In biotech, the right
partnering deal can make a company, bringing in cash, expert help and a major
league endorsement for the science involved. If deals go bad, as they
often do, the subsequent turmoil can break a company.
Anyone with any doubts about
the stakes involved should take a close look at the top partnering deals that
went bad in 2011. A number of the companies that had to watch their pharma
mates walk away from the development marriage have openly struggled to survive
the fallout. At least one won't survive the breakup, and more could follow.
This year's list, which we
asked Deloitte Recap to crunch for us, includes a number of top deals from ‘07
and ‘08. So it's no wonder that some high profile partnerships went astray in
the meantime. As Big Pharma retools its pipeline, shifts disease focuses and
starts to demand a better return on the billions invested in drug development,
it's not surprising to see more licensing deals breaking up under the pressure.
The heightened focus on
productivity, says Deloitte Recap senior biotech analyst Chris Dokomajilar, has
created a new mantra for the business: "Terminate often, terminate
early."
If a drug program is going
sour, the quicker you pull the plug, the more money can be saved. And one
clean and easy way to engineer a public breakup, for any reason, is to file it
under the heading of a "reprioritization."
"If something comes up
that's not so favorable, the partners will terminate and that many times will
be called a re-prioritization," says Dokomajilar, even if the real reason
is a fundamental lack of confidence in efficacy. Whatever the real motivation,
though, biotechs are better off when they make their ex-partner leave
everything on the table before he leaves out the back door.
"The key here and the
thing we're still seeing is a clean reversion of these deals," says the
analyst. "The licensor gets back all rights and gets it back cleanly, so
they don't have to pay an ongoing reverse royalty. It's very important for the
licensor to go on and re-partner that compound."
The simple fact is that about
half of the partnerships don't work as hoped for. But terminations aren't
necessarily the kiss of death.
About 1 in 5 of the programs
partnered up make it all the way through Phase III. About the same number flunk
a key safety or efficacy standard and get killed. Of the remaining 60% of
the deals that are terminated, roughly half are re-partnered and pushed ahead.
Focusing just on the blockbusters in the mix, Deloitte Recap concluded that 8%
had been partnered, re-partnered and then pushed on to major success.
"Upfronts have not
actually been getting much smaller," adds the analyst. "The upfront
payments along with equity and research support have been going up for a year
or two. What's been going down are the milestones, so the deal value is coming
down."
And keep an eye on the fine
print.
"Any changes in terms of
contract language should be to strengthen obligations on the larger partners
and that can be harder to do. Licensees are paying the bills most of the time.
I think biotechs have been giving, to let pharma run with it."
1. GlaxoSmithKline and
Targacept
2. Shire and Renovo
3. Merck and Addex Pharmaceuticals
4. J&J's Janssen Pharmaceutical and Diamyd Medical
5. Cephalon and ImmuPharma
6. Novartis and Peptimmune
7. Novartis/Paratek Pharmaceuticals
8. Merck and Portola Pharmaceuticals
9. Eli Lilly and Amylin
10. Solvay and Depomed
2. Shire and Renovo
3. Merck and Addex Pharmaceuticals
4. J&J's Janssen Pharmaceutical and Diamyd Medical
5. Cephalon and ImmuPharma
6. Novartis and Peptimmune
7. Novartis/Paratek Pharmaceuticals
8. Merck and Portola Pharmaceuticals
9. Eli Lilly and Amylin
10. Solvay and Depomed
Πηγή: Fiercebiotech | John Carroll
Φαρμακευτικο Μαρκετινγκ: Θεωρια, Πρακτικη, Δεοντολογια
The ultimate guide for Pharma Marketing
Champions
Ζητήστε
το στα κεντρικά βιβλιοπωλεία ή δώστε την παραγγελία σας τώρα…