Deal Terminations Not The End Of The Road For Licensed Drugs

When a drug developer loses a partner, there's actually a 50-50 chance that the drug will remain in development, according to a new study of deals data from Informa’s Strategic Transactions. And of those that remain in development, nearly two-thirds tend to advance at least one clinical stage. So the end of the deal doesn't necessarily mean the end of the road for the licensed candidate. And based on a review of nine years' worth of deals, drugs that came out of terminated agreements had a 14% approval rate. (It's worth noting, however, that some therapeutics launched in territories that weren't part of the terminated agreement.) (See Exhibit 1.)

Exhibit 1