Recap of Large Pharma Partnerships in 2023

Facing a landscape where many blockbuster drugs are nearing or have reached the end of their exclusivity, large biopharma leaders are increasingly turning to collaborations to refill their pipelines with promising therapeutics. This article delves into the key trends, strategic shifts, and implications of these partnerships.

Overview of Partnerships

The table below lists all publicly announced licensing and collaboration agreements struck by 10 of the largest biopharma companies in 2023. Notably, oncology and immunology dominated the partnerships, accounting for almost a third of the total. This was followed by infectious disease, CNS, and cardiometabolic areas. Sanofi and BMS led the way with 9 partnerships each, while Novartis and Pfizer were less active, with 4 and 3 deals respectively.

Largest Deal of the Year

A standout transaction was Merck's $5.5 billion deal with Daiichi Sankyo in October, the largest of the year. This partnership, with a potential lifetime value of $22 billion, underscores the booming activity in the antibody-drug conjugate space. Merck in particular has reason to be active, given that its world-beating blockbuster Keytruda is nearing a loss of exclusivity later this decade beginning with key patent expires in 2028.

Strategic Shifts in R&D Focus

These partnerships signify a growing emphasis on precision medicine and personalized therapies, aligning with the industry's broader transition. Pharmaceutical companies are increasingly leveraging advanced technologies like artificial intelligence and machine learning for drug discovery and development, seeking to bring more targeted and effective treatments to market faster and improve what has long been concerningly low R&D productivity levels across the sector.

Impact of Global Health Challenges

The influence of global health challenges, such as the COVID-19 pandemic and the rising concern over antibiotic resistance and infectious disease, is evident in the nature of these collaborations. Several partnerships focus on developing vaccines and treatments for emerging infectious diseases, while others aim to tackle longstanding health issues like cancer and heart disease through innovative approaches.

The Role of Regulatory Changes

Regulatory changes have also played a critical role in shaping these partnerships, with the first approval of a gene editing therapy in US history occurring in 2023.

Future Outlook

Looking forward, the trend of partnerships in the pharmaceutical industry is poised to accelerate. The blend of technological advancements, regulatory shifts, and the ongoing need to refill pipelines facing LOEs from key products will continue to drive these collaborations.