Insight journal - Deals and alliances

Top twenty partnering/licensing deals in 2012 had a combined value of over $20 billion

Posted on 29 January 2013

Tags: , , ,

Analysis of data from the leading life science deals and alliances intelligence database Current Agreements and recently published Partnering Yearbook 2013 report series, shows that the top twenty partnering deals in the life sciences have a combined value of $20.6 billion, slightly down from the figure of $21.5 billion in 2011.

Unsurprisingly, almost all partnering or licensing deals involved a bigpharma (big pharma, pharmaceutical) partner. The total headline value for the top 20 life science deals of 2012 of $21.5 billion is the same as achieved in 2011 and down from the $30 billion achieved in 2010.

The number of deals with a headline value of $500 or more was 30, slightly up from the figure of 27 in 2011 but significantly down from the 40 deals announced in 2010.

It seems pretty clear that 2012 continued the trend of 2011 in producing a lower number of life sciences mega licensing or partnering deals than 2010. This is probably due to a number of factors including a slowing in viable assets available for partnering, a tendency for bigp harma to exploit more option based deals at lower valuations, and a lowering of available funds for big deals.

As has been pointed our previously, headline value is only an indicator of a deals realizable value, with few deals ever reaching this potential. Next week, I will look at upfront payments achieved during 2012 compared to previous years in order to provide an insight into the sums being made available immediately to partner companies upon signing.

The findings come from Current Partnering’s new report Partnering Yearbook 2013 series and from Current Agreements, the leading life sciences deals and alliance database, which recorded 3,489 partnering deals during 2012, down slightly from the 3,603 partnering deals announced in 2011.

Figure: Partnering deals announced during 2012

Source: Current Agreements, 2013

 

The top ten

Every one of the top ten deals by value in 2012 involved one or more big pharma company. This is primarily due to the involvement of high deal values, with the big pharma companies being the only ones with such resources at their disposal.

Janssen Biotech, a biotech subsidiary of big pharma giant, Johnson & Johnson, was a party to three of the top ten deals of 2012, demonstrating a big appetite for building a blockbuster pipeline through partnering.

The following is a listing of the top ten partnering deals of 2012, as listed at Current Agreements:

1. Collaborative R&D and marketing agreement for diabetes product portfolio

Headline value: $3,400 million

Bristol-Myers Squibb, AstraZeneca, Amylin Pharmaceuticals – Metabolic > Diabetes > Type 2

Bristol-Myers Squibb and AstraZeneca, both big pharma comapnies announced that, following the completion of Bristol-Myers Squibb’s acquisition of Amylin, the companies will enter into collaboration arrangements, based on the framework of the existing diabetes alliance, regarding the development and commercialization of Amylin’s portfolio of products.

Following completion of Bristol-Myers Squibb’s acquisition of Amylin, AstraZeneca will make a payment to Amylin, as a wholly owned subsidiary of Bristol-Myers Squibb, in the amount of approximately $3.4 billion in cash.

View the full deal record at Current Agreements.

 

2. Collaboration agreement for antibody development using Duobody technology

Headline value: $1,753.5 million

Janssen Biotech, Genmab – Central nervous system, Immunology, Infectives, Oncology

Genmab, a major biotech company, has agreed to collaborate with Janssen Biotech, the biotech subsidiary of Johnson & Johnson, the major big pharma company, to create and develop antibodies using its DuoBody technology platform and will receive an upfront payment of $3.5 million.

Under the terms of the deal, Janssen will fully fund the research to be done at Genmab, and Genmab will potentially be entitled to milestone and license payments of up to about $175 million for each product as well as royalties on any commercialized products.

The deal with Janssen followed a collaboration agreement with Novartis in June to use Genmab's DuoBody technology.

 

3. Collaborative R&D, licensing and marketing agreement for MP0260 and DARPin products

Headline value: $1,500 million

Allergan, Molecular Partners – Discovery - Immunology, Ophthalmics > Aged related macular degeneration

Allergan, a US-based big pharma company,  and Molecular Partners AG have significantly expanded their existing relationship by entering into two separate agreements to discover, develop, and commercialize proprietary therapeutic DARPin products for the treatment of serious ophthalmic diseases.

Molecular Partners will receive combined upfront payments of $62.5 million under the two agreements and is eligible to receive additional success-based payments, including up to $1.4 billion in aggregate development, regulatory and sales milestones, and tiered royalties up into the low double-digits for future product sales.

The first agreement is an exclusive license agreement for the design, development and commercialization of a potent dual anti-VEGF-A/PDGF-B DARPin and its corresponding backups for the treatment of exudative age-related macular degeneration and related conditions.

Under the license agreement, Allergan and Molecular Partners will work together to develop MP0260 through human proof of concept, at which point Molecular Partners has the option to co-fund Allergan’s development costs in exchange for a significant royalty step up.

