Insight journal - Technology

Regenerative Medicine deal trends article

Posted on 22 October 2014

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The field of regenerative medicine is an up and coming new approach of targeting and treating diseases, it involves the repair and restoration of previously damaged tissues or organs in the body. The regenerative medicine market was worth $16bn in 2013 and industry analysts predict that this will leap to over $60bn by 2020. The idea of regenerating tissues has caused much excitement, as it offers huge potential to change the face of medicine.

Exploring the many possibilities regenerative medicine holds in various disease indications such as cardiovascular and ophthalmics has driven pharmaceutical and biotech companies globally to spend time and money researching the field. A number of partnerships have also been made between companies in order to develop research and products further.

According to Current Agreements life science deals and alliance database, there have been over 700 regenerative medicine / stem cell deals in the last five years alone.

Figure 1: Regenerative medicine and stem cells partnering since 2009

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Source: Current Agreements, 2014

Whilst regenerative medicine / stem cells is primarily a biotechnological development, the potential of this approach to treating a number of serious and previously untreatable conditions, has given rise to interest from a number of the top pharmaceutical (big pharma) companies.

A useful means of understanding best practice in regenerative medicine and stem cells dealmaking is to follow the activities and deal terms used by the most active companies in a certain type of deal. Although big pharma companies have shown interest in this technology in the recent past, it is the biotechnology companies who are most active in this field of technology.

The figure below shows the most active dealmakers in regenerative medicine and stem cells partnering since 2009

 Figure 2: Most active dealmakers in regenerative medicine and stem cells since 2009

 

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Source: Current Agreements, 2014

The therapy areas in which regenerative medicine / stem cell deals are signed are focused within a large number of main target areas; The main areas are oncology (204 deals), cardiovascular (104 deals), CNS(93 deals), hospital care (87 deals) and hospital care diseases (87 deals) all prominent since 2009.

Figure 3: Top therapy areas for regenerative medicine and stem cells partnering since 2009

 

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Source: Current Agreements, 2014

As an emerging and exciting new area for therapeutic intervention, regenerative medicine / stem cell deals can have a high headline value, where rewards can exceed a billion dollars should products reach the market.

Figure 4: Selected deals for regenerative medicine and stem cells partnering since 2009

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Source: Current Agreements, 2014

The Regenerative Medicine and Stem Cells Partnering Terms and Agreements report provides full details of over 700 regenerative medicine / stem cell deals announced since 2009 and includes average deal terms including headline, upfront, milestone and royalty rates. In addition the report provides details of deals broken down by deal type, therapy focus company A-Z. More details here.

It is expected that regenerative medicine and stem cells deals will continue in popularity in the coming months and years, as this emerging approach to therapeutic intervention becomes more widespread.

However, the future of regenerative medicine treatment intervention has many hurdles to surmount, not least the achievement of the first widespread regenerative medicine treatment to receive regulatory approval and subsequent use without unforeseen side effects, which due to the nature of the technology may take years to full understand.

Definitions

Regenerative medicine is the process of replacing or regenerating human cells, tissues or organs to restore or establish normal function – for a full definition – view our regenerative medicine glossary entry.

Stem cells Stem cells are cells found in all multicellular organisms, that can divide and differentiate into diverse specialized cell types and can self-renew to produce more stem cells – for a full definition – view our stem cells glossary entry.

Sources

The above information has been abstracted from the following resources:

 

Steve Poile

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