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Excellent Article on Current Market Conditions ... Local Maryland Biotechs in Search of Partners
Colleagues,
As reported in Washington Business Journal ...
Science sells
Many local maryland biotechs, reflecting nationwide trends, are in the serious market to find "Consolidator" partners - companies with global reach in distribution, marketing and access to public capital.-
The difference between the partnership haves and have-nots, industry observers say, is the science. A strong product will lure a larger partner no matter the smaller company’s situation. In return for signing over some of the biotech’s rights to its product, partners often cut the smaller company sizable checks up front... ($41 million for Rockville, Maryland based, Macrogenics from Eli Lilly in 2007) ... That is often followed by additional payments after hitting specific research, clinical or regulatory milestones and, ultimately, royalties if the drug makes it to market — all activities a small biotech typically can’t afford on its own...
... While that’s no different from the pre-recession era, the level of urgency has spiked. Before, partnerships were a goal for growth for many biotechs. Today, when at least four of 10 biotech companies nationwide have less than a year’s worth of cash in the bank, they’re a prerequisite for survival...
... Locally, companies such as GenVec Inc., EntreMed Inc., Novavax Inc., Micromet Inc., Nabi Biopharmaceuticals, Cel-Sci Corp. and Ore Pharmaceuticals Inc. — many of whom have had to downsize their staff since the market turned so sour — are relying on potential partners to help pay the research and clinical bills to keep their drug programs on track.
It’s a strategy even the region’s largest biotechs have leaned on — Human Genome Sciences Inc. is developing its two late-stage products, one with Novartis AG and the other with GlaxoSmithKline PLC. Even MedImmune had inked a marketing deal with Abbott Laboratories to sell its blockbuster pediatric Synagis drug worldwide before the Gaithersburg company became a subsidiary of London-based AstraZeneca PLC. In the cases of Iomai Corp. and Avalon Pharmaceuticals Inc., the search for a partnership led to the ultimate end game for a lot of biotechs — a full-on acquisition...
Read on at: http://washington.bizjournals.com/washington/stories/2009/06/29/foc...
CC
As reported in Washington Business Journal ...
Science sells
Many local maryland biotechs, reflecting nationwide trends, are in the serious market to find "Consolidator" partners - companies with global reach in distribution, marketing and access to public capital.-
The difference between the partnership haves and have-nots, industry observers say, is the science. A strong product will lure a larger partner no matter the smaller company’s situation. In return for signing over some of the biotech’s rights to its product, partners often cut the smaller company sizable checks up front... ($41 million for Rockville, Maryland based, Macrogenics from Eli Lilly in 2007) ... That is often followed by additional payments after hitting specific research, clinical or regulatory milestones and, ultimately, royalties if the drug makes it to market — all activities a small biotech typically can’t afford on its own...
... While that’s no different from the pre-recession era, the level of urgency has spiked. Before, partnerships were a goal for growth for many biotechs. Today, when at least four of 10 biotech companies nationwide have less than a year’s worth of cash in the bank, they’re a prerequisite for survival...
... Locally, companies such as GenVec Inc., EntreMed Inc., Novavax Inc., Micromet Inc., Nabi Biopharmaceuticals, Cel-Sci Corp. and Ore Pharmaceuticals Inc. — many of whom have had to downsize their staff since the market turned so sour — are relying on potential partners to help pay the research and clinical bills to keep their drug programs on track.
It’s a strategy even the region’s largest biotechs have leaned on — Human Genome Sciences Inc. is developing its two late-stage products, one with Novartis AG and the other with GlaxoSmithKline PLC. Even MedImmune had inked a marketing deal with Abbott Laboratories to sell its blockbuster pediatric Synagis drug worldwide before the Gaithersburg company became a subsidiary of London-based AstraZeneca PLC. In the cases of Iomai Corp. and Avalon Pharmaceuticals Inc., the search for a partnership led to the ultimate end game for a lot of biotechs — a full-on acquisition...
Read on at: http://washington.bizjournals.com/washington/stories/2009/06/29/foc...
CC
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