 

4. Collaborative R&D and licensing agreement for GLPG0634

Headline value: $ 1,350million

Abbott, Galapagos – Phase III – Immunology ? Rheumatoid arthritis

Abbott, the US-based big pharma company, and Galapagos have entered into a global collaboration to develop and commercialize an oral, next-generation JAK1 inhibitor in Phase II development with the potential to treat multiple autoimmune diseases.

GLPG0634 is a highly selective JAK1 inhibitor that Galapagos is developing for the treatment of rheumatoid arthritis (RA) and other autoimmune diseases.

The Janus kinases (JAK) are a family of enzymes that play a key role in the signaling mechanism used by a number of cytokines that are involved in autoimmune diseases.

Abbott will make an initial upfront payment of $150 million for rights related to the global collaboration.

Upon successful completion of the RA Phase II studies, Abbott will license the program for a one-time fee of $200 million if the studies meet certain pre-agreed criteria.

Abbott will assume sole responsibility for Phase III clinical development and global manufacturing.

Pending achievement of certain developmental, regulatory, commercial and sales-based milestones, Galapagos would be eligible to receive additional milestone payments from Abbott, potentially amounting to $1.0 billion, in addition to tiered double-digit royalties on net sales upon commercialization.

Galapagos retains co-promotion rights in Belgium, the Netherlands and Luxembourg.

 

5. Development and marketing agreement for Dual-Affinity Re-Targeting (DART) products

Headine value: $1,150 million

Gilead Sciences, Macrogenics – Oncology

MacroGenics has entered into a license agreement with Gilead Sciences, the US-based big pharma company, for the development and commercialization of Dual-Affinity Re-Targeting (DART) products directed at up to four undisclosed targets.

MacroGenics' DART technology is a proprietary, bi-specific antibody platform in which a single recombinant molecule is able to target two different antigens.

Under the terms of the agreement, MacroGenics could receive a total of up to $30 million in license fee payments, and up to an additional $85 million in pre-clinical milestones across the four DART programs.

Gilead has exclusive worldwide rights for three of the programs.

For one program, MacroGenics retains development and commercialization rights outside of North America, Europe, Australia and New Zealand, which encompasses multiple major markets including Japan, China, Korea, Brazil, Russia and others.

Gilead will fully fund MacroGenics' research activities with respect to the four programs.

MacroGenics could also receive up to approximately $1 billion in clinical, regulatory and commercialization milestone payments if all four programs achieve the requisite milestones.

Finally, MacroGenics may receive tiered (up to low double-digit) royalties on future net sales.

 

6. Licensing agreement for daratumumab

Headline value: $1,135 million

Janssen Biotech, Genmab – Preclinic, Phase I, Phase II – Oncology > multiple myeloma, acute myelogenous leukemia

Genmab announced a global license and development agreement for daratumumab (HuMax-CD38), a human CD38 monoclonal antibody with Janssen Biotech, the biotech subsidiary of the US-based big pharma and life sciences company, Johnson & Johnson.

Daratumumab is currently in development for multiple myeloma and may have potential in other cancer indications such as acute myeloid leukemia.

Genmab will grant Janssen an exclusive worldwide license to develop and commercialize daratumumab as well as a backup human CD38 antibody.

Genmab will receive an upfront license fee of $55 million (approximately DKK 327 million) and Johnson & Johnson Development Corporation (JJDC) will invest DKK 475 million, (approximately $80 million) to subscribe for 5.4 million new shares of Genmab at a price of DKK 88 per share.

Genmab's closing share price on August 29, 2012 was DKK 67.85.

Genmab could also be entitled to up to $1 billion in development, regulatory and sales milestones, in addition to tiered double digit royalties.

Janssen will be fully responsible for all costs associated with developing and commercializing daratumumab going forward, including the costs of two ongoing Phase I/II studies.

 

7. Option, development and marketing agreement for Dual-Affinity Re-Targeting (DART) products

Headline value: $1,100 million

Servier, Macrogenics – Oncology

MacroGenics has entered into a license agreement with Gilead Sciences, the US-based big pharma company, for the development and commercialization of Dual-Affinity Re-Targeting (DART) products directed at up to four undisclosed targets.

MacroGenics' DART technology is a proprietary, bi-specific antibody platform in which a single recombinant molecule is able to target two different antigens.

Under the terms of the agreement, MacroGenics could receive a total of up to $30 million in license fee payments, and up to an additional $85 million in pre-clinical milestones across the four DART programs.

Gilead has exclusive worldwide rights for three of the programs.

For one program, MacroGenics retains development and commercialization rights outside of North America, Europe, Australia and New Zealand, which encompasses multiple major markets including Japan, China, Korea, Brazil, Russia and others.

