3 Partnerships Pushing The Pharmaceutical Sector Forward
Owing to constant change in the way drugs are being made, it's almost impossible for the pharmaceutical sector to do without partnerships.
Simply put, collaborations bring about federation of ideas. This federation of ideas increases the possibility that cures to deadly diseases will be found, compared to when companies are working in isolation.
The financial disadvantage of not finding the right partnership would be huge going into the future. Some partnerships are particularly positive for the pharmaceutical sector. Here are three partnerships pushing the pharmaceutical sector froward.
AbbVie Inc (NYSE: ABBV) And Infinity Pharmaceuticals Inc. (NASDAQ: INFI)
AbbVie and Infinity Pharmaceuticals announced earlier this month that they have entered into a global partnership to develop and commercialize Infinity’s duvelisib, an oral inhibitor of phosphoinositide-3-kinase (PI3K)-delta and PI3K-gamma, targeted toward treating cancer patients.
Related Link: 5 Companies Developing New Cancer Drugs
The terms of the agreement have it that AbbVie will provide Infinity with an upfront payment of $275 million and additional payments that could be up to $530 million, provided certain milestones are achieved.
This partnership highlights how the lack of sufficient funds to small companies for the development of highly useful drugs is becoming a thing of the past. The pharmaceutical sector is gradually leaving the league of sectors where capital locks the door of opportunity against new entrants.
This is important for the sector and the world at large, as smaller companies seem to have effective research and development departments in place these days. Therefore, great ideas won’t have to be buried for lack of funds.
Clevexel Pharma And Guilin Pharmaceutical
Clevexel Pharma also announced earlier this month that it is collaborating with Guilin Pharmaceutical, a Chinese company, to hasten the development of anti-malarial products.
Guilin Pharmaceutical is the first Chinese pharmaceutical company to be approved by the World Health Organization. It is also the largest artemisinin-based anti-malarial drug producer in China. Its products lead the way in Chinese and African markets, regions that are most prone to malaria.
Clevexel, on the other hand, is known for innovative formulation development, development process optimization and industrial transfer. The product of this partnership is most likely going to be a more efficient development of anti-malarial products.
This moves the pharma sector forward as it adds to the effort to combat malaria, which puts about half of the world population at risk. This partnership comes after GlaxoSmithKline (NYSE: GSK) submitted application for regulatory approval for the first-ever malaria vaccine.
Pappas & Associates And The Chiesi Group
Pappas & Associates also entered into partnership with The Chiesi Group, an Italian pharmaceutical company, to manage Chiesi’s new corporate fund. The fund, Chiesi Ventures, will target early-stage rare and orphan disease investments in the United States and Europe.
Pappas & Associates brings something unique to the sector. The company has a good record of accomplishment with its rare and orphan disease investments.
The company sold Lumena Pharmaceuticals, which it started from scratch, for $260 million earlier this year. Ultragenyx Pharmaceutical Inc (NASDAQ: RARE), also one of Pappas’ portfolio companies, raised about $126 million during its January IPO.
With this impressive track record, there is a confidence that Pappas will manage the fund effectively. This sort of management should only help the sector, which typically consumes huge cash in developing drugs.
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