Cortellis 2017 BioPharma Deals and Portfolio Review ... · Introducing the Cortellis 2017 Biopharma...

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JAMIE MUNRO GLOBAL HEAD OF PORTFOLIO & LICENSING LAURA VITEZ COMMERCIAL INSIGHTS AND ANALYSIS, CORTELLIS Cortellis 2017 BioPharma Deals and Portfolio Review Executive Summary

Transcript of Cortellis 2017 BioPharma Deals and Portfolio Review ... · Introducing the Cortellis 2017 Biopharma...

Page 1: Cortellis 2017 BioPharma Deals and Portfolio Review ... · Introducing the Cortellis 2017 Biopharma Deals and Portfolio Review, as presented in sessions concurrent with the 36th Annual

JAMIE MUNRO GLOBAL HEAD OF PORTFOLIO & LICENSING LAURA VITEZ COMMERCIAL INSIGHTS AND ANALYSIS, CORTELLIS

Cortellis 2017 BioPharma Deals and Portfolio ReviewExecutive Summary

Page 2: Cortellis 2017 BioPharma Deals and Portfolio Review ... · Introducing the Cortellis 2017 Biopharma Deals and Portfolio Review, as presented in sessions concurrent with the 36th Annual

Introducing the Cortellis 2017 Biopharma Deals and Portfolio Review, as presented in sessions concurrent with the 36th Annual J.P. Morgan Healthcare Conference.

The global partnering and M&A landscape continues to climb.

02 Cortellis 2017 BioPharma Deals and Portfolio Review Executive Summary

Page 3: Cortellis 2017 BioPharma Deals and Portfolio Review ... · Introducing the Cortellis 2017 Biopharma Deals and Portfolio Review, as presented in sessions concurrent with the 36th Annual

It was a busy year for dealmaking in life sciences in 2017, especially in the therapeutic area of oncology and driven by immuno-oncology. Total deal dollars were up in 2017, in spite of decreased deal volume, and the new tax plan in the U.S. may set the stage for an even bigger year of deals in 2018.

03 Cortellis 2017 BioPharma Deals and Portfolio Review Executive Summary

TRANSACTION TYPES

M&A: Acquisitions, mergers, reverse mergers Licenses: Licenses, joint ventures, research collaborations Asset Purchases: Products and business unit acquisitions Funding: Acquisitions of < 50% equity, grants, loans, other funding types Commercial: Distribution, supply, co-promotion agreements Other: Contract services, royalty buyouts, spin-outs, settlements

DEAL VOLUME

1680

197

889

544

475 449

$4.2$6

$4.7

DEAL VALUE ($B)

$254

$76

$32

Page 4: Cortellis 2017 BioPharma Deals and Portfolio Review ... · Introducing the Cortellis 2017 Biopharma Deals and Portfolio Review, as presented in sessions concurrent with the 36th Annual

The impressive deals ranged from therapeutics to devices to healthcare data, paced by the mega-$69B M&A deal involving CVS-Caremark and Aetna. The top 5 therapeutic M&A deals totaled $53.9B alone.

OVERALL DEAL VOLUME FELL YEAR-ON-YEAR (2016 VS 2017) BY 3%, AS BOTH THE NUMBER OF M&A AND LICENSING DEALS DECLINED

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6% rise in overall dollar value of deals FROM $354B (2016) TO $376B

M&A deal value up 11%FROM $228B (2016) TO $254B

Licensing deals down by 14%FROM $88B (2016) TO $76B

LICENSING

1,749

1,680

M&A

547

449

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M&A: Inside the numbers

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Page 6: Cortellis 2017 BioPharma Deals and Portfolio Review ... · Introducing the Cortellis 2017 Biopharma Deals and Portfolio Review, as presented in sessions concurrent with the 36th Annual

For M&A data over the last 10 years, 2017 was among the decade’s busiest. It ranked third highest over the decade in both dollar value and amount of transactions.Even though diversified deals and cancer-related transactions remained the top two busiest therapeutic areas for M&A, both declined in volume in comparison to 2016, with oncology dropping by a significant 40%. Neurology, however, suffered the greatest decline (50%) and fell to fourth behind infectious diseases.

