Analysis of date from the leading deals and alliances service Current Agreements, shows that many deals have eye watering headline values, however these deals often require an enormous amount to be successful during the development phases in order for the full value of the deal to be realized.
Therefore, as a result whilst deal value gets the headlines, it is not always a good indicator of the deal’s value today.
This is where an evaluation of upfront payment, the amound paid by the licensee to the licensor upon signing of the agreement, provides an insight into how much the licensee values the assets being partnered.
In order to obtain an indication of deal value, asset purchase deals were stripped out the data, leaving licensing/partnering deals where the licensee paid the licensor a significant upfront payment in order to secure rights to the assets covered by the deal.
The top deals in 2011 are as follows.
The top ten
1. Licensing, marketing and manufacturing agreement for Elidel
Upfront payment: $420 million
Novartis – Meda
Agreement to sell to Meda the global rights to manufacture, market and commercialize Elidel (pimecrolimus) Cream 1%, a medicine to treat mild to moderate atopic dermatitis.
This agreement reflects Novartis strategy to focus commercialization on new launch portfolio and core brands.
2. Development and licensing agreement for second-generation oral antioxidant inflammation modulators
Upfront payment: $400 million
Abbott – Reata Pharmaceuticals
Abbott and Reata Pharmaceuticals have entered into a worldwide collaboration to jointly develop and commercialize Reata’s portfolio of second-generation oral antioxidant inflammation modulators (AIMs).
Abbott and Reata will equally share costs and profits for all new AIMs in all newly licensed indications except for rheumatoid arthritis and select other autoimmune diseases, in which Abbott will take 70 percent of costs and profits and Reata will take 30 percent.
The deal also includes a research agreement in which the companies will work together to discover new molecules that exhibit the same pharmacology as the AIMs already in Reata’s pipeline.
3. Licensing, development and option agreement to co-market and co-develop insulin analogues
Upfront payment: $391.2 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.
4. Co-development and co-promotion agreement for up to five innovative psychiatric and neuroscience products
Upfront payment: $200 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.
5. Restructured development and marketing agreement for Nexavar (sorafenib) tablets
Upfront payment: $160 million
Restructured their partnership for the global development and marketing of Nexavar (sorafenib) tablets.
The status of Nexavar under the revised Collaboration Agreement remains largely unchanged.
Onyx and Bayer are free to use their respective Nexavar sales forces to promote regorafenib and additional products outside of the collaboration in the future.
Bayer will purchase Onyx’s royalty rights for sales of the product in Japan in exchange for a one-time payment to Onyx.
Bayer will have no obligation to pay Nexavar royalties to Onyx on Japanese sales after December 31, 2011.
Further, in the event of a change of control or acquisition of Onyx, the current profit-sharing, co-development and U.S. co-promotion of Nexavar will be preserved.
6. Co-development, licensing and marketing agreement for PCI-32765
Upfront payment: $150 million
Janssen Biotech – Pharmacyclics
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.
7. Development and licensing agreement for BT-061
Upfront payment: $85 million
Abbott – Biotest
Global agreement to develop and commercialize BT-061, a novel anti-CD4 antibody for the treatment of rheumatoid arthritis (RA) and psoriasis.
BT-061 is currently in Phase II clinical trials for RA and psoriasis, with preclinical studies underway to study its potential use in other immune-related diseases.
Abbott and Biotest will co-promote BT-061 in the five major European markets (Germany, France, United Kingdom, Italy and Spain) and Abbott will have exclusive global rights to commercialize BT-061 outside those countries.
8. Collaborative R&D and commercialisation agreement for tivozanib
Upfront payment: $75 million
Astellas – Aveo Pharmaceuticals
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.
9. Collaborative R&D and licensing agreement for Fidaxomicin
Upfront payment: $68 million
Astellas – Optimer Pharmaceuticals
Exclusive collaboration and license agreement to develop and commercialize fidaxomicin, an investigational antibiotic for CDI, in Europe and certain other countries in the Middle East, Africa and the Commonwealth of Independent States (CIS).
10. Licensing agreement for Relistor
Upfront payment: $60 million
Salix Pharmaceuticals – Progenics Pharmaceuticals
Exclusive worldwide (except Japan) agreement by which Salix has licensed rights to RELISTOR (methylnaltrexone bromide).
RELISTOR Subcutaneous Injection is indicated for the treatment of opioid-induced constipation (OIC) in patients with advanced illness who are receiving palliative care, when response to laxative therapy has not been sufficient.
View the 2011 Partnering scorecard
Purchase report: Partnering Yearbook 2011
Purchase report: Partnering with Bigpharma
View full deal record for all partnering deals at Current Agreements (subscription required)