Perspectives Blog

Specialty pharmaceuticals – The fastest growing category of healthcare spending

Harlan Sonderling, CFA, Senior Healthcare Analyst | January 27, 2014

A complex industry has developed to manage the delivery and costs of the therapeutic innovations in specialty pharma Healthcare payers are focused on managing specialty pharma spending, their most rapidly growing medical cost The accelerating pace of change and disruptive therapeutic advances create significant opportunities across healthcare delivery Pharmaceuticals are central to the effort to improve medical outcomes and control medical cos…

M&A in healthcare – Out with the old, in with the new?

Harlan Sonderling, CFA, Senior Healthcare Analyst | March 31, 2014

…ther than general practitioners, or Generics company selling mostly cheap (less expensive) copies of branded medicines whose patents have expired, or Company that manufactures and sells some combination of branded and generic pharmaceuticals. Company A announces its cash or cash and stock acquisition of Company B, another specialty or generics company, maybe one incorporated in a low-tax jurisdiction. Company A pays a premium, as acquirers almos…

Antibiotic resistance – What it means for drug manufacturers, hospitals and diagnostic companies

Columbia Management, Investment Team | May 12, 2014

…model. The bill provides the ability for companies to charge higher prices that are more in-line with the high unmet need and smaller target patient populations of these so called “super bugs.” Near-term launches from Cubist Pharmaceuticals (ceftolozane/tazobactam) and an expected submission from Forest Labs (ceftazidime/avibactam) will set the tone for the results of these new regulations. CDC Guidance In September, the CDC named urgent antibio…

Predicting new drug sales is more art than science

Harlan Sonderling, CFA, Senior Healthcare Analyst | April 14, 2014

Predicting sales of new medicines is highly inaccurate and subject to significant and often costly errors. While investment analysts can draw on research tools and experience, history suggests new drug forecasting will remain more art than science. Despite the high level of uncertainty and variability in new drug forecasts, the innovative medicine industry is alive and well. Predicting sales of new medicines is highly inaccurate and subject to…