Film Review: "Naturally Obsessed: The Making of a Scientist"

People frequently ask me why I decided to get a PhD degree to become a scientist. For the past 30 years, I have tried to explain to people why I decided to spend seven long years of “blood, sweat and tears” to attain that elusive degree. While anyone who has earned a PhD degree understands what drove them to do it, it is difficult to explain to others that the decision has little to do with career paths and salary considerations and is largely driven by passion— and perhaps more aptly—obsession. That is why Carole and Richard Rifkin’s film “Naturally Obsessed: The Making of Scientist”—an emotional and gritty film that follows the lives of three Columbia graduate students on their quest to obtaining their PhD degrees—is resonating with scientists, students and the public.

The film, which took five years to make and was launched in March 2009, follows the progress of three X-ray crystallography graduate students, Rob, Killington (Kil) and Gabrielle, who worked in Larry Shapiro’s laboratory at Columbia University Medical Center. Work in Larry’s laboratory focuses on elucidating the X-crystallographic structure of proteins that are thought to be involved in appetite control. While Rob, Kil and Gabrielle share a common goal—getting a PhD degree—they are very different people. Rob is a rebellious, boisterous, self-assured free thinker (who was thrown out of a previous laboratory) whereas Kil is a more staid, soft spoken pragmatist from the Midwest. Gabrielle, who returned to graduate school to pursue a PhD degree after a stint as a laboratory technician at a company, loves science but isn’t certain that she has the mettle to realize her dream. Each of them understands that time is of the essence and they work feverishly and unrelentingly  to insure that their competitors don't beat them to the punch and publish first!

Despite their obvious personality differences, each is driven and obsessed with producing perfectly-formed protein crystals that are suitable for X-ray crystallography analysis. The film accurately and painstakingly depicts the inevitable emotional “ups and downs” of laboratory research, the personal struggles and the often difficult life decisions that are made when pursuing a PhD degree. In the end, Rob, Kil and Laura find their own career paths as scientists and perhaps, more importantly. come to terms with the decisions that they made during their journeys.

Carole, a documentary filmmaker, and Richard, Chairman Emeritus of the Sloan-Kettering Institute and founding Chairman of the New York Structural Biology Center, made the film to portray the “reality of doing science” and raise awareness about scientific research. The film emphasizes that science, like art, requires creativity, persistence and unyielding commitment and dedication. The Rifkinds interviewed many NYC-based academic laboratories before choosing Larry Shapiro’s laboratory as the subject of their documentary film. Larry’s laboratory was chosen because X-crystallography is visual (and lends itself to film making) and Carol had a hunch that “there was a story to be told there.”

During a recent interview with the Rifkinds, I mentioned that if I had seen the film as a high school or undergraduate student, I probably would have skipped graduate school. Carole responded and said, “Yes, the hard work and emotional challenges portrayed in the film might turn some students off but we wanted to portray scientific research the way it is and remain true to its realities.” She added, "while the film focuses on science graduate students it is also relevant and accurately reflects the trials and tribulations experienced by PhD students in the humanities and the arts.” 

One of the more troubling moments of the film for me is when Larry mentions that scientists, like artists, “represent the fringe of society.” The fact that a prominent, successful scientist views himself as different, and on the fringes of society, doesn’t bode well for the public perception of science or scientists for that matter. Another troubling aspect of the film is that Rob, Kil and Gabrielle are clearly being groomed for academic careers despite the fact that roughly only 10% of life sciences PhDs secure academic positions at the end of their training. I pointed this out to Richard and he said that he agrees that it is a troubling trend and that “alternate career options for PhDs is the subject of Carole's  and his next film.”

Since it launch in March, the film has been screened at over 60 high schools, colleges, medical schools, professional science associations, government agencies and biotechnology companies. While the film may not be “right” for everyone, it is a must see for graduate students and postdoctoral fellows and for members of the public who want a rare glimpse into the emotionally-charged and highly competitive world of scientific research. For those of you, who may be interested in arranging a screening, please visit the Naturally Obsessed: The Making of a Scientist website or contact Hayley

Until next time....

Good Luck and Good Job Hunting!!!!

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The Merck-Schering Plough Deal Under the Microscope: Why a Reverse Merger?

Some of you may have been wondering why the$41.1 billion Merck-Schering Plough merger announced yesterday was designed as a reverse merger. For those of you who are not familiar with the reverse merger strategy, this is how it works. Generally speaking, a failing or failed publicly traded company that is listed on one stock exchange or another merges with a privately held company. The privately held company takes over the public stock listing and manages the day-to-day operations of the new business. Private companies that engage in reverse mergers are usually looking for cash infusions for product development or a stock listing (without going through an initial public offering) which offers it shareholders immediate cash value.  Investors who previously held stock in the public company are either compensated for their shares in cash or given shares (at a negotiated price) in the new entity. Any cash (or assets) left in the public company can be used to develop the formerly private company’s product(s) and if successful, shareholders in the old public company can eventually benefit. 

