– Goldman Sachs, “10 Drugs that could transform the industry” (Jan 2014)
“While the list itself is interesting, and each drug could be a blockbuster, I wanted to call attention to something the Goldman report and many others haven’t highlighted directly: the instrumental and essential role of smart business development deal-making underpinning these projects.”
“…while the number of VC-backed M&A exits is in line with prior years (~25 per year), the value both in terms of upfront and full “biobuck” (~milestones) potential have reached new highs, topping over $5 and $8 billion, respectively.”
Access Capital via “External R&D”
“….private VC-funded biotech is a tiny fraction of the scale of the bigger BioPharma part of the sector in every major financial dimension. Small percentile changes to a Big BioPharma company’s market can swamp the scale of the biotech sector…..because of the scale difference, even small changes in the resource allocation practices within large BioPharma companies’ coffer has the potential to dramatically alter the biotech ecosystem. Assume these big BioPharma companies channeled just ~5% of their balance sheet cash into private biotech companies – this capital flow would fully fund the entire VC-backed biotech sector for a year (~50 companies).”
SUMMIT, N.J. & CAMBRIDGE, Mass. – April 15, 2010 – Celgene Corporation (NASDAQ: CELG) and Agios Pharmaceuticals Inc., a privately-held biotechnology company, today announced the formation of a global strategic collaboration focused on targeting cancer metabolism. The goal of the collaboration is to discover, develop, and deliver novel disease-altering therapies in oncology based on the transformational science of Agios’ innovative cancer metabolism research platform. This platform is based on the concept that targeting key metabolic enzymes unique to rapidly proliferating cancer cells can “starve” the cancer.