Bayer Wins Specialty CV Deal
Bayer will pay $50 million up front and up to $335 million in development and commercialization milestones for ex-US rights to Nuvelo's clot-buster alfimeprase, which complements the German group's specialist cardiovascular portfolio.
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Regeneron Pharmaceuticals' October 18th deal with Bayer is the perfect case-study for observers of today's biopharma sector: high-value, ex-US only, specialist, and with a nice split-indication twist in its tail.
Given the competition for increasingly rare pipeline-fillers, most of today's licensing and M&A deals are auctions--a term used loosely to describe any situation where there's more than one bidder for an asset. But auctions come in various flavors; knowing which one to use requires a deep understanding of your asset, and its value to others.
No one at the PSA conference disagreed with the meeting's basic premise: that externalization in nearly every aspect of the pharmaceutical business is increasing, both voluntarily and involuntarily as small companies gain increasing development and commercial rights to products they out-license. But there was considerable disagreement on just what needs to be externalized. The philosophical split was evident between companies and within them. The strategic imperative was obvious: drug companies need to assess what they're good at and what they're not. But few companies are honest about that, particularly given the amounts of infrastructure that might need to be cut.