November 09, 2010 09:08 ET

Pharma Licensing Agreements Declined by 20% in Q2 2010

ROCKVILLE, MD--(Marketwire - November 9, 2010) - has announced the addition of GlobalData's new report "Partnerships, Licensing, Investments and M&A Deals and Trends in Pharmaceuticals - Q2 2010," to their collection of Pharmaceuticals market reports. For more information, visit

Licensing agreements saw a decrease of 20% in deal value in Q2 2010 with $6.2 billion reported in Q2 2010 compared to $7.8 billion in Q1 2010. The number of deals also decline from 177 deals in Q1 2010 to 158 deals in Q2 2010. TransTech Pharma's licensing agreement with Forest Laboratories, a deal valued $1.1 billion and Ariad Pharmaceuticals' amendment of its collaboration agreement with Merck, valued at $783 million were some of the high value deals recorded in Q2 2010.

The oncology market came top in terms of receiving upfront and milestone payments with $98.2m and $797.6 million in Q2 2010. Following this was the central nervous system in second place, receiving $87.8 million in upfront and $575.9 million in milestone payments during the same period.

The majority of licensing agreements were executed for the products that are in the marketing stage in Q2 2010. Products that are in Phase III came second during the same period.

Partnerships, including joint ventures, co-marketing and co-development agreements, registered an increase with most of the pharmaceuticals and healthcare companies entering into partnerships with the aim of developing new drugs, reducing costs and focusing on increasing demand for personalized healthcare.

In total, 330 partnerships worth $4.5 billion were reported in Q2 2010 compared to 240 deals worth $2.3 billion in Q1 2010. Sanofi-Aventis' strategic alliance with Regulus Therapeutics, a deal worth $750 million and Diamyd Medical's co-development agreement with Ortho-McNeil-Janssen, a deal valued at $625 million were some of the major partnerships that contributed much to the deal value in Q2 2010.

According to Balasubramanyam Nistla, Analyst at GlobalData, "Oncology is one of the rapidly developing therapeutic segments of the pharmaceutical industry. Very high market potential exists for first-in-class drugs with novel mechanisms of action. Pharmaceutical and biotech start-ups are the breeding grounds for these kinds of drugs and therefore, the venture capitalist investments on these start-ups surged by 23% in Q2 2010."

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