Orexo and J&J join forces to advance small molecule respiratory treatment programs
Date of publication: June 8, 2010
Orexo and J&J through its Ortho-McNeil-Janssen subsidiary have decided that bringing their respective expertise and compounds into a single R&D pool will serve both parties best interests when it comes to developing a new generation of drugs to treat asthma, COPD and other serious inflammatory diseases. See this deal illustrated on our Partnering Scorecard
The collaborative R&D and licensing agreement includes both Orexo's ongoing OX-CLI and OX-ESI programs, whilst Ortho-McNeil-Janssen has contributed an undisclosed third program.
The parties have agreed to work together for an initial period of three years, with an option for Ortho-McNeil-Janssen to both extend the alliance and its funding.
This deal demonstrates an increasing trend in partnering whereby bigpharma is increasingly seeking to externalize R&D efforts. However, in this case it is willing to add one of its own previously internal programs into the mix. This new development highlights the growing belief that third parties are, in some circumstances, better placed than internal resources to develop assets to their future potential.
Orexo is receiving $21.5 million in funding over the initial three years, including $10 million upfront. In addition, Orexo is due to receive $564 million in development milestones if all three programs are successfully developed, plus additional sales milestones. Royalties on product sales will also be due.
Orexo also retains an option to co-promote resulting drugs in Nordic and Baltic territories.
Steve Poile
8 June, 2010