April 25, 2024

Drug Companies Promise More Data Transparency

Representatives of the world’s biggest pharmaceutical companies pledged on Wednesday to release detailed data about their drugs to outside researchers, a move that was applauded by some but also seen as an effort to head off more extensive disclosure requirements that are under review in Europe.

The announcement, made jointly by the two major pharmaceutical trade groups in the United States and Europe, signals a shift for the industry, which in the past has resisted calls to systematically share its data. The proposal was unanimously approved by member companies and is to take effect on Jan. 1. It would apply to all new drugs and all new uses for existing drugs, whether approved in the United States or the European Union.

“Quite frankly, we recognize that there are a lot of skeptics, but this is the right thing to do and the right time to do it,” said John J. Castellani, chief executive of the Pharmaceutical Research and Manufacturers of America, also known as PhRMA, which developed the guidelines with its overseas counterpart, the European Federation of Pharmaceutical Industries and Associations. Members of the two groups collectively represent about 80 percent of the world’s pharmaceutical research, Mr. Castellani said.

“What they are doing would have been thought to be inconceivable even a short time ago,” said Dr. Harlan M. Krumholz, a cardiologist at Yale who recently oversaw an outside review of a treatment by the device maker Medtronic. “If these companies truly fulfill these promises, then they will have made an important contribution to science and the common good.” But he said their efforts would need to be monitored.

Proponents say doctors and patients need independent information — not just that provided by manufacturers — about the risks and benefits of drugs.

But as recently as February, PhRMA issued a statement criticizing proponents of data sharing, saying that releasing what’s known as “patient-level” clinical data would be irresponsible and encourage second-guessing of regulatory agencies, “which would be disastrous for patients.” Both industry groups have opposed a plan by the European Medicines Agency, which oversees approvals in Europe, to make trial data public whenever a drug is approved. A similar effort to require such data disclosure is under way in the European Parliament. On Monday, the British newspaper The Guardian reported on a leaked e-mail that detailed plans by the two trade groups to enlist the help of patient groups to try to kill the efforts in Europe.

Mr. Castellani said the plan released Wednesday should be seen as an alternative to the proposals being considered in Europe, which would have fewer restrictions on the data. Drug makers have raised concerns that patient privacy could be compromised if the data were not properly redacted, and that competitors could mine the documents to gain an advantage. Under the industry plan, companies would set up outside panels to consider requests from “qualified” researchers for a range of data and dossiers that drug companies keep on their drugs. They would also have to provide plans for how they planned to use the data.

Some researchers questioned whether the companies’ review boards would be truly independent, and bristled at what they described as restrictive requirements. But Mr. Castellani said such provisions were necessary. “Putting this out is what we think is a responsible way to meet the researchers’ needs,” he said.

Article source: http://www.nytimes.com/2013/07/25/business/drug-companies-promise-more-data-transparency.html?partner=rss&emc=rss

DealBook: Gilead to Buy Pharmasset for $11 Billion

Test samples in a Gilead Sciences laboratory in Foster City, Calif.David Paul Morris/Bloomberg NewsTest samples in a Gilead Sciences laboratory in Foster City, Calif.

10:54 a.m. | Updated

Gilead Sciences made a bold move on Monday to capture the lead in developing the next generation of hepatitis C drugs, agreeing to pay $11 billion in cash for Pharmasset.

Gilead will pay $137 a share in cash, nearly 89 percent above Pharmasset’s closing price on Friday and almost 55 percent above its 52-week high of $88.52.

The treatment of hepatitis C has already undergone a revolution this year, with new pills from Vertex Pharmaceuticals and Merck sharply increasing the cure rates and also often cutting the required duration of treatment.

But those new drugs still must be used with interferon, a type of drug injected once a week that can cause severe flu-like symptoms and other side effects.

Pharmasset, based in Princeton, N.J., is leading the push to develop the first all-oral treatment regimen, doing away with the need for interferon. Its lead drug candidate, PSI-7977, has just entered the final phase of clinical testing and could be on the market as early as 2014, Gilead said.

Pharmasset is “way ahead of everybody else,” Norbert W. Bischofberger, Gilead’s executive vice president for research and development, told analysts on a Monday morning conference call.

Gilead is a leader in developing and selling drugs to treat H.I.V. infection and AIDS, and also sells medicines for hepatitis B. But it has not distinguished itself in the hepatitis C area.

Between Pharmasset’s drugs and Gilead’s own experimental hepatitis C products, “we have all the ingredients in hand now” to explore various combinations of oral drugs, Dr. Bischofberger said.

