Biotechnology Industry: Biopartnering Strategies: Maximizing returns from biotechnology deal-making

• Publication date: December 2006
• Report size: 103 pages

Over the past 30 years the biotechnology market has evolved rapidly, resulting in changes to biopartnering dynamics. Out-licensors now command greater power and leverage over the licensing of their technologies, changing the approach of out-licensing at various stages of the lifecycle and highlighting the need for biotechnology industry players to adapt existing strategies to optimize this process. ‘Biopartnering Strategies’ is a unique marke...

Over the past 30 years the biotechnology market has evolved rapidly, resulting in changes to biopartnering dynamics. Out-licensors now command greater power and leverage over the licensing of their technologies, changing the approach of out-licensing at various stages of the lifecycle and highlighting the need for biotechnology industry players to adapt existing strategies to optimize this process. ‘Biopartnering Strategies’ is a unique market research report from the Drug Discovery series that provides an essential guide to the biopartnering process, for both in-licensing and out-licensing firms . Detailed case studies of biopartnering strategies at different phases of lifecycle development and in-depth analysis of deal trends will ensure that you can identify best practice alliance and licensing strategies and formulate successful deals. Use this market research report to implement the optimal biopartnering strategy for your firm ’s needs as it progresses through the ‘pioneer’, ‘growth’ and ‘consolidation’ stages of the lifecycle and ensure you recognize opportunities for growth in this high profit industry .

Biotechnology Industry

Table of Contents
Biopartnering Strategies
Summary 8
Biopartnering trends 8
Licensing across the biotechnology lifecycle 9
The biopartnering process 10
Biopartnering for ‘pioneer’ industry players 11
Biopartnering for ‘growth’ industry players 12
Biopartnering for ‘consolidation’ industry players 13
Chapter 1 Biopartnering trends 16
Summary 16
Introduction 17
A maturing biotechnology market 18
A shift in biopartnering trends 21
Strategic implications 25
Part I Licensing across the
biotechnology lifecycle 28
Summary 28
Introduction 29
The biotech industry player lifecycle 29
‘Pioneer’ industry players 34
‘Growth’ industry players 36
‘Consolidation’ industry players 37
iv
Part III The biopartnering process 42
Summary 42
Introduction 43
Biopartnering complexity 43
The biopartnering process 45
Biopartnering strategy 47
Opportunity identification 49
Biotechnology out-licensors 49
Biopartnering in-licensors 53
Licensing evaluations 56
Deal-making and agreement 61
Post-deal management and analysis 65
Part IV Biopartnering for ‘pioneer’
companies 70
Summary 70
Introduction 71
Biopartnering objectives 71
Case study: IDM Pharma 72
History 72
Financials 73
Key collaborations 75
Medarex 75
Sanofi-Aventis 75
Other key events 76
Jenner Biotherapies 76
Epimmune 76
Pharmexa 76
Recommendations 76
Part V Biopartnering for ‘growth’
companies 80
Summary 80
Introduction 81
Biopartnering objectives 81
v
Case study: Millennium Pharmaceuticals 82
History 82
Financials 83
Key collaborations 85
Sanofi-Aventis 85
Integrilin 86
Ortho Biotech 86
Other key events 87
Leukosite 87
COR Therapeutics 87
Velcade launch 87
Recommendations 88
Part VI Biopartnering for ‘consolidation’
companies 90
Summary 90
Introduction 91
Biopartnering objectives 91
Case study: Biogen IDEC 92
History 92
Financials 93
Key collaborations 95
Schering AG 95
Elan 96
PDL BioPharma 96
Other key events 96
Biogen IDEC merger 96
Conforma Therapeutics 97
Fumapharm 97
Recommendations 97
Part VII Appendix 100
Primary research survey 100
Index 103
vi

List of Figures
Chart 1.1: Number of biotechnology Merger and Acquisition by partner, 1996-2005 22
Chart 1.2: Biopartnering by in-licensing partner, 1996-2005 23
Chart 1.3: Biopartnering by stage of development, 1996-2005 24
Chart 2.4: Evolutionary growth stages for biotech industry players 30
Chart 2.5: Biotech industry player growth drivers 31
Chart 2.6: Key biotech industry player growth phases 33
Chart 2.7: The biotechnology market split by development phase 34
Chart 3.8: Expected change in number of biopartnering deals over next 12 months 44
Chart 3.9: Expected change in value of biopartnering deals over next 12 months 44
Chart 3.10: Expected change in number of potential partners chasing each biopartnering deal over
next 12 months 45
Chart 3.11: The biopartnering licensing process 46
Chart 3.12: Outside partners involved in identifying potential biopartnering opportunities 53
Chart 3.13: Outside partners involved in due diligence for potential biopartnering opportunities 60
Chart 3.14: Key information shared between partners during negotiations over biopartnering
agreements 61
Chart 3.15: Valuation techniques used to support negotiations over biopartnering agreements 62
Chart 3.16: Outside partners involved in the valuation and negotiation of biopartnering agreements
64
Chart 4.17: IDM Pharma’s revenues, 2005 73
Chart 4.18: IDM Pharma’s key financials, from 2000 to 2005 74
Chart 5.19: Millennium Pharmaceuticals’ revenues, 2005 83
Chart 5.20: Millennium Pharmaceuticals’ key financials, 1994-2005 85
Chart 6.21: Biogen IDEC’s revenues, 2005 93
Chart 6.22: Biogen IDEC’s key financials, 1991-2005 95
Chart 7.23: Licensing trends survey respondents by industry player focus 100
Chart 7.24: Licensing trends survey respondents by functional responsibility 101
Chart 7.25: Licensing trends survey respondents by licensing responsibility 102

List of Tables
Data table 1.1: The global biotechnology market by region, 2005 18
Data table 1.2: Growth in the global biotechnology market, from 2004 to 2005 19
Data table 1.3: Biotechnology equity financing trends in North America and EUR pe, from 2004 to 2005 19
Data table 1.4: Biotechnology blockbusters, from 2003 to 2005 20
Data table 4.5: IDM Pharma’s clinical development pipeline, 2006 74
Data table 5.6: Millennium Pharmaceuticals’ clinical development pipeline, 2006 84
Data table 6.7: Biogen IDEC’s clinical development pipeline, 2006 94