Most valuable product deals in 2008

Analysis

With Bristol-Myers Squibb’s $1.1bn deal with ZymoGenetics last week for rights to phase I hepatitis C drug, PEG-IFN-lambda, likely to rank as one of the most valuable product licensing deals in 2009, EP Vantage takes at look at some of the biggest deals last year whilst highlighting those companies currently investing the most money in externally-sourced products to bolster in-house research.

When it comes to striking product partnerships, GlaxoSmithKline stands head and shoulders above the rest of the industry, having licensed 22 products last year, including the most valuable individual product deal, Almorexant from Actelion for around $2.45bn, and the deal which attracted the biggest upfront fee, Lexiva from Vertex Pharmaceuticals for $245m. Glaxo also snapped up a number of research technology platforms last year, including Archemix’s Aptamer technology for inflammatory diseases for potentially more than $1bn (see tables below).

Top 10 deals in 2008

Drawing from EvaluatePharma, this deal analysis excludes any products which have been acquired as part of a company acquisition.

The following table lists the top ten licensing deals related to an individual product last year, ranked by total potential deal value, along with some of the key research platform partnerships.

Although the most valuable deal of 2008 was derived from conventional technology, six of the top ten deals involved biotech-based products, compared to just three of the top ten partnerships in 2007.

Top 10 single product-deals in 2008 - ranked by total deal value
Rank Product Therapeutic Category Technology Company Deal Partner Status on Deal Date Upfront Payment ($m) Deal Value ($m)
1 Almorexant (ACT-078573) Central Nervous System Conventional GlaxoSmithKline Actelion Phase III  101  2,451
2 Mipomersen Cardiovascular Biotechnology Genzyme Isis Pharmaceuticals Phase III  175  1,900
3 Unit Dose Budesonide (UDB) Respiratory Conventional AstraZeneca MAP Pharmaceuticals Phase III  40  900
4 CTS-21166 Central Nervous System Conventional Astellas Pharma CoMentis Phase I  80  791
5 Dimebon Central Nervous System Conventional Pfizer Medivation Phase III  225  725
6 Elotuzumab Oncology & Immunomodulators Biotechnology Bristol-Myers Squibb PDL BioPharma Phase I  30  710
7 R7334 Oncology & Immunomodulators Biotechnology Roche ThromboGenics Phase I  68  678
8 Asonep Oncology & Immunomodulators Biotechnology Merck KGaA Lpath Phase I  29  603
9 ACE-011 Musculoskeletal Biotechnology Celgene Acceleron Pharma Phase I  45  567
10 AMG 761 Respiratory Biotechnology Amgen Kyowa Hakko Kogyo Phase I  100  520
                 
Key research platform deals in 2008 - ranked by total deal value
1 Aptamer Inflammatory Disease Project Oncology & Immunomodulators Biotechnology GlaxoSmithKline Archemix Research project  28  1,298
2 GlaxoSmithKline/Dynavax Research Collaboration Oncology & Immunomodulators Biotechnology GlaxoSmithKline Dynavax Technologies Research project  10  737
3 Efflux Pump Inhibitors Research Project Systemic Anti-infectives Conventional GlaxoSmithKline Mpex Pharmaceuticals Research project  9  533
4 Inflammatory microRNA Research Project Oncology & Immunomodulators Biotechnology GlaxoSmithKline Regulus Therapeutics Research project  15  459

While total deal values are a useful assessment of the kind of money that companies are prepared to commit to any given product, often they are heavily back-end loaded, with the bulk of the deal value only being released when some pretty ambitious regulatory and sales milestones are met.

Therefore, ranking by upfront fee can provide a more immediate assessment of a product’s value, and last year thirteen product deals commanded an upfront fee of $100m or greater, compared to just four deals with such an upfront fee in 2007.

Not suprisingly the biggest upfront fees were granted to marketed, approved or phase III products, although some pretty impressive payments were extracted for a couple of earlier stage products.

Top 10 single product deals in 2008 - ranked by upfront fee
Rank Product Therapeutic Category Technology Company Deal Partner Status on Deal Date Upfront Payment ($m) Deal Value ($m)
1 Lexiva/Telzir Systemic Anti-infectives Conventional GlaxoSmithKline Vertex Pharmaceuticals Marketed  245  245
2 Dimebon Central Nervous System Conventional Pfizer Medivation Phase III  225  725
3 XL184 Oncology & Immunomodulators Conventional Bristol-Myers Squibb Exelixis Phase III  195  345
4 Mipomersen Cardiovascular Biotechnology Genzyme Isis Pharmaceuticals Phase III  175  1,900
5 Aczone Dermatology Conventional Allergan QLT Approved  150  150
6 Retigabine Central Nervous System Conventional GlaxoSmithKline Valeant Pharmaceuticals Phase III  125  516
7 Ceftaroline/NXL104 combination product Systemic Anti-infectives Conventional Forest Laboratories Novexel Pre-clinical  109  218
8 Almorexant (ACT-078573) Central Nervous System Conventional GlaxoSmithKline Actelion Phase III  101  2,451
9 AMG 761 Respiratory Biotechnology Amgen Kyowa Hakko Kogyo Phase I  100  520
10 PTC124 Musculoskeletal Conventional Genzyme PTC Therapeutics Phase II  100  437

Glaxo the dealmaker

GlaxoSmithKline easily tops the deal table charts in 2008 and 2007, both by the total number of product deals signed and by the potential value committed to these partnerships.

In line with the recent trend for cash-rich Japanese companies to become more active in M&A deals, two Japanese companies, Takeda and Astellas Pharma, signed some of the most valuable deals in 2008.

Genzyme ranked behind Glaxo last year, mainly on the basis the company signed the second biggest deal of 2008, agreeing to hand over up to $1.9bn to Isis Pharmaceuticals for its phase III antisense therapy, mipomersen.

  Total deal value in 2008 - top 10 companies  Product Count Deal Value ($m) Upfront Payment ($m)
1 GlaxoSmithKline 22 6,766 548
2 Genzyme 3 2,837 275
3 Pfizer 9 1,900 340
4 Bristol-Myers Squibb 4 1,747 250
5 Celgene 2 1,004 45
6 Astellas Pharma 4 978 94
7 Takeda 11 953 276
8 Johnson & Johnson 6 931 78
9 AstraZeneca 4 900 40
10 Eli Lilly 15 829 49

 

  Total deal value in 2007 - top 10 companies  Product Count Deal Value ($m) Upfront Payment ($m)
1 GlaxoSmithKline 26 5,045 178
2 Boehringer Ingelheim 6 2,204 33
3 Eli Lilly 5 2,061 205
4 AstraZeneca 13 2,013 168
5 Novartis 14 1,938 105
6 Pfizer 17 1,891 334
7 Merck & Co 8 1,665 150
8 Johnson & Johnson 7 1,663 164
9 Shire 5 1,591 150
10 Roche 3 1,312 304

 

Related Topics

Share This Article