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Largest number of M&A deals547

M&A deals449 TRANSACTIONS, $254B

Highest dollar value$353B

2014 2016 20172008M&A

DATA2018

Page 7: Cortellis 2017 BioPharma Deals and Portfolio Review ... · Introducing the Cortellis 2017 Biopharma Deals and Portfolio Review, as presented in sessions concurrent with the 36th Annual

Drug pipeline by therapy area and development stageLooking toward the future, we analyzed current drug pipelines by therapeutic area (TA). Oncology, immune/inflammatory therapies, neurology, infectious diseases and gastrointestinal drugs exhibited the most extensive pipelines, according to Cortellis. Significantly, the majority of the oncology assets in the drug pipeline are in the discovery stage.

DRUG PIPELINE BREAKDOWN BY TA DRUG PIPELINE BY TA AND HIGHEST DEVELOPMENT STAGE

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CancerIm

mune/Inflm

matory

Neurology

InfectionG

astro-intestinal

Endocrine/Metabolic

Respiratory

Hem

atologicG

enito-urinaryCardiovascularD

ermatologic

Musculo-skeletal

Ocular

Toxicity/Intoxication

Cancer

Immune/Inflmmatory

Neurology

Infection

Gastro-intestinal

Endocrine/Metabolic

Respiratory

Hematologic

Genito-urinary

Cardiovascular

Dermatologic

Musculo-skeletal

Ocular

Toxicity/Intoxication

DISCOVERY PHASE 1 PHASE 2 PHASE 3 LAUNCHED

DATA EXTRACTED FROM CORTELLIS FOR COMPETITIVE INTELLIGENCE FOR ALL DRUG ASSETS CAPTURED IN THE DATABASE, AS OF DEC 31, 2017.

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A deeper look at licensing deals

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Page 9: Cortellis 2017 BioPharma Deals and Portfolio Review ... · Introducing the Cortellis 2017 Biopharma Deals and Portfolio Review, as presented in sessions concurrent with the 36th Annual

2017 had the second highest number of licensing dealsOVER THE LAST DECADE, JUST BELOW 2016

Average 2017 deal value = $299MFOURTH HIGHEST OVER THE DECADE, DOWN FROM $340M (2016) BUT VIRTUALLY EVEN WITH THE $303M AND $309M REGISTERED THE TWO YEARS PRIOR

Licensing deals that exceeded $1B = 23

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In all, 13 of the 23 blockbuster licensing deals in 2017 – those in excess of $1B – involved discovery stage assets, including three of the top four. In all, 10 of the blockbusters were in oncology, including five at the discovery phase.

$8.5B Oncology mega dealOUTPACING THE FIELD BY FAR

In addition to the Merck-AstraZeneca deal, three other licensing deals exceeded $2B in 2017:

Play with Ablynx in immune-mediated inflammatory diseases

Get-together with Pieris in the respiratory area

Deal with Assembly Biosciences in the gastrointestinal space

Page 10: Cortellis 2017 BioPharma Deals and Portfolio Review ... · Introducing the Cortellis 2017 Biopharma Deals and Portfolio Review, as presented in sessions concurrent with the 36th Annual

2017 licenses by therapeutic area Oncology licensing was so active that it outpaced the second busiest therapeutic area, neurology, by more than three times.

512

CANCER

168

NEUROLOGY/PSYCHIATRIC

119

INFECTION

91

DIVERSIFIED

68IMMUNE/INFLAMMATORY

59ENDOCRINE/METABOLIC

46GASTROINTESTINAL

45CARDIOVASCULAR

38DERMATOLOGIC

37OCULAR

37OTHER

34MUSCULOSKELETAL

29GENITOURINARY

28RESPIRATORY

18HEMATOLOGIC

12TOXICITY/INTOXICATION

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The Big Movers

Upfront cash payments, another key transaction barometer, were paced by two mega deals (both involving approved assets).

$1.6B upfront

$1.25B upfront

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$35MAVERAGE LICENSING UPFRONT (EXCLUDING THE MERCK AND BIOGEN DEALS) / MEDIAN UPFRONT: $10M

1,158THE U.S. WAS THE HQ LOCATION OF OVER HALF OF SELLSIDE COMPANIES INVOLVED IN LIFE SCIENCES LICENSING TRANSACTIONS

50+SELLSIDE COUNTRIES REPRESENTED, DEMONSTRATING TRUE GLOBAL NATURE OF TODAY’S LIFE SCIENCES INDUSTRY

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Focus on oncology

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Overall, our analysis showed that oncology continues to drive a significant share of biopharma dealmaking. We looked at 30 top pharma dealmakers and found they were involved in 118 transactions on the buyside in oncology (2017), the most by far of any therapeutic area. Neuroscience was a distant second with 38.

