Biopharma licensing activity in Q2 2023 was the lowest since 2019. Development and commercialization deals for the quarter came in at 110 deals for a total announced value of $28.2 billion with $1.2 billion in total upfront cash and equity. There were notable deals despite the low deal totals: Merck and Proxygen, Eisai and BlissBio, Life Edit and Novo Nordisk, AstraZeneca, and Quell Therapeutics, as well as Astellas and Cullgen.
R&D Partnerships In Biopharma Therapeutics And Platforms
R&D Partnerships – Biopharma Therapeutics vs. Other Life Sciences
Top Modalities And Technologies
Analyzing the Top Technologies in 2022-2023 YTD, key modalities driving partnerships and investments include biologics (333 deals, $95.6 billion), small molecules (237 deals, $50.3 billion), cell therapy (59 deals, $21.6 billion), genomics (101 deals, $21.2 billion), and gene therapy (44 deals, $16.1 billion).
Promising R&D Partnerships
- In April 2023, Merck obtained exclusive, worldwide rights from Proxygen to co-develop and commercialize a molecular glue degrader therapy. The partnership combines Proxygen’s technology with Merck’s expertise. Proxygen receives an undisclosed upfront payment and can earn up to $2.55 billion in milestones and royalties.
- Eisai and Bliss partnered in May 2023 to co-develop BB-1701, an ADC targeting HER2 for cancer treatment. Eisai has an exclusive, worldwide (excluding China) option for licensing. BlissBio receives upfront payment and option fees, with potential milestone payments of up to $2 billion and royalties.
- Life Edit granted Novo Nordisk exclusive, worldwide rights in May 2023 to develop up to seven gene editing therapies for rare genetic diseases. Life Edit is eligible for a total upfront and milestones of up to $335 million for the initial two therapies; up to $250 million for the remaining five therapies, plus royalties. Novo Nordisk covers all development costs.
- AstraZeneca and Quell Therapeutics partnered in June 2023 to develop Treg cell therapies for type 1 diabetes (T1D) and inflammatory bowel disease (IBD). AstraZeneca has an exclusive option to license resulting therapies. Quell will receive $85 million upfront and is eligible for up to $2 billion in milestones, plus royalties.
- Astellas and Cullgen partnered in June 2023 to discover and co-develop protein degrader therapies for breast cancer and solid tumors. Astellas has an exclusive worldwide option for licensing the therapies, while Cullgen can share costs, profits, and losses. Cullgen received $35 million upfront and is eligible for up to $1.78 billion in milestones, plus royalties.
