Replies to post #222595 on Biotech Values

[dewophile]

It seems that way but then they had some stellar data from a preclinical asset which is now close to launch. I guess they could sell this asset too and get out of oncology altogether, but they hung onto their drugs in development bc NVS probably wasn't valuing the programs much at the time. So they are getting back into oncology from a position of some strength - specifically on the back of the data for their BCMA drug. Then they went and hired Hal Barron, formerly of Genentech, to be CSO. So I think the writing was on the wall.
Whether they should sell their pipeline (which now has real value) or dive back into a competitive oncology landscape can certainly be debated, but they did not get back into oncology willy nilly that's for sure.

[DewDiligence]

GSK, Merck KGaA ink development deal for bi-specific, M7824:

https://www.marketwatch.com/story/glaxosmithkline-and-merck-kgaa-to-strike-immunotherapy-deal-worth-up-to-423-billion-2019-02-05

…M7824…is a bifunctional antibody designed to simultaneously target two pathways in the body that serve as immune checkpoints: one that involves a protein called transforming growth factor-ß and another involving the programmed death ligand-1 (PD-L1).

Under the terms of the deal, Merck KGaA will receive an upfront payment of €300 million, or $342.75 million, and will be eligible for potential development milestone payments of up to €500 million, or $571.25 million. Merck KGaA will also be eligible for further payments upon approval and commercial milestones of up to €2.9 billion, or $3.31 billion, for a total potential deal value up to €3.7 billion, or $4.23 billion.

Both GSK and Merck KGaA will be involved in development and commercialization, and all profits and costs will be shared equally…