Global Healthcare and Life Sciences R&D Partnerships – 2024 Review

Global Healthcare and Life Sciences R&D Partnerships - 2024 Review

DealForma’s review of R&D partnerships and licensing deals for 2024 tracked an increase in deal volume when counting the broader healthcare and life sciences space. Biopharma partnerships and licensing deals saw higher total announce deal values. GSK partnered with Flagship Pioneering in a $150 million co-funded initiative to develop up to 10 therapies in respiratory and immunology, potentially reaching $720 million in milestones per program for a $7.2 billion potential deal value, plus royalties. Jiangsu Hengrui Pharmaceuticals licensed exclusive rights to Hercules for three GLP-1 therapies, securing $100 million upfront, a 19.9% equity stake, and up to $6.0 billion in total milestones and royalties. Argo Biopharmaceutical granted Novartis global rights to an RNA-based cardiovascular therapy, with $185 million upfront and up to $4.0 billion in option fees and milestones. Meanwhile, Prime Medicine teamed with Juno Therapeutics and BMS to advance ex vivo T-cell therapies, receiving $55 million upfront, $55 million in equity, and up to $3.5 billion in milestones and royalties.

Global Healthcare & Life Sciences - R&D Partnerships

In 2024, the global healthcare and life sciences sector recorded 692 R&D partnerships worth $197.3 billion, up from 678 deals totaling $192.0 billion in 2023. Upfront cash and equity commitments rose slightly to $14.0 billion from $13.6 billion. However average deal value per transaction declined to $712 million from $821 million in 2023. Over 2 years, the sector secured 1,370 deals worth $389.3 billion.

 

US Healthcare & Life Sciences R&D Partnerships

U.S. Healthcare & Life Sciences - R&D Partnerships

In 2024, U.S. R&D partnerships reached 373 deals totaling $110.8 billion, with $7.0 billion in upfront cash and an average deal size of $729 million. An increase from 2023, which saw 335 deals worth $91.4 billion, $5.2 billion upfront, and a slightly higher average deal size of $762 million.

 

EMEA Healthcare & Life Sciences R&D Partnerships

EMEA Healthcare & Life Sciences - R&D Partnerships

In EMEA, 2024 saw 167 deals worth $28.7 billion, with $3.9 billion upfront and an average deal value of $513 million. A decline from 2023, which recorded 184 deals totaling $33.3 billion, $1.8 billion upfront, and a higher average deal value of $723 million.

 

APAC Healthcare & Life Sciences R&D Partnerships

APAC Healthcare & Life Sciences - R&D Partnerships

In APAC, 2024 recorded 133 deals worth $57.5 billion, with $3.0 billion upfront and an average deal value of $845 million. A slight drop from 2023, which saw 134 deals totaling $63.8 billion, $6.6 billion upfront, and a higher average deal value of $1,028 million.

 

Biopharma Tx and Platform Companies R&D Partnerships

Biopharma Tx and Platform Companies - R&D Partnerships

In 2024, biopharma therapeutics and platform companies secured 434 R&D partnerships worth $182.5 billion, with $13.1 billion upfront and an average deal size of $777 million. This reflects slightly fewer deals but a higher total value than 2023, which recorded 435 deals totaling $173.7 billion, $12.3 billion upfront, and a higher average deal size of $877 million. Over the 2 years, the sector recorded 869 deals totaling $356.2 billion, with $25.3 billion in upfront cash.

 

Global Healthcare & Life Sciences R&D Partnerships by Stage

Global Healthcare & Life Sciences - R&D Partnerships by Stage

Across all biopharma company sizes in 2024, R&D partnership values varied by development stage with Phase I coming in highest:

  • Platform/Discovery: 165 deals worth $93.3 billion, with $2.9 billion in upfront cash and equity, averaging $56 million per deal.
  • Preclinical: 59 deals totaling $26.8 billion, with $1.3 billion upfront, averaging $44 million per deal.
  • Phase I: 43 deals valued at $35.2 billion, with $2.5 billion upfront, averaging $102 million per deal.
  • Phase II: 36 deals totaling $14.9 billion, with $2.6 billion upfront, averaging $129 million per deal.
  • Phase III: 41 deals worth $9.0 billion, with $1.6 billion upfront, averaging $72 million per deal.

 

These 344 deals represented $179.2 billion in value and $10.9 billion in upfront cash and equity.

