Sometimes the best solution for dealing with competitors is to pay them to go away.
Yesterday Vertex Pharmaceuticals
The drugmaker will get two early stage hepatitis C compounds in the deal, one of which looks like it has at least as good of activity as Vertex's phase 3 compound telaprevir, although it's still very early. The ultimate goal will likely be to combine the newly acquired compounds with telaprevir to try and increase the virus-fighting activity even further. There's certainly precedence for combination treatments to treat viral diseases -- Gilead Sciences'
I'm not sure that now was the ideal time to make an acquisition and dilute shareholders further. Small companies like American Oriental Bioengineering
But Vertex didn't have much of a choice -- it pretty much had to make the acquisition for the long-term sustainability of the company. Hepatitis C is an insanely competitive market. Vertex along with Schering-Plough
More Foolishness:
- Diabetes drugs also have a nice competition going on.
- Buffett doesn't understand development-stage drugmakers.
- But he does have priceless advice for you.