We are tracking the biopharma R&D partnerships in neurology through the first half of 2023. Some notable licensing deals include Voyager’s partnership with Neurocrine, which secured an upfront payment of $175 million and the potential to achieve up to $4.2 billion in milestones. Similarly, Scribe granted Prevail exclusive rights for genetic therapies for a substantial $75 million upfront and the possibility of $1.5 billion in milestones. Confo’s partnership with Eli Lilly granted exclusive rights for neuropathic pain treatment and GPCR targeting antibodies. Biohaven’s venture to develop BHV-8000 for neurologic diseases brough an upfront payment of $10 million and the prospect of earning up to $950 million in milestones. Likewise, Capsida granted Prevail rights to develop gene therapies, with an upfront payment of $55 million and the potential to reach $685 million in milestones. The collaborations encompass pioneering gene therapies, genetic treatments, and innovative medications, offering immense possibilities in advancing neurologic disease therapies.
The landscape of neurology R&D partnerships saw a positive change in 2023. Partnership numbers increased again, with 36 deals in Q1 and 20 in Q2, accompanied by deal values of $8.6 billion and $2.9 billion for the respective quarters. In contrast, partnership figures in 2022 were more modest beginning with 28 deals in Q1, then decreasing to 22 in Q2, followed by 19 in Q3, and ultimately dropping to just 15 in Q4. The total deal values also followed a descending pattern during this period, reaching the highest at $4.5 billion in Q1, followed by $2.1 billion in Q2, $2.76 billion in Q3 2022, and significantly decreasing to $802.5 million in Q4. The data illustrates a fluctuating trend in neurology R&D partnerships over these quarters, showcasing a decline in 2022 and a subsequent revival in 2023.
In 2023, initial investments in neurologic therapies showed a downward trend, with $392 million in Q1 and a minimal $11 million in Q2. The preceding year, 2022, saw consistently low initial investments in neurologic R&D collaborations. Q1 had $270 million, followed by $111 million in Q2, $85 million in Q3, and a mere $51 million in Q4. This data reveals an irregular pattern in R&D investment for neurologic therapies. The modest upfront sums in 2022 and 2023 raise inquiries about challenges or changes in the neurologic R&D landscape, prompting a need to investigate factors affecting these investment trends. Overall, the data indicates fluctuating activity in neurologic R&D partnerships. There was a consistent decline throughout 2022, followed by a rise in Q1 of 2023, though Q2 of 2023 experienced another decline, with upfront investments not aligning with the partnership intensity observed during these periods.
Unveiling Collaboration Trends: R&D Partnerships In The Leading Therapy Areas
Cancer treatments consistently attracted the highest funding over the years, receiving $2.8 billion in 2022, which decreased to $0.8 billion in the first half of 2023. In contrast, neurologic disease therapies initially secured only $200 million in 2022, dropping to zero investments in the first half of 2023. Infectious disease and autoimmune treatments received comparatively moderate investments during this period. Infectious disease therapies garnered $300 million in 2022 and $100 million in H1 2023. Meanwhile, autoimmune therapies declined, starting at $100 million in 2022 and rising to $300 million in H1 2023. Hematologic therapies also experienced reduced investments, declining from $100 million in 2022 to minimal levels in H1 2023. Overall, there’s a noticeable shift in investment preferences within R&D partnerships. Neurologic disease therapies encountered a substantial funding decrease, while cancer treatments maintained their dominant position in industry focus and investment attraction.
Strategic Alliances: Exploring The Latest R&D Partnership Deals
- In January 2023, Voyager partnered with Neurocrine, gaining $175 million upfront comrising $136 million in cash and a $39 million equity investment. Additional payments of up to $4.2 billion are possible for development and commercial milestones, including $985 million for the 1 GBA1 Program and $525 million for 3 New Discovery Programs. Voyager could receive up to $1.90 billion for 2 New Collaboration Products in the GBA1 Program and up to $825 million for 1 New Collaboration Product per 3 New Discovery Programs. Tiered royalties are available for Voyager if profit-sharing doesn’t apply, ranging from low double-digits to 20% for the GBA1 Program in the U.S.
- In January 2023, Capsida granted Prevail exclusive, worldwide rights to develop and commercialize CNS gene therapies. Combining Capsida’s AAV engineering platform with Prevail’s expertise, Capsida will manage discovery while Prevail oversees preclinical and IND studies. Capsida received $55 million up front and potential payments of up to $685 million in milestones, plus tiered royalties. U.S. development and commercialization for one program is also an option for Capsida.
- In March 2023, Confo granted Eli Lilly exclusive, worldwide rights for CFTX-1554 and backup compounds targeting neuropathic pain. Eli Lilly is responsible for clinical development beyond Phase I for Confo’s GPCR targeting antibody candidates. Confo received an upfront payment of $40 million, potential milestone earnings of up to $590 million per program, plus tiered royalties. Future co-investment options post-clinical proof-of-concept are also available.
- In March 2023, Biohaven acquired exclusive, worldwide rights (excluding China) from Highlightll for BHV-8000 (TLL-041), an oral inhibitor of Tyrosine Kinase 2 (TYK2) and Janus Kinase 1 (JAK1) for neurologic diseases. Highlightll gains $10 million in cash and $10 million in Biohaven’s common stock up front, with potential payments of up to $950 million in development and commercial milestones, plus mid-single-digit to lower teens tiered royalties.
- In May 2023, Scribe granted Prevail exclusive, worldwide rights to genetic therapies leveraging Scribe’s CRISPR platform and Prevail’s neurologic disease expertise. Scribe received $75 million up front and could earn up to $1.5 billion in milestones, plus low double-digit tiered royalties. Scribe can co-fund and share profits for a single therapy in the U.S.
