![]() ![]() Recently announced collaborations include deals with Harbour BioMed, Scorpion Therapeutics, Fusion Pharmaceuticals and Accent Therapeutics. Today’s market conditions make it ever more important to ensure that potential biotech partners share a common understanding that creating new medicines for patients requires a long-term mindset.ĪstraZeneca has a track record of partnering with like-minded, long-term-focused biotech companies at the vanguard of science. As a consequence, the reliance on pharma partners for non-dilutive capital and long-term partnership has, in some cases, been replaced by a focus on returns for investors through pharma acquisitions that occur relatively early in the biotech company’s life cycle. Because capital investment has increased much faster than the rate of company formation, companies are better funded than ever before. There is no doubt that the increase in investment will benefit patients. Over the past decade, venture investment in oncology biotech has risen from approximately $800 million in 2011 to more than $40 billion in 2021. Today, misalignment of incentives in dealmaking between established pharma and innovative biotech companies can occur because there is unprecedented access to capital. In that case, the organizations on each side of the table are focused on innovating for patients, while combining unique portfolios and capabilities. Alignment is greatest when two similar organizations come together, for example when AstraZeneca and Merck functioned as peers in 2017 to develop and commercialize olaparib. Definitions of value differ between groups of stakeholders on both sides of the table, potentially resulting in misaligned incentives. ![]() However, that simple statement masks considerable complexity. Put simply, good deals create value for all parties. 1 | Factors influencing value creation within the AstraZeneca dealmaking model. This process attempts to avoid the erosion of enterprise value through a mismatch in scientific vision, organizational values, and/or the decision-making process between prospective partners.įig. The business development team at AstraZeneca uses a process of elimination, taking forward only those opportunities that score highly against scientific, cultural and financial criteria (Fig. To improve the odds of value creation, filtering through the vast universe of potential collaboration opportunities is critical. Equally, AstraZeneca has shown a willingness to partner its own portfolio programs, creating a leading franchise and turning a potential competitor into a collaborator by teaming up with Merck to maximize the value of its PARP inhibitor olaparib in multiple cancers. Trastuzumab deruxtecan, a HER2-targeted antibody–drug conjugate (ADC), joined AstraZeneca’s pipeline as part of a deal with Daiichi Sankyo in 2019 and shows promise against multiple HER2-expressing cancers. AstraZeneca added a blood cancer medicine-the Bruton’s tyrosine kinase (BTK) inhibitor acalabrutinib-to its pipeline through the staged acquisition of Acerta Pharma in 2015. Much of what AstraZeneca has achieved for oncology patients in redefining standards of care can often be traced back to the deal table. Recognition of the vital importance of partnered programs keeps AstraZeneca agnostic to the source of innovation, ultimately for the benefit of cancer patients worldwide. ![]() Partnering allows AstraZeneca to build on its own expertise to access the best innovation, regardless of origin, to push the boundaries of science and rewrite the cancer treatment textbooks. This focus on partnerships reflects a recognition that the best science cannot happen in isolation. It comes as no surprise, then, that AstraZeneca believes that partnering with innovators is key to continued leadership and the future success of its oncology business. The result is an industry-leading marketed oncology portfolio that is rapidly growing and redefining the standard of care across numerous cancer types, with half of current sales being derived from partnered medicines. The business development team has often broken with convention by pioneering novel deal structures and by challenging the consensus on hunting for best-in-class cancer medicines. AstraZeneca has a track record of doing things differently. ![]()
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