Former Barr Pharmaceuticals CEO Bruce Downey told "Reuters", "I think it's probably unlikely given the agenda that the Congress has that you'll see generic biologic legislation this year. It's possible, but I think the probability is declining. I think it's very high that you'll see it in 2010."
Downey left Barr last month, following its takeover by Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) for $9 billion. He plans to join NewSpring Ventures LP.
Downey said that proposals to address the weak US economy are consuming the legislative agenda and pushing down other issues on the priority list
Downey also predicts consolidation in the generics drug industry. "I think it's not only possible; I think it probably will happen," he said. Merck & Co (NYSE: MRK) and other pharmaceutical companies are interested in biogenerics or biosimilars. He noted, however, that they will have to catch up to the leading biogeneric players, including Teva and Novartis AG (NYSE:NVS; LSE: NOV; SWX: NOVZ) unit Sandoz. He thinks the traditional generic companies will fare well in the burgeoning field.
As for biogenerics legislation, Downey noted, "We at Barr were prepared to, if we needed to, go the BLA (Biologic License Application) route. We weren't waiting for the legislation. We were working for it, but we covered our bets."
Published by Globes [online], Israel business news - www.globes-online.com - on February 1, 2009
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