Oncology deals remain a hot area, driven largely by the immuno-oncology space. 2020 was a landmark year for biotech and pharma investments, with oncology accounting for a large portion of deals ($133 billion). Oncology-focused deals in 2021 Take up Participated in most global biopharmaceutical licensing, collaboration and joint venture transactions. Cancer’s dominance is clear and there should be more deals this year – especially with biotech as a key driver – but is there a secret formula to navigate this competitive oncology deal environment and secure the right partners and collaborators? What are the key trends in today’s trading environment? Finally, will this trading level continue to rise?
One trend that will persist is the impact of science on people’s lives. I worked in rare diseases at Pfizer and then in oncology at Affimed, and had one basic thing in common: the immense satisfaction that comes with doing such meaningful work, even with the investment disparity. Investment in rare diseases has lagged behind investment in oncology, but thankfully this is changing. However, business development (BD) in rare diseases and oncology has similarities. First, it is necessary. Second, it is built on open, honest relationships.
Integrity management and development
Business development is a critical next step for small biotech companies that have been raising capital. Working with trusted partners goes a long way in validating technologies and platforms, and gives small biotech companies the runway they need to grow. Indeed, it is more challenging for small biotech companies today than it was five years ago. As the number of biotech initial public offerings has slowed from a record pace and raising capital has become more difficult, biotech companies are vying for much-needed investor money.
The good news is that the time is ripe for collaboration. The importance of high-value partnerships has increased. w Driven by metrics driving external innovation, Big Pharma is eager to fill their pipelines, with partnerships more open than purchases. This allows assets to grow together while both parties share risk. My experience is that the current environment is promoting BD communication, which will continue to drive growth and innovation, which is good for both biotech and patients.
relationship is the foundation
Promoting healthy business development relationships is critical to maximizing results. These partnerships need to be built on trust and openness, because at the end of the day, you’re basically all on the same team. Being self-interested can actually get in the way of creative solutions.
It is critical to address the issues that partner companies are trying to address and what concerns they are focusing on. Understanding the problem they are trying to solve can help you solve it for them. To do this, it’s important to be able to put everything on the table. I’ve learned this from both sides — a big pharma company, and now a small biotech company. During my time at Big Pharma, I wanted a small biotech partner to be someone I could trust. It’s hard work that pays off, and if you can’t do it with your BD partner, it’s usually best to make a change.
Trends in Oncology Treatment
The market is increasingly aware of the opportunities that innate immunotherapy holds. A few years ago, the focus was on T cells, and now companies are looking to improve these therapies. Once upon a time, not many people wanted access to cell therapy. Now that’s changing, with companies like Gilead, Merck, Takeda, Sanofi, and Astellas all starting to add innate cell engagement agents and NK cell approaches to their pipelines, using in-house modality platforms to create immune treatment method.
Likewise, PD-1 and PDL-1 are very popular with everyone entering the field. Now, companies need to differentiate and seek collaborations for their PD-1/PDL-1, which are promising in terms of business development for small and medium-sized biotech companies. These developments, along with combination and next-generation therapies including RNA technology and cell therapy, show that with the right approach to business development, the future looks promising for small biotechs and big pharma.
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