— Thecommercialchemist
In this week’s Chemistry World business news round-up, we cover more pharmaceutical restructuring, another obesity drug failure, and the $1000 genome.
Chemical industry
Hexion gets private equity funding to close Huntsman deal:
US speciality chemicals company Hexion, which was recently ordered by a Delaware court to honour its agreement to buy Huntsman, will receive $540 million (£318 million) from its parent company, private equity firm Apollo Management. Hexion originally offered to buy Huntsman for $10.6 billion (£5.8 billion) in June 2007, but then argued that, because of Huntsman’s poor subsequent performance, the combined company would be insolvent.

Pharmaceutical industry
Pfizer accused of burying negative studies:
A lawsuit has accused US pharma giant Pfizer of trying to cover up negative data about its blockbuster epilepsy drug Neurontin. Experts hired by the plaintiffs suing the company for fraud said that the company had a ‘publication strategy’ to suppress negative reports in medical journals while promoting off-label uses for Neurontin that weren’t approved by federal regulators, according to a Bloomberg report. Pfizer denies the charges.
Pfizer reorganisation continues:
In the latest move in a global restructuring plan, Pfizer has announced that it will create three new drug development units. One will focus on primarily on Brazil, Russia, India and China (the BRIC countries) in an effort to increase market share in emerging markets. The other two will focus on physicians – one on primary care doctors and the other on specialists. The move follows news last month that Pfizer would realign its drug discovery efforts and strategically shift its focus. Pfizer says that the change will not involve new job cuts.
Also this week, Pfizer closed its doors on the Michigan laboratory where its blockbuster cholesterol drug, Lipitor, was developed.
Imclone says yes:
The bidding war for US biotechnology firm Imclone is over, but the company has maintained that the $62 per share offer from Bristol-Myers Squibb was too low. Instead Eli Lilly will buy the company for $70.00 per share – approximately $6.5 billion.
But BMS will still benefit from the deal. The company will receive approximately $1 billion from Lilly for its 17 per cent stake in Imclone, whose very strong cancer drug pipeline has been the incentive for the bidding war.
Lilly pays $62 million in marketing settlement:
Eli Lilly will pay $62 million to 32 US states to resolve an investigation into the sales, marketing and promotion of its antipsychotic medication Zyprexa. Lilly was being sued for promoting and marketing the drug for unapproved uses, including elderly dementia and paediatric treatment. The company said in a statement that, under the settlement, ‘there is no finding that Lilly has violated any provision of the state laws under which the investigations were conducted’.
Coming soon: the $1000 genome:
Complete Genomics, a young US gene sequencing company, has revealed that it plans to sequence 1000 human genomes by next year and 20,000 in 2010. The firm is building a sequencing centre at its California base, where it plans to sequence human genomes for pharmaceutical companies, biotechnology firms, personal-genomics companies and government-funded sequencing centres. It will charge customers $5,000 to sequence a genome, according to chief executive officer Cliff Reid, who estimates that the cost of materials used to generate each sequence will be around $1,000.
Another obesity drug bites the dust:
Merck has shelved its most advanced antiobesity agent taranabant, as data from Phase III trials showed that in addition to having greater efficacy at higher doses the drug also resulted in more adverse psychiatric events, including anxiety and depression. Taranabant acts on cannabinoid receptors to reduce food cravings. It belonging to the same class as Sanofi-Aventis’ rimonabant (Acomplia, Slimona) which was launched in European and South American countries in 2006 for the treatment of obesity in patients with Type II diabetes.

Proposed controls threaten EU drug trade:
Cross-border pharmaceutical trade in the EU could be severely curtailed under proposed legislation set to be unveiled by the European Commission later this month, according to a report by the Financial Times. The newspaper received a document detailing rules to crack down on the trade in counterfeit medicines, that would also make it difficult for wholesalers legally to move pharmaceuticals across the EU’s open borders. New rules would put tight restrictions on the repackaging of medicines, a process required to ensure the correct language and coding information is used on packaging and information leaflets.
J&J paid $68 million to settle birth control cases:
Johnson & Johnson has spent at least $68.7 million to settle hundreds of lawsuits filed by women who suffered blood clots, heart attacks or strokes after using the company’s Ortho Evra birth-control patch, court records show. Bloomberg News reviewed the court records and found that the vast majority of complaints alleged the patch caused blood clots in the legs or lungs. Some blamed it for heart attacks or strokes. The complaints blamed Ortho Evra for the deaths of 20 women.
Food
Unilever comes out against biofuels:
Food and consumer goods group Unilever has backed recommendations to scrap mandatory biofuel targets and subsidies ‘to improve food security and prevent famine’. The recommendations were made this week at the annual meeting of Commonwealth finance ministers in St Lucia. Unilever is concerned that subsidies for biofuels are driving up food prices and the cost of its products, according to a Guardian report.

Environment
Carbon footprints hidden:
Nearly half of the UK’s top 250 companies are unwilling to disclose their carbon footprints to city investors. Only 58 per cent of FTSE-250 companies responded to the latest survey by the carbon disclosure project.
Europe backs carbon capture:
The European Parliament’s Environment Committee voted for a carbon emissions cap on new power plants, and to support carbon capture technology with revenue from the carbon credits that an expanded EU emissions trading scheme (ETS) will sell at auction, starting in 2013. That could be worth as much as 10 billion euros (£7.7 bn). Energy-intensive industries, such as the chemical sector, are hoping to be protected from the increased costs imposed by the new ETS, and the committee also voted to give such industries an easier phase-in to the ETS. The vote will influence negotiations with EU leaders but a final decision on carbon capture and the ETS is not expected until later this year, or early 2009.