Deals, Cooperation, Mergers, FinancingDeals and CooperationIn <strong>2011</strong>, the <strong>Bavarian</strong> <strong><strong>Bio</strong>tech</strong> companies have been very active in closing many cooperation deals. Despite the difficulteconomic situation, all <strong>Bavarian</strong> biotech companies have been doing their homework in finding new partnerships orextending long-term cooperation deals. In the beginning of <strong>2011</strong>, Pieris (Weihenstephan) signed an Anticalin® Therapeuticcollaboration with Takeda San Francisco, where Pieris will use its innovative technology platform based on Anticalin scaffoldsto identify new potential candidates for Takeda. A few months later, Pieris announced the signing of a drug developmentcollaboration with Daiichi Sankyo Company Limited. Under this agreement Pieris has received € 7 million uponsigning the collaboration agreement for two targets and will obtain research funding and payments for the achievement ofresearch, preclinical, regulatory and commercial milestones. Altogether, this partnership will be valued with more than€ 100 million per target for Pieris.Another mature biotech company, Micromet agreed on acollaboration with Amgen in July <strong>2011</strong> to develop cancerantibodies that could be worth € 695 million. The collaborationfocused of bispecific T-cell engager (BiTE) antibodiesagainst three solid tumor targets. Amgen decidedonly a few months later, that this technology and pipelineshould be integrated in toto – and bought Micromet inspring <strong>2012</strong> for nearly 1,2 billion US $ (see page 10)!End of July <strong>2011</strong>, MorphoSys’ diagnostics unit AbDSerotec started a research and supply cooperation withthe Department of Cancer Immunology and AIDS at theDana-Farber Cancer Institute (DFCI) in Boston. The companyprovides research tools using its proprietary Slonomicstechnology platform; in return AbD Serotecreceives financial compensation and preferred access tocommercialization rights for products generated duringthe collaboration.Altogether, more than ten service collaborations havebeen signed within the <strong>Bavarian</strong> <strong><strong>Bio</strong>tech</strong> Cluster, ofwhich Proteros <strong>Bio</strong>structures GmbH (Martinsried) hasclosed five service collaborations. In May <strong>2011</strong>, e.g.,they signed a collaboration agreement with the InstitutPasteur Korea in the field of infectious diseases byproviding their expertise in structural analysis andX-ray crystallography. In July <strong>2011</strong> they increased theirservice collaborations with AMRI as well as with RigelPharmaceuticals.In January <strong>2011</strong>, KINAXO <strong><strong>Bio</strong>tech</strong>nologies (Martinsried)started its collaboration with AstraZeneca to supportthe oncology program of AstraZeneca by applyingKINAXO’s technology platform. A couple of months later,KINAXO signed its second collaboration with TakedaPharmaceutical Company Limited Osaka. With thesupport of KINAXO’s PhosphoScout® technology platformTakeda could accelerate its decision making process ondrug efficacy and safety. It was only a few weeks laterthat Evotec AG, Hamburg, bought and integrated Kinaxofor about € 15 Mio.In addition to service collaborations, the <strong>Bavarian</strong> <strong><strong>Bio</strong>tech</strong>companies have closed several international marketing,sales and distribution agreements. Particularly MediGene(Martinsried) signed seven new commercialization agreementsfor the commercialization of Veregen ® with internationalpharmaceutical companies. An exclusive licensingand supply agreement with the Canadian companyTriton Pharma Inc. for the supply and commercializationof Veregen ® for the treatment of genital warts in Canadawas closed in April <strong>2011</strong>. Triton will be responsible for thedrug approval procedure in Canada. MediGene is entitledto payments totaling up to € 2.1 million upon theachievement of milestones, and will obtain royalties onthe sales revenue generated with Veregen ® in the form ofa double-digit percentage share.Furthermore, Wilex Inc., the 100 percent subsidiary ofWilex AG (München) signed an exclusive co-marketingand distribution agreement with American LaboratoryProducts Company Inc. (Salem, USA) as regards thecommercialization of the Serum HER-2/neu ELISA test,the only FDA-cleared IVD ELISA in North America formonitoring women with metastatic breast cancer.Definiens and Leica Microsystems havestarted their marketing Joint Venture inApril <strong>2011</strong>. Both companies will jointlymarket their complementary productsand will be providing commonworkshops and educationalevents.22
Moreover, positive news were published in the year <strong>2011</strong>by MorphoSys regarding their three long-term partnerships:The company received an important technologymilestone payment from Novartis after having finishedthe installation of its HuCAL antibody platform at NovartisInstitutes for <strong>Bio</strong>Medical Research in Basel. In September<strong>2011</strong>, MorphoSys reported that Bayer HealthCarePharmaceuticals had accomplished the next milestone byinitiating a phase I clinical trial with the HuCAL-derivedantibody-drug conjugate BAY 94-9343 in the therapeuticarea of oncology. Furthermore in November <strong>2011</strong>, MorphoSysand Shionogi & Co., Ltd. expanded their agreementfor additional three years. This cooperation focuseson MorphoSys’ HuCAL technology and additional proprietarytechnology modules for research in drug discovery.MorphoSys and Shionogi closed the first license agreementin September 2005.By analyzing the different licensing deals during theyear <strong>2011</strong>, several <strong>Bavarian</strong> <strong><strong>Bio</strong>tech</strong> companies haveannounced significant deals with international industrypartners. For example, 4SC (Martinsried) and YakultHonsha (Japan) signed an exclusive license agreementfor Japan based on 4SC’soral HDAC Inhibitor Resminostat.Under these terms of agreement, 4SC AG has receivedan upfront payment from Yakult Honsha of € 6 millionand will receive up to € 127 million payable upon achievingspecified milestones including clinical and regulatoryevents in Japan. In addition to milestone payments,Yakult will pay 4SC double-digit royalties linked to productsales of Resminostat, which will also include the APIcosts.Another <strong>Bavarian</strong> <strong><strong>Bio</strong>tech</strong> company, Affectis Pharamceuticals(Martinsried), signed an exclusive licensing agreementwith Merck Serono, Darmstadt, for oral compoundstargeting the P2X7 receptors. Affectis has obtained € 2.4million upfront payment, will receive research fundingand could obtain up to € 277 million in milestones andundisclosed royalties. In addition, the Munich basedWilex (Munich) has granted exclusive US commercialisationrights for RENCAREX ® to Prometheus LaboratoriesInc., San Diego, USA. By signing this agreement, Wilexhas received approximately € 29.4 million ($ 39 million),€ 14.3 million ($ 19 million) upon signing and either€ 15.1 million ($ 20 million) after twelve months or alternativelythe European commercial rights for an undisclosedproduct from Prometheus. In addition WILEX willreceive milestone payments and royalties on US net salesof RENCAREX ® . Furthermore Prometheus will co-fund aportion of the ongoing development of RENCAREX ® .Another licensing deal was closed at the end of year <strong>2011</strong>.Sanofi has exclusively licensed Scil Technology’s programfor the regenerative treatment of osteoarthritis andcartilage disorders. This deal is valued with more than€ 180 million and includes upfront payments, potentialmilestone payments and undisclosed royalties on worldwideproduct sales.These adds up to a record deal-closing of nearly € 1,4billion in <strong>2011</strong> – a strong argument for the attractivenessof <strong>Bavarian</strong> biotechnology!23