1. In Vivo
  2. >>Deal-Making

Drug Approval Rates Grow With Deal Up-Fronts

 
• By Amanda Micklus

There’s a correlation between up-front payments and actual drug approval rates. First in a series of follow-ups to In Vivo's 2014 study comparing/contrasting likelihood of approval and up-front payments on alliances, and the outcomes of relevant deals.

An analysis of approved drugs that emerged from licensing deals over nearly a decade may upend conventional thinking. Long considered a drug development graveyard, alliances for compounds that treat CNS disorders were more likely to result in drug approvals than any other therapeutic category. Not as surprising: nearly half of the deals that resulted in an approved product featured up-front payments below $25 million, but the odds of developing an approved drug increased as up-front payments became larger.

There's a 1-in-10 chance that any drug candidate in Phase I will be approved by the FDA. Those chances get...

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

Behind The Buyout: Dispatches From The Dealmaking Table

 
• By Jo Shorthouse

In a challenging funding environment for biopharma, strategic dealmaking has become a critical growth engine. In Vivo explores what it truly takes to navigate high-stakes acquisitions and partnerships, drawing on insights from seasoned industry leaders.

Deals Shaping The Industry, May 2025

 
• By In Vivo Team

An interactive look at pharma, medtech and diagnostics deals made during May 2025. Data courtesy of Biomedtracker.

Bringing Israeli Medical Device Candidates To The Right Partners In The US

 
• By Ashley Yeo

Despite regional unrest, it is business as usual for medtech innovators and investors in Israel as evidenced by continued high-value M&A of locally developed technologies. Irit Yaniv, co-chair of the medtech session at the upcoming BioMed Israel 2025, explained the unique dynamics of Israeli medtech innovation.

Deals In Depth: April 2025

 
• By Deanna Kamienski and Maureen Riordan

Four $1bn+ alliances were penned in April, and one exceeded $2bn.

More from In Vivo

Crisis Or Opportunity? US MFN Policy Could Test Japan’s Appetite For Reforms

 
• By Lisa Takagi

While the adoption of most favored nation drug pricing in the US stands to affect Japanese biopharma firms now heavily reliant on this market, it might also present an opportunity for pricing and policy reforms at home.

Rising Leaders 2025: Ovid’s Meg Alexander On Neurology’s Next Frontier

 
• By Jo Shorthouse

Ovid Therapeutics' president and COO Meg Alexander is leading the company’s strategic pivot toward innovative neurological treatments, potentially creating a new class of medicines for rare neurological disorders.

The Goldilocks Isotope: Perspective Therapeutics’ ‘Just Right’ Alpha Radiotherapeutic

 
• By David Wild

Thijs Spoor's bet on lead-212 is paying off as Perspective Therapeutics advances three clinical programs with promising early efficacy signals and a comprehensive manufacturing strategy.