molecular partners

Recently announced deal between Roche and Molecular Partners provides a dipstick into the valuation of drug conjugates. The Roche deal includes a starting payment of $60 million for a delivery vehicle for cancer drugs. Also included is research funding to support the partnership and potentially more than a billion dollars in milestone payments as well as tiered royalties on any successes.

The type of delivery vehicle is not specified in the FierceBiotech article but it may be extracellular and not intracellular like the Phylogica-Janssen collaboration.

Molecular Partners is a private company backed by corporate investors including Johnson and Johnson Development Corporation. JJDC has stringent selection criteria which must be supported by validated data and research.

I was reflecting upon a note within the Director's Report contained within the Annual Report for Phylogica;

"the Company expects to be able to fund its continuing operations by a combination of increased revenue, a corporate transaction, equity raising or expenditure reduction as required."

Its the reference to corporate transaction that caught my eye. What kind of corporate transaction? Could it be a cornerstone investment by a pharmaceutical venture company which has been waiting upon validated data to support the case for investment? February 2014 is the month to watch.