MoFo BioMeter - Vol. 3, Issue 3, August 2014 - Q2 Biometer Shows Strong Value In Drug Discovery Platforms


The average BioMeter value in the second quarter of 2014 jumped significantly to $143.4 million, an increase from the $15.9 million value in the first quarter. This included two blockbuster deals, the $1 billion up front paid by Merck to Bayer for rights to the family of soluble guanylate cyclase modulators, including the approved pulmonary arterial hypertension drug, Adempas, and the $710 million up-front payment from Celgene to Nogra for the Phase 2 Crohn’s disease drug GED-0301. Without these two transactions, the BioMeter value in the second quarter would have still been a healthy $41.7 million.

While the Bayer/Merck and Celgene/Nogra transactions are headline-worthy, the real story for the quarter was a continued strong increase in BioMeter value for pre-clinical discovery platforms. We have commented before that the BioMeter value for pre-clinical and discovery stage transactions has remained stable throughout our analysis. This quarter continued the increase we observed last quarter to an average BioMeter value of $33.4 million across five transactions, led by the $80 million paid up front by Pfizer for the rights to the chimeric antigen receptor t-cell immunotherapy platform from Cellectis (the $80 million excludes an additional equity investment from Pfizer), and the $50 million paid up front by Bristol-Myers Squibb for the rights to CytomX’s Probody therapeutics against four oncology targets. As large pharma are decreasing their own R&D spending, they are investing heavily in promising new areas to provide long-term pipeline replenishment. This bodes well for the continued funding of novel therapeutics approaches.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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