Pharmaceutical Strategic Alliances: Maximizing returns from collaborative development and commercialization

Table of Contents
Executive Summary 10
Introducing strategic alliances 10
Co-commercialization alliances 11
Co-development alliances 12
Multi-product and technology platform alliances 13
Joint ventures 14
Collaborative best practices 15

Chapter 1 Introducing pharmaceutical alliances 18
Summary 18
Introduction 19
Report outline 20

Chapter 2 Co-commercialization alliances 22
Summary 22
Introduction 23
Lipitor (atorvastatin) – Warner Lambert and Pfizer 23
Background 23
The deal 24
Partnering 25
The results 26
Key learnings 27
Prandin (repaglinide) – Novo Nordisk and Schering-Plough 28
Background 28
The deal 29
Partnering 30
The results 30
Key learnings 32
Levitra (vardenafil) – Bayer, GlaxoSmithKline and Schering-Plough 33
Background 33
The deal 33
Partnering 34
The results 34
Key learnings 36
Velcade (bortezomib) - Millennium and Ortho Biotech 36
Background 36
The deal 37
Partnering 39
The results 41
Key learnings 42

Chapter 3 Co-development alliances 46
Summary 46
Introduction 47
Campath (alemtuzumab) – LeukoSite, Ilex Oncology and Schering AG 47
Background 47
The deal 48
Partnering 49
The results 49
Key learnings 51
Tarceva (erlotinib) – OSI and Genentech 51
Background 51
The deal 52
Partnering 54
The results 55
Key learnings 57
Erbitux (cetuximab) – ImClone and BMS 58
Background 58
The deal 59
Partnering 61
The results 62
Key learnings 64
Byetta (exenatide) – Amylin and Eli Lilly 65
Background 65
The deal 66
Partnering 67
The results 68
Key learnings 70

Chapter 4 Multi-product and technology platform alliances 72
Summary 72
Introduction 73
Genentech and Roche 73
Background 73
The deal 74
Partnering 76
The results 77
Key learnings 78
Millennium and Bayer 79
Background 79
The deal 79
Partnering 81
The results 82
Key learnings 83
Vertex and Novartis 84
Background 84
The deal 84
Partnering 86
The results 87
Key learnings 88

Chapter 5 Joint ventures 92
Summary 92
Introduction 93
TAP Pharmaceuticals 93
Business model 93
Partnering 93
The results 94
Key learnings 95
Novogyne 96
Business model 96
Partnering 97
The results 97
Key learnings 98
Lilly ICOS 99
Business model 99
Partnering 100
The results 100
Key learnings 102

Chapter 6 Collaborative best practices 104
Summary 104
Introduction 105
Deal-making 105
Alliance management 106
Chapter 7 Appendix 110
Index 110

List of Figures
Figure 2.1: Lipitor (atorvastatin) global sales, 1997-2005 27
Figure 2.2: Prandin/NovoNorm (repaglinide) global sales, 1998-2005 31
Figure 2.3: Levitra (vardenafil) global sales, 2002-2005 35
Figure 2.4: Velcade (bortezomib) deal terms 38
Figure 2.5: Velcade (bortezomib) global sales, 2003-2005 42
Figure 3.6: Campath (alemtuzumab) global sales, 2002-2005 50
Figure 3.7: Tarceva (erlotinib) deal terms 53
Figure 3.8: Tarceva (erlotinib) global sales, 2004-2005 56
Figure 3.9: Erbitux (cetuximab) deal terms 60
Figure 3.10: Erbitux (cetuximab) global sales, 2004-2005 63
Figure 3.11: Byetta (exenatide) deal terms 67
Figure 3.12: Byetta (exenatide) global sales, Q2 2005 – Q2 2006 69
Figure 4.13: Genentech/Roche alliance revenues, 2005 77
Figure 4.14: Millennium/Bayer deal terms 80
Figure 4.15: Vertex/Novartis deal terms 85
Figure 5.16: TAP sales and joint venture income, 1998-2005 95
Figure 5.17: Novogyne sales and net income, 1999-2005 98
Figure 5.18: Cialis (tadalafil) sales, 2002-2005 101

List of Tables
Table 5.1: TAP results timeline, 1977-2005 94