 

Biopharma R&D Partnerships, Top Modalities – 2023 vs. 2024

Biopharma R&D Partnerships, Top Modalities - 2023 vs. 2024

In 2024, biologics, antibodies, and DNA/RNA led R&D activity with 149 deals worth $83.2 billion and $5.0 billion upfront, down from 2023’s 181 deals totaling $95.3 billion and $7.9 billion. Small molecules followed with 108 deals valued at $39.9 billion and $3.5 billion upfront, showing higher upfront payments but a slight dip in total value compared to 2023’s $41.8 billion and $2.6 billion.

Genomics and related technologies surged to 44 deals worth $16.5 billion and $477 million upfront, up from 29 deals and $9.6 billion in 2023. Cell therapy also grew with 32 deals totaling $9.9 billion and $583 million upfront, compared to 24 deals worth $5.0 billion in 2023.

Immunotherapy remained steady at $1.8 billion across 18 deals, with upfront payments rising to $361 million from zero in 2023. Gene therapy dropped in total value from $10.4 billion in 2023 to $7.8 billion in 2024 but maintained comparable upfronts ($411 million vs. $155 million). Gene editing declined from 15 deals worth $6.3 billion to 9 deals totaling $2.9 billion, with upfront payments falling from $345 million to $150 million.

 

Biopharma R&D Partnerships, Top Therapy Areas in 2024

Biopharma R&D Partnerships, Top Therapy Areas - 2024

During 2024, cancer led R&D activity with 320 deals worth $172.8 billion, including $14.2 billion upfront, averaging $124 million per deal. Neurologic therapies followed with 124 deals valued at $57.0 billion and $3.6 billion upfront, averaging $76 million.

Autoimmune recorded 57 deals totaling $21.8 billion and $1.7 billion upfront, with a $68 million average. Cardiovascular saw 34 deals worth $21.2 billion and $1.3 billion upfront, averaging $108 million. Endocrine/Metabolic closed 51 deals for $15.3 billion, $800 million upfront, and a $53 million average.

 

Top R&D Partnerships in 2024

Arrowhead development and commercialization deal with Sarepta Therapeutics – November 2024

Arrowhead granted Sarepta Therapeutics exclusive, worldwide rights to develop and commercialize multiple RNA-based programs targeting rare genetic diseases, including Huntington’s disease, muscular dystrophy, pulmonary fibrosis, and ataxia. The deal covers four Phase I/II and three preclinical programs, with both companies collaborating on research for five years. Arrowhead will conduct discovery and preclinical studies, supply clinical drugs, and receive $500 million upfront in cash and $325 million in equity, along with annual fees and milestone payments potentially reaching $10 billion.

GSK partnership with Flagship Pioneering – July 2024

GSK entered a research partnership with Flagship Pioneering to discover and develop a portfolio of transformative medicines and vaccines, initially focusing on respiratory and immunology. The research will be conducted through Flagship’s platform companies, exploring novel modalities and technologies, with up to 10 therapies identified. GSK has the exclusive option to license these programs, with both companies jointly funding up to $150 million upfront. If GSK exercises its options, Flagship could receive up to $720 million in preclinical funding and milestones for a total potential of $7.2 billion, plus tiered royalties.

Hengrui development and commercialization deal with Hercules – May 2024

Jiangsu Hengrui Pharmaceuticals granted Hercules exclusive global rights (excluding Greater China) to develop and commercialize three glucagon-like peptide-1 (GLP-1) therapies targeting undisclosed conditions. Hengrui will receive $100 million upfront and acquire a 19.9% equity stake in Hercules. Additional potential payments include $10 million upon technology transfer, $200 million in development and regulatory milestones, $5.8 billion in sales milestones, and royalties.

Argo Biopharmaceutical development and commercialization deal with Novartis – January 2024

Argo Biopharmaceutical granted Novartis exclusive global rights to develop and commercialize a Phase-I RNA-based therapy for cardiovascular diseases, with an option for two additional therapies. Novartis also gained exclusive rights (excluding China) to a Phase 1/2a therapy. Argo will receive $185 million upfront and is eligible for up to $4.0 billion in option fees, milestones, and tiered royalties.

Prime Medicine development and commercialization deal with Juno Therapeutics and Bristol Myers Squibb – September 2024

Prime Medicine granted Juno Therapeutics, a BMS subsidiary, exclusive rights to develop and commercialize ex vivo T-cell therapies using Prime Medicine’s PASSIGE and Prime editing technology for undisclosed targets. Prime Medicine will design Prime Editor reagents, while BMS will handle development, manufacturing, and commercialization. Prime Medicine will receive $55 million upfront and a $55 million equity investment from BMS. The deal includes up to $185 million in preclinical milestones, $1.2 billion in development milestones, over $2.1 billion in commercialization milestones, and royalties.

 

Also check out R&D Partnerships In Global Healthcare & Life Sciences in 2023

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