Interesting if you look back on an earlier deal between Roche and Innovent from back in early June. Shows there is a lot of ' Posturing ' within this Industry which is really no surprise given everyone and their Uncle is clamoring over each other in regards to bringing to market ANYTHING which can possibly assist in the outcome of eliminating or treating COVID-19 as well as ' Cure All ' for its nemesis being various CANCERS.
What is surprising is some of the telephone book numbers being thrown at some of these deals. And even more surprising would be that PAA doesn't get some similar sort of deal as we move forward with it's lead candidates in MPL & MPLS.
Roche signs $2 billion cancer platform deal with Innovent Biologics
Jun 09, 2020
Innovent Biologics have entered a strategic research and development collaboration with Roche covering multiple cell therapies and bispecific antibodies.
According to Innovent, the collaboration will focus on the discovery, clinical development and commercialization of bispecific antibodies and multiple cell therapies and will be directed to the treatment of hematological and solid cancers.
Under the terms of the agreement, Innovent will pay upfront,development and commercial milestone payments,and royalties, to non-exclusively access certain Roche technologies that enable the discovery and development of specific 2:1 T-cell bispecific antibodies (TCB) and the universal CAR-T platform. Innovent will create, develop, manufacture, and commercialize the products.
Roche retains an option right to license each product for ex-China development and commercialization. Should Roche exercise all of its options, it will pay option exercise payments totaling $140 million plus additional development, approval, and sales milestone payments up to $1.96 billionif all products are successfully developed and commercialized. Roche will pay double-digit up to mid teen percentage royalties on each product.
What's even more interesting is when you line up some of the Industry ' Heavy Weights ' compared to what's available for shareholders here in Australia , and how many of them are well into the BILLIONS in so far as Market Capitalzations. So it's no wonder that deals can be measured into at the very least the hundreds of millions.
I put J&J at the Top to emphasis how the values compare when you obviously combine the generic consumer goods and packaging aspects to the mix - and they ( J & J ) pretty much feed off the rest of the wider Biotech Sector.
Another interesting observation is how Amgen who was spun out of Bristol- Myers when combined with Bristol's would make the No. 2 spot behind the absolute Behemoth in Roche.
Also interesting is that for those who remember - is that Mayne Nick took out our own F.H Fauldings back in 2001 for AUD $ 2.04 Billion ( 1.05 Billion USD ) ....and is now valuing the Phama side through Mayne Pharma ( below ) for only $459.4 Million USD.
There are of course so many more example of valuations and Takeover premiums paid for Australian Biotechs , however one things is MASSIVELY clear is that many of them are significantly undervalued for what they OWN , what they DO , and what their MARKET is . Hopefully COVID-19 can play a role in changing this view with the aim of significantly revaluing PAA and more generally the Australian Biotech Industry.
And it's not as if the Australian Government doesn't do it's bit in terms of collaborative funding as I heard a number recently floated that they have contributed over $300 million in various COVID funding and research alone. So somewhere' along the line you would expect to see a return or correlation to this amount reflected in those who are potentially significantly contributing, participating , and /or collaborating around this sort of Interest.
Johnson & Johnson ( NYSE ) = $389.74 Billion USD
Roche Holding AG ( SWX ) = $295.03 Billion USD
Beigene Ltd ( Nasdaq ) = $243.24 Billion USD
Pfizer Inc ( NYSE ) = $213.25 Billion USD
Novartis AG ( SWX ) = $203.00 Billion USD
Merck & Co., Inc. ( NYSE ) = $204.64 Billion USD
Abbott Laboratories( NYSE ) = $177.12 B USD
AbbVie Inc ( NYSE ) = $163.04 Billion USD
Eli Lilly And Co ( NYSE ) = $146.34 Billion USD
AstraZeneca plc ( LOD ) = $ 144. 06 Billon USD
Bristol-Myers Squibb ( Nasdaq ) = $139.88B USD
Amgen, Inc. ( Nasdaq ) = $139.49 Billion USD
CSL ( ASX ) = $91.38 Billion USD ($126.92 AUD )
Gilead Sciences,Inc. ( Nasdaq ) = $85.89 Billion USD
Regeneron Pharma Inc (Nasdaq ) = $67.71 Billion USD
Bayer AG ( ETR ) = $ 65.03 Billion USD
Moderna Inc ( Nasdaq ) = $28.00 Billion USD
Sun Pharmaceutical ( NSE ) = $17.03Billion USD
Novavax, Inc. ( Nasdaq ) = $10.64 Billion USD
Innovent Biologics Inc = $8.74 Billion USD
Zai Lab Ltd ( Nasdaq ) = $5.95 Billion USD
Shanghai Henlius Biotech Inc = $4.19 Billion USD
GlaxoSmithKline ( NSE ) = $ 3.24 Billion USD
Inovio Pharmaceuticals Inc = $3.0 Billion USD
Alphamab Oncology = $1.937 Billion USD
CStone Pharmaceuticals = $1. 53 Billion USD
Mayne Pharma ( ASX ) = $459.40 USD ( $638.0 AUD )
And then there is PharmAust :- 
PharmAust (ASX ) = $46.58M USD ( $64.70M AUD )
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