Genentech bets on small molecules as biogeneric competition looms
28/06/2007 - Genentech has in-licensed two early-stage cancer small molecules developed by Abbott as biogeneric competition is poised to kick off.
Genentech seems to be diversifying its pipeline beyond biologics just at a time where pricing pressure increases and the US government is deciding on clearing a path for the entry of generic versions of biologic drugs on the market.
The biotech giant will work together with Abbott on all aspects of further development and commercialisation of the two drugs, while Abbott will keep their marketing rights outside the US.
Financial terms of the collaboration were not disclosed although some analysts have already estimated the deal as modest.
Genentech said the compounds - ABT-263 and ABT-869 - are targeted therapies that represent promising, unique scientific approaches to treating cancer.
ABT-263, a Bcl-2 family protein antagonist, restores apoptosis - a natural process by which damaged or unwanted cells die and are cleared from the body - in a variety of cancer cells, while ABT-869, a VEGFR-based multi-targeted kinase inhibitor, suppresses tumour growth by preventing the growth of new blood vessels that supply the tumour with oxygen.
Another interesting side of the deal is its early-stage nature - both drugs are in Phase I - which reflects a trend that has been budding over the past year in the biotech industry. After years of biopharma companies showing interest only for late-stage products, it seems that they are shifting their focus to early-stage deals.
According to an Ernst & Young biotech report published recently, this was to some extent because several years of late-stage deal making have left relatively few attractive products in the advanced pipeline that have not already been partnered.
"The trend also reflects that big pharma and big biotechs are eager to energise their pipelines," said the report.
Genentech, the second largest biotech firm in the world with $9.3bn (6.9bn) in sales last year, could have found the right recipe to boost even more its cancer portfolio.
"We believe that these molecules are strong complements to our existing anti- angiogenesis and apoptosis research and development programmes and have the potential to broaden our pipeline with important, innovative compounds," said Hal Barron, senior vice president of Development and chief medical officer for Genentech.
The company who normally specialises in biologics has nevertheless managed to create success with another anti-cancer small molecule: Tarceva (erlotinib hydrochloride).
The biotech firm in-licensed the drug from OSI Pharmaceuticals and brought the drug to the market in 2005.
But Genentech is not the only biotech giant who has been dipping its toe in the small molecule water. Another example of big biotech playing in the big pharma arena is Amgen who recently acquired two small molecule developers in the same week - Alantos for $300m and Ilypsa for $420m.
Meanwhile, the US government is in the process of put in place an approval pathway for generic versions of biologic drugs - a step already taken in Europe where two "biosimilars" are currently marketed.
http://www.biopharma-reporter.com/news/ng.asp?n=77776-genentech-abbott-cancer-biologics
HMMM SOUNDS FAMILIAR
WONDER IF THESE ARE THE MOLECULES OSI RETURNED TO US AND WE HAVE NOW STRUCK A DEAL WITH GENETECH