Eli Lilly anticipates global revenue of between $22.6 billion and $23.4bn in 2013, despite the loss of exclusivity on Cymbalta in the US and paying royalties on worldwide sales of Byetta.

The company hopes revenue growth will be driven by its drug portfolio, animal health products and sales in Japan and the emerging markets, in particular China.

John C Lechleiter, Chairman, President and CEO, said the company has “made substantial progress in recent years” and he expects “2013 to continue that trend.”

Total operating expenses within the next 12 months are expected to be “flat to slightly decreasing” as Lilly continues to control expenses and improve productivity. It expects to spend between $7.1bn to $7.4bn on marketing, selling and administrative expenses and a further $5.2bn to $5.5bn on research and development.

Lilly expects other income and deductions to be somewhere in the range of $340 million and $490 million of net income in 2013. Operating cash flows of around $900 million will be in place to fund potential business development, pay company dividends and complete its share repurchasing programme.

“We are replenishing and advancing our pipeline, which now has 13 potential new medicines in Phase III testing,” said John C Lechleiter. “We are investing to drive growth in key currently marketed brands and in our counter-cyclical growth areas; and we continue to make productivity gains across our business to fund the R&D necessary to fuel our future growth, recapitalise our physical assets, maintain our dividend and support our share repurchase programme.”

The Indianapolis-based company also predicted it was “on track” to meet medium term financial targets. “From now through 2014, on an annual basis we still expect revenue to be at least $20 billion, net income to be at least $3 billion, and operating cash flow to be at least $4 billion,” said Derica Rice, Lilly Executive Vice President, Global Services and Chief Financial Officer.

Revenue was up 10% in Q3 at Lundbeck to DKK 4.9 billion but profit from operations fell nearly a quarter (22%) after restructuring its R&D department.

Growth was driven by an increase in revenue from a number of its key products and milestone payments following the launch of escitalopram in Japan.

Ulf Wiinberg, Lundbeck’s President and CEO, says the company is “very pleased with yet another strong quarter” after its branded products delivered “solid results”.

Sales of Sabril increased by nearly half (47%) to DKK 77 million, compared to the third quarter in 2010, with revenue also up for Xenazine in the US by a fifth, compared with the same period, to DKK 191 million.

Lundbeck’s key products, Cipralex, Ebixa and Azilect, which grew 5%, 18% and 20% respectively, compared to the period last year, helped boost revenue from International Markets up 20% to DKK 901 million.

“We are now entering a new era with many new product launches,” said Ulf Wiinberg. “With the launch of Lexapro in Japan, the continued roll out of Sycrest and the forthcoming launch of OnfiTM in the US, we have expanded on our product diversification and strengthened our long term growth prospects substantially.”

GSK has posted underlying sales growth of 6% for the third quarter of 2011 after turnover in its pharmaceuticals and vaccines division increased 3% to £5.7 billion.

Group sales outside Europe and the US were up 17% to £2.8bn driven by underlying growth in Japan (+57%), emerging markets (11%) which offset a decline in Europe of 4%.

Andrew Witty, CEO, says the results show the company is delivering on its strategy and pinpointed towards its breadth and mix product and geographic portfolio helping to combat economic volatility.

The company recorded a 14% rise in turnover in its vaccine division despite a decline in sales of pandemic related products.

Operating profit for the Group grew 3% in line with sales growth with profit in the vaccines and consumer healthcare divisions able offset a small decline in pharmaceuticals.

Sales in Japan were boosted by the strong performance of Cervarix and Avodart following its launch in the country. Growth in dermatologicals and vaccines saw sales rise in emerging markets with profits also increasing in the Asia Pacific region by 8% reflecting favourable operating leverage.

But the news was not as good in the US in Q3 where the loss of pandemic related products, Avandia and Valtrex, saw sales fall by 1%. A decline was also recorded in Europe where the loss of Avandia, pandemic related products and austerity price cuts resulted in a 5% loss.

Glaxo now predicts it’s on course to post full sales growth for the year and larger than expected profit margins in 2012, despite the ongoing pricing pressure and economic weakness it faces.

Novartis will cut 2,000 manufacturing jobs in Switzerland and the US – despite seeing an increase in group net sales and operating income in Q3.

