Scorecard: Top partnering deals 2009

The partnering scorecard lists the top deals of 2009 based on published headline value in US dollars.

Partnering deal scorecard - top 25 - 2009

Last updated: January 12, 2010

Rank	Partners	Date	Value, US$m
1	Abbott - Solvay	Sep '09	$6,600
2	Wellpoint - Express Script	Apr '09	$4,700
3	Merck - Sanofi-Aventis	Jul '09	$4,000
4	P&G - Warner Chilcott	Aug '09	$3,100
5	Genzyme - Bayer	Mar '09	$2,900
6	Elan - J&J	Jul '09	$1,500
7	Sanofi-Aventis - Exelixis	May '09	$1,420
8	Novartis - Incyte	Nov '09	$1,310
9	AstraZeneca - Targacept	Dec '09	$1,240
10	Ebewe - Sandoz	May '09	$1,200
11	BMS - Zymogenetics	Jan '09	$1,107
12	Takeda - Amylin	Nov '09	$1,075
13	BMS - Alder	Nov '09	$1,070
14	Roche - PTC	Sep '09	$968
15	Wyeth - Santarus	Jan '09	$850
16	Merck - Cardiome	Apr '09	$800
17	Bayer - Algeta	Aug '09	$800
18	Beckman Coulter - Olympus	Feb '09	$795
19	Astellas - Medivation	Oct '09	$765
20	Lilly - Incyte	Dec '09	$755
21	AstraZeneca - Nektar	Sep '09	$735
22	GSK - UCB	Jan '09	$685
23	GSK - Prosensa	Oct '09	$680
24	MDS - Danaher	Sep '09	$650
25	Novartis - Portola	Feb '09	$575

Source: CurrentPartnering, 2009

Partnering scorecard in detail

1. Abbott - Solvay

September 2009 - Assets - Headline value: US$6,600m

Definitive agreement with the Solvay Group for Abbott to acquire Solvay's pharmaceuticals business for EUR 4.5 billion ($6.6 billion) in cash, providing Abbott with a large and complementary portfolio of pharmaceutical products and a significant presence in key global emerging markets. The acquisition also includes full global rights to the fenofibrate franchise. Currently Abbott has U.S. rights to fenofibrate and pays royalties to Solvay.

2. Wellpoint - Express Script

April 2009 - Assets - Headline value: US$4,700m

Acquire WellPoint's NextRx subsidiaries for $4.675 billion, which includes consideration for the value of a future tax benefit for Express Scripts based on the structure of the transaction.

3. Merck - Sanofi-Aventis

July 2009 - Assets - Headline value: US$4,000m

Merck will sell its 50 percent interest in the companies' current animal health joint venture, Merial Limited (Merial), to sanofi-aventis for $4 billion (US) in cash. Formed in 1997, Merial is a leading animal health company that is a 50/50 joint venture between Merck and sanofi-aventis. Following the close of the transaction, sanofi-aventis will own 100 percent of Merial.

4. P&G - Warner Chilcott

August 2009 - Asset - Headline value: US$3,100m

Warner Chilcott, a leading specialty pharmaceuticals company, will acquire P&G's portfolio of branded pharmaceutical products, including Asacol(R) HD (mesalamine) Delayed-Release Tablets for ulcerative colitis, Actonel(R) (risedronate sodium) for osteoporosis, and the co-promotion rights to Enablex(R) (darifenacin) for the treatment of overactive bladder, as well as P&G's prescription drug product pipeline and manufacturing facilities in Puerto Rico and Germany. In addition, the majority of the 2,300 employees working on P&G's pharmaceuticals business are expected to transfer to Warner Chilcott. Both companies expect the transaction to close by the end of the 2009 calendar year, pending necessary regulatory approvals.

5. Genzyme - Bayer

March 2009 - CNS, Oncology - Phase III, Marketed - Headline value: US$2,900m

Agreement to acquire the worldwide rights to Campath® (alemtuzumab) from Bayer HealthCare, giving Genzyme primary responsibility for the development and commercialization of this potential break-though treatment for multiple sclerosis (MS). Bayer will continue to fund a portion of alemtuzumab’s development in MS and will retain an option to co-promote the product in MS upon approval. In addition, Genzyme will assume sole responsibility for worldwide sales and marketing for Campath in B-cell chronic lymphocytic leukemia (CLL), where it is indicated for use as a single agent in first-line and previously-treated patients with this disease. Bayer will retain the right to develop and commercialize alemtuzumab in solid organ transplant indications.