Gilead will fully fund MacroGenics' research activities with respect to the four programs.

MacroGenics could also receive up to approximately $1 billion in clinical, regulatory and commercialization milestone payments if all four programs achieve the requisite milestones.

Finally, MacroGenics may receive tiered (up to low double-digit) royalties on future net sales.

 

8. Development and marketing agreement for Vintafolide

Headline value: $1,000 million

Merck & Co, Endocyte – Phase II, Phase III – Oncology > Non small lung cancer, Ovarian cancer

Merck, the US-based big pharma company, have entered into an agreement to develop and commercialize Endocyte's novel investigational therapeutic candidate vintafolide (EC145).

Vintafolide is currently being evaluated in a Phase III clinical trial for platinum-resistant ovarian cancer, (PROCEED trial) and a Phase II trial for non-small cell lung cancer (NSCLC); both studies are also using Endocyte's investigational companion diagnostic agent, etarfolatide (EC20).

Under the agreement, Merck, through a subsidiary, will gain worldwide rights to develop and commercialize vintafolide.

Endocyte will receive a $120 million upfront payment and is eligible for milestone payments of up to $880 million based on the successful achievement of development, regulatory and commercialization goals for vintafolide for a total of six cancer indications.

In addition, if vintafolide receives regulatory approval, Endocyte will receive an equal share of the profit in the United States (U.S.) as well as a double digit percentage royalty on sales of the product in the rest of the world.

Endocyte has retained the right to co-promote vintafolide with Merck in the U.S. and Merck has the exclusive right to promote vintafolide in the rest of world.

Endocyte will be responsible for the majority of funding and completion of the PROCEED trial.

Merck will be responsible for all other development activities and costs and have all decision rights for vintafolide.

Endocyte remains responsible for the development, manufacture and commercialization worldwide of etarfolatide, a non-invasive companion diagnostic imaging agent that is used to identify folate receptor positive tumor cells.

 

9. Development and manufacturing agreement for antibody based anticancer drugs

Headline value: $1,000 million

Menarini, Oxford BioTherapeutics – Oncology

Menarini, the Europe-based big pharma company, and Oxford BioTherapeutics announce a major innovative and strategic alliance to develop a portfolio of antibody-based drugs in the field of cancer.

The agreement covers five of antibody and antibody drug conjugate programs, each of which addresses a different cancer indication via a different novel oncology target.

Menarini will lead the efforts in the manufacture and clinical development of each program, supported by OBT, while OBT will provide the proprietary cancer target, antibody and arming technologies.

Once clinical proof of concept has been achieved, OBT will complete the clinical development and commercialise these novel antibody-based products in North America and Japan, whilst Menarini will develop and commercialise the products in Europe, CIS, Asia and Latin America.

 

10. Licensing, development and marketing agreement for ASP015K

Headline value: $945 million

Janssen Biotech, Astellas – Phase II – Dermatology > Psoriasis, Immunology > Inflammation, Rheumatoid arthritis

Janssen Biotech, the biotech subsidiary of US0based big pharma and life science company Johnson & Johnson, has entered into a license agreement with Astellas Pharma for the worldwide development and commercialization, except in Japan, of ASP015K, an oral, small molecule Janus Kinase inhibitor.

ASP015K is currently in Phase 2b development as a once-daily oral treatment for moderate-to-severe rheumatoid arthritis , following a successful Phase 2a study demonstrating its potential in the treatment of moderate-to-severe plaque psoriasis.

Under the terms of the agreement, Janssen gains exclusive worldwide rights to develop and commercialize ASP015K, except in Japan, as an oral treatment for immune-mediated inflammatory diseases.

In addition to an upfront payment, Janssen and Astellas have agreed to future milestone and royalty payments if certain development and commercialization milestones are achieved.

Astellas will continue development and commercialization of ASP015K in Japan.

Source: Current Agreements, 2013

 

For a complete listing, together with summary term sheet for each deal, view our 2012 Partnering Scorecard.

Steve Poile

 

Related items:

View: 2012 Partnering scorecard for details of all deals

Read: Top twenty partnering deals in 2011 have a combined value of over $21 billion

Follow: 2013 Partnering scorecard for the leading deals of 2013 as they are announced

Subscribe: Current Partnering Dealmakers Review - free weekly email newsletter covering all latest partnering news and views

Subscribe: Current Agreements Deal Review - monthly email newsletter providing a review of the previous months deal news and metrics

View: Full deal record for all partnering deals at Current Agreements (subscription required)

Print Friendly, PDF & Email

Leave a Reply

 

cpbannerad300x150new1gif
rauconbadgejpg
e78banner300x150animgif
cpbannerad300x150new1gif
rauconbadgejpg
e78banner300x150animgif