Genetic Engineering & Biotechnology News

AUG 2013

Genetic Engineering & Biotechnology News (GEN) is the world's most widely read biotech publication. It provides the R&D; community with critical information on the tools, technologies, and trends that drive the biotech industry.

Issue link: http://gen.epubxp.com/i/145822

Contents of this Issue

Navigation

Page 7 of 45

PointofView Creative Acquisition in Biotech, Take Two Recent Big Biotech M&As; Have Not Been Limited to Big Pharma Doing the Buying J. Leslie Glick, Ph.D. Writing in this same column for the December 1, 2012, issue of GEN, I proposed that the biotech industry might be succeeding in part because of "creative acquisition"—the opposite of Joseph Schumpeter's "creative destruction." As I explained then: "While creative destruction certainly applies to the biotech industry, so does what one might call creative acquisition. In other words, successful frms do not necessarily lead to the failures of other frms but rather to their own acquisition by larger frms. Creative acquisition is a function of the everincreasing growth potential of the biotech industry." I also provided evidence of the biotech industry's remarkable track record through the end of 2011, in terms of revenues, income, and the number of companies involved, even though many of the largest biotech companies were being acquired by big pharma. That the biotech sector kept growing could be attributed to technological advances, which continued to create numerous novel commercial opportuniJ. Leslie Glick, Ph.D. (jlglick@ix.netcom.com), is an independent corporate management advisor. ties, thereby enabling both the maturation of existing biotech companies as well as the seemingly never-ending formation and development of startups. Since my initial column on creative acquisition, more data have been collected, further supporting the notion that creative acquisition plays a key role in the evolution of the biotech industry. According to Ernst & Young's Biotechnology Industry Report 2013, all 316 U.S. public biotech companies reported total revenues of $64 billion and net income of $4.5 billion in 2012, representing increases of 8% and 36%, respectively, over the corresponding fgures for all 315 U.S. public biotech companies in 2011. A more detailed look of the biopharmaceutical segment was obtained by accessing 10-K flings with the SEC. In 2012, the 10 largest such companies reported total revenues of $44 billion and net income of $11 billion, up 15% and 19%, respectively, from the corresponding fgures for 2011. Of particular interest is that only the four largest have resided among the top 10 since 2005. Six of the top 10 companies in 2005 were acquired by big pharma during the six years that followed. Yet, total revenues and net income of the top 10 in 2012 were 38% and 77% greater, respectively, than those of the top 10 in 2005. Based on revenues, the 10 largest U.S. biopharmaceutical companies in 2012 were, in descending order: Amgen, Gilead Sciences, Biogen Idec, Celgene, Vertex Pharmaceuticals, Regeneron Pharmaceuticals, Alexion Pharmaceuticals, Cubist See Creative Acquisition on page 8 WHAT'Shappening > NewsCenter > The Lists > e-Newsletters > Archives > BioPerspectives > GENpoll > Expert Tips 140HuguenotStreet,NewRochelle,NY10801-5215 914 740-2100 www.GENengnews.com Publisher&CEO; MaryAnnLiebert EditorinChief JohnSterling editor@GENengnews.com GENGroupPublisher SandeGiaccone MANAGING EDITOR PRODUCTION EDITOR SENIOR EDITOR TECHNICAL EDITOR ONLINE EDITOR SENIOR NEWS EDITOR ASSISTANT EDITOR ART DIRECTOR DIRECTOR,DIGITALMEDIA AUDIENCE DEVELOPMENT ONLINE PRODUCT MANAGER WEB PRODUCER SALES ADMINISTRATOR OFFICEASSISTANT TamlynL.Oliver RobertM.Reis TracyVence PatriciaF.Dimond,Ph.D. PatriceBartell AlexPhilippidis SunyaBhutta JamesLambo BillLevine KwafoAnoff ThomasMathew MelindaKucsera MichelleStolowicki ElizabethRamirez ScientifcAdvisoryBoard BIOPROCESSING – PeteGagnon, Validated Biosystems;UweGottschalk,Ph.D., Sartorius Stedim Biotech;GünterJagschies,Ph.D., GE Healthcare Life Sciences; DanielWang,Ph.D., Massachusetts Institute of Technology; SongZhiwei,Ph.D., National University of Singapore DRUG DISCOVERY – JamesInglese,Ph.D.,NIH Chemical Genomics Center; JohnJ.Talley,Ph.D.,Ironwood