What Is A rare Disease? - Clarivate Analytics...BIO-Europe, Nov. 5, Copenhagen ... Target Company...
Transcript of What Is A rare Disease? - Clarivate Analytics...BIO-Europe, Nov. 5, Copenhagen ... Target Company...
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Biopharma Dealmaking
October 2018
How the Year’s Top Licensing and M&A Deals Are Changing the Industry Landscape
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Expert SpeakersPaul D'Souza, Pharmaceutical Analyst at Clarivate Analytics
Paul is a pharmaceutical analyst in the Cortellis Deals Intelligence team at Clarivate Analytics
Paul has 11 years of experience engaging with pharmaceutical customers and generating leads by creating quarterly thought leadership reports focusing on major pharma M&A and licensing activity through deal benchmarking and competitor analysis
He has a BSc in Physiology/Pharmacology and an MBA from Manchester University
Donald Johnston, Senior Marketing Communication Director at Clarivate Analytics
Donald is senior marketing communication director at Clarivate Analytics
Don has worked with Clarivate’s Life Sciences solutions, particularly the BioWorld and BioWorld MedTech news services, for more than two decades
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o Key metrics foretelling the future business health of the life sciences o Dealmaking environmento Investment levels
o Outlook for 2018o All indications are that 2018 will finish as another mega-dealmaking year in both the number of
transactions and the dollars involved.
• Snapshots of the licensing and M&A environment
Top 20 biopharma licensing deals for Q2
Profiles of the top 3 licensing deals
Top 20 M&A deals for Q2
Profiles of the top 3 M&A deals
APAC licensing and M&A deals for Q2
H2 outlook
Dealmaking – The pulse of the industryBiopharma Dealmaking 2018
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NME approvals from licensing and M&ABiopharma Dealmaking 2018
*Source: 2018 CMR Pharmaceutical R+D Factbook, Clarivate Analytics
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o Dealmaking 2018
Dealmaking by therapeutic area Biopharma Dealmaking 2018
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What makes a good deal? From Cortellis Deal of the Year discussion*
o Ambition – “Transformative” was perhaps the most enthusiastic endorsement that came up about a
deal.
o Creativity – Partner-finding, deal structure, indications/rights, spin-out that kept “the innovation
rolling.”
o Cool science – What are the first things that you notice about a deal? The players, the dollars, the
technology.
o Also: Benchmark $ value
* Ingredients for a ‘good deal’ in biopharma: Ambition, creativity, win-wins, cool science, cross-border intrigue, Life Sciences Connect, Jan. 30, 2018
Ingredients for a ‘good deal’ in biopharma?Biopharma Dealmaking 2018
https://clarivate.com/blog/life-sciences-connect/ingredients-good-deal-biopharma-ambition-creativity-win-wins-cool-science-cross-border-intrigue/
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Cortellis Analytics Deals and Portfolio Review: State of the Industry
o Looking back at the deals of 2017:
More than half of the sellside companies involved in life sciences licensing transactions – 1,158 –
were headquartered in the U.S.
More than 50 different countries were represented
True global nature of today’s life sciences industry
Q2 analysis and H2 outlook
2018 Deals and Portfolio Review
"A convergence of industry maturity, deal flow, regulatory advances, increased capital and development programs makes this the most buoyant I've seen the sector in my near-decade-long tenure at AusBiotech."
– Lorraine Chiroiu, CEO, AusBiotech, as quoted in “Australian life sciences companies more optimistic than ever,” BioWorld, July 12, 2018
International focus (Cross-border intrigue)Biopharma Dealmaking 2018
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o Does the deal work for both parties? Time will tell! Deal observations from last year:
“Nice collaboration and separate option deal, offering upside to both partners.”
“Careful structuring of clinical stage options reduces risk for both parties.”
“Smartly structured early sale; true win-win. Timing was important.”
“I like the co-development angle and risk-sharing approach in a space that hasn’t had much
uptake. Sink or swim together.”
