was successfully added to your cart.

All Posts By

MSC Nordics

Anaplastic thyroid cancer – the rare disease with little hope (but major potential)

By | What's the deal | No Comments

January marks the Thyroid Awareness Month, a period of year dedicated to raising awareness about the surprisingly many problems related to the thyroid – a gland located in your neck. Recognizing this little-known rare disease, we took a look at the deadliest problem of them all: anaplastic thyroid cancer.

Thyroid cancer is a cancerous tumor on the thyroid gland and while the condition still is relatively rare, we found that the incidence rate is almost tripling with every decade. The vast majority of these tumors are curable but between 2-3% of all thyroid cancer tumors are refractory to standard treatments. These highly aggressive and often deadly tumors are known as undifferentiated, or anaplastic thyroid cancer (ATC).1,2

An introduction to ATC

The cause of ATC is still unknown although the disease sometimes arises where other, less mortal, forms of thyroid cancers are present. In only 10% of all cases, ATC presents with the tumor confined to the thyroid.4 But most commonly, it is presented with distant metastasis, mainly in and around the patient’s lungs. This is the main reason of the high mortality rate. After diagnosis, the median survival time is six months, with 1 in 5 patients still alive after one year.1,5 This high mortality rate, close to a 100%, combined with a sudden onset and rapid progression, classifies ATC as one of the deadliest and most aggressive human cancers.3,4 To make matters worse, effective treatment strategies for ATC are still lacking.

As ATC is a rare disease, several interesting opportunities lies ahead for a drug developer.

After diagnosis

The current first-line treatment for ATC is surgery in combination with radiation therapy. But because ATC often present as inoperable, a combination of targeted chemotherapies is often the best viable treatment prescribed. The best outcome, i.e. the longest median survival, is achieved when surgery, radiation and chemotherapies are combined. One small case study (here) was even able to show that one patient was disease free 43-months after being treated with this regimen. Today, there is only one approved disease-specific treatment on the market and one disease-specific drug candidate in development.2 Thus, while there are treatment options available for ATC patients, none provides an ideal outcome.6

Alternative regulatory pathways provide opportunities for drug developers

For drug developers, there are several interesting opportunities in this rare disease space. First of all, as ATC is such an unusual but deadly disease with few treatment options, a novel therapy has the potential to obtain an orphan drug designation, which can provide numerous monetary and fast-track development benefits for the drug developer. This, as well as additional regulatory incentives such as U.S. FDA’s priority review and breakthrough therapy designation have previously been granted drug candidates for ATC treatments, why these regulatory incentive programs constitute promising tracks for drug developers.

Another approach was used by OxiGene (now Mateon Therapeutics) and Danish Azanta that in 2011 partnered to bring OxiGene’s ACT drug Zybrestat to the market through the regulatory pathway of compassionate use. This approach meant that patients with few, or no, other treatment options could get access to the drug while it was undergoing the Phase III trial, i.e. before achieving  marketing approval. Unfortunately, however, the development of the drug was stalled and the agreement ended in 2014, leaving room for other drug developers seeking to try their therapies in this rare disease field.

A surprising market forecast

At first glance, ATC may not be an attractive opportunity for drug developers due to its combination of low prevalence and the need for multidisciplinary therapy treatment. However, thanks to alternative regulatory pathways such as the opportunity to obtain advantages through initiatives such as orphan drug designation or compassionate use, the field is becoming more attractive for drug developers to through their efforts into. According to Orpha.net database, the market value is expected to increase with a steady growth rate in the upcoming years.

References

1. American Thyroid Cancer Association (2018). Thyroid Cancer. Falls Church: American Thyroid Cancer Association. Available at: https://www.thyroid.org/anaplastic-thyroid-cancer/ (Accessed: 2 January 2019). 2. Saini, S., Tulla, K., Maker, A. V., Burman, K. D. & Prabhakar B. S. (2018). Therapeutic advances in anaplastic thyroid cancer: a current perspective. Molecular Cancer, 17(154). doi.org/10.1186/s12943-018-0903-0. 3. Tavarelli, M., Malandrino, P., Vigneri, P., Richiusa, P., Maniglia, A., Violi, M. A., Sapuppo, G., Vella, V., Dardanoni, G., Vigneri, R. & Pellegriti, G. (2017). Anaplastic Thyroid Cancer in Sicily: The Role of Envrionmental Characteristics. Frontiers in Endocrinology, 8(277), doi.org/10.3389/fendo.2017.00277. 4. Ranganath, R., Shah, M. A. & Shah, A. R. (2015). Anaplastic Thyroid Cancer, Current Opinion in Endocornial Diabets Obes., 22(5), pp.387-391. doi: 10.1097/MED.0000000000000189. 5. Eckhardt. S., Hoffman S., Damankis. A.I., Di Fazio, P., Pfestroff A., Luster M., Wunderlich A. & Bartsch D.K. (2016). Individualized multimodal treatment strategy for anaplastic thyroid carcinoma – Case report of long-term remission and review of literature. International Journal of Surgery Case Reports. Pp. 174-178. 6. Analysis by MSC based on data in Medtrack, Informa. (Accessed:2018-12-20).

