Merck to still buy Cubist, even after patent setback

[Anonymous]

You all won't have the last laugh, Merck will at your expense !

 

[Anonymous]

This article really exposes the MRK stupidity...

http://blogs.wsj.com/pharmalot/2014...-do-now-that-cubist-lost-a-key-patent-ruling/

Best part of that article below. The irony of the CEO lawyer being trapped by his own deal is almost comical.

"But after reading the merger documents, ISI Evercore analyst Mark Schoenebaum introduces a note of caution. He believes it “appears that Merck cannot walk away from this deal,” he writes in an investor note. “I have been advised that if Merck did try to walk away, Cubist would sue and would very likely win.” He adds that Merck would owe a $250 million break-up fee.

Given that the patent litigation between Cubist and Hospira was well under way, Merck executives acknowledged during a conference call early yesterday that they were mindful of the possibilities. In response to a question, this is what Adam Schechter, who heads global human health at Merck, said, according to the transcript:

“Now, as you said, there are always different scenarios that could occur. Under all scenarios that we looked at, we still thought that this deal made the right sense, both strategically and financially. So it really depends on how the situation ends up, how many companies are in the marketplace, whether it can be enough manufacturers for the competitors, and so forth,” he said.

“So at this time, it’s early in the process. But we continue to feel very good about the deal, not just from the Cubicin perspective, but also because of the other products, including Zerbaxa,” said Schechter. He was referring to an anti-infective treatment that is awaiting regulatory approval in the U.S. and Europe. RBC Capital Markets estimates Zerbaxa could eventually generate more than $1.5 billion in annual sales."

 

[Anonymous]

Best part of that article below. The irony of the CEO lawyer being trapped by his own deal is almost comical.

"But after reading the merger documents, ISI Evercore analyst Mark Schoenebaum introduces a note of caution. He believes it “appears that Merck cannot walk away from this deal,” he writes in an investor note. “I have been advised that if Merck did try to walk away, Cubist would sue and would very likely win.” He adds that Merck would owe a $250 million break-up fee.

Given that the patent litigation between Cubist and Hospira was well under way, Merck executives acknowledged during a conference call early yesterday that they were mindful of the possibilities. In response to a question, this is what Adam Schechter, who heads global human health at Merck, said, according to the transcript:

“Now, as you said, there are always different scenarios that could occur. Under all scenarios that we looked at, we still thought that this deal made the right sense, both strategically and financially. So it really depends on how the situation ends up, how many companies are in the marketplace, whether it can be enough manufacturers for the competitors, and so forth,” he said.

“So at this time, it’s early in the process. But we continue to feel very good about the deal, not just from the Cubicin perspective, but also because of the other products, including Zerbaxa,” said Schechter. He was referring to an anti-infective treatment that is awaiting regulatory approval in the U.S. and Europe. RBC Capital Markets estimates Zerbaxa could eventually generate more than $1.5 billion in annual sales."

Better to lose 250 Mil than the 2 to 3 Billion (Price Merck Overpaid) by backing out of the Cubist deal now.

 

[Anonymous]

The latest spin:

We are buying cubist for their sales force which is well placed to propel our experimental drug MK-3415A for an intestinal bug, C. difficile. Adam Schechter says Cubist's sales force would strengthen Merck's relationships with insurers, gastroentrologists, infectious disease doctors, hospitals and outpatient centers.

http://www.reuters.com/article/2014/12/10/merck-antibiotics-idUSL1N0TU0UU20141210

Do they make this crap up as they go along?

 

[Anonymous]

Our GI presence is a joke. GIs still don't know what Dificid is. Sivextro has sold about a thousand dollars worldwide. Entereg,... Even less. And your company just Overpaid by $2B-$3B for a future gram Neg that appears to have some holes in it, to say the least. But at least you got generic dapto. LOL

Thanks for making us all rich, you dumb SOBs.

Our CEO is laughing at you right now. And there's NOTHING you can do about it. Cha. Ching.

 

[Anonymous]

The title of the news story should be...