"What you have in this collaboration is two very like-minded, scientifically driven organizations that are coming together to bring very synergistic and complementary technologies to the field of CAR T cells and T-cell-based immunotherapy."
– Philip Gregory, CSO of Bluebird Bio Inc., describing deal with Regeneron Pharmaceuticals to discover, develop and commercialize cancer cell therapies, as quoted in “Regeneron, Bluebird ‘all in’ on cancer cell therapies in five-year pact,” BioWorld, August 7,2018
One final Deal of the Year comment, which puts the end result of all of this dealmaking into perspective: “Should be a win for patients.”
Win-winsBiopharma Dealmaking 2018
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o “Trends in rare disease investment, research and orphan drug development”
Jamie Munro, Global Practice Leader, Portfolio & Licensing, Clarivate Analytics, moderator of
panel in the therapeutic track
BIO-Europe, Nov. 5, Copenhagen
o “Cortellis 2018 Deals & Porfolio Revew”
Laura Vitez, Senior Deals Analyst, Clarivate Analytics
Jamie Munro, Global Practice Leader, Portfolio & Licensing, Clarivate Analytics
Jan. 7, 8 and 9, 2019, San Francisco
http://discover.clarivate.com/JPMDealsReview
More dealmaking focus …Biopharma Dealmaking 2018
http://discover.clarivate.com/JPMDealsReview
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$270
$150
$150
$150
$100
$350$170
$425
$1,850$300
$515
$600 $750 $775
$805 $969
$1,008$1,035
$1,200
$1,000$1,370
$1,530 $2,000
$1,688 $2,800
$3,010
$1,780 $4,355
$813
$900
$1,100
$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000
Biogen/Pfizer
Roivant/Poxel
Sanofi/Translate
Pfizer/Arvinas
Axovant/Oxford BioMedica
Incyte/Syros
Genentech/Lodo
Janssen/Theravance
Takeda/Denali
AbbVie/Voyager
Seattle/Pieris
Biogen/Ionis
Boehringer/OSE
Akcea/Ionis
Takeda/WAVE
Celgene/Prothena
Allogene/Cellectis
Kite/Sangamo
BMS/Nektar
Merck & Co/Eisai
Disclosed deal dollars ($M)Buyer/Seller
Upfront + equity ($M)Milestones ($M)Remainder/Mixture ($M)
Onc / LOnc / P2
Onc / DR
Onc / DR
Neuro / DRNeuro / P2
Neuro / PR
Neuro / DROnc / C
Onc / DRNeuro / DR
GI / P1Unk / DR
Hema / DRNeuro / P2Unk / DR
Infect / DREndo/Met / P3
Neuro / P1
Neuro / DR
Merck & Co/Eisai, BMS/Nektar and Kite/Sangamo were the top licensing deals
Biopharma Dealmaking 2018
Top 20 licenses in H1
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LicensorEisai
Will jointly develop and commercialize Lenvimaas monotherapy and in combination with Keytruda for multiple cancer types worldwide.
Will book sales and share development and marketing costs and profits equally.
Lenvima as monotherapy and in combination with Keytruda for cancer worldwide
Therapy Area: Stage at Signing:Cancer LaunchedTechnology: License Exclusivity:Immuno-oncology, UnknownMonoclonal antibody humanized, more…Territory: #Products/Options:World 2
Total Announced Size (USD): $5,755.00M
Committed Payments: Contingent Payments:Upfront: Total Milestones$300.00M $4,355.00MOption: Pre-Commercial: $650.00M $385.00MR&D Funding: Sales-Based:$450.00 $3,970.00MNotes:$300M upfront, $650M option fee, $450M R&D, $385M dev/reg and $3.97B sales milestones
LicenseeMerck & Co
Will jointly develop and commercialize Lenvimaas monotherapy and in combination with Keytruda for multiple cancer types worldwide.
