GlaxoSmithKline will acquire Sirtris Pharmaceuticals Inc. for approximately $720 million in cash. The acquisition enhances GSK's metabolic, neurology, immunology and inflammation research efforts with sirtuins, a recently discovered class of enzymes believed to be involved in the ageing process. Sirtris Pharmaceuticals has established a drug discovery capability using sirtuin modulation for the treatment of human disease. Their focus has been on the development of SIRT1 activators for the treatment of Type 2 Diabetes Mellitus (T2DM).
   
Sirtris will become part of GSK's Drug Discovery organization, while continuing to operate from labs in Cambridge, MA as an autonomous drug discovery unit. Dr. Christoph Westphal, chief executive officer and vice chair, and the Sirtris management team will continue to lead this unit.
   
"Modulation of this family of enzymes is a potentially transformative science that could address diseases associated with metabolism and ageing such as diabetes, muscle wasting, and neurodegeneration," commented Moncef Slaoui, chairman GSK R&D. "This acquisition continues GSK's strategy of pursuing the best new science, externally or internally, to bring new medicines to patients and value to the GSK pipeline. Our intent is to retain all Sirtris employees and continue the entrepreneurial and innovative culture they created."
   
Dr. Westphal commented, "We have built a dynamic and scientifically-driven organization. We expect this transaction will accelerate our vision to target sirtuins to treat diseases of metabolism and ageing and deliver tremendous value to patients, our shareholders and our employees. We look forward to working with GlaxoSmithKline and their world-class research, development and commercialization organization."
   
The acquisition, subject to customary closing conditions, is expected to close in 2Q08.

Schering-Plough

1Q Revenues: $4.7 billion (+56%)

1Q Earnings: $291 million (-48%; earnings were $565 million in 1Q07)

Comments: Global Pharmaceutical sales totaled $3.6 billion, which includes $1.3 billion of Organon Biosciences revenues. Sales of Remicade were up 36% to $507 million. Nasonex sales were $307 million (+8%); sales of Temodar were $236 million (+20%); Pegintron sales were $225 million (+4%); sales of Claritin (international only) were $128 million (+14%); sales of Avelox were $142 million (+24%). The global cholesterol joint venture with Merck, which covers Vytorin and Zetia, achieved $1.2 billion in sales for the quarter. S-P does not record the JV sales but incurs SG&A expenses and marks the revenues as equity from a JV. Acquisition-related charges in the quarter were $23 million related to the OBS acquisition. R&D expenses were $880 million (+24%), $96 million of which is related to upfront R&D payments.

1Q Revenues: $942 million (+32%)

1Q Earnings: $163 million  (+23%)

Comments: Growth in the quarter was driven by Avonex sales (+19% to $536 million), Tysabri sales (+283% to $115 million) and Rituxan revenues from the joint business arrangement with Genentech (+19% to $247 million). In the quarter, the company announced new Tysabri safety data showing a favorable benefit-risk profile and no cases of progressive multifocal leukoencephalopathy (PML) since its re-launch in the U.S. Biogen Idec recognized $115 million of the Tysabri sales based on its collaboration with Elan. R&D expenses were $258 million (+35%).

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