Effective Licensing & Commercialisation of Drug Delivery Systems

Summary

Dedicated to the drug delivery sector, this report offers a concise and focused means of assessing and benchmarking drug delivery deal making activity over the past 9 years. It details valuation methodologies and explores effective deal structuring to ensure maximum returns. It is a critical report for all those involved in deal making across both the pharmaceutical and biotechnology sectors.

Topics covered include:
- Commercialisation strategies
- Key drivers in drug delivery
- Market value
- Trends in deal terms, upfront, milestone and royalty payments
- The drug delivery deals major pharmaceutical companies are doing
- Valuation methods
- Drug delivery deals since 1996
- Drug delivery companies and their technology focus

Contents

1 Introduction

2 Market Overview

2.1 Types of Drug Delivery
2.2 Development of the Drug Delivery Market
2.3 The Current and Evolving Market
2.4 Future Market Challenges
2.5 Drug Delivery Companies
2.5.1 Principal Players in Drug Delivery
2.5.2 The Changing Landscape: M&A Activity
2.5.3 The True Scope of the Drug Delivery Sector

3 Key Drivers in Drug Delivery

3.1 Improving the Therapeutic Index
3.2 Patient Compliance
3.3 Patent Prolongation
3.4 Life Cycle Management

4 Commercialisation Strategies

4.1 Introduction
4.2 Returns to Innovation
4.3 Drug Delivery Product Offerings
4.4 Exploitation Strategies
4.5 Business Models
4.6 Product, Strategy and Business Models for Drug Delivery Technology
4.7 Applicability to Segments of the Pharmaceutical Product Life Cycle
4.8 Assessment of Attractiveness of Each Option
4.8.1 Divestment to a Service-Based Company
4.8.2 Licensing to Pharmaceutical Companies
4.8.3 Sales of Devices
4.8.4 Service Offering
4.8.5 Development of Drugs in Collaboration with other Companies
4.8.6 In-House Drug Development
4.9 Compatibility of Product Offerings
4.10 Conclusion

5 Alliances in Drug Delivery

5.1 Drug Delivery Deals Database
5.2 Drug Delivery Deal Activity
5.3 Financial Analysis of Drug Delivery Deals

6 Major Pharmaceutical Company Drug Delivery Deal Activity

6.1 Pfizer
6.2 Johnson & Johnson
6.3 Sanofi-Aventis
6.4 GlaxoSmithKline
6.5 Novartis
6.6 Roche
6.7 AstraZeneca
6.8 Bristol-Myers Squibb
6.9 Abbott Laboratories
6.10 Merck & Co

7 Valuation Methods

7.1 Integrated Benchmarking and ENPV Calculation
7.2 Other Methods
7.3 Benchmarking
7.3.1 Feasibility Search
7.3.2 Information Gathering and Analysis
7.3.3 Approximate Valuation
7.3.4 Refinement of Valuation
7.4 Expected Net Present Value
7.5 Agreement Structure
7.5.1 Value Sharing
7.5.2 Risk Sharing
7.6 Valuation of Drug Delivery Systems
7.6.1 Enabling Technology
7.6.2 Enhancing Technology

8 Drug Delivery Alliance Development Process

8.1 Needs Identification
8.1.1 Driving Factors
8.1.1.1 Market Drivers
8.1.1.2 Technology Drivers
8.1.2 Tools for Needs Identification
8.1.2.1 Portfolio Analysis
8.1.2.2 Value Chain Analysis
8.2 Identifying Opportunities and Partners
8.3 Development of Commercial Relationships

9 Drug Delivery Agreements

List of Tables

Table 1 - Typical maximum doses per administration
Table 2 - Marketed recombinant biopharmaceuticals among the top 200 selling prescription drugs
Table 3 - Publicly quoted speciality pharmaceutical companies that focuson drug delivery
Table 4 - Elan’s M&A activity
Table 5 - Major US patent expirations, 2006–2008
Table 6 - Strategies for the exploitation of innovation
Table 7 - Business models
Table 8 - Generic strategies for commercialisation
Table 9 - Product offerings and target segments
Table 10 - Compatibility of product offerings
Table 11 - Number of drug delivery deals by therapeutic area, 1997–2005
Table 12 - Number of drug delivery deals by product type, 1997–2005
Table 13 - Average total deal values for drug delivery deals, 1996–2005
Table 14 - Average upfront payments for drug delivery deals, 1996–2005
Table 15 - Average equity investment payments for drug delivery deals, 1996–
Table 16 - Average milestone payments for drug delivery deals, 1996–2005
Table 17 - Top ten pharmaceutical companies by 2005 worldwide healthcare revenue
Table 18 - Pfizer drug delivery deals
Table 19 - Pharmacia drug delivery deals
Table 20 - Johnson & Johnson drug delivery deals
Table 21 – ALZA drug delivery deals
Table 22 – sanofi-aventis drug delivery deals
Table 23 – Aventis drug delivery deals
Table 24 – Sanofi Synthélabo drug delivery deals
Table 25 - GlaxoSmithKline drug delivery deals
Table 26 - Novartis drug delivery deals
Table 27 - Roche drug delivery deals
Table 28 - AstraZeneca drug delivery deals
Table 29 - Bristol-Myers Squibb drug delivery deals
Table 30 - Abbott drug delivery deals
Table 31 – Merck & Co. drug delivery deals
Table 32 - Benchmarking methodology overview
Table 33 - Sources of information
Table 34 - Cumulative probabilities
Table 35 - Example ENPV calculation
Table 36 - Pharmaceutical industry event calendars
Table 37 - Key factors leading to successful alliances between companies
Table 38 - Drug delivery deals with agreements from the SEC

List of Figures

Figure 1 - Pharmaceutical company R&D drug delivery projects by route of delivery
Figure 2 - Drug delivery mergers and acquisitions, 1997–2005
Figure 3 - Effect of controlled release formulations
Figure 4 - Doses of chemotherapeutic agent required to achieve maximum effect
Figure 5 - Estimated value in 2004 worldwide sales of the top 200 prescription drugs by year of US patent expiry
Figure 6 - Life cycle management
Figure 7 - All deal activity, 1997–2005
Figure 8 - Drug delivery deal activity, 1997–2005
Figure 9 - All deals according to deal type, 1997–2005
Figure 10 - Drug delivery deals according to deal type, 1997–2005
Figure 11 - All deals according to types of company involved, 1997–2005
Figure 12 - Drug delivery deals according to types of company involved, 1997–2005
Figure 13 - Percentage of all deals with some financialinformation, 1997–2005
Figure 14 - Percentage of drug delivery deals with some financial information, 1997–2005
Figure 15 - Integrated valuation methods
Figure 16 - Ideal benchmarking deal cluster
Figure 17 - Example pharmaceutical deal force field
Figure 18 - Attrition by therapeutic area
Figure 19 - Success rates for life cycle management projects
Figure 20 – Pharmaceutical product decision tree
Figure 21 - Enhanced revenues due to drug delivery system
Figure 22 - Enhancement of patent life
Figure 23 - Drug delivery alliance development process

Appendix: The Drug Delivery Report: Product and Service Locator