1. In Vivo

Up-Front Deal Economics May Not Match Drugs’ Likelihood Of Approval

In earlier development phases, most of the therapeutic classes with higher approval rates tend on average to have the larger up-front alliance payments. But in Phase III, licensees are paying top dollar for candidates in areas with the lowest likelihoods of approval.

After sharply rising since 2010, new US drug approvals, including those for synthetics and biologics, were down 31% to 27 in 2013 from 2012’s 15-year high of 39. (See[A#06140101003].) According to Informa’s BioMedTracker, a drug candidate that’s in Phase I has a just over 10% chance of getting approved someday, across all major indications. (See “Clinical Development Success Rates for Investigational Drugs

,” Nature Biotechnology, 2014; 2:40–51.) Do biopharma partnership economics reflect this likelihood of approval? An historical look back doesn’t produce a clear-cut answer. Based on an analysis of deals in...

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 Deal-Making

More from In Vivo

The 360 Degrees Of European Biotech Financing In 2025

 
• By Jo Shorthouse

Almost halfway through 2025, and financing for European biotech could be described as challenging. Market volatility, geopolitical instability and trade barriers all loom large in biotech CEO minds when pitching for funding. In Vivo talked to biotechs and investors to gain a realistic view of the current market for company funding so far this year.

Rising Leaders 2025: Pedro Valencia’s ADC Vision At AbbVie

 
• By Jo Shorthouse

From chemical engineering to cancer innovation, AbbVie's rising oncology leader is advancing next-generation ADCs to tackle difficult-to-treat tumors with a patient-centered approach.

Leaders At The Frontier: Conversations From SynBioBeta 2025

 
• By David Wild

Mini-profiles of five synthetic biology companies and their leaders from SynBioBeta 2025 reveal how AI integration, data-driven platforms and interdisciplinary teams are revolutionizing drug discovery and manufacturing.