Insight journal - Deals and alliances

Current Agreements Deals Update – April 2011

Posted on 10 April 2011

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Welcome to the April 2011 edition of Current Agreements Deals Update. 

This month we are providing you with an overview of deal making activity in the life sciences, covering partnering and M&A in March 2011.

Deal of the month

Collaborative R&D and licensing agreement for phosphodiesterase type 1 (PDE1) inhibitors

Takeda, Intra-Cellular Therapies - March 3, 2011

Exclusive collaboration to develop and commercialize selective phosphodiesterase type 1 (PDE1) inhibitors, discovered by ITI, for the treatment of cognitive impairment associated with schizophrenia more

Breaking news...

Deals of note just announced in the past few days:

  • Collaborative R&D and licensing agreement for Anticalins therapeutics - Daiichi Sankyo, Pieris - 12 April 2011
  • Collaborative R&D agreement for single G-protein coupled receptor (GPCR) discovery program - Takeda, Heptares Therapeutics - 11 April 2011
  • Acquisition agreement for American Medical Systems - Endo, American Medical Systems - 11 April 2011

For more breaking deals as they are announced, visit:http://www.currentagreements.com

Month In Review

Welcome to the April 2011 edition of Current Agreements Deals Update.

This month we are providing you with an overview of deal making activity in the life sciences, covering partnering and M&A in March 2011.

As we move into spring, partnering activity appears to continue at a good pace.

A total of 299 partnering deals were announced during the month, with the top deal by value being the collaborative R&D and licensing agreement between Takeda and Intra-Cellular Therapies for PDE1 inhibitors. The deal had a headline value of $750 million.

M&A also saw significant activity, with the leading deal being the proposed acquisition of Cephalon by Valeant for $5.7 billion.

With the emerging role of personalized medicine in recent dealmaking we have published a series of reports:

Personalized Medicine Partnering Terms and Agreements

Biomarker Partnering Terms and Agreements

Companion Diagnostics Partnering Terms and Agreements

Pharmacogenomic Partnering Terms and Agreements

With a new year, comes a brand new set of Scorecards for 2011:

Top partnering deals 2011Top M&A deals 2011

Each has already been populated with the leading deals of the year - check them out.

In addition, we have also published our 2010 Yearbook - detailing every deal announced during the past 12 months - Full details at: Partnering Agreements in Pharma and Biotech Yearbook 2010

A complete list of top partnering and M&A deals by value for 2010 are still available and can be viewed at:

Top partnering deals 2010Top M&A deals 2010

We welcome your comments and feedback on this newsletter. We also welcome contact from any company has a deal not already announced by press release, allowing us to add non-publicized deals to the database.

Regards

Steve Poile


The Top Ten

The following are the top 10 deals and alliances by value, as announced in March 2011.

  • Collaborative R&D and licensing agreement for phosphodiesterase type 1 (PDE1) inhibitors - Takeda, Intra-Cellular Therapies - $750m
  • Development and licensing agreement for FP-1039 - Five Prime Therapeutics, Human Genome Sciences - $495m
  • Development and licensing agreement for obeticholic acid (INT-747) - Dainippon Sumitomo, Intercept - $315m
  • Collaborative R&D and licensing agreement for small molecules that target T-helper 17 (Th17) cells - Merck & Co, Lycera - $307m
  • Development, licensing and supply agreement for Xiaflex - Asahi Kasei, Auxilium - $262m
  • Grant award for long-acting single-dose antiviral drug - Biota, BARDA - $231m
  • Collaborative R&D agreement for antibody-drug conjugate (ADC) technology with antibodies to a single oncology target - Abbott, Seattle Genetics - $208m
  • Collaborative R&D, development and licensing agreement for therapeutics targeting EZH2 - Eisai, Epizyme - $206m
  • Co-development and licensing agreement for lurasidone - Takeda, Dainippon Sumitomo - $180m
  • Collaborative R&D agreement for oncology research - Gilead Sciences, Yale University - $100m

Full details of each deal available at Current Agreements(Subscription required)

Bigpharma Partnering

March saw 49 partnering deals announced where bigpharma were at least one of the parties to the deal. This is up from the 34 deals recorded in the previous month.

Japanese companies including Takeda, Astellas, Dainippon Sumitomo and Eisai were particularaly active with eight deals between them. For Dainippon Sumitomo the key deal was signed with Intercept Pharmaceuticals for obeticholic acid (INT-747).

The key terms were:

  • Exclusive licensing agreement for the development and commercialization of Intercept's first-in-class FXR agonist obeticholic acid (OCA, also known as INT-747).
  • DSP will advance OCA in Japan and China for the treatment of chronic liver diseases, with an initial focus on primary biliary cirrhosis (PBC) and nonalcoholic steatohepatitis (NASH).
  • Intercept is currently preparing for the initiation of a Phase III PBC program in the US and Europe and, under the company's cooperative research and development agreement (CRADA) with the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK), a large placebo-controlled trial of OCA in NASH patients recently started enrolling in the US.
  • Intercept will receive an initial payment from DSP of $15 million and will be eligible to receive approximately $300 million in additional milestone payments associated with the successful development and commercialization of OCA.
  • Upon launch of OCA, Intercept will be entitled to receive tiered double-digit royalties from DSP based on sales in its territory.
  • DSP has the exclusive option to add several other Asian countries to its territory, including Korea and Taiwan, and to pursue additional indications.
  • DSP will be responsible for the costs of developing and commercializing OCA in its territory.

For Takeda the key deal was signed with Intra-Cellular Therapies for collaborative R&D and licensing agreement for phosphodiesterase type 1 (PDE1) inhibitors.

The key terms were:

  • Exclusive collaboration to develop and commercialize selective phosphodiesterase type 1 (PDE1) inhibitors, discovered by ITI, for the treatment of cognitive impairment associated with schizophrenia.
  • This agreement is targeted worldwide, but ITI has retained the option to co-promote with Takeda in the United States.
  • ITI will receive an upfront cash payment and will be eligible to receive payments of approximately $500 million in the aggregate upon achievement of certain development milestones and up to an additional $250 million in the aggregate upon achievement of certain sales-based milestones, along with tiered royalty payments based on net sales by Takeda.
  • Takeda will be solely responsible for development, manufacturing and commercialization of PDE1 inhibitors.

 

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