Big pharma' greater interest in vaccines

"Big pharma's" interest in the vaccines sector, a global market estimated at $12.0 billion, continues unabated, according to analysts at Lehman Brothers. They note that there has already been substantial merger and acquisition activity within this biotechnology sub-sector, and they expect this trend to continue.

In their new report, the analysts recall that GlaxoSmithKline (which bought ID Biomedical and Corixa), Novartis (buying the remainder of Chiron) and Pfizer (which took over Powder Med) have all completed vaccine acquisitions (Marketletters passim), with a total of almost $8.0 billion spent on M&A in this therapeutic sector since September 2005.

Also, they pointed to comments made by Novartis chief executive Daniel Vasella after the sale of its Gerber and medical nutrition business (Marketletter April 16), when he stated the company's priority is to invest in the core business, with a particular focus on vaccines and biotechnology. However, the analysts also warn that increasing competition to secure attractive vaccine products and/or technologies is likely to substantially raise the price of in-licensing and acquisition.