- 40% of pharmaceutical partnership deals terminated between January 2010 and June 2011 were valued at $400m-$600m
- Strategic changes are cited as the most common reason behind pharmaceutical deal terminations
- Therapies for CNS disorders and infectious diseases accounted for 50% of deals terminated
LONDON--(BUSINESS WIRE)-- Pharmaceutical R&D is expensive and time consuming, therefore companies enter into partnership agreements to speed up the process and reduce costs. From January 2010-June 2011 there were at least twenty high profile pharmaceutical partnership deal terminations, according to a new report available on companiesandmarkets.com.
Pharmaceutical Partnership Deal Terminations
Licensing and development partnerships are a way in which pharmaceutical firms can minimise the potential risks associated with drug development, however these deals do not always reach conclusion.
Partnership terminations occur for a number of reasons, and for the reporting period in this research piece, 60% were attributed to changes in company strategy. In some cases this is as a result of merger or acquisition activity, although may also be because organisations have had to rationalise and review pipeline products.
The next most common explanation given by pharmaceutical companies for deal terminations was that early results could not justify continued testing, with 25% of deals terminated on the grounds of poor safety and low efficacy levels. Expensive setbacks in the drug development process were cited as cause for termination in 10% of cases, while 5% of terminated pharmaceutical deals in the period were as a result of disputes between the partnering companies.
The top twenty pharmaceutical partnership deal terminations between January 2010 and June 2011 included the following companies: GlaxoSmithKline, Actelion, Targacept, Shire, Renovo Group, Anacor Pharmaceuticals, Merck, Novartis, Human Genome Sciences, InterMune, F. Hoffmann-La Roche, GTx, Aveo Pharmaceuticals, Lpath, Portola Pharmaceuticals, Celldex Therapeutics, Pfizer, Depomed, Abbott Laboratories, Intercell, SkyePharma, Rigel Pharmaceuticals, Roche, Transgene, Ipsen, Cilag and Basilea Pharmaceutica.
This September 2011 report thoroughly examines the top pharmaceutical partnership deal terminations which took place between January 2011 and June 2011. Companies involved in each partnership are analysed, with detailed information provided on the product(s) under development. Each deal is analysed by cost and therapeutic area, and the reasons behind the termination are discussed.
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KEYWORDS: United Kingdom Europe
INDUSTRY KEYWORDS: Health Pharmaceutical
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