Are Big Pharmaceutical Deals Back?

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April 25 (Bloomberg) -- Gabelli Analyst Jeff Jonas and Radiation Oncologist Dr. Elizabeth Thompson examine the chemistry and future of the pharmaceutical industry. They speak with Stephanie Ruhle and Erik Schatzker on Bloomberg Television’s “Market Makers.” (Source: Bloomberg)

Saw last year.


What is going on?

There is a race to get focused and bigger.

Everyone wants to be number one or number two.

That is what you are seeing now with eli lilly becoming bigger with animal health.

They are trying to get to scale, synergy and really dominate each other.

From where you sit, when we look at what happened this week with valley valleyiant, it looks like what bill ackerman has was on talk.

They got the patient and.

They can get her in for botox, fillers.

They have contact lenses covered now.

It is really important.

For pharma it comes down how you look at the industry.

I wanted to replay one excerpt that we had with bill ackerman and also mike pierson.

I think what is happening is the entire pharmaceutical industry is changing.

There is a dynamic happening.

Why there's so much opportunity for synergy?

There is a lot of cost.

It is one of the few industries that has not been forced to operate with the same kind of economic is a fun as other industries.

When he talks about synergy, do the synergies apply better?

Drug companies have an effort to cut some of the costs associated with marketing.

Are the jet companies thinking about it differently?

That is better to be vertical them brought?


The synergies come from the sales force.

You just need one person calling on the dock are.

They used to have.

He -- dr.. these to have three or four people.

The synergies come from the sales force.

A lot of these companies are doing duplicate clinical trials.

Now there is a lot of leverage that comes.

What kind of pricing power does this give them?

If the patient came in for breast reconstruction, the office is arty selling botox.

They are only good to offer the allergan implants.

We have to be careful in letting these kind of deals influence our decision.

What is that dynamic like?

It clearly becomes easier for the jet company, for the pharmaceutical, when he, to make its case to you.

-- pharmaceutical company to make its case to you.

It is a time factor.

They're making the decisions that are best for patients.

Doctors have favorites of what they like to use and what turns out better in terms of reconstruction.

I think that by being a big goliath and taking over the whole industry it'll be problematic.

Do you agree with that?


Out again gives you a discount if you -- allergan gives you a discount if you buy them together.

They are trying to encourage a greater sale.

They may take a slightly lower margin in exchange for the volume.

There is a lot less the reps can do.

If valiant comes and they're going to cut the drug reps.

There are ways of making a much easier for physicians to use one brand.

Walk me through the perks.

When you go into a physician's office they will typically offer botox and people love to get breast augmentation.

Most women would not say no to those offered for free.

It is a very appealing procedure for a lots of women.

For breast cancer patients is becoming much more, now to have an implant reconstruction rather than no reconstruction.

It is really coming forward in terms of what patients want.

I'm not sure how to add to that thought.

I think she's picking about cancer patients.

I don't think using anyone because goes to an office once implants.

I think that is what she said.

When you walk in the door, it is easy to have these things freshened up every three months.

If you are going for a follow-up for a reconstructive procedure or breast augmentation, you might have a little botox.

I'll give you that.

She's looking at me like "you know where." mike pierson said they have no integration team.

He says they interrogate -- enter gate -- enter gate -=-- intergrate with the salesforce.

This is the flat organizational structure.

There is no middle management.

Show more companies do it that way?

The drug companies are moving in that direction.

They have cut a lots jobs in layers over the last several years.

Valiant has been the most direct.

What is their reputation among doctors?

They do not have a huge r&d budget.

Three and a million dollars is not going to get one drug to market.

When you talk to oncologists and physicians that are treating patients with fibromyalgia they lead mostly at the big names.

Those are drugs in the pipeline that are valuable.

As a doctor, do you like hearing mike pierson say it is not our business to develop new drugs.

We are happy to take something in phase three and bring it to market but we would rather have universities and other less financially disciplined drug companies to the hardware.

It is interesting.

I think more and more there will be a role for this.

It is hard to take an idea of a new drug and bring it through r&d to phase one and phase two trials in through the fda.

He is pretty smart.

He is saying let someone else do that and i will come in when it is an established project.

Let me sell it to the patent.

Eyelashes, wrinkles, breasts.

This text has been automatically generated. It may not be 100% accurate.


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