Regulatory
An American idea ruffles feathers in Europe
For more than a decade, the U.S. has incentivized drug companies to invent much-needed therapies by offering a sellable coupon for every qualifying drug approved. But a similar enticement, proposed in Europe, has run into objections.
As STAT's Ed Silverman reports, the EU idea is meant to encourage the development of novel antibiotics by offering companies a voucher that adds a year of patent exclusivity to any medicine. It's a variation on the U.S. model, which awards a voucher redeemable for an expedited FDA review.
The concern, voiced by more than a dozen members of the EU, is that large drugmakers could buy such vouchers and apply the added exclusivity to expensive, best-selling medicines, forestalling generic competition across the continent and driving up healthcare costs. "It doesn't incentivize directly the development of new antimicrobials or the availability throughout the EU," said Kris Boers, Belgium's health and pharma counselor. "... "We need better measures, new business models, and direct financial incentives."
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M&A
A deal's a deal
Investors' long-predicted spike in drug-industry dealmaking hasn't come to pass, and the sector's latest acquisition is a reminder of just how far biotech has fallen in the eyes of its pharmaceutical peers.
Yesterday, Sun Pharmaceutical said it would pay $8 a share for Concert Pharmaceuticals and its late-stage treatment for alopecia. The offer is a roughly 33% premium to Concert's average stock price over the last month, and it could pay out another $3.50 per share if the company's drug meets certain milestones.
But zooming out, Sun's offer is a 20% discount to where Concert was trading in early 2021, and for shareholders who have held on since the company's 2014 IPO, the buyout would represent a nearly 45% haircut.
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