Bayer will receive payments based on revenues (subject to an aggregate cap) and potential milestone payments if cumulative revenue targets are achieved. There are no upfront payments for the rights of these three drugs. The transaction would provide Genzyme approximately $185 million in oncology revenue in 2009 and up to $700 million in revenue over the next three years. Genzyme’s Oncology segment revenues in 2008 were $117 million. Today’s announcement supports the company’s goal of 20 percent compound average non-GAAP earnings growth from 2006 to 2011.

6. Elan - Johnson & Johnson

July 2009 - Assets - Headline value: US$1,500m

Johnson & Johnson will acquire substantially all of the assets and rights of Elan related to its Alzheimer’s Immunotherapy Program (AIP Program), through a newly formed company. In addition, Johnson & Johnson, through its affiliate, will invest $1 billion in Elan in exchange for newly issued American Depositary Receipts (ADRs) of Elan which will represent 18.4% of Elan’s outstanding ordinary shares.

7. Sanofi-Aventis - Exelixis

May 2009 - Oncology - Discovery, preclinic, phase I - Headline value: $1,420

Global license agreement for XL147 and XL765 and a broad collaboration for the discovery of inhibitors of phosphoinositide-3 kinase (PI3K) for the treatment of cancer. Activation of the PI3K pathway is a frequent event in human tumors, promoting cell proliferation, survival and resistance to chemotherapy and radiotherapy. Under the license, sanofi-aventis will have a worldwide exclusive license to XL147 and XL765, which are currently in phase 1 and phase 1b/2 clinical trials, and will have sole responsibility for all subsequent clinical, regulatory, commercial and manufacturing activities. Exelixis will participate in conducting ongoing and potential future clinical trials and manufacturing activities.

Under the discovery collaboration, Exelixis and sanofi-aventis will combine efforts in establishing several pre-clinical PI3K programs and jointly share responsibility for research and preclinical activities related to isoform-selective inhibitors of PI3K. Sanofi-aventis will have sole responsibility for all subsequent clinical, regulatory, commercial and manufacturing activities of any products arising from the collaboration; however, Exelixis may be responsible for conducting certain clinical trials.

Sanofi-aventis will pay Exelixis aggregate upfront cash payments of $140 million under the license and collaboration. Exelixis will also receive guaranteed research funding of $21 million over a three year research term under the collaboration. For the license and the collaboration, Exelixis will be eligible to receive development, regulatory and commercial milestones of over $1 billion in the aggregate, as well as royalties on sales of any products commercialized under the license or collaboration.

8. Novartis - Incyte

November 2009 - Oncology - Preclinic, Phase III - Headline value: US$1,310m

Incyte will retain exclusive rights for the development and potential commercialization of INCB18424 in the US. Novartis will have responsibility for the future development and commercialization of INCB18424 in all hematology–oncology indications outside of the US. Novartis will also be responsible for the future worldwide development of INCB28060.

Novartis will make an upfront payment of $150 million to Incyte plus an immediate $60 million milestone payment for the initiation of the European Phase III trial of INCB18424, COMFORT-II, that began in July of this year. Novartis will receive ex-US commercialization rights for Incyte’s lead JAK inhibitor and global commercialization rights for the cMET inhibitor. Each company will be responsible for costs in their respective territories for the JAK inhibitor, with costs of collaborative studies shared equally. Incyte may also be eligible over time for additional payments of up to approximately $1.1 billion if future contingent development and commercialization milestones are achieved. Incyte is also eligible to receive tiered, double-digit royalty payments on future ex-US INCB18424 sales. Novartis will be responsible for all costs and activities for the cMET inhibitor after the Phase I clinical trial. Incyte is eligible to receive royalties on future sales of INCB28060 and has retained an option to co-develop and co-promote INCB28060.

