The past week saw a handful of events for the healthcare sector.
First, Pfizer (
) received the much awaited European approval for expanded use of
its blockbuster vaccine Prevenar 13 in children and adolescents
aged 6 to 17 years. Pfizer's counterparts Merck and Johnson &
) were in the news for taking interest in eye-care company Bausch
& Lomb, which was put on the block by the private equity major
Warburg Pincus. Abbott Labs (
) is also said to be in the fray to acquire Bausch & Lomb.
Meanwhile, the healthcare company began final stage trials to get
FDA approval for first kind of drug eluting bioresorbable stent,
New year celebrations continue for Pfizer as, after receiving
FDA approval for blockbuster potential blood thinner Eliquis (Read
Pfizer Secures Coveted FDA Approval For Eliquis
), the drug maker has secured European approval to expand use of
its one of the largest selling pneumococcal vaccine, Prevenar 13
(known as Prevnar 13 in the U.S.). The vaccine was showing
consistent double digit growth rates until Q3, where it surprised
the market by posting a decline in revenues as most eligible
pediatric patients were already vaccinated and the adult patients
market was largely not open to the vaccine. The approval will
open the additional revenue stream for the vaccine as it now be
given to children and adolescents aged 6 to 17 years, bringing
reprieve to it.
However, there are other approvals, the vaccine is still
awaiting including FDA approval for the same age group and CDC
recommendations for all adults aged 50 years and above in the US.
With these approvals and no significant competition in the market,
we expect revenues from the Prevenar franchise to nearly double
from current $4.5 billion by the end of our forecast period. Read
Pfizer Updates: Europe Approves Expanded Use Of Prevenar 13
for detail analysis.
See Full Analysis For Pfizer here
Merck, Johnson & Johnson And Abbott Labs
Merck, Johnson & Johnson and Abbott Labs are said to be
considering the acquisition of private equity firm Warburg Pincus
owned eye-care company Bausch & Lomb. Many of healthcare
companies are facing revenue losses due to patent cliffs and/or a
weak drug pipeline. Bausch & Lomb has vision care products
(contact lenses, lens care products etc) and ophthalmic surgical
devices and instruments in its product portfolio. In addition, it
has a number of generics and branded drugs mainly for eyes with a
promising pipeline. Healthcare companies could benefit from an
established but steadily growing business. Among the potential
suitors, we think Merck and Abbott Labs could be one of the most
serious contenders even as a $10 billion price tag could discourage
them. Read our note Merck, Abbott And JNJ Show Interest In Bausch
& Lomb to know why we think so.
See our complete analysis for: Johnson & Johnson
Abbott Labs |
Following Abbott Labs' company split on Jan 2, its medical
device business has seen an increased activity as the diversified
healthcare company has begun phase III clinical trials in the U.S.
to prove efficacy and safety for world's first drug eluting
bioresorbable stent, Absorb, which dissolves in patients'
bloodstreams after finishing treatment of narrowed /diseased
arteries. While the device is currently approved and being sold in
Europe and other markets, the large U.S. market still evades it
pending clinical trials.
In our current model, stents are part of the company's vascular
franchise, which has been Abbott's largest contributor to growth.
The business, however, has been under pressure of late due to weak
stent sales. Backed by such new and innovative products, we expect
the company's overall vascular market share to increase to our
expectations of over 17.5% by the end of the Trefis forecast
period. Recently, Abbott Labs won FDA approval for its
next-generation Xience Xpedition DES.
For Abbott Labs here
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