INCREASING IMMUNO-ONCOLOGY ACTIVITY ~250 COMPOUNDS IN ACTIVE DEVELOPMENT AS OF DECEMBER 31, 2017.

COMPOUND TARGET1. elotuzumab CD22. ipilimumab CTLA43. atezolizumab PD-L14. nivolumab PD-15. pembrolizumab PD-16. durvalumab PD-L17. avelumab PD-L1

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157 AT THE DISCOVERY STAGE

39 IN PHASE 2

47 IN PHASE 1

8 IN PHASE 3

7 LAUNCHED

1 REGISTERED

Top 5 oncology M&A deals = $21.7B TOTAL OF TOP 5 DEALS IN 2017

Top 10 licensing deals = $2.9B in upfront payments

PLUS $21B IN DOWNSTREAM VALUE

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The keen interest in immuno-oncology drove much of the dealmaking in the space. While more than 60% of deals focused on innovative therapeutics, cancer-related diagnostics, devices, biomarkers and other technologies also featured heavily. The dealmaking was not limited to the biggest players in the industry, as many medium and small biopharmas were also getting in on the action.

755AT THE DISCOVERY STAGE

112 IN PHASE 1

101 IN PHASE 3

193IN PHASE 2

31 AT PRE-REGISTRATION OR ALREADY REGISTERED

LOOKING AT THERAPEUTIC DEALS IN ONCOLOGY ONLY, DISCOVERY STAGE ASSETS DROVE THE MAJORITY OF THE ACTIVITY IN OUR ANALYSIS OF THE LAST FIVE YEARS

Cortellis Deals Intelligence over last five years tracked:

164M&AS IN ONCOLOGY

2,204LICENSING, JOINT VENTURES AND RESEARCH COLLABORATIONS IN ONCOLOGY

+

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$244BAGGREGATE DOLLAR VALUE OF ONCOLOGY DEALS

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Looking ahead

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Data collected from Clarivate Analytics Cortellis Competitive Intelligence and Cortellis Deals Intelligence

Oncology on the riseWE CONTINUE TO EXPECT ONCOLOGY TO BE A FOCAL POINT, DOMINATING THE DEALMAKING LANDSCAPE

Tracking the tax effectsCHANGES TO THE U.S. TAX SYSTEM MAY DRIVE SIGNIFICANT M&A IN 2018, A TREND WE WILL BE WATCHING CAREFULLY

Pricing uncertaintyPRICING CHALLENGES WILL REMAIN AND THE INDUSTRY WILL WRESTLE WITH COSTS AND VALUE GENERATION

Driving innovationWE CONTINUE TO SEE OPPORTUNITIES AS THE INDUSTRY DRIVES TO INNOVATE, AND GLOBAL REACH EXPANDS THE BUSINESS AND SCIENCE OF BIOPHARMA

2018 and beyond The globalization of the biopharma industry will continue and create more opportunities. We believe these key trends should affect the dynamics of dealmaking in 2018, as well.

Page 17: Cortellis 2017 BioPharma Deals and Portfolio Review ... · Introducing the Cortellis 2017 Biopharma Deals and Portfolio Review, as presented in sessions concurrent with the 36th Annual

Congratulations Clarivate Analytics Cortellis 2017 Deal of the Year Award winnersThe 2017 M&A and licensing partnerships were reviewed by our experts at Cortellis. Five deals in each of these categories were nominated for the Clarivate Analytics Cortellis Deals of the Year Award and the winners were then selected by a public vote. Deals in the area of oncology (driven by immuno-oncology therapies) won out in both categories.

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A young company, cool technology, and a spinout that keeps IFM innovating made this deal a standout in a year of blockbuster M&A deals

Creatively-structured discovery stage licensing deal lets CytomX lead early development of its Probody therapy with Amgen leading the launch, should it gain approval

$2.3BTOTAL VALUE DEAL

$300MUPFRONT PAYMENTS

$1BMILESTONE PAYMENTS IN EACH OF TWO PROGRAMS

$1.7BTOTAL VALUE DEAL

$40MUPFRONT PAYMENTS

$20MEQUITY PAYMENT

LICENSING DEAL WINNER

M&A DEAL WINNER

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For information about Cortellis 2017 BioPharma Deals and Portfolio Review, visit clarivate.com

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