9. AstraZeneca - Targacept

December 2009 - CNS - Phase II - Headline value: US$1,240m

AstraZeneca will make an upfront payment to Targacept of $200 million upon effectiveness and up to an additional $540 million if specified development, regulatory and first commercial sale milestones are achieved. Targacept will also be eligible to receive up to $500 million if specified sales related milestones are achieved as well as significant stepped double-digit royalties on net sales worldwide. Targacept has retained an option for a co-promotion of TC-5214 to a limited target physician audience in the US.

10. Ebewe - Sandoz

May 2009 - Oncology - Asset - Headline value: US$1,200m

Definitive agreement to acquire EBEWE Pharma's specialty injectables business for EUR 925 million (USD 1.2 billion) in an all-cash transaction.

11. BMS - Zymogenetics

January 2009 - Infection - Phase I - Headline value: US$1,107m

Global collaboration for PEG-Interferon lambda, a novel type 3 interferon currently in Phase Ib development for the treatment of Hepatitis C, and its related development program.

Bristol-Myers Squibb agreed to pay ZymoGenetics an upfront cash payment of $85 million for the development and commercialization rights to PEG-Interferon lambda, and to pay an additional license fee of $20 million in 2009. ZymoGenetics could receive additional payments of up to $430 million based on pre-defined development and regulatory milestones for PEG-Interferon lambda in Hepatitis C, up to $287 million in development and regulatory milestones for other potential indications, and up to $285 million based on pre-defined sales-based milestones.

12. Takeda - Amylin

November 2009 - Metabolic - Preclinic, Discovery - Headline value: $1,075m

Worldwide exclusive license, development and commercialization agreement to co-develop and commercialize pharmaceutical products for the treatment of obesity and related indications.

The agreement includes products to be developed from Amylin's pipeline, including pramlintide/metreleptin and davalintide, which are compounds currently in phase 2 development for treatment of obesity. The agreement also includes additional compounds from both companies' obesity research programs. Amylin will receive a one-time up-front payment of $75 million from Takeda and, over the term of the agreement and in relation to the compounds under the agreement, is eligible to receive additional payments upon achieving certain development, commercialization and sales-based milestones that could exceed $1 billion. The agreement also provides for future tiered, double-digit royalty payments to Amylin based on global product sales.

Under the terms of the agreement, Amylin will be responsible for executing development activities for potential products through phase 2 with the aim of regulatory approval in the U.S. Takeda will lead development activities beyond phase 2 in the U.S., and all development activities outside the U.S. In most instances, Amylin will be responsible for 20% of development costs associated with obtaining approval for products in the U.S. and Takeda will be responsible for 80% of such U.S. development costs. Takeda will be responsible for 100% of development costs associated with obtaining approval for products outside the U.S.

Takeda will lead product commercialization, both in the U.S. and outside the U.S., and will be responsible for 100% of commercialization costs. Amylin will have the option to co-commercialize the first two approved products in the U.S. and any follow-on products containing the identical active ingredients.

13. BMS - Alder

November 2009 - Inflammatory - Phase II - Headline value: US$1,070m

Alder will grant to Bristol-Myers Squibb worldwide exclusive rights to develop and commercialize ALD518 for all potential indications except cancer, for which Alder will retain rights and grant Bristol-Myers Squibb an option to co-develop and commercialize outside the United States. An upfront cash payment of $85 million, potential development-based and regulatory-based milestone payments of up to $764 million across a range of indications, potential sales-based milestones which, under certain circumstances, may exceed $200 million, and royalties on net sales are payable to Alder by Bristol-Myers Squibb. Alder has an option to require Bristol-Myers Squibb to make an equity investment of up to $20 million in Alder during an initial public offering.

14. Roche - PTC

August 2009 - CNS - Discovery - Headline value: US$968

Roche will make an upfront cash payment of $12 million and fund PTC's research efforts. Subject to achievement of several successive milestones, there is the potential for PTC to earn up to $239 million in research, development, regulatory and commercial milestone payments per target. PTC would also receive up to double digit royalties for all products resulting from this collaboration. Roche has the option to add four targets to the collaboration across therapeutic areas, for additional cash payments.

15. Wyeth - Santarus

January 2009 - n/a - Discovery - Headline value: US$850m

Worldwide strategic alliance to discover, develop and commercialize new medicines based on Santaris Pharma's proprietary Locked Nucleic Acid drug platform, which allows specific targeting and regulation of microRNAs and messenger RNAs as a means to affect gene expression mediated by the targeted RNAs.

