Key to predicting future trends in Big Pharma deal-making is reviewing the peer set's most recent activity. Between 2011 and 2015, Big Pharma - a peer set of approximately 16 firms across the world with large R&D and sales organizations, and sales valued at $10bn or more - signed over 1,100 drug-focused deals, growing at a compound annual growth rate of 10%. Overall, Big Pharma represented the majority of the monetary value of all biopharma partnerships: the peer group was responsible for $133bn of deal-making during the five-year period versus the $254bn in all comparable biopharma alliances (including the Big Pharma peer set).
As of mid-2015, Big Pharma companies had in the pipeline for cancer approximately 279 candidates, which is well over two times that of any other therapeutic area. This was reflected in deal-making; between 2011 and 2015, nearly two-thirds of Big Pharma's in- and out-licensing deals were in oncology, and immuno-oncology was the key driver of oncology in-licensing.This report addresses the following questions:
- Who are the top Big Pharma dealmakers by volume, and how does their in-licensing activity compare with out-licensing?
- How has the emergence of immuno-oncology affected overall oncology dealmaking and values?
- Besides oncology, what therapeutic areas are driving Big Pharma dealmaking and why?
- What therapeutic areas and deal structures are driving Big Pharma out-licensing?
- At what stages of development does the Big Pharma peer set tend to partner, and what are the average payments per phase?
Key Topics Covered:
Executive Summary
Key Points and Overall Totals
1. Deal volume increased but Big Pharma's overall share was small
2. Big Pharma represented the majority of deal-making spend
3. 2014 and 2015 were stand-out years in Big Pharma deal-making
4. Bibliography
Company Analysis and Case Studies
5. AstraZeneca was the leading dealmaker by overall volume within the Big Pharma peer set
Company Analysis and Case Studies
5. AstraZeneca was the leading dealmaker by overall volume within the Big Pharma peer set
6. Johnson & Johnson signed key cancer deals and formed an innovation initiative
7. Roche continued oncology momentum but deal-making showed importance of other therapeutic areas
8. Pfizer's in-licensing fluctuated while out-licensing efforts increased
9. Overall, out-licensing increased by 42% and Amgen and Eli Lilly evenly split in- and outlicensing
10. Bibliography
Therapy Area Analysis
11. Oncology dominated Big Pharma deal volume
Therapy Area Analysis
11. Oncology dominated Big Pharma deal volume
12. Infectious disease agreements declined, but there is potential for a turnaround
13. Endocrine, metabolic, and genetic disorders gained speed
14. Oncology also led in terms of partnership dollar values
15. Oncology was also the focus of most out-licensing deals
16. Bibliography
Deal Economics
17. Johnson & Johnson was the top dealmaker by dollars spent within the Big Pharma peer set
Deal Economics
17. Johnson & Johnson was the top dealmaker by dollars spent within the Big Pharma peer set
18. Payment metrics on deals generally increased
19. Average deal values increased
20. A higher proportion of deal value was still locked up in milestones
21. There were more than two-dozen billion-dollar deals between 2011 and 2015
Phase Analysis
22. Early-stage candidates dominated partnerships
Phase Analysis
22. Early-stage candidates dominated partnerships
23. Marketed drugs and Phase II candidates led in aggregate up-front payments
24. Phase II and marketed drugs tended to have higher average up-fronts
Geographic Breakdown of Deal-Making
25. Regional deal-making took off
Geographic Breakdown of Deal-Making
25. Regional deal-making took off
26. Bibliography
Deal Structures
27. R&D was the most common component of deal structures
Deal Structures
27. R&D was the most common component of deal structures
28. Option-based deal-making decreased
29. Bibliography