Pharmaceuticals OMICS – MikaelKubista,Ph.D.,Biotech Institute of the Czech Academy of Sciences and the TATAA Biocenter;SumioSugano,M.D.,Ph.D.,University of Tokyo; CarlWittwer,M.D.,Ph.D.,University of Utah TECHNOLOGY MANAGEMENT – GaryPisano,Ph.D., Harvard University TRANSLATIONAL MEDICINE – BinWang,Ph.D., Fudan University; JamesWilson,M.D.,Ph.D., University of Pennsylvania School of Medicine Advertising SENIOR VICE PRESIDENT, GLOBAL SALES AsiaDisplayandClassifed HarrietI.Matysko914 740 2182hmatysko@GENengnews.com UnitedStatesandNorthAmerica EASTCOAST MonicaLieberman 914 740 2173 mlieberman@GENengnews.com MIDWEST SharonSpitz 888 237 4436 sspitz@GENengnews.com WESTCOAST MaryTonon 415 331 5333 mtonon@GENengnews.com U.K.,EuropeandAustralia IanSlade+44 7768 397068islade@GENengnews.com AllOtherCountries advertising@GENengnews.com800M-LIEBERT NorthAmerica,U.K.,Europe&AustraliaClassifed; VictoriaPalusevic914 740 2167vpalusevic@GENengnews.com YOU'LL LOVE GEN's LISTS Of all the charitable funds and foundations to choose from, where should you be submitting grant proposals? Which support the most—and the biggest—life science projects? Where's the best place to land a biopharma job, and what industry trends are coming down the pike? GEN's lists take the guesswork out of answering these questions and more. Lists you'll find at GENengnews.com include: •Top 25 Biotech Companies •10 Life Science-Loving Charitable Funds and Foundations •Top 15 Vaccines of 2012 •Top 20 Grant-Giving Disease Foundations •10 Best U.S. Regions to Secure a Biotech Job ...and many more. Scroll down GENengnews.com to peruse and compare. Did we miss something good? Keep us on top of the latest trends and let us know your list requests by posting your comments. engnews.com 6 | Webinars – FREE REGISTRATION Ultrasensitive Immunoassays for Translation of Biomarkers from Discovery to the Clinic View it Now! On Demand Sponsored by Singulex In the webinar, participants discuss the use of Erenna technology in serial testing of the cardiac biomarker troponin I (cTnI), the standard of care for patients under evaluation for acute coronary syndromes and now employed for the monitoring of chronic cardiovascular disease by the Singulex Clinical Laboratory. engnews.com/biomarkers Analysis of N-Glycan Released from Biopharmaceutical Glycoproteins Using HPAE-PAD View it Now! On Demand Sponsored by Thermo Scientific InsertionsandAdvertisingMaterial WandaSanchezwsanchez@GENengnews.com CustomerService&Subscriptions; www.GENengnews.com/subscription-center 888 638 3940 847 763 4943 Reprints KarenBallenreprints@GENengnews.com 914 740 2100 Theviews,opinions,fndings,conclusions,andrecommendationssetforthin anyarticleinGeneticEngineering&BiotechnologyNews;(GEN)aresolelythose oftheauthorsofthosearticlesanddonotnecessarilyrefecttheviews,policy,or positionofGEN,itsPublisher,oritseditorialstaffandshouldnotbeattributed toanyofthem.AlladvertisementsaresubjecttoreviewbythePublisher.The acceptanceofadvertisementsdoesnotconstituteanendorsementoftheproduct orserviceadvertised. GeneticEngineering&BiotechnologyNews;(ISSN-1935-472X)is publishedsemimonthlyexceptJuly,August,andDecember(twenty-oneissues ayear)byGENPublishing,140HuguenotStreet,3rdFloor,NewRochelle,NY 10801-5215.PeriodicalspostagepaidatNewRochelle,NYandatadditionalmailing offces.Postmaster:SendaddresschangestoGeneticEngineering&Biotechnology; News,c/oSubscriptionDepartment,MaryAnnLiebert,Inc.,140HuguenotStreet, 3rdFloor,NewRochelle,NewYork10801-5215.Fax:914 740-2109.MailedinCanada underCPCCPM#40026674.PrintedintheU.S.A. Forsubscriptioninformationgoto:www.GENengnews.com/subscription-center Copyright©2013byGENPublishing,NewRochelle,NY. MaryAnnLiebert,Inc.isrecognizedasaCertifedWoman-OwnedBusinessbythe Women'sBusinessEnterpriseNationalCouncil(WBENC). www.GENengnews.com This webinar discusses how HPAE-PAD performs accurate and consistent mapping of N-glycans released from biopharmaceuticals such as EPO, FSH, and Erbitux. engnews.com/HPAE August 2013 | GENengnews.com | Genetic Engineering & Biotechnology News Biobusiness cover photo Sebastian Kaulitzki/Fotolia

Articles in this issue

Links on this page

Archives of this issue

view archives of Genetic Engineering & Biotechnology News - AUG 2013