Biotech - Big Pharma Collaborations: Modified And Terminated Agreements, Feb. 24-April 27, 2005#
I. MODIFIED AGREEMENTS | |||
Biotech Co.* | Pharma Co. | Change from original | Terms/Details (Date) |
| | |||
Alliance | LEO Pharma A/S (Denmark) | LEO gained extra time to decide if it will license rights to Oxygent in Europe and Canada | The evaluation period was extended until six days after Alliance submits to LEO results of a proof-of-concept study in surgery patients (3/2) |
BioTie | Sanofi-Aventis Group (France) | They will negotiate an extension to an option deal for evaluation of BioTie's bioheparin product | The one-year deal was set to expire when they decided to negotiate an extension; terms were not disclosed (3/31) |
ComGenex | Bayer Healthcare AG (Germany) | The companies extended their exclusive chemistry collaboration for a seventh year | ComGenex will continue to provide chemistry services to support drug discovery at Bayer; terms were not disclosed (3/1) |
Cubist | Eli Lilly and Co. | Cubist is purchasing a 2% reduction in royalties payable to Lilly on sales of Cubicin | Cubist paid Lilly about 1.88M shares (worth about $20M); Cubicin had acquired rights to the product in 1997 (3/3) |
Evotec | F. Hoffmann-La Roche Ltd. (Switzerland) | They extended chemistry agreement signed in May 2004 for another year | Evotec is supporting medicinal chemistry programs at Roche under undisclosed terms (4/13) |
Gen-Probe | Bayer HealthCare LLC | Tentative arbitration ruling said Gen-Probe is entitled to coexclusive rights to distribute qualitative TMA assays to detect the hepatitis C virus and HIV-1 | Bayer previously held all rights; the arbitrator also determined the collaboration should be terminated, which would give Gen-Probe the right to develop and market certain viral assays (4/5) |
Halozyme | Baxter Healthcare Corp. | They expanded relationship by signing a development and supply agreement for Halozyme's Enhanze SC | The product, a recombinant human hyalur- onidase enzyme, was the subject of an August 2004 partership for selling the product in the U.S. (3/30) |
Ligand | Eli Lilly and Co. | Ligand exercised its final option to buy down a further portion of royalties due Lilly on U.S. sales of Ontak | Ligand will pay Lilly $13M in exchange for elimination of royalties due on sales in the U.S. in 2006, and a reduced, reverse-tiered royalty scale on sales of the cancer drug thereafter (4/7) |
Oscient | LG Life Sciences Ltd. (South Korea) | Amended agreement includes a reduction of future royalties payable to LG for Factive sales at certain levels | Oscient will make a $2M payment to LG; the modified deal also calls for an $8M increase in milestone payments to LG at certain sales thresholds (4/6) |
Peakdale | GlaxoSmithKline plc (UK) | Peakdale will provide chemistry services to GSK through 2005 under an extension of an existing agreement | Peakdale chemists have worked with GSK since 2002; terms of the deal were not disclosed (4/240 |
SkyePharma | GlaxoSmithKline plc (UK) | They amended their deal concerning royalties on Paxil CR | SkyePharma gets a one-time payment of $10M, and an increase in its royalty rate from 3% to 4%; GSK has been unable to supply Paxil CR in the U.S. since March 4, 2005, due to manufacturing issues (4/28) |
Vicuron | Pfizer Inc. | March 1999 collaboration to develop next- eneration oxazolidinones was extended for another year. | The goal is to develop oral antibiotics; terms of the extension were not disclosed (3/30) |
II. TERMINATED AGREEMENTS | |||
Cellegy | PDI Inc. | Settlement of legal disputes over Cellegy's Fortigel (testosterone gel) returned all rights to Cellegy | Cellegy paid PDI $2M, issued a promissory note payable in 18 months, and issued to PDI a $3.5M convertible debenture due in three years (4/11) |
Dynavax | UCB Farchim SA (Switzerland) | They ended their collaboration on seasonal allergy products that began in February 2004 | UCB will return all rights to the program to Dynavax, which plans to complete an ongoing Phase II/III trial of its AIC immunotherapy for ragweed allergy (3/18) |
Flamel | Biovail Laboratories Inc. (Canada) | Flamel terminated the license deal covering its long-acting acyclovir formulation, Genvir | Biovail did not start trials in the time period called for under their February 2003 deal; Flamel intends to find another partner (3/3) |
Medivir AB | Boehringer Ingelheim GmbH (Germany) | BI ended an agreement on the HIV product MIV-310 (alovudine) | The move followed a Phase II trial that did not meet targeted efficacy levels; Medivir is not planning further development (3/15) |
Phytopharm | Yamanouchi Pharmaceutical Co. Ltd. (Japan) | Yamanouchi terminated deal covering Phytopharm's Cogane, a product being developed for Alzheimer's disease | Yamanouchi's license covered Japan and some other Asian countries (3/29) |
Notes: | |||
# The information in the chart does not cover agreements between biotech companies or agricultural agreements. | |||
* Private companies are indicated with an asterisk. | |||
Unless otherwise noted, stock symbols listed are on the Nasdaq market. | |||
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