In biotech, the right partnering deal can make a company, bringing in cash, expert help and a major league endorsement for the science involved. If deals go bad, as they often do, the subsequent turmoil can break a company.
Anyone with any doubts about the stakes involved should take a close look at the top partnering deals that went bad in 2011. A number of the companies that had to watch their pharma mates walk away from the development marriage have openly struggled to survive the fallout. At least one won't survive the breakup, and more could follow.
This year's list, which we asked Deloitte Recap to crunch for us, includes a number of top deals from '07 and '08. So it's no wonder that some high profile partnerships went astray in the meantime. As Big Pharma retools its pipeline, shifts disease focuses and starts to demand a better return on the billions invested in drug development, it's not surprising to see more licensing deals breaking up under the pressure.
See the top 10 deal terminations of 2011 >>