June 20, 2011 - IMM@BUCT

For Targacept, getting the rights back toTC-5619 “was a real windfall,” given that allof the firm’s other advanced clinical candidatesare partnered, deBethizy says. Headds that the company would like to holdon to the rights to the compound “as longas we can,” with the idea of signing anotherdeal after it has generated more data.Like deBethizy, most biotech executivesview a newly reclaimed molecule as awindfall. However, it’s one that comes withcaveats, because not all firms are equipped,financially or scientifically, to move a drugcandidate forward on their own.And although biotech companies areeager to spin a deal breakup as good news,losing an important funding stream canhave painful short-term consequences.Exelixis, now reveling in full ownershipof cabozantinib, felt the sting when BMSwalked away from the compound. Its stockprice dropped by 16% the day the newsbroke and continued to decline throughoutlast summer. And to support the developmentof cabozantinib, Exelixis has cutabout 75% of its staff and stopped workingon all its other internal projects.“We did the same prioritization thatBMS did,” Exelixis’ Morrissey says. Everyinvestment decision needed to be spot-on,he adds. “We couldn’t afford to miss.”The thinking at Exelixis after the restructuringwas, “This was do or die,” hesays. Everyone knew that “we’ve got tomake these next four months really count.”NOT ALL BIOTECH executives are as frankas Morrissey about the sense of urgencythey felt when a partner exited the scene,but many companies that have regainedthe rights to a drug have had to adjust theirstrategies. Some immediately went to thepublic markets to raise the cash to fundtheir newly expanded pipelines.For example, at the end of May, Rigelraised more than $130 million in a publicoffering so it could initiate Phase II studiesfor R343 and keep previous plans to beginPhase I trials for two new compounds.Even with cash in hand, biotechs mightstill find questions lingering over the valueof returned compounds. “The problem,I think, is perception,” PureTech’s Zoharsays. Even though investors and potentialpartners are well aware of the changes happeningacross the industry, abandoned programscan still carry “a taint,” she says. Butas more of these projects are returned forstrategic, rather than scientific, reasons,“it’ll become less traumatic.”Flash ChromatographyforNatural ProductsReduce purifications from DAYS to HOURSusing CombiFlash instruments andRediSep Rf Gold columnsi Walk-away operation usingactive solvent/waste management,peak detection, andfractionationi See everything with our widerange of detection optionsfrom UV-vis to EvaporativeLight Scattering Detection(ELSD)i Eliminate multiple runs —load samples up to hundredsof grams. Our new 3 Kg size isideal for initial extractions.i Separate at up to 1 L/min whileachieving high resolution withour spherical mediai Purify compounds from lowto high polarity on our wideselection of mediaLearn about new methods for natural productspurification at www.isco.com/natural, or bycontacting us:800.228.4373402.464.0231iscoinfo@teledyne.comGoldWWW.CEN-ONLINE.ORG 19 JUNE 20, 2011