Healthcare Biz Recap: Glaxo TRICKS Doctors, Amylin BOUGHT By Two Firms

GlaxoSmithKline’s (NYSE:GSK) once-a-day lung medication LAMA/LABA performed well in late-stage testing in patients suffering from chronic obstructive pulmonary disease. Glaxo hopes that the drug will be a successor to Advair, and intends to initiate filing for regulatory approval at the end of 2012. The drug is being developed with GXS; partner Theravance (TRX), whose shares are up considerably Monday. Meanwhile, the Justice Department says that GlaxoSmithKline will plead guilty and pay $3 billion in fines, which includes a $950 million criminal fine to settle fraud allegations, and its failure to report safety data. The complaint alleges that the firm tried to defraud doctors by promoting false and misleading studies and treatment guidelines in attempts to get them to prescribe its drugs, including stars like Paxil and Advair.

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Shares of Amylin (NASDAQ:AMLN) pop following the word that it’s being acquired by Bristol-Myers Squibb (NYSE:BMY) and AstraZeneca (NYSE:AZN) in a transaction of $31 per share that amounts to $7 billion. Tim Anderson at Bernstein agrees that the two buyers are the most logical for Amylin, but doesn’t believe that the deal will significantly change the financial prospects for either company. Deutsche Bank said that “The acquisition is a good strategic fit…with a sound financial basis and tangible economic benefits”, and UBS, Wells Fargo and Leerink Swann also issued positive appraisals.

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