Analysis of data from the leading deals and alliances service Current Agreements, shows that the top twenty partnering deals in the life sciences have a combined value of $21.5 billion.
Unsurprisingly, almost all deals involved a bigpharma partner. The total headline value for the top 20 deals of $21.5 billion is down from the value of $30 billion achieved in 2010.
The number of deals with a headline value of $500 or more was 27, significantly down from the 40 deals announced in 2010.
Therefore, it seems pretty clear that 2011 produced a lower number of mega-deals than 2010. This is probably due to a number of factors including a slowing in viable assets available for partnering, a tendancy for bigpharma to exploit more option based deals at lower valuations, and a lowering of available funds for big deals.
The top ten
The following is a listing of the top ten partnering deals of 2011, as listed at Current Agreements:
1. Licensing, development and option agreement to co-market and co-develop insulin analogues
Headline value: $2,381 million
Eli Lilly and Boehringer Ingelheim have a global agreement to jointly develop and commercialize a portfolio of diabetes compounds currently in mid- and late-stage development.
Included are Boehringer Ingelheim’s two oral diabetes agents-linagliptin and BI10773-as well as Lilly’s two basal insulin analogues-LY2605541 and LY2963016-as well as the option to co-develop and co-commercialize Lilly’s anti-TGF-beta monoclonal antibody.
The agreement also includes an option for Boehringer Ingelheim to co-develop and co-commercialize another Lilly diabetes molecule, an anti-TGF-beta monoclonal antibody, which is currently in Phase II of clinical testing in patients with diabetes with chronic kidney disease.
2. Co-development and co-promotion agreement for up to five innovative psychiatric and neuroscience products
Headline value: $1,800 million
Long-term agreement for the development and commercialization of up to five innovative psychiatric and neuroscience products worldwide.
The agreement covers up to five early and late stage compounds in development.
The two late stage compounds are from Otsuka: aripiprazole depot formulation and OPC-34712.
Otsuka receives the rights to enter into co-development, and eventual co-promotion following approval, of up to three compounds after Phase IIb clinical trials.
The alliance is a sales and cost share agreement.
3. Termination agreement for Bydureon (exenatide) once-weekly
Headline value: $1,600 million
Eli Lilly, Amylin – Metabolic>Diabetes
Terminated their alliance for exenatide and resolve the outstanding litigation between the companies.
As part of the agreement, the parties will transition full responsibility for the worldwide development and commercialization of exenatide to Amylin, starting in the United States (U.S.) on November 30, 2011, and progressing to all markets by the end of 2013.
After nearly a decade-long partnership that achieved a number of important milestones on behalf of people living with diabetes, the companies determined it was in the best interest of all constituents to amicably terminate the collaboration.
4. Licensing agreement for ALS-2200 and ALS-2158
Headline value: $1,525 million
Exclusive worldwide licensing agreement that will add two distinct nucleotide analogues to Vertex’s hepatitis C portfolio.
The compounds, which were discovered by Alios and are known as ALS-2200 and ALS-2158, have shown in in vitro studies to be potent inhibitors of the hepatitis C virus (HCV) polymerase, an enzyme essential for replication of the virus.
The addition of these compounds provides Vertex with multiple opportunities to develop potential, new, all-oral combination regimens for chronic hepatitis C.
Vertex expects ALS-2200 and ALS-2158 to enter clinical development later this year.
5. Collaborative R&D and commercialisation agreement for tivozanib
Headine value: $1,425 million
Worldwide agreement outside of Asia to develop and commercialize tivozanib, AVEO’s lead product candidate designed to optimally block the VEGF pathway by inhibiting all three VEGF receptors, for the treatment of a broad range of cancers.
The companies will share equally all North American and EU development and commercialization costs and profits for tivozanib.
Outside of North America and EU, Astellas will be responsible for the development and commercialization costs of tivozanib and will be obligated to pay AVEO a tiered, double-digit royalty on sales in those territories.
Pursuant to the terms of a licensing agreement between Kyowa Hakko Kirin and AVEO, Kyowa Hakko Kirin retains the rights to develop and commercialize tivozanib in Asia.
AVEO will be responsible for the manufacturing of tivozanib.
6. Contract service and supply agreement for BioThrax
Headline value: $1,250 million
Emergent BioSolutions, US Government – Marketed – Infectives>Anthrax
Award to supply the U.S. government with 44.75 million doses of BioThrax (Anthrax Vaccine Adsorbed) over a period of five years for a total value of up to $1.25 billion.
7. Collaborative R&D agreement for BiTE antibodies against three undisclosed solid tumor targets
Headline value: $1,008 million
Collaboration agreement with Amgen for the research of BiTE antibodies against three undisclosed solid tumor targets.
Amgen will have the right to pursue development and commercialization of BiTE antibodies against up to two of these targets, to be selected by Amgen.
Micromet will be primarily responsible for the discovery and pre-clinical development of the BiTE antibodies.
Amgen will lead the clinical development, manufacturing, and commercialization of any products resulting from the collaboration.
8. Development agreement for miR-208 and miR-15/195 plus additional target
Headline value: $1,000 million
Agreement for advancing the research, development and commercialization of three drug candidates, including two of miRagen’s lead programs (miR-208 and miR-15/195) and one additional target yet to be identified, for cardiovascular disease.
This partnership provides worldwide rights, excluding the U.S. and Japan, to Servier.
Miragen and Servier will collaborate on the research and development effort, while Servier alone will be responsible for all costs associated with the global development, regulatory approval and commercialization of the three product candidates worldwide, excluding the U.S. and Japanese markets.
Miragen retains all rights in the U.S. and Japan, and the option to co-sponsor any Phase III programs in the event that Miragen, alone or together with a partner, should seek marketing approvals for any of the targets in the U.S. and Japan.
9. Co-development, licensing and marketing agreement for PCI-32765
Headline value: $975 million
Agreement with Pharmacyclics to jointly develop and market the anti-cancer compound, PCI-32765.
A number of Phase 1 and 2 studies with PCI-32765 are ongoing across a panel of B-cell malignancy disorders, including chronic lymphocytic leukemia, mantle cell lymphoma, and diffuse large B-cell lymphoma.
The companies have entered into a worldwide 50/50 profit-loss agreement, sharing development and commercialization activities.
10. Supply agreement for drugs to Venezuela
Headline value: $939 million
China Meheco – Marketed
China Meheco has signed a two-year contract to provide 6.1 billion RMB ($939 million) of drugs to Venezuela.
Source: CurrentAgreements, 2012
For a complete listing, together with summary term sheet for each deal, view our Scorecard.
View the 2011 Partnering scorecard for details of all deals
Purchase the Partnering Yearbook 2012
Follow the 2012 Partnering scorecard for the leading deals of 2012 as they are announced.
View full deal record for all partnering deals at Current Agreements (subscription required)