Strategic alliances have always been an efficient mechanism for pharmaceutical companies to pursue development of multiple drugs. But as R&D costs skyrocket and the length of time required for regulatory approval lengthens, they're becoming an even more critical tool.
On Wednesday, GlaxoSmithKline plc and Pfizer Inc. both announced new R&D partnerships. GSK announced
a strategic alliance with Dynavax Technologies Corp. to discover, develop and commercialize treatments for lupus, psoriasis, rheumatoid arthritis and other immuno-inflammatory diseases. Under terms of the agreement, Dynavax will receive $10 million from GSK for an exclusive option over treatments in development. Dynavax has an existing relationship with GSK, as well as partnerships with Merck & Co. and AstraZeneca AB.
Pfizer's deal is with Auxilium Pharmaceuticals Inc., under which Pfizer will receive exclusive rights in parts of Europe and Eurasian countries to commercialize its partner's treatment for Dupuytren's contracture and Peyronie's disease. Under the agreement, Pfizer will pay Auxilium $75 million initially and up to $410 million in potential milestone payments tied to regulatory approval and sales.
The cost of drug development and lengthy approval process were factors in Procter & Gamble's decision to
wind down its pharma business. The consumer products giant announced on Dec. 11 that it would halt all in-process pharma R&D and may divest all or some of the four drugs it already has on the market.
- Suzanne Stevens
Join Corporate Dealmaker's LinkedIn forum
Juergen Lasowski
And the winners are...
