Drug firms' collaboration pools HIV treatments
Tuesday 03 November 2009
ViiV Healthcare, an unusual collaboration between GlaxoSmithKline and Pfizer, two of the world’s biggest drugs companies, was launched today with a mandate to pool the two firms’ HIV treatments.
ViiV will inherit GSK’s agEing portfolio of HIV medicines, including Combivir, which will lose its patent protection in three year’s time, and Pfizer’s younger and largely untested drugs, such as Selzentry, which ViiV’s chief executive Dominique Limet today described as the company’s “key driver and lever for growth.” Dr Limet takes the helm at ViiV after stepping down as GSK’s head of personalised medicines.
GSK, which is contributing 90 per cent of the £250m start-up costs, will be the major shareholder with an initial 85 per cent of the equity. This also reflects the UK company’s bigger portfolio of marketed drugs, which will initially contribute the most of the new group's revenues.
The equity split will change, however, depending on which company’s medicines and molecules contribute most to profits in the future. The US group has a stronger line of less well developed HIV treatments and will capture a bigger slice of the equity, as much as 30.5 per cent, if its pipeline treatments successfully negotiate clinical trials.
ViiV has 11 marketed medicines and seven molecules in its portfolio.
A number of pharmaceutical groups, including the Swiss giant Roche, have withdrawn from the HIV drug market, blaming increasing difficult commercial conditions.
Dr Limet acknowledged that the market for HIV was challenging: “In truth, we have to get closer to those people who live with the virus,” he said. “Much of our historic effort has been led by the virus – a chase of science. This must continue, but we must also listen and better understand the needs of people living with HIV.”
ViiV has pro forma sales of £1.6bn last year, giving it a 19 per cent market share, behind US group Gilead’s 31 per cent share.
The establishment of ViiV, which was first announced in April, follows GSK’s strategy of concentrating in niche areas, and avoiding costly blockbuster drug research. At the time of the initial announcement GSK’s chief executive Andrew Witty said the deal help the group to guard against the loss of the revenues it will suffer over the next few years as its leading HIV treatments, including Combivir, lose patent protection and are open to competition from generic drug makers.
International Women's Day 2014: The shocking statistics that show why it is still so important
Malaysia Airlines: Search for true identity of passengers with stolen passports launched as terrorism concern grows
Singapore sting: Sky-high prices are pushing locals to the edge of affordability
International Women’s Day: 'When a man gives his opinion, he's a man. When a woman gives her opinion, she's a bitch' - feminist quotes from female icons to inspire you
Dead woman's body found sitting in a car after six years after direct debits ran $54,000 bank account dry
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Ukraine crisis: Russia dismisses '3am ultimatum' as 'total nonsense'
If you're horrified by a flame-roasted dog, you should be shocked at a hog roast
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
White people become less racist just by moving to more diverse areas, study finds
Exclusive: Impact of immigrants on British workers ‘negligible’
- 1 International Women's Day 2014: The shocking statistics that show why it is still so important
- 2 Orgasm machine to deliver climax at the push of a button
- 3 Teacher shows sex tape featuring herself to pupils during class by mistake
- 4 Singapore sting: Sky-high prices are pushing locals to the edge of affordability
- 5 Liam Neeson turned down James Bond role because late wife Natasha Richardson said she wouldn't marry him if he took it
iJobs Money & Business
£12000 per annum: Inspiring Interns: The company works with Tier 1 FTSE 100 Ba...
£32000 - £36000 per annum + generous benefits: Pro-Recruitment Group: * TAX * ...
£37000 - £40000 per annum + £20000 benefits package: Pro-Recruitment Group: **...
£30000 - £35000 per annum + generous benefits: Pro-Recruitment Group: Mixed Ta...