Will have certain option rights and share development and marketing costs and profits equally.
Eisai & Merck sign $5.75B license to combine Lenvima with Keytruda for cancer
Biopharma Dealmaking 2018
Top 3 licenses
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LicensorNektar Therapeutics
Will develop and commercialize NKTR-214 in combination with Opdivo and (Opdivo + Yervoy) against cancer worldwide.
Will lead worldwide commercialization activities for NKTR-214 combinations.
Exclusive rights to develop NKTR-214 in combination with Opdivo and Opdivo + Yervoy for cancer worldwide
Therapy Area: Stage at Signing:Cancer LaunchedTechnology: License Exclusivity:Immuno-oncology ExclusiveMonoclonal antibody humanized, more…Territory: #Products/Options:World 1
Total Announced Size (USD): $3,630.00M
Committed Payments: Contingent Payments:Upfront: Total Milestones$1,000.00M $1,780.00MEquity: Pre-Commercial: $850.00M $1,430.00MProfit split: Sales-Based:65/35% $350.00MNotes:$1B upfront, $850M equity, $1.43B development and $350M sales milestones, 65/35% profit split to Nektar
LicenseeBristol-Myers Squibb
Will develop and commercialize NKTR-214 in combination with Opdivo and (Opdivo + Yervoy) against cancer worldwide.
Will have an option to obtain rights to manufacture NKTR-214.
Nektar & BMS sign $3.63B license to combine NKTR-214 with Opdivo & Yervoy for cancer
Biopharma Dealmaking 2018
Top 3 licenses
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LicensorSangamo Therapeutics
Will grant rights to zinc finger nuclease (ZFN) technology to modify genes to develop cell therapies for cancer worldwide.
Exclusive rights to develop and commercialize cell therapies for cancer worldwide using ZFN technology
Therapy Area: Stage at Signing:Cancer DiscoveryTechnology: License Exclusivity:Immuno-oncology ExclusiveChimeric antigen receptor T cell therapy, more… Territory: #Products/Options:World Multiple – Unknown
Total Announced Size (USD): $3,160.00B
Committed Payments: Contingent Payments:Upfront: Total Milestones$150.00M $3,010.00MEquity: Pre-Commercial & Sales: - $1,260.00MR&D Funding: Sales-Based:- $1,750.00MNotes:$150M upfront, $3.01B in dev/reg and sales milestones plus tiered royalties
LicenseeKite Pharma
Will be responsible for all development, manufacturing and commercialization of cell therapies for cancer worldwide.
Will be responsible for agreed upon expenses incurred by Sangamo.
Sangamo & Kite sign $3.16B license to develop genetically engineered anticancer cell therapies
Biopharma Dealmaking 2018
Top 3 licenses
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$1.2
$1.3
$1.5
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$2.0
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$2.3
$2.4
$2.4
$2.8
$3.7
$4.2
$4.8
$1.1
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$9.0
$11.6
$13.0
$62.3
$5.9
$0 $10 $20 $30 $40 $50 $60 $70Disclosed deal dollars ($B)
Industry
Upfront + equity ($B)
Milestones ($B)
Takeda/Shire
Sanofi/Ablynx
Therapeutics
Therapeutics
Therapeutics
Therapeutics
Therapeutics
Therapeutics
Therapeutics
Therapeutics
Therapeutics
Devices
Diagnostics
Therapeutics
Therapeutics
Devices
Diagnostics
Technology
Therapeutics
Devices
Therapeutics
Therapeutics
Sanofi/Bioverativ
Celgene/Juno
Novartis/AveXis
Celgene/Impact Biomedicine
P&G/Merck’s Consumer Health
CVC/FIMEI
Fortive/Ethicon
Roche/Foundation Medicine
Servier/Shire’s Oncology business
Advent/Sanofi’s Zentiva
Platinum Equity/J&J’s LifeScan
Danaher/Integrated DNA
Roche/Flatiron Health
Lilly/ARMO Biosciences
CHD/Sirtex Medical
Akebia/Keryx
Korea Kolmar/CJ Healthcare
GSK/Novartis JV
* Only top 20 M&A deals by value ($B) for companies focusing on therapeutics and/or technology, devices and diagnostics were considered
Takeda/Shire, GSK/Novartis JV and Sofi/Bioverativ were the top M&As
Biopharma Dealmaking 2018
Top 20 M&As in H1
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Target Company Deal Value (USD)Shire $62.3B
Shire is a global biotechnology company developing treatments for rare, neurological and gastrointestinal diseases and regenerative medicine.
