Deal Terminations Not The End Of The Road For Licensed Drugs

 
• By Amanda Micklus

Post-deal termination, approximately 14% of the drugs from those alliances go on to be approved, and of those still in development, nearly two-thirds advance at least one phase. Third 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.

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

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