A flexible approach to deal making is key to a long term successful collaboration
Date of publication: May 20, 2010
Ariad and Merck & Co's long standing collaborative research and development partnership for mTOR inhibitor for oncology therapies has recently been restructured (see this deal on our Partnering Scorecard). The restructured agreement will enable Merck & Co. to assume sole responsibility for ridaforolimus' commercial and development activities as opposed to the previously shared co-exclusive rights.
This announcement will not only provide additional payments of around $69 million (in a deal worth $1.058 billion) but it also demonstrates how adapting a flexible approach to allow for changing circumstances provides continuity and minimal disruption to the research and discovery and commercialisation activities.
This announcement also follows the collaborative R&D agreement Ariad has announced with Icon, relating to the development of drug-eluting stents that deliver the mTOR inhibitor deforolimus that prevent restenosis or injured vessels during cardiac surgery and transplantation.
These deal making and negotiation strategies encompassed by Ariad highlight the significant commercial value of developing products that have multiple therapeutic applications and adopting a forward thinking approach to ensure that the terms and conditions of a deal are robust yet allow for future renegotiations and restructuring to ensure the deal remains viable.
Tim Martin
May 2010