The positions will be cut by 2016 after the closure of two Swiss production sites and one in Italy, plus the restructuring and relocation of R&D activities from Switzerland to the US.

Joseph Jimenez, CEO of Novartis, said the job losses are needed for the Group to “continue delivering on our mission of bringing innovative new drugs to patients.”

However, the job losses will be offset by the creation of 700 new positions in low cost and other countries, the company said.

The Group recorded a sales increase of 12% in constant currencies to $14.8 billion and saw income also grow by 11% to $4.1bn.

Sales were boosted by a strong performance from recently launched products – which contributed 25% of net sales.

Pharmaceutical sales grew 9% after Afinitor (pictured)/Votubia was approved in the EU for two additional indications, the CHMP granted a positive opinion for Rasitrio for high blood pressure and the company’s breakthrough multiple sclerosis treatment, Gilenya, won approval in Japan.

“Once again, the breadth of our business and product portfolio allowed us to deliver strong financial results and operating leverage, as well as significantly advancing the pipeline in the quarter,” said Mr Jimenez. “To strengthen our future, we have accelerated actions to reduce our cost base over the next few years.”

Takeda Pharmaceutical has called a halt on big deals following its recent $13.7 billion buyout of Nycomed.

Takeda’s President, Yasuchika Hasegawa, has said that the company will hold back on big mergers and acquisitions to “focus on integration for the next year or two”, adding that Japanese companies have been typically poor at integrating foreign acquisitions in the past.

Hasegawa said that domestic deals are even harder to get right, and told the Wall Street Journal that “it’s not worth it”.

He commented that acquisitions outside Japan tend to work better when companies are looking to fill in gaps, such as Takeda’s plans to develop products and pipeline projects to make up for loss of patent protection on its leading drug, Actos.

Scottish medtech company Aircraft Medical has signed an exclusive INTERNATIONAL distribution agreement with global healthcare supplier Covidien.

Covidien will market and distribute Aircraft’s McGRATH MAC video laryngoscope (pictured) in the UK, the US, Japan, Latin America, Australia and New Zealand.

The new agreement complements Aircraft Medical’s existing distribution agreements in 35 countries, and will see the number of specialist sales and marketing professionals selling the McGRATH laryngoscope worldwide rise above 500.

Launched in October 2010, the portable McGRATH MAC – a development of the award-winning McGRATH design – is the first low-cost video laryngoscope designed to assist both routine and difficult airway intubation in hospitals.

In the US, the majority of the estimated 17 million intubations carried out each year are performed with Covidien products – opening a major market opportunity for the McGRATH MAC.

About 50 million intubation procedures take place globally each year, and that figure is predicted to rise by 5% per year.

“This agreement with Covidien is a significant step forward in the global rollout of the McGRATH MAC video laryngoscope,” said Matt McGrath, CEO of Aircraft Medical. “We expect to now further strengthen our position in the growing video laryngoscope market.”

James E. Willett, General Manager, Respiratory and Monitoring Solutions at Covidien, commented: “Our partnership with Aircraft Medical demonstrates our commitment to deliver clinical value and improve patient outcomes in fast-growing critical-care markets throughout the world.

“By integrating the McGRATH MAC video laryngoscope into our respiratory product portfolio, Covidien can provide critical-care practitioners with a complete intubation solution to meet the needs of the continuum of patients.”

Aircraft Medical, based in Edinburgh, specialises in video laryngoscopes.

Covidien, based in Dublin, is a leading global provider of healthcare products whose 2010 revenue was $10.4 billion.

Halaven (eribulin) has not been recommended by the SMC as a treatment option for locally advanced or metastatic breast cancer on the NHS in Scotland.

The Consortium analysed data from Phase III trials which showed patients had 2.5 months additional survival compared to existing treatments, but considered Halaven too expensive.

Nick Burgin, European Director of Market Access, Eisai, says the company is “hugely disappointed” and plans a resubmission later in the year to “reverse this unfair decision”.

Eisai launched Halaven in the UK in April and claims the price of the drug in Scotland is at “the lowest anywhere in the world”.

