Innovation Pharmaceuticals Inc (IPIX)

[slcimmuno]

Aggregate Data on Pharma Licensing Deals
... what might be coming soon to a Beverly, Mass-based Biotech so very dear to you and me

THE PREMIUM OF A BIG PHARMA LICENSE DEAL (JULY 2014)
http://www.readcube.com/articles/10.1038%2Fnbt.2946

Given that over half of revenues for big pharma is predicted to come from in-licensed drugs in 2013 (ref. 1), [In-licensing applies to CTIX] understanding the drug buying behavior of these corporations is of fundamental importance to understanding the dynamics of the market for drugs. Here, we ask if small-to-medium-sized enterprises (SMEs) receive more lucrative deals licensing their drug to a large pharma than to another SME. Our analysis of over 800 licensing deals from the past 18 years (Fig. 1) reveals that big pharma has accounted for licenses on over half these drugs from external sources. Similar to previous studies 2,3, we found that the cost of in-licensing is sensitive to the development stage of the drug, with phase 3 drugs attracting the highest upfront payments. In the current study, we collected data from in-licensing deals, where the upfront price paid for each deal was recorded in US dollars. [...] The data were collected from the global Biotechgate database (http:// www.biotechgate.com/), which at the time of analysis, had information on 29,602 companies, 32,126 products, 3,817 technologies, 4,644 financing rounds, 317 company valuations, 76,645 management details, 6,322 licensing opportunities and 1,546 in-licensing deals.

PHASE II VALUES REMAIN HIGH BUT PHARMA LICENSING SLOWS (AUGUST 2013)
http://www.epvantage.com/Universal/View.aspx?type=Story&id=449002&isEPVantage=yes

Average deal terms for clinical assets
Average up-front payment ($m) Average deal value ($m)
H1 2013 2012 2011 2010 H1 2013 2012 2011 2010
Phase III 33 27 40 27 161 138 260 208
Phase II 39 34 34 46 229 267 272 281
Phase I 10 12 16 15 97 61 202 164

Figure 1: Big pharma pays more than SMEs in upfront payments when in-licensing.


Figure 2. The valuation of a company relationship to the status of its product.