If reverse mergers are designed to bolster the prospects of private companies in need of cash why was the Merck-Schering Plough deal structured as a reverse merger? As I mentioned in a post yesterday, Schering-Plough markets Remicade outside of the US under an agreement with Johnson and Johnson which sells the drug in America. A termination clause in the original marketing agreement stipulates that the ex-US rights to Remicade (and another drug being developed) would revert to Johnson and Johnson if control or ownership of Schering Plough changes. Remicade, a treatment for rheumatoid arthritis, developed by Johnson and Johnson’s subsidiary Centocor, represented $2.1 billion in sales for Schering in 2008. Further, about 70% of Schering Plough’s revenue comes from outside the US. That said, the success or failure of the deal really hinges on whether or not Johnson and Johnson will challenge the change-in-control clause for Remicade. To obviate that possibility, Merck devised an unusual reverse merger strategy in which ownership of Schering Plough will not change hands—at least on paper anyway. Instead, even though Merck is putting up the money to purchase Schering, and Richard Clark, Merck’s Chairman and CEO, will run the newly combined company, Merck would technically become a subsidiary of Schering Plough and consequently there would be no change in Schering Plough management! Recall that Fred Hassan, Schering Plough’s CEO will remain with the newly formed entity during the transition. After the deal closes, Fred would step down as CEO, Merck’s current CEO—Richard Clark—would assume leadership and quietly change the name of the company from Schering Plough to Merck.

Of course, Johnson and Johnson could challenge the deal anyway, and if Merck was to lose in arbitration, it could possibly jeopardize the entire financial upside of the deal. Merck contends that even if it loses the rights to Remicade, the deal still makes sense.  Not so, said one Wall St analyst, “I think that is a lot of malarkey. You don’t take out 20 percent of a company’s revenue and their core international growth driver and say it is not worth anything,” he said. Other analysts think that the uncertainty over Remicade puts Schering Plough shareholders at a disadvantage and one response may be for Johnson and Johnson to make a higher bid for the company.  Still others believe that, while sale of Schering Plough makes sense, the $41.4 billion price offered by Merck is too low. Johnson and Johnson didn’t comment on the deal.

Schering Plough employees who I talked with yesterday after the deal was announced are not pleased with it either. They feel that Johnson and Johnson would be a more suitable partner and that Fred Hassan, who was under enormous shareholder pressure, had no choice but to sell the company as quickly as possible. It is not surprising that many Schering Plough employees would rather have the company sold to Johnson and Johnson rather than Merck. Unlike most pharmaceutical companies, Johnson and Johnson tends to leave the companies it purchases alone and runs them as wholly-owned after it purchases them.  Another reason why a merger with Johnson and Johnson makes more sense than one with Merck is that Johnson and Johnson has a very profitable consumer products division. This would be a better fit for Schering which has several highly visible and profitable consumer products like Coppertone and Dr. Scholl’s. In contrast, Merck sold its consumer products division years ago and will almost certainly divest itself of Schering’s consumer products division after the deal closes.

Now that Schering Plough is no longer in play, all eyes are on Bristol-Myers Squibb (BMS). BMS is about the same size as Schering Plough, has plenty of cash on hand and is thought to have a robust biotechnology pipeline. And, like Schering Plough,  it has been rumored to be a takeover target for the past 20 years!

Until next time...

Good Luck and Good Job Hunting!!!!!!!!

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The Merck-Schering Plough Deal: More Bad News for New Jersey

Merck announced today that it was buying Schering Plough, the Kenilworth-New Jersey based drug maker, for $41.1 billion. The deal comes only six weeks after Pfizer said that it would purchase NJ-based Wyeth Pharmaceuticals. Superficially, the deal may make sense for the two struggling drug makers—they co-market the cholesterol-lowering drug Vytorin and also have collaborations in the respiratory diseases area. Also, Schering Plough has the European rights to the anti-arthritis drug Remicade and its 2007 purchase of the Dutch biopharmaceutical company Organon Biosciences NV provides access to several potential biotechnology drugs. Nevertheless, the impending merger will ultimately result in job losses and higher unemployment in the state of New Jersey.

Merck currently employs 55,200 workers and Schering-Plough—which grew significantly with its purchase of Organon—also has about 55,000 employees. While no immediate job cuts are planned, a company spokesperson acknowledged that the size of the combined workforce will be reduced by approximately 15%-20% over the next year or so. This means that as many as 20,000 pharmaceutical employees may lose their jobs—a time when unemployment in NJ is approaching 10 percent! My sources tell me that Merck employees are already on edge because of surprise layoffs that occurred in early September, 2008. I suspect that employee anxiety will be extremely high at both companies for the foreseeable future—never a good thing from a productivity point of view.