The medication is a novel monotherapy treatment indicated for patients with locally advanced or metastatic breast cancer who have progressed after at least two chemotherapeutic regimens for advanced disease.

Eisai says it is the first single agent chemotherapy to demonstrate prolonged overall survival who have had prior anthracycline and taxane treatment.

During the appraisal, the Consortium analysed data from the EMBRACE trials which showed a median overall survival benefit of 13.2 months for patients receiving Halaven compared to 10.5 months for patients receiving a ‘treatment of physician’s choice’.

Andrew Wilson, Chief Executive of the UK Rarer Cancers Foundation, says the decision highlights the discrimination women north of the border currently face. “Scottish women with advanced breast cancer are currently prejudiced in Scotland as their chances of accessing a life extending cancer drug are now much lower than their neighbours in England”, he said.

“Our recent report ‘Nations Divided’ uncovered a profound difference in the availability of new cancer medicines between Scotland and England. Following the implementation of the Cancer Drug Fund (CDF) in England, patients in Scotland are now three times less likely than patients in England to receive the drugs that their clinician wishes to prescribe.”

Halaven is currently approved in the European Union, USA, Switzerland, Japan, and Singapore but recently failed a similar appraisal by NICE in draft guidance who raised concerns about the medication’s side effects.

Merck KGaA has signed two separate agreements for the collaboration of its Merck Serono division with Japanese-based Ono Pharmaceutical to strengthen its multiple sclerosis and cancer franchises.

The first agreement will see Merck get the worldwide exclusive license rights for the development and commercialisation of ONO-4641 outside of Japan, Korea and Taiwan.

The second license agreement will provide Ono with co-development and co-marketing rights of Stimuvax in Japan.

Stefan Oschmann, responsible for Merck Serono, says its new partner brings a “wealth of experience in developing innovative therapies” and an understanding of Japanese regulatory requirements.

ONO-4641 is a novel oral compound currently in Phase II for the potential treatment of multiple sclerosis. Stimuvax is an investigational therapeutic cancer immunotherapy that is in development in Phase III for patients suffering from non-small cell lung cancer.

Under the terms of the agreements, Merck will pay an initial 1.5 billon Japanese Yen – around €14 million – for the exclusive right for ONO-4641. Ono may also receive achievement-based payments of certain development, regulatory and commercial milestones.

As part of the agreement for Stimuvax, Ono will receive an additional upfront payment of €5 million.

Roche and Diagnostica Stago’s partnership to collaborate to market Stago’s products has been terminated, with the exception of distributions in Japan.

As of the end of 2011, Roche will stop selling Stago’s products, ending their long-term collaboration in the business of Laboratory Coagulation.

Bertrand Bonnot, COO of Stago, said: “We are convinced that, after almost 40 years of successful partnership, it is the right timing for both companies to follow independent paths. Nevertheless, both Stago and Roche are committed to work together to ensure a seamless transition in the coming years.”

However, Roche Diagnostics Japan will continue to distribute Stago’s portfolio within the Japanese market under a separate agreement.

Stago will instead sell its products directly or through other distribution channels.

Stago is an IVD company based in Paris, which develops and markets reagents and automated systems for the investigation of blood coagulation disorders, with a focus in haemostasis.

Switzerland-based Roche is a leader in research-based healthcare with strengths in pharmaceuticals and diagnostics.

Takeda Pharmaceutical Company has acquired Nycomed in a deal worth €9.6 million on a cash-free, debt-free basis.

The combined company will be commercially active in the therapeutic areas of metabolic diseases, gastroenterology, oncology, cardiovascular health, CNS diseases, inflammatory and immune disorders, respiratory diseases and pain management.

Current Takeda Executive Vice President of International Operations, Dr Frank Morich, has been appointed as CEO of Nycomed.

Yasuchika Hasegawa, President and CEO of Takeda, said: “Partnering the two organisations will have complementary effects and further increase our potential to become a truly global pharmaceutical company.”

Dr Morich said that the combined company’s pharmaceutical market will cover more than 70 countries, with a presence in Japan, North America, Europe and Asia.

“I look forward to bringing Takeda and Nycomed together to ensure we can achieve enhanced revenue, growth and diversification, while maintaining the strong momentum of both companies,” he said.