1. In Vivo
  2. >>Business Strategy

Licensing For Innovation: A Decade Of Pharma Product Deals

 
• By Edwin Elmhirst

Licensing deals have been growing in popularity over outright acquisitions in the pharmaceutical industry over the past decade. Licensing deals have doubled in number from 2015 to 2024, while M&A activity has decreased post-COVID. We consider the advantages of licensing deals and review notable licensing deals from the past 10 years with the potential to deliver high value relative to their initial investment.

(Shutterstock)
Key Takeaways
  • Top licensing deals over the past decade have demonstrated significant returns on upfront investment, with examples such as X4 Pharmaceuticals' deal with Sanofi for Mavorixafor, resulting in a return multiple of x3,016.
  • Deals often involve early-stage assets, but some, like Kura Oncology's licensing of tipifarnib from Johnson and Johnson, show that later-stage assets can also yield high returns when advanced successfully.
  • Licensing agreement volumes highlight the industry's shift towards flexibility, reduced risk, and cost-effectiveness.

Pharmaceutical companies have a variety of strategic options available to them to restock pipelines and ensure continued innovation. In terms of external innovation, in-licensing assets from other companies is one...

According to Biomedtracker data, 2024 saw over twice as many product licensing deals as in 2015. This prolonged momentum in activity has not been mirrored in other deal types such...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on In Vivo for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required
Start Free Trial

Already a subscriber?

More from Business Strategy

AI In Drug Discovery: The Patent Implications

 
• By David Wild

A Q&A with DeAnn Smith, partner and co-chair of the Patent Trial and Appeal Board Proceedings Practice Group at law firm Foley Hoag.

Is Advanced AI Revolutionizing Sales Enablement In Pharma?

 
• By Marina Hickson

Advanced AI is revolutionizing sales enablement by addressing training gaps and performance challenges. Used correctly, it can help to bridge the sales-marketing divide, accelerate ramp-up times and provide managers with data-driven insights.

Laying The Foundation And Overcoming Prerequisites To Establish AI Within Health Care

 
• By Mike King

As the health care industry undergoes a digital transformation, the integration of AI into Quality and Regulatory Management Systems is proving essential. The challenges for successful AI deployment emphasize the need for robust digital infrastructure, data literacy programs and privacy measures to enhance patient safety and commercial performance.

Aurion Biotech’s Ophthalmic Cell Therapy For The Masses

 
• By David Wild

Aurion Biotech is developing a cell therapy for corneal diseases that is cheap enough to produce and can be scaled that it should reach the masses in a way that other cell therapies cannot.

More from Innovation

Plans For London Cancer Hub Promises New Destination For Biotech Innovation

 
• By Jo Shorthouse

Plans have been submitted for a £1bn development in London that can home biotech companies and encourages cross collaboration with the Institute of Cancer Research. In Vivo took an exclusive tour of the UK’s prospective new cancer innovation district.

UCB’s Alistair Henry On How AI Is Reshaping Biopharma Talent

 
• By Jo Shorthouse

Artificial intelligence is shaping many facets of the drug development and commercialization continuum. The need for computational skills within drug R&D is also changing what companies are looking for in young talent that is capable of both bridge biological expertise with computational literacy.

Lighting The Way To Anxiety Treatments With No Side Effects

 
• By Ian Taylor

Cutting-edge research is revolutionizing anxiety treatment by targeting specific brain circuits, paving the way for therapies that are free from side effects. This innovative approach promises more efficient and precise medicine, offering hope to millions of people living with anxiety.