Early in January 2019, Bristol-Myers Squibb‘s (NYSE: BMY) $74 billion acquisition of Celgene Corporation dominated the headlines. But despite that big deal, 2019 was a rather lackluster year for the Biotechnology sector.
However, the opening quarter of 2020 is showing some promise. This year’s J.P. Morgan Healthcare Conference came and went without any major announcements, but the Biotech sector is seeing a steady start, with a modest $930 million in spending with 11 announced transactions.
A bulk of that dollar volume came from Incyte Corporation‘s (NASDAQ: INCY) deal with MorphoSys AG (NASDAQ: MOR) for tafasitamab. The collaboration and license agreement aim to further develop and commercialize its proprietary anti-CD19 antibody tafasitamab (MOR208) globally. Incyte will pay $750 million upfront, plus $1.1 billion in potential milestones.
MorphoSys submitted tafasitamab to the FDA for the treatment of relapsed/refractory diffuse large B cell lymphoma.
MorphoSys and Incyte will co-commercialize tafasitamab in the United States, sharing profits and losses evenly. Incyte has exclusive commercialization rights outside of the United States. The FDA is expected to make a decision on tafasitamab in mid-2020, with a submission to the European Medicines Agency planned for then as well.
Pfizer Inc. (NYSE: PFE) announced two transactions in Janaury, divesting two assets from its portfolio. The pharmaceutical giant sold PF-05251749 for $75 million to Biogen Inc. (NASDAQ: BIIB). Biogen plans to develop the Phase 1 asset for the treatment of sundowning in Alzheimer’s disease and irregular sleep-wake rhythm disorder in Parkinson’s disease. Sundowning is a symptom that impacts 20% or more of AD patients. PF-05251749 has previously demonstrated an acceptable safety profile and proof of mechanism in a Phase 1a clinical study. Biogen aims to initiate a Phase 1b study in Q4 2020. The transaction is expected to close in Q1 2020.
