Big Pharma Licensing Trends, 2012-2016 - Over 1,200 Drug-Focused Deals

Dublin, May 30, 2017 -- Research and Markets has announced the addition of the "Big Pharma Licensing Trends, 2012-16" report to their offering.

Big Pharma Licensing Trends, 2012-16:

Between 2012 and 2016, Big Pharma - a peer set of approximately 16 firms across the world with large R&D and sales organizations, and annual revenues in excess of $10bn - signed over 1,200 drug-focused deals, growing at a compound annual growth rate of 12%. The top five dealmakers in terms of volume were AstraZeneca, Johnson & Johnson, Roche, Pfizer, and Merck & Co. Overall, Big Pharma represented the majority of the monetary value of all biopharma partnerships: the peer group was responsible for $151bn in deal-making during the five-year period out of the $287bn in all comparable biopharma alliances (including the Big Pharma peer set).

As of 2016, Big Pharma companies had approximately 337 candidates in the pipeline for cancer, which is well over two times that of any other therapeutic area. This was reflected in the peer set's deal-making; between 2012 and 2016, about one-third of Big Pharma's in- and out-licensing deals were in oncology, and immuno-oncology was the key driver of oncology in-licensing.

Big Pharma companies signed more alliances to bring early-stage candidates in-house than any other phase, and out-licensed more approved or marketed products. One-third of the total in-licensing deal volume involved regional partnering, while out-licensing was led by North American territories - namely the US - where development, commercialization, and research/discovery deal structures were more prominent than flat-out divestments. Both in- and out-licensing by Big Pharma reflected a collaborative nature, as development/co-development and research/discovery were the most commonly used deal structures in alliances.

The source for the deal data used in this report is Informa's Medtrack. In addition, Informa's Strategic Transactions was also referenced for background information on deals.

Key Topics Covered:

1. EXECUTIVE SUMMARY

2. KEY POINTS AND OVERALL TOTALS

• Deal volume increased but Big Pharma's overall share was small
• Big Pharma represented the majority of deal-making spend
• 2014 and 2015 were stand-out years in Big Pharma deal-making
• Bibliography

3. COMPANY ANALYSIS AND CASE STUDIES

• AstraZeneca was the leading dealmaker by overall volume within the Big Pharma peer set
• Johnson & Johnson signed key cancer deals and formed an innovation initiative
• Roche continued oncology momentum but deal-making showed importance of other therapeutic areas
• Pfizer's in-licensing fluctuated while out-licensing efforts decreased
• Merck & Co's in-licensing drives strategy to become oncology leader
• Overall, out-licensing increased by 47% and Teva had the largest proportion in the peer set
• Bibliography

4. THERAPY AREA ANALYSIS

• Oncology dominated Big Pharma deal volume
• Endocrine, metabolic, and genetic disorders deal-making gained speed
• Infectious diseases agreements declined, but there is potential for a turnaround
• Oncology also led in terms of partnership dollar values
• Oncology was also the focus of most out-licensing deals
• Bibliography

5. DEAL ECONOMICS

• Sanofi was the top dealmaker by dollars spent within the Big Pharma peer set
• Johnson & Johnson's billion-dollar deals provided a strong position
• AstraZeneca spent a large up-front sum
• Payment metrics on deals generally increased
• Average deal values increased
• A higher proportion of deal value was still locked up in milestones
• There were almost three-dozen billion-dollar deals between 2012 and 2016
• Bibliography

6. PHASE ANALYSIS

• Early-stage candidates dominated partnerships
• Phase I and II candidates led in aggregate up-front payments
• Phase I and II drugs tended to have higher average up-front payments
• Bibliography

GEOGRAPHIC BREAKDOWN OF DEAL-MAKING

• North American deal-making grew
• Bibliography

7. DEAL STRUCTURES

• R&D was the most common component of deal structures
• In-licensing deal structure varied across phases
• Option-based deal-making is possibly making a comeback
• Bibliography

8. APPENDIX

Companies Mentioned

• AstraZeneca
• Johnson & Johnson
• Merck & Co
• Pfizer
• Roche
• Teva

For more information about this report visit http://www.researchandmarkets.com/research/pqhr48/big_pharma

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