Fierce Biotech recounts the Top 10 biotech deals with big pharma partners that were axed in 2011. They state that the right deal can make a company and when it sours it can break it too. Pharma partners look to pull the plug ASAP on souring deals to save as much money as possible. It's a "Terminate often, terminate early" philosophy at work many times.
Analysts (passing out advice & when don't they) say under that scenario, it is critical that the biotech gets back all licensing rights without paying reverse royalties -- so they can repartner the deal! Many deals are repartnered in just this manner. With regard to blockbusters coming from these type of deals, analysis reveals that 8% had been partnered, re[partner4d and launched to successful outcomes.
Top 10 Terminate Deals for 2011:
- GSK and Targacept (neuronal nicotine receptors)
- Shire and Renovo (Justiva for scarring)
- Merck and Addex Pharmaceuticals (ADX63365 for schizophrenia)
- Janssen Pharmaceuticals (J&J) and Diamyd Medical (GAD65 for type I diabetes)
- Cephalon and ImmuPharma (lupus)
- Novartis and Peptimmune (PI-2301 for MS)
- Novartis and Paratek Pharmaceuticals (PTK 0796 wide spectrum antibiotic)
- Merck and Portola Pharmaceuticals (Betrixaban anticoagulant)
- Eli Lilly and Amylin (Byetta for type 2 diabetes)
- Solvay and Depomed (DM-1796 for pain)
Time to repartner up.
Posted by Bruce Lehr Dec 19th 2011.