Our previous postings on this subject have raised quite a lot of interest from alliance management professionals and a not inconsiderable number of questions about both our research and previous surveys exploring the issue of the failure rate of alliances. In response to this interest and these questions we have undertaken a systematic review of the research in this area undertaken over the past two decades. Our findings are set out in Silico Research White Paper July 2011 – The Failure Rate of Alliances. Click on the link to download the White Paper in pdf format.
Teva has announced that it has signed a definitive agreement for the acquisition of a privately-held pharmaceutical and drug delivery company, MicroDose Therapeutx. MicroDose focuses on inhalation technologies and products that help improve efficacy and compliance in patients suffering from lung diseases and infections. With this acquisition, Teva will gain access to MicroDose’s proprietary technology. This includes a multi-dose dry powder nebulizer device, which needs no preparation and can be administered in less than 30 seconds.The lead candidate in MicroDose’s pipeline is MDT-637 which is being developed for respiratory syncytial virus. Teva will pay $40 million to acquire all the shares of MicroDose. Teva may also pay up to $125 million on the achievement of regulatory and development milestones as well as sales-based milestones and tiered royalties on the commercialization of MDT-637 and an earlier stage asthma/chronic obstructive pulmonary disease candidate.
Ambrx and Zhejiang Medicine have announced that they have formed a collaboration to develop and commercialize ARX788, Ambrx’s most advanced internally developed site-specific antibody drug conjugate targeting Her2-positive breast cancer. Under the terms of the agreement Ambrx and ZMC will continue the development of ARX788, with ZMC bearing the ongoing development cost. ZMC will receive commercial rights in China while Ambrx retains commercial rights outside of China and receives royalties on sales of the product in China. ZMC will manufacture the product to world-class standards for clinical and commercial supplies on a global basis. WuXi PharmaTech will provide integrated services for ARX788, including the development and manufacturing of the toxin, antibody and ADC, pre-clinical development and clinical trials.
Genmab and ADC Therapeutics have announced that they have partnered to co-develop a new antibody-drug conjugate product conjugate to treat multiple cancer indications. The partnership will provide both the companies with an equal share in the product. ADC will fund and lead the preclinical development and Genmab cannot acquire any development costs before submitting the IND application to conduct clinical studies in patients. A minimum of 25% ownership stake will be maintained by Genmab, as the product advances into clinical development. Further financial terms have not been disclosed.
Aragon Pharmaceuticals has announced that Johnson & Johnson will acquire Aragon for $650 million in cash up front along with $350 million in contingent development milestone payments. Aragon develops drugs for hormone driven cancers. The acquisition includes Aragon’s androgen receptor antagonist program, including its most advanced compound, ARN-509, a second generation androgen receptor signaling inhibitor that is currently being evaluated in a Phase II trial in patients with castration-resistant prostate cancer. Prior to closing, Aragon will spin off an independent, newly formed company called Seragon Pharmaceuticals, which will be focused primarily on Aragon’s Selective Estrogen Receptor Degrader (SERD) platform, including ARN-810, its lead SERD currently being evaluated in a Phase I trial for ER+ metastatic breast cancer. Seragon will be financed by the current Aragon investors. It will retain members of the management team including, Richard Heyman, current Chief Executive Officer of Aragon, who will become Seragon’s CEO. Johnson & Johnson will not have an ownership stake in Seragon or retain any rights to its technology or product development pipeline.
AstraZeneca has announced that MedImmune, its biologics research and development arm, and NGM Biopharmaceuticals have entered into an exclusive agreement to discover, develop and commercialise therapeutics from NGM’s enteroendocrine cell (EEC) programme for the treatment of type 2 diabetes and obesity. Under the terms of the agreement MedImmune and NGM will jointly develop peptide and antibody drug candidates based on EEC hormones discovered by NGM. MedImmune will have the option to license in these EEC targets, and will be responsible for the global development, manufacture and commercialisation of compounds resulting from the collaboration. MedImmune will make an upfront payment and provide NGM research funding over the course of the collaboration. If development, regulatory and commercial milestones are achieved, NGM will be entitled to receive various payments as well as royalties on worldwide product sales.
Isis Pharmaceuticals and Xenon Pharmaceuticals have announced that Xenon has exercised its option to an exclusive worldwide license to XEN701, an antisense drug discovered in a collaboration between Isis and Xenon. For the license of XEN701, Isis earns a $2 million payment from Xenon. XEN701 is a drug candidate designed to inhibit the production of hepcidin, a target Xenon identified utilizing its extreme genetics platform for the treatment of anemia of chronic disorders. XEN701 is currently being evaluated in studies to support clinical development. Xenon plans to initially develop XEN701 for patients with chronic kidney disease who are intolerant of or who are poor responders to erythropoietin therapy. XEN701 is the first drug to enter development from Isis’ collaboration with Xenon.
In 2010, Isis entered into collaboration with Xenon to discover and develop antisense drugs as novel treatments for ACD. Under the terms of the agreement, Isis received an undisclosed upfront payment in the form of a convertible promissory note from Xenon to discover and develop antisense drugs to the targets hepcidin and hemojuvelin. Upon the identification of a development candidate, Xenon has the option to exclusively license the development and worldwide commercialization rights for these antisense drugs from Isis. Xenon is responsible for all future development and commercialization of XEN701 and Isis is eligible to receive development and commercial milestone payments and royalties from Xenon on sales of XEN701, as well as a portion of sublicense revenue.
Bristol-Myers Squibb and Simcere Pharmaceutical have announced that the companies have expanded their strategic relationship formed in 2010. The companies have agreed to collaborate in China on the development and commercialization of the subcutaneous formulation of Bristol-Myers Squibb’s biologic medicine, Orencia, for the treatment of rheumatoid arthritis. Orencia SC is already on the market for the treatment of rheumatoid arthritis in the US, Europe and Japan. Under the terms of the agreement, Simcere will perform and fund all development and regulatory activities required to obtain market approval for Orencia SC in China, based on a pre-agreed development plan. The companies will share responsibility for commercializing Orencia, and will share profits and losses related to Orencia SC in China. Financial terms were not disclosed.