Santaris Pharma will receive an upfront payment of $7 million in cash and Wyeth will make a $10 million equity investment in Santaris Pharma. Santaris Pharma may receive further milestone payments of up to $83 million for each of 10 potential targets. In addition, Santaris Pharma would receive royalties on the worldwide sales of all products arising from the alliance. The term of the research portion of the collaboration is three years. Wyeth has the right to extend the research portion up to two additional years.

16. Merck - Cardiome

April 2009 - Cardiovascular, Drug delivery - Phase II, Regul - Headline value: US$800m

Merck will pay Cardiome an initial fee of US$60 million. In addition, Cardiome is eligible to receive up to US$200 million in payments based on achievement of certain milestones associated with the development and approval of vernakalant products (including a total of US$35 million for initiation of a planned Phase III program for vernakalant [oral] and submission for regulatory approval in Europe of vernakalant [IV]), and up to US$100 million for milestones associated with approvals in other subsequent indications of both the intravenous and oral formulations. Also, Cardiome will receive tiered royalty payments on sales of any approved products and has the potential to receive up to US$340 million in milestone payments based on achievement of significant sales thresholds.

Cardiome has retained an option to co-promote vernakalant (oral) with Merck through a hospital-based sales force in the United States. Merck will be responsible for all future costs associated with the development, manufacturing and commercialization of these candidates. Merck has granted Cardiome a secured, interest-bearing credit facility of up to US$100 million that Cardiome may access in tranches over several years commencing in 2010.

17. Bayer - Algeta

September 2009 - Oncology - Phase III - Headline value: US$800m

Algeta has an option for up to 50% co-promotion with Bayer in the United States under a profit-share arrangement. Bayer will commercialize Alpharadin globally and pay tiered double-digit royalties on net sales in markets where there is no co-promotion.

The Alpharadin deal with Bayer totals up to $800 million (€560m) to Algeta. This is made up of an upfront payment of $61 million (€42.5m) plus further cash payments based upon the achievement of certain development, production and commercialization milestones. Algeta will be responsible for manufacturing and supply of the commercial product.

18. Beckman Coulter - Olympus

February 2009 - Diagnostics - n/a - Headline value: US$795m

Agreement to divest its diagnostic systems business to Beckman Coulter, Inc. The divestment is scheduled for July 1, 2009, pending regulatory approval.

19. Astellas - Medivation

October 2009 - Oncology - Phase III - Headline value: $765m

Medivation will receive an up-front cash payment of $110 million. Medivation is also eligible to receive payments of up to $335 million upon the attainment of development and regulatory milestones plus up to an additional $320 million in commercial milestone payments. The companies will collaborate on a comprehensive development program that will include additional studies to develop MDV3100 for both late- and early-stage prostate cancer. Subject to receipt of regulatory approval, the companies will jointly commercialize MDV3100 in the U.S. The companies will share equally all U.S. development costs, commercialization costs, and profits. Astellas will have responsibility for developing and commercializing MDV3100 outside the U.S. and will pay Medivation tiered double-digit royalties on ex-U.S. sales.

20. Lilly - Incyte

December 2009 - Inflammatory - Phase II - Headline value: US$755m

Lilly will receive worldwide rights to develop and commercialize INCB28050 as an oral treatment for all inflammatory conditions. In exchange for these rights, Incyte will receive an initial payment of $90 million and is eligible for up to $665 million in additional potential development, regulatory, and commercialization milestones, as well as tiered, double-digit royalty payments on future global sales with rates ranging up to twenty percent if a product is successfully commercialized.

21. AstraZeneca - Nektar

September 2009 - CNS - Preclinic, Phase II - Headline value: US$735m

AstraZeneca will assume the responsibility for the continued development of both the NKTR-118 and NKTR-119 programmes, including the initiation of late-stage clinical studies for NKTR-118. AstraZeneca expects completion of the design of the phase III programme in the near term, and anticipates filing the drug with regulators in 2013. AstraZeneca will also be responsible for global manufacturing and marketing for both programmes. Under the agreement, Nektar will receive an upfront payment of $125 million for both NKTR-118 and NKTR-119.

