Raising the BD bar
Why partnering for new modalities is all about proof of mechanism
Innovator biotechs say that the business development bar has been raised for companies developing new modalities, with potential partners seeking proof of mechanism on top of proof of efficacy.
A host of products based on new modalities is likely to come to market in the next few years, with at least 40 in Phase III testing or registrational studies (see “A Pathway to BioPharma 3.0”).
Most biotechs continue to seek larger biopharma partners to take on late-stage development or commercialization, but history has shown that the big players are slow to bring new technologies in-house and skittish about committing to deals.
Even modalities such as siRNA and antisense took time to gain the attraction of partners; Alnylam Pharmaceuticals Inc. told BioCentury last year that readouts of on-target effects in early stage trials was key to getting partner buy-in (see “Amplifying Oligos”).
While partners considering small molecule programs tend to be satisfied with a competitive efficacy profile, their lack of expertise around new technologies means they are taking their time and soliciting mechanistic data before spending the money to in-license or acquire new