Pfizer, Schering-Plough to Buy Biotech Firms

Drugmakers Pfizer and Schering-Plough made their presence felt in the biotech industry recently, as both firms announced plans to acquire biopharmaceutical firms.

Pfizer confirmed that it is purchasing Angiosyn, a La Jolla, Calif.-based biotech start-up, for roughly $527 million. Pfizer said it will make a small payment up front and additional payments in the future based on the progress of Angiosyn's drug development program. The deal is expected to close in the first quarter.

Angiosyn is currently developing a treatment for angiogenesis, an uncontrolled blood vessel formation that has been linked to eye diseases such as macular degeneration.

Schering-Plough, meanwhile, has entered into an agreement to acquire most of NeoGenesis Pharmaceuticals, a Cambridge, Mass.-based biopharmaceutical firm. The companies didn't announce the financial terms of the deal, but Schering-Plough said the transaction is expected to close later this quarter. NeoGenesis is focused on developing novel screening and chemistry technologies to discover and develop small-molecule drugs. The two companies have partnered on research projects since 1999.

Analysts have predicted that 2005 will be a strong year for the biotech industry, as large pharmaceutical firms are expected to increase partnerships with smaller firms as a way to bolster their drug pipelines.