The Rise of Regional Dealmaking
Biotechs' drive to retain a bigger chunk of downstream rights is forcing product-hungry Big Pharma to accept non-global licensing deals. They'll be up against existing regional players, more accustomed to sharing rights and prioritizing others' drugs.
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The December US launch of linaclotide is a transformative event for Ironwood Pharmaceuticals, the GI drug’s discoverer. But the company’s recent deal with AstraZeneca to sell the drug in China represents another kind of feat and highlights the growing importance of regional deals to Western biotechs.
A review of Big Pharma regional dealmaking in 2006-2010 shows a slower uptick in the number of alliances than the steady year-over-year growth seen from 2001-2006.
With a three-year financial runway, biotech contends the deal validates its discovery-only business model.