ABOVE: WYE’S Stock Chart.
Biotechnological Products have been emerging rapidly in the US/global drug market ever since the emergence of Genetech (ticker:DNA) and its break out drugs Rituxan (rituximab) and TNKase (tenecteplase). Since then, both brandname (ie Pfizer and Merck) as well as large generic pharmaceutical companies have been looking to strategically ally themselves with talented, emerging biotechnological companies. For more information on emerging biotechnological companies please refer to http://stockmd.wordpress.com/.
Wyeth Pharmaceuticals (WYE) is chiefly involved in creating, developing, producing, distributing, and the sale of drugs, consumer healthcare products as well as animal health products. WYE is segmented into 3 Basic Divisions namely, Pharmaceuticals, Consumer Healthcare, and Animal Health.
The Drug or Pharmaceutical Division offers human pharmaceuticals, biotechnology agents, vaccines, and nutritional products. Its primary focus are neuroscience therapeutics, gastrointestinal pharmaceuticals, Infectious disease agents, vaccines, musculoskeletal treatements, nutritional products, anti-cancer drugs, hematologic therapeutics, immunological products as well as women’s health care products. However, its most profitable drug is Effexor, an antidepressant. Effexor resulted in $3.8 billion in sales in 2005 for Wyeth, this translatesw into an annual growth rate of 1.2 percent.
Despite WYE’s strength it is notably deficiant in Bio technical drugs and it wishes to beef up its resume in this department. In fact, WYE has already taken steps before this new relationship with GVK BIO to achieve these ends. Most notably, Enbrel, the monoclonal antibody that can treat rheumatoid arthritis is currently marketed by Wyeth and Amgen (Nasdaq: AMGN). In addition, WYE has tagged $40 million for investment in Trubion, which has pledged $800 million in hopes of achieving a healthy Bio-technical product line.
Therefore, Wyeth creating an alliance with GVK BIO, a company with bio-technical capacity as well as the ability to produce more traditional pharmaceutical agents, is competely straightforward and predictable. WYE’s stock price increased 0.57% on 5/29/2008. WYE may see increased profitability in the future because of it’s new drug discovery pact with GVK BIO.
