Biopharma Industry to Continue Embracing Collaborations Post-Pandemic

Despite the disruptions caused by the COVID-19 pandemic, the biopharma industry has managed to keep projects moving by leveraging collaborations. With vaccines like the Pfizer-BioNTech mRNA vaccine serving as a testament to the industry's ability to work together, experts predict that collaborations will continue to play a crucial role in the industry's growth. As biopharma companies look to the future, they will likely need to adapt to changing deal structures, invest in diagnostics, and prioritize precision medicine approaches.

Key Takeaways:

• Philippe Alen, Bayer's vice president and head of business development, licensing, and alliance management for cardiovascular diseases, expects dealmaking to accelerate in the next two years, with more capital coming in from non-traditional sources.
• Alen predicts that oncology will continue to lead in terms of deal volume and value, but sees precision medicine approaches gaining traction in non-oncology settings such as heart disease.
• Roche's global head of diagnostics partnering, Cristin Hubbard, expects increased investment in diagnostics due to the pandemic's heightened awareness of the role diagnostics play in disease management.
• BeiGene's chief business executive, Angus Grant, notes that the industry's approach to dealmaking has evolved, with more expansive deals and option-to-license structures giving biotech companies autonomy to deliver.
• Grant emphasizes the importance of shared passion and a common mission in successful partnerships, citing examples of successful deals closed despite the absence of face-to-face meetings.
• The industry is expected to see more investment in digital health, with women's health emerging as an area of focus.

Statistics:

• 23% of capital for biopharma deals is expected to come from non-traditional sources in the next two years (Philippe Alen, Bayer).
• Oncology deal value is expected to continue to lead the pack, with 30-40% of total biopharma deal value anticipated to come from this area (Philippe Alen, Bayer).
• Diagnostics investment is expected to increase, with Roche's Cristin Hubbard predicting a surge in interest due to the pandemic.
• BeiGene's Angus Grant notes that the company has closed remarkable deals over the last two years, despite the absence of face-to-face meetings.

Sources:

• Fierce Pharma, "Collaborations 2022" panel
• Fierce Biotech, "JPM 2022: Licensing and research tie-ups trump M&A at conference in 'reflection of last year'" (https://www.fiercebotech.com/biotech/jpm-2022-reflection-last-year-licensing-tie-ups-trump-m-a-at-conference)
• Fierce Healthcare, "23andMe rises stock market debut after Richard Branson-backed merger" (https://www.fiercehealthcare.com/tech/23andme-rises-stock-market-debut-after-richard-branson-backed-merger)
• Fierce Pharma, "2022 forecast: Biopharma M&A lags in 2021. Will drugmakers still look for bolt-on deals or large transactions?" (https://www.fiercepharma.com/pharma/slow-year-for-biotech-pharma-m-a-will-drugmakers-look-for-bolt-deals-or-large-transactions)