Stockwatch: Beware The Biotech Folly Of Self-Commercialization

Partnering A First Asset to Big Pharma Brings More Benefits Than Money

If the lengthy litigation history is any guide, Amgen regretted licensing its first product to a big pharma partner, probably because the product was so successful. For most first products, however, a big pharmaceutical collaboration can bring many benefits but the converse – self-commercialization of the first product – has far fewer positive historical connotations.  

StockWatch_Andy-Smith_V2_1200.jpg
ANDY SMITH GIVES A LIFE SCIENCES INVESTOR'S PERSPECTIVE ON BIOPHARMA BUSINESS

In 1985, Amgen Inc. licensed some of the rights to its first product – Epogen (erythropoietin alfa) to promote red blood cell production in non-dialysis patients – to a subsidiary of Johnson & Johnson (J&J). That transaction provided Amgen a much-needed 5% royalty on non-dialysis sales in the US, and for all indications outside the US for no selling or marketing cost. The strategic marketing agreement also provided the wider but nascent biotech sector with a good dose of validation and implied that the (then) orphan indication was commercially significant enough for J&J to devote its marketing muscle and expertise. As Amgen retained the rights to market Epogen in the US for dialysis patients, the relationship also allowed Amgen to learn the best practice of pharmaceutical marketing from J&J.

The success of Epogen exceeded at least Amgen’s expectations at the time the agreement was signed, but brought with it...

Scrip Podcast

Keep up with the top pharma business news of the week. On the go.

Scrip brings you a weekly bulletin of top picks.

More from Strategy

Scrip-Business (Free-1): Top-Selling Drugs 2024: Keytruda, Ozempic And Dupixent Dominate

 
• By 

Merck’s immuno-oncology blockbuster was the world’s best-selling drugs by revenues for the second year in a row, with an almost $12bn lead over its closest rival, Novo Nordisk’s GLP-1 drug Ozempic.

Ordspono Will Be Regeneron’s First Independent European Launch

 

Ordspono, a bispecific antibody newly approved in the EU to treat follicular lymphoma and diffuse large B-cell lymphoma, joins Libtayo in Regeneron’s growing oncology portfolio.

Galderma Gets First Biologic To Market With Nemluvio Approval

 

Nemluvio is a first-in-class IL-31 inhibitor that the US FDA approved for prurigo nodularis. 

Kerendia Could Be Next Jewel In Bayer's Pharma Crown

 
• By 

CEO Bill Anderson would not be drawn on whether the drug, currently approved for chronic kidney disease associated with type 2 diabetes, will hit a previous forecast of €3bn peak sales, but expansion into heart failure may make that figure look conservative.

More from Business

How A New Healthcare Dialogue Is Driving Market Access In Mexico

Companies stand a better chance of securing public reimbursement in Mexico for innovative medicines if they understand changing approaches to healthcare. The shift means the emergence of managed entry agreements and a focus on economic impact, explains AMIIF, Mexico's research-based pharmaceutical industry association.

How Novartis Is Elevating CVD Outcomes, Driving ‘Personalized Access’ In APMA

Novartis’s APMA chief outlines the company’s tailored approach to deliver long-term outcomes, novel access solutions via innovative financing options and shape the CVD disease ecosystem in the extraordinarily diverse region. Partnering to build AI infrastructure is another key prong.

India Rare Diseases: Court Shows Path For Policy Action, Funding, Price Issues-- Test-2

A court order encompassing funding, drug pricing, clinical trials and overall policy implementation aspects is expected to bring about a paradigm shift in the treatment of rare diseases in India. Sarepta, Roche and Sanofi are among the key players that have been part of pricing discussions.