If the past week is any indication, big pharma is showing that it is willing to pay for biotech innovation. On the receiving end this week, Alder Biopharmaceuticals stands to reap more than $1 billion from collaboration with Bristol-Myers Squibb for the development and commercialization of ALD518, a novel biologic that has completed phase 2a development for the treatment of rheumatoid arthritis. Bothell, Washington-based Alder is granting Bristol-Myers Squibb worldwide exclusive rights to develop and commercialize ALD518 for all potential indications except cancer, for which Alder will retain rights and grant Bristol-Myers Squibb an option to co-develop and commercialize outside the United States. In return, Bristol-Myers Squibb will pay Alder an upfront cash payment of $85 million, potential development-based and regulatory-based milestone payments of up to $764 million across a range of indications, and potential sales-based milestones that may exceed $200 million and royalties on net sales. Alder also has an option to require Bristol-Myers Squibb to make an equity investment of up to $20 million in Alder during an initial public offering.
In another antibody deal, Sanofi-Aventis expanded its global collaboration with Regeneron Pharmaceuticals to discover, develop, and commercialize fully-human therapeutic monoclonal antibodies. The expanded partnership adds five years and at least $800 million to the existing deal. Under the revised partnership agreement Sanofi-aventis will increase its annual funding commitment from $100 million to $160 million beginning in 2010, and the research funding will now extend through 2017. The companies aim to advance an average of four to five antibodies into clinical development each year. In addition to its VelocImmune technology, Regeneron will contribute to the collaboration its next generation technologies related to antibody generation. Sanofi-aventis also has an option to extend the discovery program for up to an additional three years for further antibody development and preclinical activities.
Burrill Report: Biotech Innovation Gets the Cash
