Friday, 07 September 2007
Joint Ventures, Partnerships, and Alliances with Big Pharma on PCR Technology
The Roche Pharma Collaborations website states that Roche is currently partnered with 60 companies worldwide, and includes testimonials from a few small biotech firms and a list of partners. Of these, GSK is the only big pharma partner. The Diagnostic Collaborations page mentions three big pharma companies – Abbott, Bayer, and J&J – all of whom are involved in collaborating on polymerase chain reaction (PCR) diagnostic technology used to isolate and amplify DNA sequences.
Roche and Bayer entered into a joint venture in 1996 for the sale of over-the-counter (OTC) drugs in the area of analgesics (except for Bayer aspirin) and women's health. According to a Roche press release, "Bayer will be responsible for sales and marketing of the joint venture products within its overall Consumer Care portfolio. Financial terms of the agreement were not disclosed." In 2004, Roche sold its Consumer Health division, including all of its non-prescription drugs (except orlistat, which it out-licensed to GSK for an upfront payment of 120 million SwFr and milestone payments) to Bayer for 3.6 billion Swiss Francs, effectively ending the joint venture. In 1998, Bayer also received a non-exclusive, worldwide license to use Roche's PCR patents. For more information, see: http://www.roche.com/home/media/med-cor/med-cor-1998.htm
Select Joint Ventures, Partnerships, and Alliances with Small and Midsize Pharma
Roche and Alnylam in July 2007 formed a major alliance to develop RNAi therapeutics for oncology, respiratory diseases, metabolic diseases and certain liver diseases. Some terms of the deal included Roche gaining access to Alnylam's Nobel Prize-winning technology, Alnylam’s site in Germany becoming Roche’s Center of Excellence for RNAi therapeutics, and in addition Alnylam received $331 million in upfront payments and equity investment. Further terms of the deal were reported in personalizedmedicine.com: "The alliance could be valued at over 1 billion US dollars in consideration of upfront payments, potential product milestone payments for multiple products and field expansion payments, excluding potential royalties on future sales of commercial products…Roche will also pay Alnylam milestones on products as they advance in development and commercialization as well as royalties on future sales of commercial products. Further, Roche may pay Alnylam field expansion payments to increase the number of therapeutic areas." http://www.personalizedmedicine.com/index.aspx?ID=83668
Roche and Amira Pharmaceuticals – In January 2006 announced a research collaboration targeting inflammatory diseases which included an option for Amira to license two clinical stage compounds from Roche. Biospace.com reports that, "Roche will screen its compound repository against three targets and will transfer any hits to Amira. In exchange, Roche will have opt-in rights on two of the programs. If Roche exercises its option, Amira could receive up to $287 million in total event payments, plus royalties," and that , "Amira will have a one year option to license two of Roche's existing clinical stage programs, in specific indications. Should Amira exercise its option to these programs, Roche may receive a significant percentage of Amira's stock. Additionally, if these two programs meet all development events, Roche could receive up to $20 million, in addition to royalties." http://www.biospace.com/news_story.aspx?NewsEntityId=6412
Roche and Sankyo – in November 2003 Roche acquired exclusive rights to an antibiotic compound, CS-023, developed by Sankyo as it was entering Phase II clinical development. announced today that Roche has acquired exclusive rights to CS-023, Sankyo’s new antibiotic compound entering Phase II clinical development. According to a Roche press release, "Under the terms of the agreement, Roche will be responsible for the compound’s development and commercialization in major parts of the world including the US and Europe, while Sankyo will retain commercialization rights for Japan, China, Taiwan, South Korea, and countries in the Middle East. Sankyo will receive an initial payment as well as milestone-based payments. In addition, Roche will pay Sankyo royalties based upon future product sales." http://www.roche.com/med-cor-2003-11-10
Roche Diagnostics and Millennium – entered into a research alliance for rheumatoid arthritis diagnostics in January of 2001. According to a Roche press release, "Through the terms of this three-year alliance Roche obtains certain research and development rights to select diagnostic markers and related intellectual property developed by Millennium in this disease area. Millennium receives a licensing fee, funding for research and milestone payments and royalties. Diagnostic products resulting
from the alliance will be brought to market by Roche." http://www.roche.com/home/media/med-cor/med-cor-2001.htm
Roche and Syrrx in May 2004 entered into a strategic alliance for the discovery and development of treatments for cancer and type 2 diabetes. According to a Roche press release, "Syrrx will be responsible for advancing drug candidates through research and early development…Roche will retain an option to license the worldwide rights for the further development and commercialization of products resulting from this collaboration. For these rights, Syrrx will receive an upfront payment consisting of cash and equity, and maintenance and option payments, which could total $178 million if all product milestones are achieved, in addition to sales-based royalties." http://www.roche.com/home/media/med_div/med_div_pharma/med_pha_2004/med-div-2004-05-12.htm
Roche and ArQule – In April 2004 these two companies entered into a partnership for the discovery and development of drugs to selectively kill cancer cells. today announced a partnership to discover and develop drug candidates targeting a new pathway in order to selectively kill cancer cells. The terms of the deal, as outlined in a Roche press release, state that, "Roche will provide immediate research funding of $15 million, and significant financial support for ongoing research and development. ArQule will be responsible for advancing drug candidates from early stage development into phase II trials. Roche may opt to license worldwide rights for the development and commercialization of products resulting from this collaboration, by paying an option fee. Assuming the successful development and commercialization of a compound under the program, ArQule could receive up to $276 million in payments, plus royalties. Additionally, ArQule has the option to co-promote products in the US." http://www.roche.com/med-cor-2004-04-02a
Roche and Memory Pharmaceuticals Corporation – These two companies in September 2003 expanded an existing alliance and began an alliance to develop drugs potentially useful in the treatment of Alzheimer's and schizophrenia. According to a Roche press release, "Under the terms of the agreement, Roche will purchase a minority equity stake in Memory, at an undisclosed premium over the last financing round, and will provide up-front and milestone payments as well as support for ongoing research and development. Memory will be responsible for advancing drug candidates through early stage clinical development. Roche may then opt to license worldwide rights for the further development and commercialization of products resulting from this collaboration. Roche will pay Memory royalties on product sales and has granted Memory an option to co-promote products in the U.S. Assuming all potential milestones through product launch are achieved, Memory could receive up to $150 million (U.S.) in payments plus royalties." http://www.roche.com/med-cor-2003-09-18a