Multiple Pharma Giants Announce Billion-Dollar R&D Collaborations This Week

　　【Pharmaceutical Network Industry Dynamics】Innovative drugs are the main solutions for various major diseases. In recent years, against the backdrop of the continuous expansion of the pharmaceutical market and the sustained growth in treatment demand, pharmaceutical companies have been increasing their investments in innovation. It is reported that at the start of the new year, many pharmaceutical enterprises have already invested heavily in active collaborations for new drug development.
 

On January 24, 2024, biotechnology company Unnatural Products announced a collaboration with Merck worth approximately $220 million. The partnership will leverage UNP's expertise in artificial intelligence and chemistry to design and develop macrocyclic candidate drugs targeting oncology treatment. UNP’s platform will address the complexities of drug chemistry within the macrocycle space through a combination of parallel experimentation and machine learning. Under the terms of the agreement, UNP will receive an undisclosed upfront payment and is eligible to receive up to approximately $220 million in milestone payments related to the development and commercialization of candidate products.
 

Macrocyclic drugs have a long history, with immunosuppressant cyclosporine and antibiotic erythromycin being examples of such drugs. Compared to traditional linear peptide therapies, macrocyclic peptides can cover more surface area, potentially disrupting protein-protein interactions. Reportedly, Merck's investigational therapy MK-0616 is a macrocyclic peptide that binds to PCSK9, currently under examination in phase 3 trials for its effect on lowering low-density lipoprotein cholesterol.
 

On January 23, Novo Nordisk entered into a collaboration and license agreement with EraCal Therapeutics to develop and commercialize novel oral small molecules targeting appetite and weight control mechanisms developed by EraCal, further solidifying its leading position in the blockbuster market. Under the agreement, Novo Nordisk will obtain exclusive rights to develop and commercialize the project, while EraCal is eligible to receive up to 235 million euros in upfront payments, development and commercial milestones, as well as royalties following product sales.
 

It is reported that this small-molecule drug was discovered by EraCal Therapeutics through a zebrafish-based phenotypic screening platform. It can target an innovative mechanism controlling appetite and body weight to treat obesity. Currently, Novo Nordisk has not disclosed specific details about the project.
 

However, it is important to note that new drug development has always been associated with high risks. In recent years, the termination of new drug collaborations has been frequent. For instance, on October 21, 2023, Kelun-Biotech received an official written notice from Merck stating its decision to terminate the exclusive license granted by Kelun-Biotech for the development, manufacturing, and commercialization of a preclinical ADC asset; it also decided not to exercise the exclusive option granted by Kelun-Biotech to obtain an exclusive license for another preclinical ADC asset. In the same month, I-Mab announced that it had received a notification from AbbVie stating its decision to fully terminate the cooperation agreement on the CD47 monoclonal antibody investigational drug lemzoparlimab and other products... Therefore, analysts believe that for local pharmaceutical companies in China, it is necessary to further enhance the quality and innovation of their R&D projects in order to have greater risk resistance in future new drug development collaborations.
 

Disclaimer: In no event shall the information or opinions expressed in this article constitute investment advice to any person.