Eventually, he said, Gilead hopes to combine two or three hepatitis C drugs into a single pill, a strategy that has been very successful for AIDS with its drug Atripla.

Geoffrey Meacham, biotechnology analyst at JPMorgan, called the move “a bold and strategically positive deal” for Gilead. Yaron Werber of Citigroup said the acquisition “propels Gilead to potentially dominate the hep-C market.”

Still, shares of Gilead fell about 10 percent, to $35.64, in trading on Monday morning, perhaps because of concerns about the price of the deal and its effect on earnings. The takeover is expected to dilute Gilead’s earnings through 2014 and then begin contributing to profit in 2015.

Shares of Pharmasset, whose ticker symbol is VRUS, soared about 85 percent on Monday, to $134.20. Before Monday, the stock had already climbed more than 240 percent in the last year on expectations for PSI-7977. The company reported a $91 million loss for the year ended Sept. 30 on revenue of $897,000.

Major drug makers have been on an acquisition spree in the last few years, driven by the need to refill their product pipelines. Gilead, based near San Francisco, has made 10 deals since 2006, though the one for Pharmasset is by far the biggest in Gilead’s 24-year history.

Many of Gilead’s previous acquisitions, like those aimed at moving the company into cardiovascular medicine, have been considered less than successful by many on Wall Street.

Hepatitis C, being a viral disease, fits more with Gilead’s expertise. But there are likely to be questions about why Gilead was paying nearly twice Pharmasset’s market value, which was already considered extremely high for a company without a product on the market.

John F. Milligan, Gilead’s president and chief operating officer, told analysts that Gilead, unlike Pharmasset, already had the ability to apply for regulatory approvals and to sell PSI-7977 around the world.

“So in our hands, it becomes more valuable,” he said. He also said there was apparently competition to buy Pharmasset.

Desperation might have played a role as well. Dr. Milligan said one of Gilead’s own hepatitis C drugs had not lived up to expectations.

About 3 million to 4 million Americans — and as many as 170 million people worldwide — are estimated to have chronic infections of hepatitis C. Many of those infected in the United States are Baby Boomers who injected drugs using contaminated needles decades ago and might not even know they are infected. The infection can cause liver cirrhosis and liver cancer, but often not for decades after the initial infection.

Until recently, treatment of genotype 1 of the disease, which accounts for about 70 percent of the infections in the United States and is one of the most-resistant strains, involved an almost yearlong regimen of interferon and ribavirin, an oral medicine.

The new drugs, Vertex’s Incivek and Merck’s Victrelis, when combined with the existing two drugs, increase the cure rate for genotype 1 to 60 to 80 percent. And in some cases they require only 24 weeks of treatment.

Pharmasset’s PSI-7977 has been tested mostly for genotypes 2 and 3, which generally require only 24 weeks of treatment with the older drugs. In one small test, 10 of 10 patients treated with the drug and ribavirin were considered cured after only 12 weeks of treatment, a result that astounded researchers.

Pharmasset is now testing that combination in two phase 3 trials aimed at genotypes 2 and 3. It is less clear how well PSI-7977 will do against the tougher and more common genotype 1.

The new drugs work by directly blocking the action of enzymes used by the virus, similar to the strategy used so successfully against H.I.V. PSI-7977 blocks the polymerase enzyme. The Merck and Vertex drugs block the protease enzyme.

As with H.I.V., it is expected that a combination of two or three drugs might be needed, so drug makers will either have to cooperate with each other or make deals to buy up the various ingredients.

Roche, for instance, has made acquisitions and licensing deals in an effort to put together the pieces. It owns rights to one of Pharmasset’s drugs, called mericitabine. And Pharmasset has been testing PSI-7977 in combination with drugs from Bristol-Myers Squibb and Johnson Johnson. Those arrangements are expected to continue despite the takeover.

Pharmasset’s board unanimously approved the deal, which will be carried out through a tender offer, according to a news release from both companies.

Gilead plans to pay for the deal with a combination of cash on hand, bank loans and new bonds, with financing coming from Bank of America Merrill Lynch and Barclays Capital. Gilead said on Monday that it would suspend its share repurchase program for now.

Besides Barclays and Bank of America, Gilead was advised by the law firm Skadden, Arps, Slate, Meagher Flom. Pharmasset was advised by Morgan Stanley and the law firm Sullivan Cromwell.

Article source: http://dealbook.nytimes.com/2011/11/21/gilead-to-buy-pharmasset-for-11-billion/?partner=rss&emc=rss