Market Segment: Prior Year Total Revenues (USD):Therapeutics $15,610.00MLeading Technology Cash On Hand at Acquisition (USD):Small molecule products $511.80MTherapy Area: Shares Outstanding:Diversified 913.52Most Advanced Product:LaunchedLeading Products:Vyvanse, Lialda, Adderall XR
AcquirerTakeda
Upfront Cash (USD):$62,320.00MContingent Payment (USD):-
Offer Price Per Share:$68.10Prior Close Sh. Price Premiums ($):01% (1-Day): 161.3905% (5-Day): 159.5030% (30-Day): 128.54
Announced: 05/08/2018 Closed:
Takeda approaches Shire for $62.3B
Biopharma Dealmaking 2018
Top 3 M&As
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Target Company Deal Value (USD)GSK/Novartis OTC Consumer Healthcare JV $13B
The OTC Consumer Healthcare joint venture combined the OTC businesses of GSK and Novartis, owned 65/35% respectively.
Market Segment: Prior Year Total Revenues (USD): Therapeutics -Leading Technology Cash On Hand at Acquisition (USD): OTC product, small molecules -Therapy Area: Shares Outstanding:Diversified -Most Advanced Product:LaunchedLeading Products:Nicotinell. Panadol, Sensodyne
AcquirerGlaxoSmithKline
Upfront Cash (USD):$13,000.00MContingent Payment (USD):-
Offer Price Per Share:-Prior Close Sh. Price Premiums ($):01% (1-Day): -05% (5-Day): -30% (30-Day): -
Announced: 03/27/2018 Closed: 06/01/2018
GSK gains Novartis’ 35% stake in their OTC Consumer Health JV for $13B
Biopharma Dealmaking 2018
Top 3 M&As
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Target Company Deal Value (USD)Bioverativ $11.6B
Bioverativ is a biopharmaceutical developing treatments for hemophilia and other rare blood disorders.
Market Segment: Prior Year Total Revenues (USD):Therapeutics $887.40MLeading Technology Cash On Hand at Acquisition (USD):Small molecule products $224.10MTherapy Area: Shares Outstanding:Hematology 108.10Most Advanced Product:LaunchedLeading Products:BIVV-001, Alprolix, BIVV-020
AcquirerSanofi
Upfront Cash (USD):$11,600.00MContingent Payment (USD):-
Offer Price Per Share:$105.00Prior Close Sh. Price Premiums ($):01% (1-Day): 64.1105% (5-Day): 63.7530% (30-Day): 50.68
Announced: 01/21/2018 Closed: 03/08/2018
Sanofi targets Bioverativ for $11.6B
Biopharma Dealmaking 2018
Top 3 M&As
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$3,479
$10,409
$359 $11 $17 $246 $1
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20
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2000
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12000
China Japan South Korea Australia India Hong Kong Taiwan
Num
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Deal
size
USD
(mill
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Company HQ
Total disclosed deal size (USD million) Number of deals
China-based firms had the highest deal volume; Japan-based companies had the highest total deal value
Biopharma Dealmaking 2018
APAC licenses – breakdown by HQ
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HQ Licensor HQ2 Licensee Asset Indication Deal ($M)
USA SAGE JAP Shionogi SAGE-217 Depression 575UK AstraZeneca CHN Luye Seroquel Bipolar/schizo 546USA Agios CHN CStone Tibsovo AML 424USA Blueprint CHN CStone Avapritinib
TyK inhibitorsCancer 386
JAP TMS USA Biogen TMS-007 Stroke 357CHN Jiangsu Hengrui USA TG Therapeutics TG-1701 Hematologic
