Insight journal - Deals and alliances

Manufacturing and supply agreements: recent life sciences partnering deal trends

Posted on 20 February 2013

Tags: , , , ,

Manufacturing and supply agreements have long been present in the pharmaceutical industry, as companies have sought external expertise for manufacturing and supply of finished product.

Manufacturing and supply deal making has shown steady and high levels in frequency since 2009.

According to Current Agreements life science deals and alliance database, there have been over 850 manufacturing deals and over 1,100 supply deals in the last four years.

Figure 1: Manufacturing and supply partnering since 2009

 

 

 

 

 

 

 

Source: Current Agreements, 2013

A manufacturing agreement is when a party is contracted to manufacture product or intermediates on behalf of another party.

A supply agreement is when a party is contracted to supply product or intermediates to or on behalf of another party.

A popular method of contracting out the manufacture of products or intermediates to a third party provider is through manufacturing and supply deals.

This approach has often been used by a number of the biopharma companies especially big pharma companies.

The leading top pharmaceutical companies that out source manufacturing include Sanofi (19 deals), Novartis (13 deals), GlaxoSmithKline (12 deals) and Pfizer (9 deals) in the past four years.

Similarly the leading top pharmaceutical companies that out source supply include GSK (24 deals), Pfizer (17 deals), Roche, Sanofi (15 deals) and AstraZeneca (13 deals) in the past four years.

The following figure provides an overview of manufacturing and supply deals by each of the top pharma companies.

Figure 2: Top bigpharma manufacturing and supply partnering 2009-2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: Current Agreements, 2013

Signing manufacturing and supply agreements is predominantly at the latter stages of development, ie. when already marketed, in order to obtain additional production capacity and/or market efficient distribution.

However the figure below illustrates that the manufacturing and supply element also take splace from discovery through to late clinical stage. This probably reflects a companies seeking additional support and resources to maximize manufacturing and supply capacity for clinical trial supply or in readiness for market launch.

Figure 3: Manufacturing and supply deals signed at various phases of development 2009-2012

 

 

 

 

 

 

 

 

 

 

Source: Current Agreements, 2013

Top manufacturing and supply deals

Below is a list of high value deals since 2009 in manufacturing and supply dealmaking.

Figure 4: Top 4 high value deals for manufacturing partnering since 2009

 

 

 

 

 

 

 

 

 

 

 

 

Source: Current Agreements, 2013

Figure 5: Top 4 high value deals for supply partnering since 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: Current Agreements, 2013

The data in this article was abstracted from the Manufacturing and Supply Partnering Terms and Agreements report, which provides comprehensive understanding and unprecedented access to the manufacturing and supply agreements entered into by the world’s biopharma companies. In addition the report provides details of deals broken down by deal type, therapy focus, and company A-Z. The report provides a detailed understanding and analysis of how and why companies enter manufacturing and supply deals.

More details here.

Sources

The above information has been abstracted from the following resources:

 

Related

Buy report: Manufacturing and Supply Partnering Terms and Agreements

View: Current Partnering’s Partnering Scorecard – view top life science partnering deals by value

View: Current Partnering’s Deal Metrics – the latest deal trend infographics for life science deal making

Signup: Current Partnering Dealmakers Update – weekly newsletter providing the latest life science industry deal news, deal making trends, partnering events – sign up now

Signup: Current Agreements Deals Review – monthly newsletter - reviewing the previous month’s life science deal making – partnering, M&A and financing – sign up now

Subscribe: Current Agreements life sciences partnering, M&A and financing deals database – find out more

Print Friendly, PDF & Email

Leave a Reply