With Astellas Pharma and OSI Pharmaceuticals haggling over price, BNet Pharma wonders which biotechs could be next on the buyout menu. Mega-mergers might have been all the rage in 2009; however, with few targets left, the focus will shift to smaller acquisitions. Big Biotechs Biogen Idec and Gezyme could be on the menu, given Carl Icahn’s involvement in the companies.

So which smaller developers could be targets? Here’s BNet’s list:

• Vertex Pharmaceuticals’ promising hepatitis c drug telaprevir is in Phase III trials, and the company has a pipeline of drugs that features treatments for cystic fibrosis, epilepsy and inflammatory diseases

• GlaxoSmithKline is already partnered with Human Genome Sciences on its lupus drug Benlysta, which analysts predict could lead to $4 billion in sales.

• Alexion Pharmaceuticals boasts Soliris, the world’s most expensive drug, which pulls in about $400 million a year. The developer has four Phase II trials for other indications of the drug, which is currently approved for a rare blood disorder.

• Sales of pulmonary arterial hypertension drugs Remodulin and Tyvaso have led United Therapeutics to $370 million in annual revenues.

• With $844 million in sales last year, Bayer and Onyx Pharmaceuticals’ kidney and liver cancer drug Nexavar came close to the blockbuster mark. Four Phase III trials are testing the drug for additional indications

• Auxilium Pharmaceuticals is looking for more uses for its Testim testosterone gel and Xiaflex, a drug for hand contracture disease.

• Allos Therapeutics won approval last year for Folotyn as a treatment for peripheral T-cell lymphoma; trials for cutaneous T-cell lymphoma are under way.

Source: FierceBiotech

Popularity: 5% [?]

If you wonder why Big Pharma is so interested in drugs for rare diseases, here’s a possibility: High prices. In fact, a new Forbes survey finds that the cost of meds targeted to small groups of patients with serious genetic disorders dwarfs the prices of drugs for more common maladies, even cancer. The nine most expensive drugs in the world are all rare-disease treatments, it found.

While cancer meds can run into the tens of thousands for a year of treatment, these niche meds can climb to the hundreds of thousands. Witness the most expensive drug in the world, Alexion Pharmaceuticals’ Soliris. It’s a monoclonal antibody forparoxysymal nocturnal hemoglobinuria, which affects some 8,000 people in the U.S. Price, according to Forbes: $409,500. Three other drugs run more than $350,000 per year.

Another possible reason why this sort of drug is a plus for pharma: insurance reimbursement. Steven Russek, a Medco VP, tells Forbes that he hasn’t run across any insurance plans that refuse to pay for rare-disease treatments. They worry whether diagnoses are correct and dosages are calculated properly, yes, but don’t say no based on pricing principles.

Source: FiercePharma

Popularity: 2% [?]

Earlier this year, the industry saw three of the largest buyout deals in recent years (Pfizer/Wyeth, Merck/Schering-Plough and Roche/Genentech). Barron’s speculates that additional mega-mergers are unlikely over the next 12 to 18 months, due to the fact that there are fewer major buyout targets. Additionally, some companies have already said that they won’t pursue a big deal, are looking for smaller acquisitions or are expanding is emerging markets or generics. Yet there there are still a number of Big Pharma companies hunting for smaller acquisitions. After scanning the market for the most likely candidates for new M&A deals, the group has compiled a list of likely buyers and buyout targets.

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Bristol Myers Squibb, Sanofi-Aventis and AstraZeneca are all facing patent cliffs and have yet to do a bid deal. More diversified companies such as J&J, Abbott and Novartis could also be looking to reduce their dependence on current blockbusters. Here are the buyout/buyer targets Barron’s identifies:

• Alexion Pharmaceuticals for BMS, Abbot or Eli Lilly
• Amylin Pharmaceuticals for Lilly
• BioMarin Pharmaceuticals for Abbott, BMS or Lilly
• Rigel Pharmceuticals for Abbott, BMS or J&J
• Salix Pharmaceuticals for Forest Labs
• Vertex Pharmaceuticals for BMS, Gilead or J&J

Source: FiercePharma

Popularity: 3% [?]