Pharmaceutical Industry

Novartis' Lek unit sued Bristol-Myers Squibb Co. and Watson Pharmaceuticals Inc., seeking royalties on the cholesterol medicine Pravachol. Lek owns two patents for crystalline forms of pravastatin, the key ingredient in Pravachol. Changes in the crystal make the compound more stable and pure, according to the patents issued in May 2004 and July 2006. Lek claims that the Bristol-Myers version of the drug uses pravastatin in the forms covered by the patents. Pravachol, approved by U.S.

Amgen Inc. and Cytokinetics Inc. said Wednesday that they would collaborate to develop drugs to treat heart failure in a deal that could yield smaller Cytokinetics more than $600 million if the products eventually succeed in clinical trials. Shares of Cytokinetics rose 11.4% on news of its deal with Thousand Oaks-based Amgen, the world's largest biotechnology company that is best known for its drugs that treat anemia and boost immune systems of chemotherapy patients.

Pharmaceutical companies can no longer lavish gifts on doctors to sway prescribing practices, the trade group that represents the world's largest drug makers said Wednesday. Companies that belong to the International Federation of Pharmaceutical Manufacturers & Assns. must adhere to a revised code of ethics that bars them from giving doctors money or other gifts that might influence drug choices, such as paying for trips to golf resorts or luxury hotels. The code, updated Jan.

VaxGen Inc. said Friday that it had laid off half its workers, lost its chief executive and hired a firm to explore "strategic alternatives" less than three weeks after losing an $878-million U.S. government contract to make anthrax vaccine. Lance Gordon resigned as CEO and president and was succeeded by James Panek, who had been executive vice president, said Brisbane, Calif.-based VaxGen.

The bill that House Democrats unveiled Friday to lower drug prices for the elderly contains a provision that could make it difficult -- or maybe even impossible -- to achieve its goal, some critics said. The legislation would direct the federal government to use its huge market power to bargain for lower prices with drug manufacturers on behalf of some 23 million seniors enrolled in the Medicare prescription program.

The U.S. Supreme Court cleared the way Tuesday for more challenges to patents owned by brand-name drug maker Genentech Inc. and other companies, saying rivals can sue even if they are paying royalties to sell their version of the invention. The justices, in an 8-1 vote, said Genentech must defend against MedImmune Inc.'s bid to stop making royalty payments on its Synagis respiratory-infection treatment for infants.

Pharmaceutical companies have agreed to pay millions in new fees to help federal health officials step up the review of drug commercials before they are aired on television, the industry and government said Thursday. Under the five-year plan, drug makers will pay the Food and Drug Administration a one-time fee plus additional charges for each commercial submitted. The fees, which will bring in about $6.

Defying a threatened presidential veto, the House approved a bill Friday to require federal officials to negotiate with drug companies for lower prices for the 23 million senior citizens who have signed up for Medicare's prescription drug coverage. Although the bill is unlikely to become law, it is likely to help shape the debate that could result in a more limited measure that allows some dickering between the government and the pharmaceutical industry over drug costs.

A new government drug benefit increased U.S. pharmaceutical sales by $2.5 billion, or 1%, in 2006, according to a study. Purchases by the Medicare health program for the elderly and disabled accounted for a sixth of the growth in drug sales in the plan's first year, according to IMS Health Inc., a healthcare research provider.

Shares of Amgen Inc., the world's largest biotechnology company, rose 2% on Monday after Bear Stearns & Co. raised its price target, saying Amgen may be able to block a competing anemia drug from Roche Holding. New developments in a patent-infringement lawsuit filed by Thousand Oaks-based Amgen suggest that Roche probably won't win approval to sell its Cera medication in the U.S., Mark Schoenebaum, an analyst at Bear Stearns in New York who owns Amgen shares, said in a note.