Deal-Making Trends

Six $1bn+ alliances were penned in June. Topping the list was Eisai’s potential $3.1bn collaboration Bristol-Myers Squibb for the co-development and co-commercialization of Eisai’s antibody drug conjugate MORAb-202 in Japan, China, select countries in the Asia-Pacific region, the US, Canada, Europe (including the EU and UK), and Russia. The candidate is in Phase I in Japan and Phase I/II in the US for anti-folate receptor alpha-positive solid tumors.

In Vivo's Deal-Making column is a survey of recent health care transactions listed by relevant industry segment – In Vitro Diagnostics, Medical Devices and Pharmaceuticals – and then categorized by type – Acquisition, Alliance, or Financing. This month’s column covers deals announced in June 2021. Data provided by Biomedtracker. 

Sublicensing rights, revenue considerations, licensed know-how and diligence milestones: getting these elements right in deals with academic institutions sets the tone for biotechs as they grow and seek partnering opportunities with big pharma.

Four $1b+ alliances were penned in May. Topping the list was Bristol-Myers Squibb’s deal with Agenus under which BMS will be granted a global exclusive license to the late-preclinical antibody program AGEN1777 along with a second undisclosed target. Agenus received a $200m up-front payment and could get up to $1.36bn in development, regulatory, and commercialization milestones, plus tiered royalties in the low double-digit to mid-teen range.

Venture capitalists and industry executives discussed strategies for placing smart bets on emerging gene therapy companies during a recent virtual panel.

In Vivo's Deal-Making column is a survey of recent health care transactions listed by relevant industry segment – In Vitro Diagnostics, Medical Devices and Pharmaceuticals – and then categorized by type – Acquisition, Alliance, or Financing. This month’s column covers deals announced in May 2021. Data provided by Biomedtracker.

Deal-making and financing activities are on the rise for liquid biopsy diagnostic products in 2021 despite questions remaining around whether the technology can unseat standard-of-care biomarker and imaging tests.

Expanding partnerships with CROs, the COVID-19 lockdown, an eager FDA and an industry desire for faster and more diverse clinical trial recruiting helped Science 37, a decentralized clinical trial company, nail down plans to go public. Science 37 CEO David Coman spoke with In Vivo about the reasons for going public via SPAC, and why decentralization is a “prerequisite to operating a clinical trial today.” 

Two $1bn+ alliances were penned in April. Vertex and Obsidian entered into an agreement surrounding the discovery of therapies that regulate gene editing for the treatment of serious diseases. Obsidian is eligible for up to $75m in up-front payments and research milestones and could get another $1.3bn in potential milestone payments across up to five potential programs. Artios signed a three-year global research collaboration with Novartis to discover and validate next-generation DNA damage response targets to enhance Novartis’ radioligand therapies. In the top April M&A by deal value, Thermo Fisher and publicly traded contract research organization PPD announced a definitive agreement under which Thermo Fisher will pay $47.50 per share (a 23% premium to the 10-day pre-announcement average) in cash for PPD, for a purchase price of $17.4bn plus the assumption of approximately $3.5bn of net debt. Financing reached $14.6bn in biopharma, $1.2bn in device, and $2.4bn in diagnostics.

In Vivo's Deal-Making column is a survey of recent health care transactions listed by relevant industry segment – In Vitro Diagnostics, Medical Devices and Pharmaceuticals – and then categorized by type – Acquisition, Alliance, or Financing. This month’s column covers deals announced in April 2021. Data provided by Biomedtracker. 

During Q1, biopharma merger and acquisition value reached $34.8bn and drew in $35bn in potential deal value (PDV) from alliances. Device company M&A values reached $10.2bn, while in vitro diagnostic firms and research tools players completed M&A activity that totaled $5bn.

To open the year, biopharmas brought in an aggregate $33.2bn in financing and device company fundraising totaled $2.8bn; while in vitro diagnostic firms and research tools players raised $7bn ($6.1bn).