Irvine drug maker Allergan Inc. is seeing “solid early gains” on sales of its flagship Botox drug for use in treating chronic migraine headaches, according to an analyst.
Amit Hazan of New York investment bank Gleacher & Co. published results of a survey he conducted with 45 doctors.
The survey showed a 29% gain in use of the drug for chronic migraines. That increase implies $16 million in first-quarter sales “at this very early stage of the ramp,” Hazan wrote.
There’s potential for more growth.
Hazan’s survey showed that the doctors expect to inject Botox into 60% of their chronic migraine patients within 12 months if insurance coverage is available.
Hazan’s report also noted that reimbursement by insurance companies was picking up for Botox for migraine.
“Two months ago, we reported that our analysis revealed over 114 million lives under coverage—well above schedule,” he said. “Similarly, our respondents reported that 48% of their eligible patients are now covered by insurance for Botox CM.”
In earlier interviews, Allergan Chief Executive David Pyott expressed confidence that the company would be able to get insurers to pay for Botox as a chronic migraine treatment.
Other analysts have said that Botox for migraines eventually could add at least $500 million in sales for the drug, which is expected to hit the $1.5 billion sales mark this year.
Separately, Allergan and a pair of Japanese drug makers, Senju Pharmaceutical Co. Ltd. and Kyorin Pharma, sued Lupin Pharmaceuticals Inc., a Baltimore-based unit of India’s Lupin Ltd., in federal court.
Allergan alleges that Lupin would infringe on one of its patents by attempting to manufacture and market a generic version of Zymaxid, an antibiotic used to treat pinkeye.
Senju and Kyorin own the patent rights on Zymaxid and Allergan is the exclusive licensee of the patent for ophthalmic use (see related story, page 1).
Zymaxid received Food and Drug Administration approval last May.
Allergan said in its suit that Senju already is involved in a lawsuit with Apotex, a Canadian generic drug maker, over generic Zymaxid.
Allergan also is seeking a permanent injunction restraining Lupin employees from infringing on patent claims.
Grubb Buys in Loma Linda, Denver
Grubb & Ellis Healthcare REIT Inc., a unit of Santa Ana’s Grubb & Ellis Co., has spent nearly $25 million to buy a hospital and medical office building in Loma Linda and a Denver suburb.
The real estate investor spent $13 million for Loma Linda Pediatric Specialty Hospital, a 34,000-square-foot children’s care center that’s located less than three miles from the 900-bed Loma Linda University Medical Center in Riverside County.
Loma Linda Pediatric has three facilities—a 56-bed pediatric and adolescent nursing facility, a 15-bed intermediate care building for children with developmental disabilities and a licensed pediatric day school and preschool for children with special medical needs.
Grubb & Ellis spent $11.95 million to buy St. Anthony North Medical Office Building, a 60,000-square-foot building on the campus of St. Anthony North Hospital in Westminster, Colo.
St. Anthony North was built in 2008 and is 88.5% leased. The hospital and Panorama Orthopedics and Spine Center combine to account for almost 75% of the building’s tenants.
Vestara Sold to CareFusion
Vestara, an Irvine-based company that makes devices that identify, sort and segregate hazardous and non-hazardous drug waste for proper disposal, was sold to San Diego-based CareFusion Corp. for about $17 million.
CareFusion, a medical technology company, bought Vestara to diversify its pharmaceutical management business, according to Tom Leonard, president of dispensing technology for the San Diego company.
CareFusion plans to rebrand Vestara’s EcoRex product as the Pyxis EcoStation.
Vestara holds 30 patents and exclusive licenses, and its software uses barcodes to cross-reference drugs to get information about federal, state and local laws regarding their disposal.
Silverado Expands to Illinois
Silverado Senior Living, an Irvine-based operator of facilities that care for people with Alzheimer’s disease and other forms of dementia, said it bought a senior residential community in the Chicago suburb of Lake Zurich for about $10 million.
Silverado plans to turn Paradise Park into a community that provides care for people with dementia. It will be renamed Silverado Senior Living-Lake Zurich and accommodate 100 residents. Silverado said current residents are welcome to stay.
Health Care REIT Inc., a Toledo, Ohio-based healthcare real estate investor, provided funding to Silverado for the deal.
Silverado operates “memory care communities” in California, Texas, Arizona and Utah. The company offers home healthcare, care management and hospice care and has 34 care facilities.