Largest biotech and pharma deals – 2018 recap & 2019 outlook

By | Business Development, Valuation, What's the deal | No Comments

The year 2019 started out strong with the announcement of Bristol Myers Squibb acquisition of Celgene for about $74 billion. In size, this deal undoubtedly trumps the deals struck in 2018 but, importantly, signals that oncology deals are still among the highest valued deals in the biotech and pharma industry. However, before delving further into the possible deal trends that could be expected in 2019, let us look back and honor some of the major acquisition and partnership deals that companies landed in 2018.

Among the biggest acquisition deals that were identified in 2018 (see Table 1), Takeda’s acquisition of Shire had the highest deal value and represents one of the largest overseas acquisition deals in Japanese history. This massive deal of $56 billion for a large asset portfolio, including rare disease therapeutics, indicates that the undersaturated rare disease therapeutics market is of high value due to regulatory incentives and high drug prices. Supporting this conclusion is the huge acquisition deal of $11.6 billion where Sanofi acquired Bioverativ to expand its portfolio of rare blood disorders. Apart from therapeutics, other high valued acquisition deals during the year involved consumer healthcare products, cell and/or gene therapies and assets in oncology.

 

In terms of partnership deals, the total value of the largest deals identified were in the billion range (see Table 2), where a strategic global collaboration deal between Eisai and MSD for marketed oncology product, Lenvima, yielded a potential total deal value of $5.76 billion, with a hefty upfront payment of $300 million. This was, however, not the deal with the highest upfront payment, as this title was snatched by Nektar Therapeutics. In February 2018, the company landed a partnership deal with Bristol Myers Squibb for an upfront payment of $1.85 billion for NKTR-214, a phase 3 CD122-biased agonist. The runner up for largest upfront payment was Swedish Orphan Biovitrum AB (SOBI), that acquired the U.S. rights to Synagis for an upfront payment of $1.5 billion from AstraZeneca. Other high valued partnership deals involved RNA interference therapeutics, cell and/or gene therapies and candidates/targets developed in oncology, neurodegenerative diseases, cardiovascular and metabolic diseases.

In 2019, an increase in high value deals and a huge spotlight on the growing Chinese market is not that farfetched.

At this point it is mere speculation, but there are certainly signals indicating upcoming high deal activity within biotech and pharma during 2019. Triggers in favor include the promise that U.S. President Trump’s tax reform will allow many bigger U.S. headquartered pharma companies to free up cash and spend it on deal-making, the completion of major announced deals and other driving factors that push companies to replenish their pipeline and fence off competition. Looking further afar, China is likely to become a key player within the pharma industry during 2019 with its reformed priority review and approval process allowing domestic drug developers to compete with well-established multination counterparts, says data and analytics company GlobalData.

Focusing only within  therapeutics, five areas stand out as particularly active in deal making; oncology, rare diseases, neurology/neurodegenerative, metabolic and cardiovascular diseases. Looking back at the trends of 2018 and previous years, we could in 2019 expect to see more deals in the rare disease space as there has been a steady increase in approvals of therapeutics in this area.

Oncology looks to be an continuous hot field where a high number of oncology deals could turn into reality since a lot of companies are still looking for the next oncology blockbuster or assets that could complement, or be combined with, their star oncology assets. Based on the recent approvals of CAR-T therapies, we could expect to see an increase of deals in cell and/or gene therapies oncology as well. This is also true for other therapeutic areas, especially those concerning rare genetic diseases or regenerative medicine.

A final area that should not be underestimated is autoimmune and inflammatory diseases. Following the arrival of next generation therapies and patent expiration of major products, it is certainly expected that deals in this space could increase in the prominent future.