According to press releases, Schering-Plough's shareholders will get $10.50 in cash and 0.5767 Merck shares for each Schering-Plough share they own. That's a 34 percent premium to Schering-Plough's closing stock price on Friday. Merck's top executive, Chairman and CEO Richard Clark, will lead the combined company, which will attempt to remain a dominant player in treatment areas including cholesterol, respiratory, infectious disease and women's drugs, as well as vaccines. Schering-Plough's CEO, Fred Hassan, will participate in planning integration of the two companies until the close of the deal, which is expected in the fourth quarter. The transaction is to be structured as a reverse merger. Schering-Plough will be the surviving corporation but will take the name Merck. The new company will remain at Merck's headquarters in Whitehouse Station, N.J. and a company spokesperson indicated that a "substantial majority" of employees of Schering-Plough will remain with the newly-formed company. The combined revenue of both companies in 2008 was $47 billion.

Mr. Hassan, a talented, “turn-around” pharmaceutical executive, took over Schering-Plough six years ago as chairman and CEO—a time when the company was struggling with a $500 million fine (the largest ever at the time) imposed by the US Food and Drug Administration because of chronic manufacturing problems. While Schering-Plough is now in much better financial shape than when Mr. Hassan first arrived at the company, its stock price is currently almost identical to the price when he took over (it lost 50% of its value in the past 18 months). Let’s see whether or not Richard Clark, Merck’s current Chairman and CEO, has the mettle to run the combined company. While Schering-Plough has long been rumored to be a takeover target, I don’t think that the Merck-Schering Plough deal is a particularly good or strategic one. Both companies have been struggling of late because of near empty drug pipelines and the ongoing brouhaha over Zetia, Vytorin and Merck’s Vioxx. Further, both companies face price reductions and slumping sales in the next year or so because several blockbuster drugs will lose patent protection and face stiff competition from generic drug manufacturers.

Like the Pfizer-Wyeth deal, the Merck-Schering Plough merger may little more than a red herring. I still fail to see how merging two oversized, struggling pharmaceutical companies can possibly result in the creation of a single successful one. The only upside of the deal is that it allows the newly-formed company to restructure operations, eliminate tens of thousands of jobs and cut costs to bolster its stock share price. That said, I don’t think that an artificially-inflated stock share price necessarily translates into the innovation that historically has been required to create new drugs to treat unmet medical needs!

Until next time...

Good Luck and Good Job Hunting (avoid NJ at all costs)!!!!!!!

 

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Merck's Surprising Announcement: "We Will Develop Follow-On Biologics"

At its annual business briefing, Merck’s CEO, Richard Clark, announced that the company is creating a new division called BioVentures that will develop and sell follow on biologics. Clark said that the reason for this surprising decision was based on “the arrival of the Obama administration and renewed enthusiasm on Capitol Hill for legislation that could create an easier path for generic biotech medicines.”

Merck’s new BioVentures division will be built around the humanized yeast manufacturing platform developed by Glycofi, a privately-held, company that Merck acquired two years ago. While most of big pharma and big biotech publicly lobbied against new legislation that would make follow-on biologics legal in the US, Merck was surprisingly low key on the subject (now, we know why).

I first learned about Glycofi’s technology platform shortly after the company was formed in the early 2000 and immediately recognized its implication for follow-on biologics manufacturers. I immediately contacted Glycofi’s CEO at the time to see whether or not they would hire me as a “follow-on biologics consultant.” Sadly, because cash was tight (as it always is at start ups) I didn’t get the gig but I did get to know Tillman Gerngross, one of the Glycofi’s founders and its Chief Scientific Officer. Tillman and I spent some down time together at many of the follow-on biologics conferences that I organized where he was an invited speaker.

I was glad (mostly for Tillman) when I learned that Merck was going to by Glycofi for $400 million in cash. That said, the acquisition didn’t make sense to me at the time because Merck didn’t have a biologics division (although it did have a successful vaccine division).  After today’s announcement, Merck’s decision to purchase Glycofi makes perfect scientific and financial sense to me. I wish I could have gotten a piece of Glycofi before Merck bought the company. Nevertheless, I take solace in the fact that I, like Merck’s executives, can recognize a winning technology when I see one!

Maybe Merck will turn itself around after all!

Until next time…

 

Good Luck and Good Job Hunting!!!!!!!

 

The Beat Goes On: Merck Sells Antibiotic Manufacturing Facility

Reuters reported today that Merck & Co Inc has sold a manufacturing plant in Pennsylvania to PRWT Services Inc, as part of Merck's global restructuring of its manufacturing operations.

PRWT Services has entered into a five-year supply agreement with Merck valued at $100 million to $200 million a year, the companies said in a statement.

The Cherokee manufacturing plant in Riverside, Pennsylvania, employs 400 people, and produces antibiotics for humans and animals. As many of you may know, Merck’s CEO, Richard Clark ran manufacturing operations at Merck for 30 years before being appointed its top executive. Maybe he knows something that we don’t about the future of antibiotics?

Until next time…

Good Luck and Good Job Hunting!!!!!