Teva Pharmaceuticals Wins Bid for Cephalon for $6.8 Billion

Last time Teva was in the news here it was related to the news of their collaboration with Proctor and Gamble with creating an over the counter drug and marketing business, to compete generally with a division of Johnson and Johnson.  Teva also last week began opening up manufacturing in Irvine, California, a plant that has been closed for quite a while now, so some relief for a few drugs that have been in short supply. 

Teva And Procter & Gamble Create Over the Counter Drug Marketing and Distribution Business-Do The Consumer A Favor and Start Bar Coding for Recalls-They Will Happen

From the Cephalon website:

Founded in 1987 as a biotech start-up, we have grown into one of the world’s top ten biopharmaceutical companies, with an impressive roster of first-in-class products, a deep and diverse pipeline, and total revenues of $2.81 billion in 2010. And even though we’ve grown to have thousands of employees in locations around the globe, we’ve never lost the agility and nimbleness of a start-up.

Our portfolio of innovative treatments for central nervous system disorders, pain, and cancer include eight proprietary products in the United States, along with more than 100 products internationally. Our research pipeline is focused on developing new compounds and new indications for existing products, while our business collaborations capitalize on new products and smart drug delivery technologies.

In the amount of time I have been doing the blog here it has been interesting to watch and see TEVA grow.  They are based in Israel and for the most part have been one of the most aggressive generic drug companies.  In addition, they do have a few drugs of their own they have developed in house, so over all they are very diversified.  One drug they used to supply to the US was propofol and I don’t see any mention so far of that drug coming back on line for them with manufacturing.  

PHILADELPHIA Israel-based Teva Pharmaceuticals Industries Ltd. will acquire Cephalon Inc. of Frazer, Pa., in a $6.8 billion deal, the two companies announced Monday.

In recent weeks, Cephalon has warded off a hostile takeover attempt by Valeant Pharmaceuticals International Inc., which is headquartered in the Toronto suburb of Mississauga, Ontario.

Valeant's offer of $73 per share was trumped by Teva's offer of $81.50 per share for all outstanding shares.

Teva said the combined companies would have about $7 billion in sales. The deal would be made with cash on hand, lines of credit, and through the public debt market, Teva said.

http://www.google.com/news?hl=&q=teva&sourceid=navclient-ff&rlz=1B3GZAG_en___US424&ie=UTF-8

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Community Health Systems Raises Bid by 20% for Tenet With Best and Final Offer

This makes yet another offer and we also have the lawsuit filed by Tenet against Community Health System too.  Who would ever think hospitals would be involved with hostile take overs, but here’s one.  Tenet is not to anxious to become part of Community Health from what we have seen and there’s also the investigation that HHS has started with Community too that was recently announced. 

Who’s advising Community on this affair, none other than Goldman Sachs.

Tenet Files Suit Accusing Community Health Of Inflating Hospital Admissions

Community Health has been working at a hostile takeover of Tenet which started back in January, or least that’s when it started receiving coverage in the news.  Community even went so far as to recommend replacing their board of directors with their suggestions.

Community Health Converts Bid to $3.3 Billion Bid in Cash-Warming Up For Some of the Most Complicated Algorithmic Auditing Lawsuits in History With Healthcare

We might just be warming up for the most technical lawsuits ever filed, the battles of the hospital algorithms.  We better get some better intelligence in Congress and seriously think about our processes as with digital illiteracy we as a nation of citizens are set to be screwed in more ways than one when all this shakes lose with formulas beyond normal comprehension with skewed and denied care for patients, but nobody did anything wrong, correct?

Tenet Tells Community Health Thanks But No Thanks in Response to Their Submission of 10 Nominees for Tenet’s Board of Directors

Community Health Systems Inc.'s boosted its hostile takeover offer for Tenet Healthcare Corp. by more than 20%, making a "best and final offer" and giving its rival a week to respond—the latest move in the contentious takeover fight.

Tenet said its board will review the revised proposal—which increases the all-cash bid to $7.25 a share, or some $4.07 billion, from $6 a share—and noted that its directors have unanimously rejected Community Health's previous offers. Tenet has been aggressive in battling its pursuer, including filing a federal lawsuit last month that accused Community Health of overbilling Medicare.

