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Upfront Value

Welcome to the July 2007 edition of the PharmaVentures Business Review. In the Business Report we investigate the trends surrounding upfront payments in licensing deals. In the Month in Review, we review the industry's key deals during June 2007 and their likely impact on the companies involved as well as on the market sector. In Face-to-Face, Fintan Walton talks to Tim Zeppenfeld, Business Development Manager, Gene Bridges about life as a self-funded and profitable emerging biotechnology company in Germany.

To learn more about the major deals and transactions from the previous month’s industry activity, you should view PharmaDeals Intelligence bank, a comprehensive and global source of deals information. With financial information, news alerts and legal agreements, this searchable resource, which is compiled by analysts and consultants, is an essential deal making tool.

• Amgen has agreed to acquire Ilypsa, a private biotechnology company focused on kidney disease care, for US$420 M.
• Bavarian Nordic was awarded a US$1.6 B contract from the US Department of Health and Human Services for the manufacture and delivery of its smallpox vaccine Imvamune®.
• Amgen acquired Alantos Pharmaceuticals, a private company developing drugs for the treatment of diabetes and inflammatory diseases, for US$300 M.
• Biomet was bought by the private equity group LVB Acquisition for US$11.4 B.
• Roche issued an unsolicited tender offer for all outstanding shares of common stock of Ventana Medical Systems for US$3 B which has, as yet, been rejected.

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The Month in Review

Learn about the key deals in June 2007 and what they have meant for the companies involved. Featured deals include those between Shire and Renovo, Roche and Ventana, Amgen and Ilypsa, and others.

To learn more about the major deals and transactions from the previous month’s industry activity, you should view PharmaDeals Intelligence bank, a comprehensive and global source of deals information. With financial information, news alerts and legal agreements, this searchable resource, which is compiled by analysts and consultants, is an essential deal making tool.

• Amgen has agreed to acquire Ilypsa, a private biotechnology company focused on kidney disease care, for US$420 M.
• Bavarian Nordic was awarded a US$1.6 B contract from the US Department of Health and Human Services for the manufacture and delivery of its smallpox vaccine Imvamune®.
• Amgen acquired Alantos Pharmaceuticals, a private company developing drugs for the treatment of diabetes and inflammatory diseases, for US$300 M.
• Biomet was bought by the private equity group LVB Acquisition for US$11.4 B.
• Roche issued an unsolicited tender offer for all outstanding shares of common stock of Ventana Medical Systems for US$3 B which has, as yet, been rejected.

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The Business Report

In the July edition of the Business Report, we take a look at the value of upfront payments in licensing deals. Upfront payments are an important source of cash to biotechnology companies and there have been a number of deals recently involving substantial upfront cash payments paid to licensors. In the report, we present data showing that although the average size of upfront payments is certainly increasing at an impressive rate, they are still failing to keep up with the increase in the total potential size of these deals, meaning that they represent a smaller proportion of the overall deal value.

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Face-to-Face

Fintan Walton talks to Tim Zeppenfeld, Business Development Manager, Gene Bridges about life as a self-funded and profitable biotechnology company. Tim tells Fintan about Gene Bridges' Red/ET technology and describes the licensing, fee-for-service and kit distribution business models that the company is following. They discuss Gene Bridge's alliance with BASF, and Tim emphasises the importance of this alliance as a model for an evolving relationship from fee-for-service to a fully blown collaboration. Highlighting Gene Bridge's unusual position as a self-funded and profitable emerging biotechnology company, Tim shares his thoughts on the consolidation of the biotech sector in Germany, and speculates as to Gene Bridges' future strategy.