malignancies351
USA Puma CHN CANbridge Neratinib Breast cancer 255
CHN Jiangsu Hengrui USA Arcutis SHR-0302 Rh Arthritis 233KOR Dong-A USA NeuroBo DA-9801,
DA-9803
Diabetic neuropathy Neurodegeneration
180
USA Karyopharm CHN Antengene Verdinexor Selinexor, Eltanexor, KPT-9274
Viral,Cancer
162
Top licensing activity for APAC-based companies spanned across various therapy areas
Biopharma Dealmaking 2018
APAC licenses – top deals in Q1
Sheet1
HQLicensorHQ2LicenseeAssetIndicationDeal ($M)
USASAGEJAPShionogiSAGE-217Depression575
UKAstraZenecaCHNLuye SeroquelBipolar/schizo546
USAAgiosCHNCStone Tibsovo AML424
USABlueprintCHNCStone AvapritinibTyK inhibitorsCancer386
JAPTMSUSABiogenTMS-007Stroke357
CHNJiangsu HengruiUSATG TherapeuticsTG-1701Hematologic malignancies351
USAPumaCHNCANbridge NeratinibBreast cancer255
CHNJiangsu HengruiUSAArcutisSHR-0302Rh Arthritis233
KORDong-AUSANeuroBoDA-9801,
DA-9803Diabetic neuropathy Neurodegeneration180
USAKaryopharmCHNAntengene Verdinexor Selinexor, Eltanexor, KPT-9274 Viral,Cancer162
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$64,117
$1,718$74
$655$0
$1,200$0 $0
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55
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1 1 1
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4
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8
10
12
0
10000
20000
30000
40000
50000
60000
70000
Japan China India Australia Hong Kong Korea Singapore Taiwan
Num
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f dea
ls
Deal
size
USD
(mill
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Company HQTotal disclosed deal size (USD million) Number of deals
Japan-based firms had the highest deal volume and the highest total deal value
Biopharma Dealmaking 2018
APAC M&As – breakdown by HQ
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HQ Target HQ2 Buyer Key assets Indiation ($M)AUS SIRTeX CHN CHD
InvestmentsRadiation Liver cancer 1,438
KOR CJ Healthcare KOR Korea Kolmar Epokine;Leukokine
Anemia 1,200
BEL TiGenix JAP Takeda Alofisel Perianal fistula 613AUS Viralytics USA Merck & Co Cavatak;
EvatakCancer 394
JAP Takeda's stake in Guangdong Techpool
CHN Shanghai Pharm
Roan;Kail ikang;Kall ikrein
Pancreatitis;Cerebral infarction
280
AUS Elastagen IRE Allergan Recombinant human tropoelastin
Dermatologicalwounds
261
USA Universal Cells JAP Astellas Allogeneic T-cells
Immune-cancer 103
Top M&A activity for APAC-based companies focused mainly on cancer
Biopharma Dealmaking 2018
APAC M&As – top deals in Q1
Sheet1
HQTargetHQ2BuyerKey assetsIndiation($M)
AUSSIRTeXCHNCHD InvestmentsRadiation Liver cancer1,438
KORCJ HealthcareKORKorea KolmarEpokine;LeukokineAnemia1,200
BELTiGenix JAPTakeda AlofiselPerianal fistula613
AUSViralyticsUSAMerck & CoCavatak;EvatakCancer394
JAPTakeda's stake in Guangdong TechpoolCHNShanghai PharmRoan;Kailikang;KallikreinPancreatitis;Cerebral infarction280
AUSElastagenIREAllerganRecombinant human tropoelastinDermatologicalwounds261
USAUniversal CellsJAPAstellasAllogeneic T-cellsImmune-cancer103
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Licensor: Affimed
Licensee: Genentech
Focus: Cancer
Key assets: Anticancer
Stage: Discovery
Deal value: $5,05B
Licensor: Sutro
Licensee: Merck & Co
Focus: Autoimmunity/cancer
Key assets: cytokine derivatives
