's failed merger talks between the two companies, Galen's three-pronged deal with US-based generics play Barr Laboratories might be the next best thing for Galen investors. At little cost, the deal removes much of the risk associated with the Northern-Irish company's legal battles. And even though agreements between branded players and their generics competitors often raise eyebrows at antitrust authorities, this deal's structure and focus on the heavily genericized oral contraceptives market may get it past the regulators.

The major generics companies, flush with cash from the recent plethora of patent expirations, are all forging ahead in the proprietary business in order to boost margins and even out the volatile revenues and earnings inherent in their core business. They're pursuing, by and large, strategies that don't take them far from their core expertise and involve reformulating known compounds. Some companies have had moderate success, but weaving together two such disparate businesses is a challenge.

Biovail's stock plummeted recently after a sell recommendation from a highly-regarded Wall Street analyst--who's been accused of a conflict of interest for issuing it--and an FTC ruling on its alleged anti-competitive practices. The ruling, on late-listed Orange Book entries, will curtain common anti-generic strategies.

Start-Up showcases recently launched companies in the e-health arena: DrFirst.com Inc., DrGlobe.com, RxMarketplace.com Inc. and WatchItWork.com.