Business Medical Dialogues
    • facebook
    • twitter
    Login Register
    • facebook
    • twitter
    Login Register
    • Medical Dialogues
    • Speciality Dialogues
    • Education Dialogues
    • Medical Jobs
    • Medical Matrimony
    • MD Brand Connect
    Business Medical Dialogues
    • News
        • Financial Results
        • Hospitals & Diagnostics
        • IT / Health Venture
        • Implants / Devices
        • Insurance
        • Key Movement
        • Pharmaceuticals
        • Policy
        • Technology
        • pharma-news
    • blog
    LoginRegister
    Business Medical Dialogues
    LoginRegister
    • Home
    • News
      • Financial Results
      • Hospitals & Diagnostics
      • IT / Health Venture
      • Implants / Devices
      • Insurance
      • Key Movement
      • Pharmaceuticals
      • Policy
      • Technology
      • pharma-news
    • blog
    • Home
    • Latest News
    • Pfizer Spins Out...

    Pfizer Spins Out Biotech Firm With 103 Million dollar In Funding

    Written by Ruby Khatun Khatun Published On 2017-10-02T10:29:53+05:30  |  Updated On 2 Oct 2017 10:29 AM IST
    Pfizer Spins Out Biotech Firm With 103 Million dollar In Funding

    In keeping with a trend of smaller firms raising buckets of cash using Big Pharma's cast-off drugs, Pfizer Inc. is adapting the strategy for itself by spinning off four pipeline drugs into a new company called SpringWorks Therapeutics.


    It's a non-traditional move, but it's a smart one.


    Pfizer has spent $24 billion over the past three years on R&D, more than all but two other pharma firms. If you include the cost of drug-focused acquisitions over that time period, Pfizer has spent an industry-leading $43 billion. The company has more new drugs in development than any U.S.-based pharma firm, according to Bloomberg Intelligence.


    Large Gauge Pipeline


    Pfizer has a whole lot of R&D projects to balance at the same time But that spending hasn't always been productive. A BI analysis of large-pharma R&D returns found that Pfizer's spending has been the least productive in the sector, if you account for the cost of M&A. That suggests Pfizer has more room and incentive than most to prune back and refocus its research efforts.


    On top of that, the market appears to be especially receptive to companies focused on pharma projects that have been shelved or sold off by other firms. Roivant Sciences Ltd. is an umbrella company that has used this strategy to successfully IPO brain-disease-focused Axovant Sciences Ltd. and women's-health-focused Myovant Sciences Ltd., and others have followed in its footsteps.


    Investors seem willing to gamble on these efforts, even when they're somewhat shaky. With four medicines, some of which are ready to enter late-stage trials in potentially lucrative rare-disease markets, SpringWorks looks like a solid bet to capitalize on this trend.


    The value of these drugs was essentially zilch at Pfizer. But split off and unencumbered by Pfizer's legacy costs and declining older drugs, they are likely to be valued more.


    Bouncy


    Smaller biotechs always trade at a big premium to slower-growing large pharma, but that premium is especially large right now


    Pfizer is forgoing up-front cash by not licensing these drugs to an unrelated party, but this is a better option. It's not the best time to get a plum licensing deal; multiple companies are revamping R&D efforts and selling off drugs.


    Pfizer will get milestone and royalty payments if the drugs succeed, as it would under a standard licensing agreement. But it gets extra upside through its equity stake in the spinoff.


    And given the participation of Bain Capital and other investors, Pfizer's cash outlay probably wasn't significant. And the company has a chance of a return on drugs that may have otherwise just gathered dust.


    High upside and low downside add up to a winning strategy.


    Article Source: Bloomberg

    acquisitionsChannelsInner Biotechlicensing agreementMyovant Sciences LtdPfizerpipeline drugsRoivant Sciences LtdSpringWorks Therapeutics
    Source : Bloomberg

    Disclaimer: This site is primarily intended for healthcare professionals. Any content/information on this website does not replace the advice of medical and/or health professionals and should not be construed as medical/diagnostic advice/endorsement or prescription. Use of this site is subject to our terms of use, privacy policy, advertisement policy. © 2020 Minerva Medical Treatment Pvt Ltd

    Ruby Khatun Khatun
    Ruby Khatun Khatun
      Show Full Article
      Next Story
      Similar Posts
      NO DATA FOUND

      Popular Stories

      • Email: info@medicaldialogues.in
      • Phone: 011 - 4372 0751

      Website Last Updated On : 13 Oct 2022 5:14 AM GMT
      Company
      • About Us
      • Contact Us
      • Our Team
      • Reach our Editor
      • Feedback
      • Submit Article
      Ads & Legal
      • Advertise
      • Advertise Policy
      • Terms and Conditions
      • Privacy Policy
      • Editorial Policy
      • Comments Policy
      • Disclamier
      Medical Dialogues is health news portal designed to update medical and healthcare professionals but does not limit/block other interested parties from accessing our general health content. The health content on Medical Dialogues and its subdomains is created and/or edited by our expert team, that includes doctors, healthcare researchers and scientific writers, who review all medical information to keep them in line with the latest evidence-based medical information and accepted health guidelines by established medical organisations of the world.

      Any content/information on this website does not replace the advice of medical and/or health professionals and should not be construed as medical/diagnostic advice/endorsement or prescription.Use of this site is subject to our terms of use, privacy policy, advertisement policy. You can check out disclaimers here. © 2025 Minerva Medical Treatment Pvt Ltd

      © 2025 - Medical Dialogues. All Rights Reserved.
      Powered By: Hocalwire
      X
      We use cookies for analytics, advertising and to improve our site. You agree to our use of cookies by continuing to use our site. To know more, see our Cookie Policy and Cookie Settings.Ok