By the end of 2014, the number of partnering deals involving a therapeutic antibody, antibody drug conjugates or any other type of next generation antibody asset reached 94, marking a spike in the total number of deals in recent years. The four previous years hovered in the range between 60 to 75 deals (Fig. 1). The BCIQ database also showed 38 deals took place before the end of April 2015, which may indicate that the peak observed in 2014 may mark a new level of activity for deal making in the sector.
An additional indication that 2015 promises to be another year of growth may be gleaned, with caution, from a look at reported up-front payment values. At close to $140 million, this year’s average has exceeded the reported average, up-front payment values for 2014 (Fig. 2). Skewing the graph are: Celgene paying $450 million to AstraZeneca’s Medimmune, AstraZeneca paying $250 million to Innate Pharma and Eli Lilly paying $56 million up-front to Innovent.
Celgene is expanding treatment options for hematological malignancies using Medimmune’s phase 3, checkpoint inhibitor asset, MEDI4736, in combination with its pipeline. In turn, AstraZeneca (Medimmune’s parent company) licensed the phase 2 asset, IPH2201 (an antibody targeting checkpoint receptor NKG2A), from Innate Pharma to broaden its development in combination with MEDI4736. Eli Lilly is making forarys emerging markets throwing in with the Chinese antibody company, Innovent, starting from the early stage development of three antibodies for immuno-oncology targets.
The largest up-front payment reported in 2014 was the $850 million, Merck received from Pfizer, for yet another checkpoint inhibitor asset licensed with the intent of using it in combination with other anticancer agents. Most deals go unreported therefore the robustness indicated by the average up-front payments through April 2015 may also simply indicate a bias toward those companies more likely to report upfront values being busy at the start to the year. Even so, the limited reporting exposes a trend that stems from the expanded use of immune-checkpoint inhibitors for new indications and treatment combinations.
Acquisition activity in 2014 includes three companies with bi-specific antibody discovery platforms, consolidation of companies and two reverse mergers followed by fundraisings (Table 1). Two biosimilar companies were acquired by large pharmaceutical companies: Pfizer bought Hospira and Russia’s leading pharma company, Pharmstandard (along with the investment company Millhouse), acquired a 70% stake in Biocad.
A bit of role reversal took place in 2014 when biosimilar giant Teva acquired a company with a novel asset once owned by Pfizer. LBR-101, is a calcitonin gene-related peptide (CGRP) antibody for the treatment of migraine, Pfizer obtained after acquiring Rinat Biosciences. While in phase 2, the asset’s development was stalled due to restructuring at Pfizer and Labrys was created to follow through on its development. Johnson & Johnson also ventured further afield of oncology (the dominant deal indication for antibodies) acquiring the Cambridge University spin out, X01. X01 was created to develop, a recombinant human antibody that induces anticoagulation without creating a predisposition to bleeding.
All data courtesy of BioCentury.
