NEWS OF THE WEEK PHARMACEUTICALS
UCB SET TO BUY U.K. BIOTECH FIRM Belgian firm's exit from chemicals seen with Celltech deal
U
CB GROUP, T H E BELGIAN
specialty chemical and pharmaceutical conglomerate, will acquire British biopharmaceutical company Celltech Group for $2.7 billion. Industry analysts say that the deal, which will create Europe's second largest biopharma company after Novo Nordisk, signals UCB's likely exit from chemicals. The acquisition will combine UCB's small-molecule drug business with Celltech's biotech research capabilities and pipeline. In particular, UCB obtains exclusive worldwide rights to develop and commercialize Celltech's lead drug candidate, CDP870, which is currently in
Phase III clinical trials for arthritis and Crohn's disease. Celltech, the largest biopharma concern in England, will be the latest in a wave of British biotech companies acquired by drug firms with the development and commercialization heft needed to introduce new drugs. According to Christophe Van Vaeck, a stock analyst with Belgium's KBC Bank & Verzekering, acquiring Celltech will be a coup for UCB. "In the future, it will be important even for midsized pharma companies to have both small and large molecules." He says the acquisition will almost certainly result in the sale of UCB's specialty chemical opera-
BIOETHICS
ZERHOUNI ON STEM CELLS N I H director defends Bush policy on stem cell research to Congress
A
LETTER TO CONGRESS FROM
N I H Director Elias A. Zerhouni defends the Bush Administration's policy on human embryonic stem cell research while suggesting that more stem cell lines might increase the pace of research. The letter is a response to one from Congress that called for the White House to expand current policy (C&EN, May 3, page 22). Zerhouni, who wrote the letter on behalf of President George W Bush, outlined NIH's commitHTTP://WWW.CEN-ONLINE.ORG
ment to funding stem cell research that uses the approved 78 cell lines—19 of which are currently usable. He addressed representatives' concerns over the impact of limited federal funding in terms of attracting new scientists and in possibly pushing stem cell research overseas. He also noted that the usable cell lines are sufficient to support basic research. However, he added, it is not clear just what can be accomplished with those cell lines. 'And although it is also fair to
tion, which currently accounts for half of the firm's sales but only 15% of its profits. Van Vaeck says UCB, which will finance the acquisition entirely through bank loans, will need to sell the chemical business to meet its goal of paying down debt in four years. UPWARD SPIRAL The Celltech Arnaud Denis, acquisition will bring UCB biotech head of investor re- R&D capability in Slough, England. lations at UCB, says the company has no current plans to exit chemicals, noting that UCB paid $500 million to acquire Solutia's resins, additives, and adhesives business at the end of 2002. Denis acknowledges, however, that UCB may choose to do so in the future. "We have reached critical mass, which will allow us to go in various directions if we decide to give more support to pharmaceuticals," he says.—RICK MULLIN
say that from a purely scientific perspective more cell lines may speed some areas of {human embryonic stem cell] research, the President's position is still predicated on his belief that taxpayer funds should not 'sanction or encourage further destruction of human embryos that have at least the potential for life,'" Zerhouni wrote. "While I understand President Bush has ethical and moral concerns, I do believe we can work within his framework to address those concerns while at the same time push science forward," said Rep. Michael N . Castle (R-Del.), coauthor with Rep. Diana L. DeGette (D-Colo.) of the congressional letter. "I am going to continue to talk with the Administration and see if there is a way to craft a meaningful change that is acceptable to all sides."—SUSAN
Zerhouni
MORRISSEY
C & E N / MAY 2 4 , 2 0 0 4
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