News

As those who attend medical conferences know well, biotech executives like to talk about what they do in terms of models.

GlaxoSmithKline is expanding its restructuring programme in order to generate an additional, annual pre-tax savings of £500 million by 2012. Half of the savings will come from R&D where it intends to stop discovery research in depression and pain.

The Roche group’s net income declined by 22% to CHF 8.5 billion in 2009 as it absorbed the cost of acquiring and integrating Genentech. Group sales, however, rose by 8% and the company proposed a 20% increase in its dividend.

Galápagos NV, which performs discovery research for itself and for other companies using a functional genomics platform, has acquired Argenta Discovery Ltd, a privately-held contract research organization, for €16.5 million in cash.

Cytos Biotechnology AG, the Swiss developer of therapeutic vaccines, is focusing its future development work on partnerships with Novartis and Pfizer to conserve cash ahead of the scheduled repayment of its convertible debt in February 2012.

TopoTarget A/S, the Danish company focused on cancer treatments, has partnered its lead compound, belinostat, for $30 million upfront, potential fees of $320 million plus double digit royalties on sales.

The European Medicines Agency (EMA) is inviting comments from industry, healthcare professionals and the public on its proposed strategy for the next five years, a period during which infectious disease and demographic change will put new demands on the drug regulatory system.

Galápagos NV expects to achieve an operating profit in 2010 on the back of an anticipated 20% increase in revenue to more than €120 million. The Belgium-based company issued the forecast on 29 January 2010 with the release of its unaudited results for 2009.

Ark Therapeutics Group Plc plans to reduce its staff while it appeals against a negative opinion from the European Medicines Agency for its lead gene therapy. It is also putting a hold on a Phase 3 trial for Vitor, a treatment for cancer-related muscle wasting. 

The European Commission has approved the Roche group’s breast cancer treatment, Herceptin (trastuzumab), for metastatic stomach cancer. The drug is to be used in combination with chemotherapy for patients with HER2-positive stomach cancer.