Takeda and Orexigen have announced a $billion partnership to develop and commercialize Contrave for the treatment of obesity. The treatment is effective by controlling the balance of food intake and metabolism and regulating reward based behaviour.
This alliance includes co-development, co-promotion, marketing and licensing activities for Contrave within United States, Mexico and Canada. It includes an upfront cash payment of $50 million followed by $1 billion regulatory and sales based milestone payments.
This deal follows the announcement made in November 2009 by Takeda and Amylin Pharma for the co-development and licensing of the anti obesity drug pramlinitde/metreleptin. And the licensing agreement announced by Eisai and Arena in July 2010 for the obesity and weight loss drug lorcaserin.
Similar to the deal announced by Takeda for Contrave; both these deal have a headline value in excess of $1 billion. This value is based on the successful achievement of all milestones, however the monies actually exchanging hands on the closure of the deal is $75 million and $50 million respectively.
The structure of these deals proves there is huge value in developing an anti obesity and weight loss compounds with upfront and milestone deal terms.