Table 1. Top 10 M&A deals in 2018 in pharma and biotech

Acquired

(Acquirer)

Deal value Assets involved Date (Announced or completed)
Shire

(Takeda)

$56* billion Includes a portfolio of assets developed for rare disease Dec 5, 2018
Novartis Consumer Healthcare (GSK) $13 billion Consumer healthcare products including Sensodyne, Panadol, Voltaren and Nicotinell Mar 27, 2018
Bioverativ (Sanofi) $11.6 billion Assets in rare blood disorders including Eloctate and Alprolix Jan 22, 2018
Juno Therapeutics (Celgene Corp) $9 billion CAR-T and TRC therapies Jan 22, 2018
AveXis (Novartis) $8.7 billion Gene therapy platform and AVXS-101 in Spinal Muscular Atrophy Apr 9, 2018
Tesaro (GlaxoSmith Kline) $5.1 billion Includes major marketed products such as Zejula (niraparib), an oral poly ADP ribose polymerase (PARP) inhibitor currently approved for use in ovarian cancer Dec 3, 2018
Ablynx (Sanofi) $4.47 billion Nanobody technology and assets Jan 29, 2018
BTG (Boston Scientific) $4.2 billion Products in minimally-invasive procedures targeting cancer and vascular diseases and acute care pharmaceuticals. Nov 20, 2018
Merck (P&G) $3.9 billion Consumer Health Business of Merck (including brands such as Vicks, Metamucil, Pepto-Bismol, Crest and Oral-B) Apr 19, 2018

Table 2. Top 10 partnership deals 2018 in pharma and biotech

Licensee

(Licensor)

Deal value (deal breakdown) Asset of interest; latest development stage at deal signing; indication  Date
Eisai and MSD $5.76 billion ($300 million upfront, $650 million for option rights, $450 million in reimbursement in R&D, $385 million in clinical and regulatory milestones, and $ 3.97 billion in milestone payments) LENVIMA® (lenvatinib mesylate); marketed for thyroid cancer; phase 3 in renal cell carcinoma (RCC) Mar 7, 2018
Affimed and Genentech $5 billion ($96 million upfront and $5 billion in milestone payments and royalties on sale) NK cell engager-based immunotherapeutics to treat multiple cancer targets; research and discovery Aug 27, 2018
Dicerna Pharmaceuticals and Eli Lilly $3.7 billion ($100 million upfront, $100 million in equity stake, $350 million milestone payment for each developed drug) and mid-single to low-double digit royalties. RNA interference (gene silencing) technology; more than 10 experimental drugs to treat pain, neuro-degenerative diseases and cardio-metabolic disorders; research and discovery Oct 29, 2018
Arrowhead (Janssen) $3.7 billion ($175 million upfront, $75 million in equity stake, $1.6 billion in milestone for the HBV license and   $1.9 billion in option and milestone payments for 3 additional targets. ARO-HBV program; AROHBV1001, phase 1/2; and 3 additional RNA interferences therapeutics against new targets, preclinical, Chronic hepatitis B virus infection Oct 4, 2018
Nektar Therapeutics (Bristol Myers Squibb) $3.6 billion ($1.85 billion upfront and $1.78 billion in milestones) NKTR-214 (CD122-biased agonist), phase 3, several cancer indications Feb 14, 2018
Sangamo Therapeutics and (Kite, a Gilead Sciences Company) $3 billion ($150 million upfront and up to $3.01 billion in milestone payments) Zinc finger nuclease (ZFN) technology platform for the development of next-gen ex vivo cell therapies; research and discovery; oncology Feb 22, 2018
Immatics Biotechnologies GmbH and Genmab $2.8 billion ($54 million upfront and up to $550 million in milestone payments per candidate) Immatics’ XPRESIDENT®targets and T-cell receptor (TCR) capabilities; 3 targets and option to license 2 additional targets; research and discovery phase multiple cancer immunotherapies Jul 12, 2018
AstraZeneca and SOBI $2.3 billion ($1.5 billion upfront, $815 million in milestone payments)

 

U.S. rights to Synagis  (palivizumasb); marketed; prevention of serious lower respiratory tract infection (LRTI) caused by respiratory syncytial virus (RSV) Nov 13, 2018
Prothena and Celgene $2.2 billion ($100 million upfront, $50 million in equity investment and $2.1 billion in milestone and option payments) and royalties on net sales 3 proteins implicated in the pathogenesis of several neurodegenerative diseases, including tau, TDP-43 and an undisclosed target; research and discovery; Alzheimer’s disease, progressive supra nuclear palsy, frontotemporal dementia and ALS Mar 20, 2018
Wave Life Science and Takeda $2.2 billion ($110 million upfront, $60 million in purchase of shares, $60

million to fund research and $2 billion in milestone payments if 6 early development programs advance)

Several programs in neurological disorders (oligonucleotides): WVE-120101 and WVE-120102, phase 1b/2a;

Huntington’s disease and 4 preclinical within CNS; WVE-3972-01, ALS and FTD, research and preclinical; program targeting the ATXN3 gene for the treatment of SCA3, research and discovery

Feb 20, 2018