New Jer­sey's bait worked: Af­ter promise of $40M in in­cen­tives, Te­va is mov­ing its HQ

It’s of­fi­cial — the car­rot New Jer­sey dan­gled in front of Te­va has sealed the com­pa­ny’s fate. It will move its US head­quar­ters to Par­sip­pa­ny-Troy Hills, NJ, af­ter the state agreed to give the com­pa­ny $40 mil­lion in tax cred­its, New Jer­sey Gov. Phil Mur­phy said in a state­ment to­day.

To make the move, Te­va is ex­pand­ing its ex­ist­ing Par­sip­pa­ny-Troy Hills lo­ca­tion to en­com­pass 350,000 square feet and ex­pects to “trans­fer and cre­ate 843 jobs and re­tain 232 ex­ist­ing po­si­tions.” The me­di­an an­nu­al wage as­so­ci­at­ed with the more than 1,000 po­si­tions is $128,073.

Kåre Schultz

Te­va, of course, is un­der­go­ing a dra­con­ian shake­up un­der new CEO Kåre Schultz, who has out­lined gen­er­al plans to carve out $3 bil­lion in spend­ing at the Is­rael-based com­pa­ny. That led to WARN no­tices in Penn­syl­va­nia in Jan­u­ary cov­er­ing more than 200 jobs that are be­ing axed in and around their cur­rent head­quar­ters in North Wales, PA. And more may fol­low.

Al­to­geth­er Schultz plans to close dozens of fa­cil­i­ties around the world, shut­ting near­ly half of the 80 sites Te­va owns. And 14,000 jobs are on the chop­ping block.

Bren­dan O’Grady

The tax cuts New Jer­sey dan­gled in front of Te­va were con­di­tion­al on pre­serv­ing 1,000 jobs. New Jer­sey be­lieves that re­lo­ca­tion will be worth a net ben­e­fit of $247 mil­lion over 20 years — which is more or less in­fin­i­ty in the phar­ma busi­ness.

Ac­cord­ing to the Philadel­phia Busi­ness Jour­nal, the com­pa­ny has about 2,000 staffers scat­tered around Penn­syl­va­nia.

“While Te­va will re­tain a sig­nif­i­cant pres­ence in Penn­syl­va­nia, re­duc­ing the num­ber of sites sup­ports our dri­ve to con­tin­ue to im­prove pro­duc­tiv­i­ty and ef­fi­cien­cies,” said Bren­dan O’Grady, ex­ec­u­tive VP and head of North Amer­i­ca Com­mer­cial. 

O’Grady didn’t note how many peo­ple Te­va will fire in North Wales, or giv­en the choice of mov­ing to Par­sip­pa­ny — a 90-minute dri­ve from North Wales.

The New Jer­sey Eco­nom­ic De­vel­op­ment Au­thor­i­ty (EDA) ap­proved tax breaks in June worth $4 mil­lion a year for each of the next 10 years for Te­va in or­der to pro­tect “jobs at risk” in a “pri­or­i­ty area.” New Jer­sey has tar­get­ed biotech jobs as a growth area.

John Hood [file photo]

UP­DATE: Cel­gene and the sci­en­tist who cham­pi­oned fe­dra­tinib's rise from Sanofi's R&D grave­yard win FDA OK

Six years after Sanofi gave it up for dead, the FDA has approved the myelofibrosis drug fedratinib, now owned by Celgene.

The drug will be sold as Inrebic, and will soon land in the portfolio at Bristol-Myers Squibb, which is finalizing a deal to acquire Celgene.

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Ab­b­Vie gets its FDA OK for JAK in­hibitor upadac­i­tinib, but don’t look for this one to hit ex­ecs’ lofty ex­pec­ta­tions

Another big drug approval came through on Friday afternoon as the FDA OK’d AbbVie’s upadacitinib — an oral JAK1 inhibitor that is hitting the rheumatoid arthritis market with a black box warning of serious malignancies, infections and thrombosis reflecting fears associated with the class.

It will be sold as Rinvoq — at a wholesale price of $59,000 a year — and will likely soon face competition from a drug that AbbVie once controlled, and spurned. Reuters reports that a 4-week supply of Humira, by comparison, is $5,174, adding up to about $67,000 a year.

UP­DAT­ED: AveX­is sci­en­tif­ic founder was axed — and No­var­tis names a new CSO in wake of an ethics scan­dal

Now at the center of a storm of controversy over its decision to keep its knowledge of manipulated data hidden from regulators during an FDA review, Novartis CEO Vas Narasimhan has found a longtime veteran in the ranks to head the scientific work underway at AveXis, where the incident occurred. And the scientific founder has hit the exit.

