Replies to post #177225 on Biotech Values

[DewDiligence]

No matter how you slice it, the GSK-NVS oncology transfer is a peculiar transaction. Andrew Witty’s quote in #msg-101017680 doesn’t pass the sniff test, but I suppose it makes a good CNBC soundbite.

[mcbio]

It will remain to be seen what GSK does with some of its partnered early assets. There might be some small partners feeling uneasy at the moment. Same is true for some of NVS small partners.

I guess as an FPRX long, I should consider the possibility that the partnership FPRX has with GSK for FP-1039, its FGF Ligand Trap, could be in trouble but I guess not if NVS has an interest? I'm happy to buy FPRX on any weakness on any negative development on this front though given that the reason for my investment in FPRX was primarily for their immuno oncology platform.

For NVS, I definitely now have some more pause on ARRY (was giving consideration to taking a position again at some point potentially). It certainly remains to be seen if NVS will favor Mekinist over MEK162.

[DewDiligence]

Servier, NVS ink oncology collaboration focused on BCL-2:

http://www.servier.com/content/servier-enters-global-collaboration-agreement-development-and-commercialization-new-drugs

Servier today announced that they have signed a strategic global collaboration agreement with Novartis to develop and commercialize a series of novel drugs candidates issued from the Servier research programs partnered with Vernalis in oncology which are targeting the apoptosis regulation pathways.

The collaboration covers the worldwide co-development of BCL-2 selective inhibitor candidates that are now entering into clinical development… Servier will remain responsible for research activities and will share responsibilities with Novartis to conduct a clinical development program aimed at moving swiftly to a first indication for the benefit of patients. Commercialization rights to products arising from the collaboration will be allocated between the parties on a geographic basis.

There’s no mention of an up-front payment, but that doesn’t mean there isn’t one; as a private company, Servier discloses less information about dealmaking than a typical public company.