Community Health Raises Offer for Tenet by 20% - WSJ.com

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Medical Loss Ratios Showing Devastating Effects With Health Insurance Agents and Consumers

As we know the MLR, aka medical loss ratios were supposed to ensure consumers received good care and service.  We all just saw all the record breaking profits of the major health insurers for the first quarter of 2011 and how did they do it?  As consumers we see many different areas but they are cutting or starving the hands that feed them that is if the insurers want more policies sold via insurance agents. 

You can read through the highlights below as many have or are already considering laying off employees and commissions have been cut.  There seems to be a direct correlation between when the MLR went into effect on January 1st and commissions according to the surveyed information below.  As consumers when agents lay off staff, we stand to see less in customer service for sure as that’s the way that wheel rolls, so there’s less support in helping customers file claims and offer wellness services as some agents do today.  Some agents will begin charging fees for services they used to offer for free but some states do not allow agents to do so so they are kind of stuck there. 

United Health CEO Compensation Grew 21 Percent–Pay For Performance/Salary Yielded 4.7 Million of An Almost $11 Million Pay Out

As the number of insurance agents drops, so does the ability sometimes to keep enough competitive carriers out there.  I guess this is the next endangered group of employees and businesses to be hit, and when you come to think of it, they are the people that drive revenue for them, so it sounds like the small insurance agent will also in a matter of time be giving way to the web.  As a consumer it’s one more lost benefit with customer service.  I didn’t see any carriers having issues with medical loss ratios nor profits so what gives here?  BD   

A new survey of members of the National Association of Insurance and Financial Advisors shows that the medical loss ratio (MLR) provision of the Patient Protection and Affordable Care Act (PPACA) is causing devastating consequences for health insurance agents and the individuals and small businesses they serve. While Congress enacted the MLR with the aim of ensuring consumers get good value for their premiums, the NAIFA survey shows that in many cases the provision is having the opposite effect.

According to the poll of 520 NAIFA member agents and brokers who sell and service health insurance policies, 75 percent have seen their commissions decrease since the MLR went into effect Jan. 1, 2011. An additional 13 percent have been informed by insurance companies that commissions will be cut in the near future.

The decreases have been substantial. More than five out of ten (53 percent) of all the agents surveyed report that their commissions have been lowered by 25 percent or more, which includes 17 percent who say their companies have cut commissions by 50 percent or more.

Most of the agents who have thus far absorbed the hit of the reduced commissions say they won't be able to do so forever. Nearly half (44 percent) say that if allowed they will charge fees for services they have always performed at no additional cost to clients. However, many states prohibit insurance agents who receive commissions from charging fees. Customer services will be on the chopping block for 30 percent of the agents, if commissions remain depressed. Almost three out of ten (29 percent) will stop serving individual health insurance clients, and 18 percent will stop selling health insurance altogether.

The survey shows that 13 percent of the agents with reduced commissions have laid off or reduced the hours of their support staff, affecting an average of two employees per agency. Another 23 percent have considered staff reductions. More than a quarter (27 percent) said they will be forced to reduce staff in the future if commissions remain depressed.

New Survey Shows Devastating Effects of Medical Loss Ratio on Health Insurance Agents, Consumers | Benzinga.com

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FDA Approves Diabetes Pill for Diabetes 2 For Both Stand Alone and Combined Treatments

The drug as approved can be used as a stand alone or in combination with other drugs to help patients control blood sugar and works by releasing  hormones  and by blocking the DPP-4 enzyme. 

Boehringer Ingelheim and Eli Lilly and Company worldwide diabetes joined forces in January 2011to work together on the drug.  I always talk about collaboration and here’s one good example that the Health IT folks can perhaps appreciate.  Any more so much of the research and development is done via the computer before a lab is created at the final stages before a trial begins.  BD

WASHINGTON — The Food and Drug Administration says it has approved a new diabetes pill from Boehringer Ingelheim and Eli Lilly for patients who can't control their blood sugar with older medicines.

