The 21st century biopharmaceutical company faces extraordinary challenges, a fact that no one could deny. Firms are up against huge amounts of pressure to develop novel products, speed up their timelines and meet ever more stringent regulatory demands. On top of all this is intense competition for lucrative new markets, as well as the need to mitigate financial and operational risks.
Recent efforts to expand R&D pipelines through mergers and acquisitions or licensing deals have helped to some extent, but for many companies such mechanisms have failed to produce the anticipated levels of return and innovation. According to the 2010 New Health Report, a survey conducted by Quintiles, around 72 per cent of biopharma executives expect an increase in mergers and acquisitions in the months and years ahead. However, more than half of those surveyed lacked confidence in large mergers' potential to create opportunities for innovation.
In fact, 21 per cent said big mergers generally had "no impact" while 53 per cent said they usually provider fewer opportunities. On the other hand, strategic partnerships and alliances have become a proven method for mitigating risks, increasing pipeline depth and bolstering products' clinical and commercial potential, the Quintiles white paper noted. The latest pharmaceutical giant to announce its allegiance to strategic partnerships as a biobusiness strategy is Merck, which in recent times has made plain its intention to raise its game in biotech drug development.
As part of the company's long-term plan to catch up in the business of biopharma development, Merck has signed an agreement with Vancouver-based Zymeworks to develop new antibody drugs for cancer and autoimmune diseases that are engineered to hit two or more cellular targets, as opposed to just one.
In exchange for its expertise in creating the so-called "bispecific" antibodies, Zymeworks will receive an undisclosed cash sum up front, as well as milestone payments that could be worth more than $180 million (£110 million) if certain targets are hit. Meanwhile, Merck will own exclusive rights to sell drugs from the partnership globally, with its strategic partner also receiving tiered royalties from the sales of any products that emerge.
As part of the company's long-term plan to catch up in the business of biopharma development, Merck has signed an agreement with Vancouver-based Zymeworks to develop new antibody drugs for cancer and autoimmune diseases that are engineered to hit two or more cellular targets, as opposed to just one.
In exchange for its expertise in creating the so-called "bispecific" antibodies, Zymeworks will receive an undisclosed cash sum up front, as well as milestone payments that could be worth more than $180 million (£110 million) if certain targets are hit. Meanwhile, Merck will own exclusive rights to sell drugs from the partnership globally, with its strategic partner also receiving tiered royalties from the sales of any products that emerge.
The reasoning behind Merck's long-term focus on innovative biotech drug development is quite clear. Analysts predict that by 2014, at least eight of the world's ten best-selling drugs will be biologic medicines, with only the remaining minority being resultant from chemical synthesis. In recent times, the company has increasingly leaned on small firms, such as New Hampshire
But the deal with Zymeworks represents a huge opportunity for the company to get involved with emerging areas of protein drug engineering that the most innovative biotech firms, including Biogen Idec, Amgen and Genentech, have been pursuing intensively for a number of years.
Another recent example, of how strategic partnerships empower biopharma to unlock the value through innovation, is provided by Genesis Biopharma, a biotech firm developing targeted cancer therapies. In July 2011, it signed a process development and scale-up agreement with Swiss chemicals giant Lonza. The deal relates specifically to the production of Contego, an autologous cell therapy product candidate for the treatment of stage-four metastatic melanoma.
The key ingredient critical to any type of partnership is a clearly-defined vision and a seamless alignment of objectives between allies. As the biobusiness landscape evolves, it is increasingly evident that strategic relationships must balance the needs of all stakeholders by establishing a structure through which genuine innovation can be fostered. Exactly how this juggling act is performed, and the extent to which eventual outcomes are considered throughout the process, will invariably be what drives biopharma to success.
To view more BioBusiness content, please visit www.biobusiness-conference.com
Another recent example, of how strategic partnerships empower biopharma to unlock the value through innovation, is provided by Genesis Biopharma, a biotech firm developing targeted cancer therapies. In July 2011, it signed a process development and scale-up agreement with Swiss chemicals giant Lonza. The deal relates specifically to the production of Contego, an autologous cell therapy product candidate for the treatment of stage-four metastatic melanoma.
The key ingredient critical to any type of partnership is a clearly-defined vision and a seamless alignment of objectives between allies. As the biobusiness landscape evolves, it is increasingly evident that strategic relationships must balance the needs of all stakeholders by establishing a structure through which genuine innovation can be fostered. Exactly how this juggling act is performed, and the extent to which eventual outcomes are considered throughout the process, will invariably be what drives biopharma to success.
To view more BioBusiness content, please visit www.biobusiness-conference.com
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