New market data reported in WSJ, WSJ Health blog and Fierce Biotech indicates that Big Pharma in its thirst for biotech drugs to slake its flagging pipelines is increasingly prepared to pay more for the priviledge -- and will do so sooner in the clinical cycle.
Analysis of recent deals shows the average upfront payment for Phase I properties in 2009 was 68% higher ($46 M) than in 2008. Phase II properties commanded a 39% premium over the prior year. What does this say? It says an early stage drug that has surmounted at least some clinical hurdle is worth more than two birds in the preclinical bush.
Compared to less proven preclinical acquisitions, a $50 M spend for a Phase I project becomes a "no brainer" according to Francesco De Rubertis, partner at Index Ventures. Anyone got a Phase I project lying around looking for cash? Now's your chance.
Posted by Bruce Lehr August 4th 2010.