Stage: Discovery
Deal value: $1,66B
Licensor: Mologen
Licensee: Oncologie
Focus: Cancer
Key assets: MGN-1601
Stage: Registered
Deal value: $1,34B
Licensing activity continues to peak the multi-$B mark
Biopharma Dealmaking 2018
H2 Outlook - licenses
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Target: Ziylo
Buyer: Novo Nordisk
Focus: Diabetes
Key assets: Synthetic glucose binding molecules
Stage: Discovery
Deal value : $800M
Target: Agilis Biotherapeutics
Buyer: PTC Therapeutics
Focus: CNS diseases
Key assets: AGIL-AADC; AGIL-FA
Stage: Phase III; Discovery
Deal value : $945M
Target: Adapt Pharma
Buyer: Emergent BioSolutions
Focus: Opiate dependence
Key assets: Narcan (naloxoneformulation)
Stage: Launched
Deal value : $735M
* Only companies focusing on therapeutics were considered
M&A activity continues to peak the multi-$B mark
Biopharma Dealmaking 2018
H2 Outlook – M&As
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o “Trends in rare disease investment, research and orphan drug development”
Jamie Munro, Global Practice Leader, Portfolio & Licensing, Clarivate Analytics, moderator of
panel in the therapeutic track
BIO-Europe, Nov. 5, Copenhagen
o “Cortellis 2018 Deals & Porfolio Revew”
Laura Vitez, Senior Deals Analyst, Clarivate Analytics
Jamie Munro, Global Practice Leader, Portfolio & Licensing, Clarivate Analytics
Jan. 7, 8 and 9, 2019, San Francisco
http://discover.clarivate.com/JPMDealsReview
More dealmaking focus …Biopharma Dealmaking 2018
http://discover.clarivate.com/JPMDealsReview
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o Paul D'Souza, Pharmaceutical Analyst, Clarivate Analytics
o Elisabet Cruces, Companies & Markets Content Manager, Clarivate Analytics
o Donald Johnston, Senior Marketing Communications Director, Clarivate Analytics
Questions?
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Clarivate Analytics Life Sciences
Clarivate Analytics is the global leader in providing trusted insights and analytics to accelerate the pace of innovation.
Building on a heritage going back more than a century and a half, we have built some of the most trusted brands across the innovation lifecycle, including Web of Science, Cortellis, Derwent, Techstreet, CompuMark, andMarkMonitor.
Today, Clarivate Analytics is a new and independent company on a bold entrepreneurial mission to help our clients radically reduce the time from new ideas to life-changing innovations.
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Integrity & Drug Research AdvisorUnique provider of multifaceted drug research content
BioWorld & BioWorld MedTechDaily biopharma and medical device news services
How the Year’s Top Licensing and M&A Deals Are Changing the Industry Landscape� Expert Speakers�Dealmaking – The pulse of the industryNME approvals from licensing and M&ADealmaking by therapeutic area Ingredients for a ‘good deal’ in biopharma?International focus (Cross-border intrigue)Win-winsMore dealmaking focus …Slide Number 10Top 3 licensesTop 3 licensesTop 3 licensesTop 20 M&As in H1Top 3 M&AsTop 3 M&AsTop 3 M&AsAPAC licenses – breakdown by HQAPAC licenses – top deals in Q1APAC M&As – breakdown by HQAPAC M&As – top deals in Q1H2 Outlook - licensesH2 Outlook – M&AsMore dealmaking focus …Questions?Clarivate Analytics Life Sciences