Alongside venture capital and public market investment, biopharmaceutical company alliances remain key sources of capital for advancing drug discovery and development efforts across the industry. Since the beginning of January 2017 through the second quarter of 2018, biopharmaceutical companies have inked 243 alliances where potential deal value of >$50 million was disclosed (including 195 deals where upfront payments >$5 million were disclosed). In aggregate, those deals were worth >$15 billion in guaranteed upfront payments (roughly $77 million upfront on average for deals with disclosed upfront payments). Total possible cumulative payments under these deals—including all disclosed milestones but excluding royalties from the sale of drugs that could emerge from these collaborations—exceed $123 billion.
During the same 18-month timeframe, 52 biopharma company acquisitions with disclosed upfront payments were worth nearly $184 billion in guaranteed payments. Fifty of those deals disclosed total potential payments, including success-based milestone payments, of nearly $198 billion. Acquisitions continue to be important sources of development-stage drug candidates and revenue for the global biopharma industry, and investors’ proceeds from these deals are often funneled into new biopharmaceutical investments.
The deals that comprise this dataset often begin or are fostered with the kind of face-to-face interactions that are core to industry partnering events like BioPharm America™ and BIO-Europe®. EBD Group expects a record 14,500+ such meetings at this fall’s partnering conferences based in the US and in Europe, as over 5,000 representatives from the global biopharmaceutical community gather to share and collaborate on the therapeutic advances within their companies and institutions.
About the Author
Chris Morrison has covered the biopharmaceutical industry for 18 years as a writer and editor for several industry publications. He is a former editor of In Vivo: The Business and Medicine Report and "The Pink Sheet" where he focused on trends in biopharmaceutical finance, business development, and research and development. Chris contributes to a variety of publications, including In Vivo, Datamonitor, Nature Biotechnology, and Nature Reviews Drug Discovery. He holds a bachelor’s degree in neurobiology and behavior from Cornell University and a master’s in science journalism from New York University.