This survey, JP Morgan's 2023 Annual Biopharma Licensing and...

This survey, JP Morgan's 2023 Annual Biopharma Licensing and Venture Report¹, I think, really supports the mindshift from a single buyout transaction (M&A) to multiple Lincensing deals for Race's future.

I am really starting to believe that Race and SHs can have both, upfront payments and royalties through Licensing deals and Race owns bisantrene for a long time, 20 years plus to enjoy the royalties. I am not suggesting nor do I want Race to be another CSL or BP where we manufacture and distribute bisantrene globally because when Licensing out bisantrene, we can still own its IPs, enjoy the upfront payments and royalties over 20 years plus and see the millions of cancer sufferers benefit from bisantrene through the manufacturing and distribution by big Licensees (BPs). Dr. T and all current SHs can still retire in 2-3 years time.

Even the title of the report is about Licensing, not M&A, because the number of Licensing deals dwarf M&A (about 4 times), but Licensing deals also include R&D collaborations, which often lead to further transactions, always easier to do business with the devil you know. The whole report is fantastic but some really excellent points for me. And please do not forget JP Morgan's Health Conference is where all the deals are done.

Whilst the number of Licensing deals are down but the value of the licensing deals are up and still dwarf M&A:

- BPs are forking out larger upfront payments for biotechs/out-licensors (Race) with early safety/efficacy data in hand, particularly in P2 but "Phase 1 biotechs also enjoyed a hefty 42% increase in upfront payments year over year.".

- In 2023, whilst early-stage still dominate in-licensing but BPs are shifting to later-stage in-licensing to mitigate risks. There were 15 Phase 1 deals signed in 2023, which almost doubled compared to 2022.

- Oncology & biologics (eg. RNA) still consistently rank the highest deals done by BPs, in 2023, USD86.1B were announced for cancer programme.

(1) https://www.jpmorgan.com/content/dam/jpmorgan/documents/cb/insights/outlook/jpmorgan-dec-2023-biopharma-licensing-and-venture-report.pdf