Merck management gets it in the ass again!

Why couldn't these jokers have a provision in the contract requiring a drop in purchase price if they lost the patent case???

My god they can't run this company right!

 

[Anonymous]

Why couldn't these jokers have a provision in the contract requiring a drop in purchase price if they lost the patent case???

My god they can't run this company right!

Must be that Penn State law degree. Kenny is such a strong negotiator.

 

[Anonymous]

Why couldn't these jokers have a provision in the contract requiring a drop in purchase price if they lost the patent case???

My god they can't run this company right!

Get your panties out of your butt:

http://shearlingsplowed.blogspot.com/2014/12/despite-hospiras-spin-doctoring-cubists.html

" the one central Cubist patent -- RE '071 -- (belonging to Cubist, via a year 2000 Lilly exclusive license) which was held valid, and held to be infringed, by Hospira's actions, and ongoing attempts at commercialization -- of a generic daptomycin injection."

 

[Anonymous]

now now- tell the whole story. this patent is through 2016, not 2018 as thought. It was a huge mistake by mother.

 

[Anonymous]

We are getting efficient. Now we purchase products that won't be around long. It's easier than going through all the trouble to "pull it off the market" later for no reason.

So we throw away quality revenue in consumer products for 14 billion. Then we waste most of the proceeds it on a bankrupt deal that will not make any money.

I don't want to say it, but there is something that happens to people when they walk around with too much money in their pocket!

 

[Anonymous]

The latest spin:

We are buying cubist for their sales force which is well placed to propel our experimental drug MK-3415A for an intestinal bug, C. difficile. Adam Schechter says Cubist's sales force would strengthen Merck's relationships with insurers, gastroentrologists, infectious disease doctors, hospitals and outpatient centers.

http://www.reuters.com/article/2014/12/10/merck-antibiotics-idUSL1N0TU0UU20141210

Do they make this crap up as they go along?

I love how you say "for an intestinal bug, C. difficile". You sound like you've never heard of it; I guess you haven't had your little launch party yet so that you can go out to your docs 2 weeks later to try to sound like you know what you're talking about.

 

[Anonymous]

I love how you say "for an intestinal bug, C. difficile". You sound like you've never heard of it; I guess you haven't had your little launch party yet so that you can go out to your docs 2 weeks later to try to sound like you know what you're talking about.

Historical perspective, Upjohn's lincocin brought c. Dif to the forefront. Treatment was homogenized donor shit deposited back into the rectum to reestablish normal flora.

 

[Anonymous]

I love how you say "for an intestinal bug, C. difficile". You sound like you've never heard of it; I guess you haven't had your little launch party yet so that you can go out to your docs 2 weeks later to try to sound like you know what you're talking about.

Read the article.

 

[Anonymous]

Must be that Penn State law degree. Kenny is such a strong negotiator.

Kenny got his law degree at Harvard. Penn St. undergrad.

 

[Anonymous]

Kenny got his law degree at Harvard. Penn St. undergrad.

Penn St. is a shit college. Just a bunch of fuck ups.

 

[Anonymous]

Kenny will take care of business real soon, and put out the trash and toss the dead wood at Merck

 

[Anonymous]

Kenny will take care of business real soon, and put out the trash and toss the dead wood at Merck

And try to protect the convicted pedophiles.

 

[Anonymous]

Penn St. is a shit college. Just a bunch of fuck ups.

You are crazy. I did not attend Penn State but would have in an instant! Its a very good school...

BTW...every college and university has its own share of FU's...it's all what you put into your education.

 

[Anonymous]

Merck sold Dr. Scholls and Coppertone for 15 billion and Cubist for 9.5 Billion with a strong lineup currently, good pipeline and limited global exposure that Merck can open up. Hmmm...looks like a good trade and 5 billion in the bank.

 

[Anonymous]

No matter how much you want to make the cubist deal seem like "they must know what they are doing", it will prove to be another deal with no real value. It was done to inflate stock prices momentarily so as to make a few people wealthy.