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Sebelius on Vaccines

24 Nov 2009

Discussing whether a new $487M investment from the government will help speed up the production of the most important vaccines, with Kathy Sebelius, Health & Human Services secretary and CNBC's Mike Huckman.

The New Formula for Faster Vaccines

24 Nov 2009

Novartis is opening on Tuesday the country's first plant to produce flu vaccines using cell cultures. These vaccines are faster, better and cheaper to make than egg-based methods, reports CNBC's Mike Huckman.

Novartis Opens 1st US Plant for Flu Vaccine

24 Nov 2009

Cholesterol Drug Battle: Niaspan vs. Zetia 16 Nov 2009
Abbott Laboratories' Niaspan beat Merck's Zetia in a new study. CNBC's Mike Huckman has the details.

Cardiologist Grades Cholesterol Drug Study

16 Nov 2009

Abbott Laboratories' Niaspan beat Merck's Zetia in a new study. Dr. Steven Nissen, chairman of the Department of Cardiovascular Medicine at The Cleveland Clinic, shares his reaction with CNBC's Mike Huckman.

Merck's Cholesterol Drugs Under Pressure

16 Nov 2009

A new study is putting Merck's cholesterol drugs under pressure today, reports CNBC's Mike Huckman, with Ken Frazier, Merck Global Human Health president.

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CNBC ON DIGG

IMS Health Writes A New Script

Published: Thursday, 8 Oct 2009 | 3:19 PM ET

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By: Mike Huckman
Reporter

With $137 billion worth of brand name drugs going generic over the next several years, the recession and the looming threat of healthcare reform a lot of people have been running scared about what it all means for pharma. So, surprise, surprise! This morning IMS Health, which closely monitors the industry, came out with its annual forecast and it now says the American drug market is going to grow this year instead of shrink. And not at a bad clip either. RX [RX Loading... () ] also raised its U.S. growth rate for next year. As I write this, all of the big pharma stocks are trading higher.

Positive Cost Report Boosts Health Plan

But shares of McKesson Corporation [MCK Loading... () ], which have been on an absolute tear over the last several months, are hitting another new intra-day high today. Lazard Capital Markets' analyst Tom Gallucci raised his price target on the drug distribution company's stock by 10 bucks to $68 specifically because of the IMS report. "Stronger overall market growth is positive and offers a more robust macro backdrop for key services companies in the drug channel," Gallucci wrote. He also bumped up his target by $3 on competitor AmerisourceBergen [ABC Loading... () ].

To be sure, the IMS forecast isn't all rosy. "Market growth is expected to remain at historically low levels....The economic climate will continue to be a dampening influence in most mature markets, particularly in those countries with rising budget deficits and publicly funded healthcare systems," the report says. So, where to look for strong growth? China. IMS predicts, "China's pharmaceutical market is expected to continue to grow at a 20+ percent pace annually, and contribute 21 percent of of overall global growth through 2013." Wow. More than one-fifth of the drug industry's growth over the next several years will come from one ginormous country with a burgeoning middle class that presumably will be buying more pills.

The major pharmaceutical companies these days love to talk about how they're busy increasing their footprint in China. I'd bet each one would tell you they've got the biggest head start or the best master plan to capitalize on that market. Zhu ni hao yun. (Thanks Melissa Lee.)

Questions? Comments? and follow me on Twitter at mhuckman