SangStat: No margin for error

SangStat Medical Corp. has decided that competing in the $1.35 billion global cyclosporine market is not the no-brainer the company once thought it would be. SANG, which once built its transplant business strategy around cyclosporine, has concluded that the drug is a mature product with increasing generic competition and limited growth opportunity.

Instead, SANG will refocus on the U.S. market for its Thymoglobulin rabbit anti-thymocyte globulin, which is marketed to prevent kidney transplant rejection and is expected to have higher growth and higher gross margins than its cyclosporine products...