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Mr. Isaly, who was more critical, said the company suffered from a weak pipeline of new drugs.
Roche, Europe's fifth-largest drug maker, has been trailing its competitors, hurt by flagging profits and a weak pipeline of new products.
LeCroy added that the purchase would be a mild drag on Bristol-Myers, and wouldn't make a large difference to the company's difficulties with patent expirations and its relatively weak pipeline.
Merck said Tuesday it agreed to license a sleep disorder treatment from Danish drug maker H. Lundbeck, adding an experimental medicine in the late stages of development to Merck's relatively weak pipeline.
"It certainly seems to be a rich price that Johnson & Johnson would be offering, and I think that a transaction would underscore the need for Johnson & Johnson to strengthen its drug business, which has suffered from a weak pipeline," says Krensavage, noting the withdrawal of J & J's heartburn drug, Propulsid was a significant loss.
The utility's regulator also has come under fire for having a weak pipeline safety program before the San Bruno explosion, and for recent revelations that former PUC President Michael Peevey and other top brass engaged in improper, overly friendly communications with PG&E executives.
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"The acquisitions within the pharma industry are symptomatic of many companies with relatively weak pipelines that are acquiring innovation by consolidating with larger companies to reduce expenses".
The large-cap pharmaceutical sector offers little in the way of bullish opportunity, as many of the companies continue to struggle under generic competition, weak pipelines and lackluster technical performance.
That mixed mandate, along with weak pipelines to employers and limited money for training in "soft skills" like resume-writing, has hamstrung community college students' job prospects.
Roche Holding, which has suffered from product setbacks and a weak product pipeline, said revamping its pharmaceutical business should help raise margins as much as 25percentt in the next three years.
Mr. Gordon said he expected more acquisitions — by J.& J. and by pharmaceutical companies that have too weak a pipeline to support their overhead and need to either acquire products or merge with another large company and slash costs.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com