NKTR-118 has completed a Phase 2 clinical trial and is being developed to treat constipation caused by the use of opioid pain products. Under the agreement, for NKTR-118, Nektar is eligible to receive up to $235 million in aggregate payments upon the achievement of certain regulatory milestones, as well as additional tiered sales milestone payments of up to $375 million if the product achieves considerable levels of commercial success. Nektar will also be eligible to receive significant double-digit royalty payments on net sales of NKTR-118 worldwide.

22. GlaxoSmithKline - UCB

January 2009 - CNS, Immunology - Marketed - Headline value: US$685m

UCB has agreed with GlaxoSmithKline (GSK), to sell current UCB business and UCB affiliates in selected emerging markets for a cash compensation of EUR 515 million upon closing of the transaction expected in late March 2009. The commercial operations and product distribution rights to be acquired by GSK represent approximately 3-4% (three to four percent) of UCB's 2008 expected revenue of at least EUR 3.3 billion.

The agreement includes more than fifty UCB operations in the following geographic regions: Far-East, Middle-East, Latin America and Africa. This agreement does not include among other countries: Brazil, Russia, India, China, South-Korea or Mexico which are considered by UCB as strategic emerging markets. The agreement covers principally all currently marketed UCB products and staff in the regions mentioned above. It does not include UCB's new core products such as Vimpat® (lacosamide), Neupro® (rotigotine), Cimzia® (certolizumab pegol), nor does it provide rights to any of UCB's research & development pipeline programmes.

23. GSK - Prosensa

October 2009 - CNS - Phase II - Headline value: $680m

The alliance was established under GSK’s Centre of Excellence for External Drug Discovery (ceedd) which seeks to collaborate with companies at the leading edge of highly innovative and transformative science. The scope of the alliance includes four RNA-based products intended to treat specific, but different, subpopulations of patients suffering from DMD. Under the terms of the agreement, GSK will obtain an exclusive worldwide license to develop and commercialize Prosensa’s lead compound, PRO051, intended to treat DMD by skipping exon 51 of the dystrophin gene. Mutations in the dystrophin gene result in the absence of normal dystrophin protein, which is necessary for proper muscle cell function. GSK’s Neurosciences Medicines Development Centre will continue to progress the further development of PRO051 in collaboration with Prosensa. Both parties have begun preparations for a Phase III study which is intended to start in early 2010. GSK will fund all costs associated with the further clinical development of PRO051. In addition, GSK has exclusive options to license three more RNA-based compounds targeting additional DMD exons. One such option includes Prosensa’s second lead compound, PRO044, which targets the skipping of exon 44 and for which Prosensa expects to initiate a Phase I/II study before the end of 2009. In this case, GSK’s option rights will be triggered by a successful completion of this study.

The financial terms include a GBP 16 million (USD 25 million) upfront payment. Furthermore, Prosensa is eligible to receive up to GBP 412 million (USD 655 million) in milestones payments if all four compounds are successfully developed and is also entitled to double-digit royalties on product sales. Prosensa will retain commercial participatory rights, and has an option to expand its commercial rights, in certain European countries on products arising under the collaboration.

24. MDS - Danaher

September 2009 - Asset - Headline value: US$650m

Definitive agreement with MDS Inc. to acquire the Analytical Technologies division of MDS, which includes a 50% ownership position in Applied Biosystems/MDS Sciex joint venture (“AB SCIEX”), a mass spectrometry business, and a 100% ownership position in the former Molecular Devices Corporation, a bioresearch and analytical instrumentation company.

25. Novartis - Portola

February 2009 - Cardio, CNS, Hematology - Phase II - Headline value: US$575m

Exclusive worldwide license agreement with Novartis to develop and commercialize elinogrel, Portola's novel, proprietary intravenous (i.v.) and oral P2Y12 ADP receptor antagonist currently in Phase 2 clinical development. Elinogrel has shown potential to offer clinical improvements over current anti-clotting medications in helping patients avoid heart attacks and strokes.

Under terms of the agreement, Novartis will make an upfront cash payment to Portola of $75 million. Portola is eligible to receive additional cash payments totaling up to $500 million upon achievement of certain development, regulatory and commercialization milestones. Portola will also receive royalties on worldwide net sales of elinogrel. In addition, Portola has an option to co-promote elinogrel in the United States limited to hospitals and specialty markets.