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The top 10 fran­chise drugs in bio­phar­ma his­to­ry will earn a to­tal of $1.4T (tril­lion) by 2024 — what does that tell us?

Just in case you were looking for more evidence of just how important Amgen’s patent win on Enbrel is for the company and its investors, EvaluatePharma has come up with a forward-looking consensus estimate on what the list of top 10 drugs will look like in 2024.

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UP­DAT­ED: Sci­en­tist-CEO ac­cused of im­prop­er­ly us­ing con­fi­den­tial in­fo from uni­corn Alec­tor

The executive team at Alector $ALEC has a bone to pick with scientific co-founder Asa Abeliovich. Their latest quarterly rundown has this brief note buried inside:

On June 18, 2019, we initiated a confidential arbitration proceeding against Dr. Asa Abeliovich, our former consulting co-founder, related to alleged breaches of his consulting agreement and the improper use of our confidential information that he learned during the course of rendering services to us as our consulting Chief Scientific Officer/Chief Innovation Officer. We are in the early stage of this arbitration proceeding and are unable to assess or provide any assurances regarding its possible outcome.

There’s no explicit word in the filing on what kind of confidential info was involved, but the proceeding got started 2 days ahead of Abeliovich’s IPO.

Abeliovich, formerly a tenured associate professor at Columbia, is a top scientist in the field of neurodegeneration, which is where Alector is targeted. More recently, he’s also helped start up Prevail Therapeutics as the CEO, which raised $125 million in an IPO. And there he’s planning on working on new gene therapies that target genetically defined subpopulations of Parkinson’s disease. Followup programs target Gaucher disease, frontotemporal dementia and synucleinopathies.

But this time Abeliovich is the CEO rather than a founding scientist. And some of their pipeline overlaps with Alector’s.

Abeliovich and Prevail, though, aren’t taking this one lying down.

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Chi­na has be­come a CEO-lev­el pri­or­i­ty for multi­na­tion­al phar­ma­ceu­ti­cal com­pa­nies: the trend and the im­pli­ca­tions

After a “hot” period of rapid growth between 2009 and 2012, and a relatively “cooler” period of slower growth from 2013 to 2015, China has once again become a top-of-mind priority for the CEOs of most large, multinational pharmaceutical companies.

At the International Pharma Forum, hosted in March in Beijing by the R&D Based Pharmaceutical Association Committee (RDPAC) and the Pharmaceutical Research and Manufacturers of America (PhRMA), no fewer than seven CEOs of major multinational pharmaceutical firms participated, including GSK, Eli Lilly, LEO Pharma, Merck KGaA, Pfizer, Sanofi and UCB. A few days earlier, the CEOs of several other large multinationals attended the China Development Forum, an annual business forum hosted by the research arm of China’s State Council. It’s hard to imagine any other country, except the US, having such drawing power at CEO level.

As dis­as­ter struck, Ab­b­Vie’s Rick Gon­za­lez swooped in on Al­ler­gan with an of­fer Brent Saun­ders couldn’t say no to

Early March was a no good, awful, terrible time for Allergan CEO Brent Saunders. His big lead drug had imploded in a Phase III disaster and activists were after his hide — or at least his chairman’s title — as the stock price continued a steady droop that had eviscerated share value for investors.

But it was a perfect time for AbbVie CEO Rick Gonzalez to pick up the phone and ask Saunders if he’d like to consider a “strategic” deal.

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As­traZeneca's jug­ger­naut PARP play­er Lyn­parza scoops up an­oth­er dom­i­nant win in PhI­II as the FDA adds a 'break­through' for Calquence

AstraZeneca’s oncology R&D group under José Baselga keeps churning out hits.

Wednesday morning the pharma giant and their partners at Merck parted the curtains on a successful readout for their Phase III PAOLA-1 study, demonstrating statistically significant improvement in progression-free survival for women with ovarian cancer in a first-line maintenance setting who added their PARP Lynparza to Avastin. This is their second late-stage success in ovarian cancer, which will help stave off rivals like GSK.

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ICER blasts FDA, PTC and Sarep­ta for high prices on DMD drugs Em­flaza, Ex­ondys 51

ICER has some strong words for PTC, Sarepta and the FDA as the US drug price watchdog concludes that as currently priced, their respective new treatments for Duchenne muscular dystrophy are decidedly not cost-effective.

The final report — which cements the conclusions of a draft issued in May — incorporates the opinion of a panel of 17 experts ICER convened in a public meeting last month. It also based its analysis of Emflaza (deflazacort) and Exondys 51 (eteplirsen) on updated annual costs of $81,400 and over $1 million, respectively, after citing “incorrect” lower numbers in the initial calculations.