FDA OKs new diabetes pill - Health - Diabetes - msnbc.com

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Bristol-Myers Recalls Coumadin Blood Thinner For Being Over Potent

Here we go again with recalls and no system to easily identify and hope nothing gets missed as this is an important recall so say the least with a tablet was more potent than stated.  With Coumadin being a blood thinner we can all figure out what means.  Shall we go back and revisit Dennis Quaid as a reminder?  He made a movie about it too.  The link below will bring more of this to light. 

Dennis Quaid Produces Documentary About Patient Safety - Chasing Zero: Winning the War on Healthcare Harm

Again, if a cell phone could be used as a scanner to find the affected bottles, it would certainly help the cause when locating recalled drugs.  BD

Microsoft Tags on CBS Early Show – Wake Up FDA, Pharma and Medical Device Companies –Scan Those Drugs, Medical Devices and Synchronize with an FDA Tag Data Base – Recalls, Theft Tracking and More….

So what does a consumer do, talk to your pharmacist….again sad we have technology to solve a lot of this today and nobody’s listening.  BD 

NEW YORK — Bristol-Myers Squibb Co. said Monday it is recalling one production lot of its blood thinner Coumadin after finding a tablet that was too potent.

The company said it tested a returned bottle of Coumadin and found that one tablet was more potent than expected.

An excessive dose of Coumadin, or warfarin, could create an increased risk of bleeding.

Bristol-Myers recalls Coumadin blood thinner - Health - msnbc.com

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Eli Broad A Major Philanthropists Giving Away Millions For Medical Research and More (Video)

Eli Broad is one of the most generous philanthropists in the US today.  It is interesting to hear the comments and Eli Broad wants to die relatively poor.  In the wild west we live in today with disruption and distraction, thank goodness philanthropy at this level exists.  Los Angeles is a major recipient and the view of what has occurred in downtown LA. The one parking lot shown is one that I know well as park there when attending Microsoft User Group meetings, been there many times, right on Grand avenue and watch the Disney Hall go up.  As the video states he practices “venture philanthropy” in other words he wants results and if he doesn’t see them he stops funding.  Bloomberg has some kind words as he has contributed to New York Schools and addresses the fact that people say Broad is hard to work with and says “its his money” so you play or you don’t play, makes sense to me. 

The Broad Institute of course is in Massachusetts and have one of the world’s largest genomic centers.  I have covered some of their news here from time to time and each time it seems there’s always a mention of buying more genomic sequencing machines. 

Broad Institute of MIT Purchases 51 Sequencing Machines from Illumina – Genomics

In January stem cell research at UCLA Edith and Eli Broad Center had some major news relative to regenerative medicine for repairing brain injuries. 

UCLA Stem Cell Study Creates New Roads for Potential Repairing Brain Injuries-Regenerative Medicine

Broad is one of the Giving Pledge members, a campaign initiated by Warren Buffet and Bill and Melinda Gates.

Bill Gates & Warren Buffett – Call for Philanthropy To Give 50% of Their Fortunes To Help Others With “The Giving Pledge”

He talks about his own children not having the same ambition that he has and they are well taken care of and he states he has plenty to go around and Mr. Broad also makes his art available for display at museums too.   Both California and Massachusetts are miles ahead with research thanks to his donations.  His wish is to just be the “most respected” person around.  BD 

In this era of belt tightening, it's kind of refreshing to take a look at people whose happiest pastime is to give money away. Such a man is 77-year-old Eli Broad, a self-made billionaire, art collector and for the past ten years one of the most consistently generous philanthropists in America - supporting education reform, medical research and the arts. Broad also wants to transform that sprawling monster of a city Los Angeles into a cultural capital.

Broad thinks big, but his critics say he can act very small: that he may give billions away, but that he tries to micromanage almost every dollar he gives. Broad doesn't really care what they say - all he wants to do is die poor. Well, relatively poor.

"When you've got one 800 pound gorilla in the room, you're scared to death of the guy. Everybody does want something from Eli. And since he is the biggest game in town, nobody wants to alienate him," art critic Christopher Knight said.

Why and how Eli Broad is giving billions away - 60 Minutes - CBS News

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